Like most things in life, life insurance comes with its fair share of choices. There are various types of life insurance seniors can benefit from, such as term life, whole life, universal life, and guaranteed universal life insurance. The type that is best suited for seniors, however, may be guaranteed universal life insurance.
Guaranteed Universal Life insurance
Guaranteed Universal Life insurance (GUL) is one of the most reliable types of life insurance, seniors can avail of. It offers terms up to 120 years and ensures payment to beneficiaries after the policyholder’s death. Moreover, it does not include a cash value or requires an investment component. It also does not include any management fees.
Why GUL it the best for seniors?
Some of the reasons why GUL has been recommended by many life insurance experts are as follows:
- It offers coverage until the age of 90-95 years or even until death.
- Within the policy, it may not have much cash value. This means that you may not be able to borrow much against it during your lifetime. However, it also means that it is less expensive than other plans, such as whole life and universal life insurance.
- You never have to pay additional premiums as there is no chance of it becoming underfunded.
- Similar to whole life insurance plans, you can choose to pay level premiums for as long a term as you wish.
- Beneficiaries are guaranteed the sum of money you choose when you avail of the policy.
- Some plans lapse if you default on a payment. However, you can always choose a no-lapse plan that does not carry this risk.
In terms of dependability and cost, therefore, guaranteed universal life insurance is perhaps the best type of life insurance, seniors can opt for. Some companies that offer this include North American Company for Life and Health Insurance, Mutual of Omaha and American National. Some of them even offer plans without a medical examination.