GUL Is Better Than Term Life Insurance For Seniors

Guaranteed Universal Life, also known as GUL, No Lapse Universal Life, or “term insurance for life,” is the most cost effective permanent life insurance that has a guaranteed level rate up to your entire lifetime, regardless of interest rates that are credited to policy.  

You can also choose the guaranteed level premium you’d like on GUL products with the longest guarantee being your total lifetime. This is the only life insurance product for which you can choose any guarantee you’d like.

The National Association of Insurance Commissioners (NAIC) recently determined almost all GUL life insurance rates were too low and could cause insurance companies to have potential financial issues which could make it hard for them to pay death claims. This was called Actuarial Guideline 38 (AG38), and it just caused life insurance rates to increase. 

Columbus Life is the only company that I believe has not increased their GUL rates and does not intend to anytime soon. For many people right now, Columbus Life’s GUL product will not be beat.

Hartford Life also only had very minimal increase in their rates and are still really competitive in the GUL market.

As I mentioned above, the nice thing about GUL rates is many companies will allow you to choose your guaranteed level premium period. If you’re 65 now and are comfortable having a guaranteed level rate to age 85, 88, or 90, you can lock into one of these guaranteed periods. On the other hand, if you feel better locking into a guaranteed level rate to age 95 or 100, you can do that too. The longer the guarantee, the more expensive the insurance will be.   

For many seniors, the guaranteed universal life rates to age 85, 90, or longer will be less expensive than a term insurance policy for the same time frame. Plus, you can pay more into almost every GUL policy to extend the duration of coverage later. This is a great option if you get concerned that you may outlive your policy later or decide to “sell” your policy via a life settlement. 

To get an offer to “sell” your policy via a life settlement, your policy must be able to accommodate a level premium to your age 100. UL, GUL, and term plans that are still convertible are perfect for life settlements. 

Another reason I like GUL products is because some insurance companies are more liberal in underwriting on GUL or other permanent insurance products than they are when underwriting term life insurance. While some people with health issues might get charged an extra premium on term life, they may be able to qualify for a “Regular” or better rate with no extra premium on a guaranteed universal life or other permanent life insurance product.     

GUL products provide more flexibility than most traditional term life insurance policies, especially for people age 60 and older who want a 20 year or longer guaranteed level rate. 

Since GUL rates are a good bit more expensive than term insurance for younger people, many younger people will be better off buying convertible term insurance. 

To get GUL quotes, use the quoting tool to the upper right hand side of this page and input your information. For “Insurance Type,” scroll down to “To Age 121 Level (No Lapse U/L)” and hit “compare now.”

I’d also recommend setting the “Premiums Paid” module to “Annual,” as some insurance companies won’t show up if you choose monthly because these products can be complicated to show accurate monthly premiums. Some life insurance companies won’t allow monthly premiums to be shown on the quotes because they may be inaccurate. 

You can still pay ANY of the No Lapse U/L products on a monthly basis, and each company has special software to do this. Just let me know if you’d like to know the monthly rates on all GUL products or if you’d like a specific guaranteed level premium.