Purchasing Senior Life Insurance is an important investment, but it can be expensive. Fortunately, permanent and limited-duration policies offer affordable premiums, guaranteed death benefits, and optional riders that can be tailored to your needs.
For the most coverage at the lowest cost, choose a policy that covers you for a set number of years. These policies typically include a premium guarantee so you pay the same monthly premium for the duration of the contract, and beneficiaries receive a guaranteed death benefit. This option does not accumulate cash value.
Prices are generally best if you are in good health. You may qualify for long-duration contracts earlier in life, while shorter increments are commonly available at older ages; however, costs tend to rise as you age and certain longer terms may not be offered past specific ages.
Guaranteed Universal Life (GUL)
GUL policies offer two main guarantees: fixed premiums for as long as you own the policy, and a guaranteed death benefit for many years—often extending to advanced ages—so you can have coverage that effectively lasts a lifetime.
Be aware that most insurers require a health assessment when you apply for a new GUL policy at older ages, and underwriting rules vary by company. If you are planning for retirement, also consider how a long-term guaranteed policy fits with your broader Life Insurance for Retirement strategy.
Optional Riders
You can add optional riders to either policy type for an additional fee. Riders may help cover long-term care costs or provide living benefits while you're alive.
Keep in mind that any amounts you use while living (through accelerated benefit riders, for example) reduce the death benefit paid to beneficiaries.
Considerations
- How much coverage do you need?
- For how long do you wish to be insured?
- How’s your health?
- Who would you like to receive your policy’s death benefit?
- Do you wish to add optional riders?
- What is your life insurance budget?
Both Term Life Insurance and guaranteed universal life policies can provide affordable coverage with defined guarantees; the right choice depends on how long you need coverage, your health, and your budget. For assistance choosing the right policy, talk to your insurance agent.
Frequently Asked Questions
At what age is life insurance most affordable?
Premiums are generally lower when you apply at a younger age and in good health, since insurers price based on mortality risk.
Will a GUL policy build cash value like whole life?
Guaranteed universal life focuses on guarantees and typically does not emphasize cash value accumulation the way traditional whole life does.
Can I add long-term care coverage to my life policy?
Many insurers offer riders that accelerate death benefits to help pay for long-term care, but using those benefits reduces the death benefit left to beneficiaries.