In this blog post, I’ll explore how to get life insurance with the premium locked into age 100, why it would or would not make sense for you to consider a policy to age 100, as well as discuss pricing for policies with level premiums to term to age 100 life insurance as compared to alternative term periods. You can compare rates for yourself right below using our quote tool, or keep reading for more on Term to age 100 life insurance.
When you buy a term life insurance policy your options are usually between a 10 year, 15 year, 20, 25 or 30 year policy. Most people will find that one of these options will help them get the coverage that they need during the years they need it most. For example many people under 50 will choose a 20 or 30 year policy, while those over 50 may find that a 10 or 15 year policy meets their needs.
However there are times when people want to make sure that they have a policy that lasts for a longer period of time. Maybe it’s to leave money to cover final burial expenses, or just leave an inheritance to children or other family members. Others have longevity in their family history and want to have a policy that covers them well into their 90s or longer.
In instances of someone looking for a policy that guarantees premiums remain the same until age 100 there is an option, however it isn’t a term policy.
A Universal Life Policy with a No Lapse Rider is a life insurance policy that can have premiums that are guaranteed never to go up. Policies exist with options to lock in the rate to age 90,95,100 or even 121. This type of permanent life insurance is essentially the same as term insurance, except that the premiums are locked in for a longer period of time.
While a universal life with no lapse rider can build up some cash value, it really isn't designed to build up significant cash value the same way a whole life policy is designed. The result is a cheaper policy than whole life, while providing coverage on a permanent lifetime basis.
When compared to a term life policy a Guaranteed Universal Life policy is more expensive. However it is a form of permanent life time coverage with premiums that are guaranteed never to rise. In addition these policies are much cheaper than whole life policies.
There are several companies that offer competitive rates for these types of policies:
North American Company for Life & Health
Mutual of Omaha
How does pricing differ between a term policy and a guaranteed universal life policy?
Let’s take an example of a 50 year old male at Preferred Plus Non Tobacco for a $250,000 policy. We’ll compare rates between 20 year term, 30 year term, and a Guaranteed Universal Life to age 100 policy:
You can see that a guaranteed life time policy in this case is about 3 times the price of a 20 year term, and about twice the amount of a 30 year term.
Term to 100 is basically a Guaranteed Universal Life (GUL) policy that doesn’t expire till age 100, so the GUL is what’s used in this situation. Both Term and GUL’s are cheaper than whole life which is why someone would this route instead of getting a whole life policy.
The premiums and the death benefit never changes till age 100 and is cheaper than getting any other types of life insurance policies. To have a guaranteed death benefit to age 100 you are pretty safe you won’t outlive your policy so it should pay out. You also have an option to push out to 120yr old as well at the time of the application
Every carrier is different but typically as a child up to age 80yrs old is the age range to be eligible for Term insurance. And then usually 85yrs old is the cut off to apply for Guaranteed Universal Life (GUL) policy.
First and foremost make sure any carrier you’re looking at is an A rated carrier. To find this out go to www.AMBest.com and then under “Financial Strength” link just type in the carrier’s name to get their rating. The premiums are more expensive than a traditional Term policy but they should be, the carrier is on the hook to keep you alive longer so they should charge more
Just as it says to 100yrs old. 100yrd old is not your only option, if you are worried about outliving this policy look at doing this to age 120yrs old instead.
Most carriers will allow you to do this but keep in mind if say you originally got your policy for 100k of coverage you’d probably only be able to convert that 100k down to 5-10k of coverage for whole life. Every carrier has their own guidelines so ask at the time of application when you’re purchasing your policy
Every carriers actuary tables are different so it all depends on your health and lifestyle. Health meaning your overall health and lifestyle as in do you participate in high risk sports, do you have any DUI’s or reckless driving on your record, any drugs or convictions, do you smoke are all considerations
Well, you’re out of luck, it expires like a normal Term policy. What you should be asking is does longevity run in your family. If yes look at doing a GUL to age 120yrs old instead.
Ask yourself how long do you want to be covered. If you are healthy it’s a great decision since you can max out the death benefit for the cheapest premiums. Or if all you need is protection for 10-30 years then No, just do a straight Term policy.
Well you lose your policy, very simple. If you decide you need it again, you’d have to reapply and go thru underwriting and get another health exam.