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Why You Should Buy Term Life Insurance Before Age 75

why-you-should-buy-life-insurance-before-age-75The golden rule for life insurance is to lock in coverage for as long as possible, as soon as possible. With every year you age, your rate goes up. That’s because as you get older, you become more prone to health issues, and thus more risky to insure.

Term life insurance is the ideal solution for those in good health to secure coverage into their 80s. But, if you are in your late 60s or early 70s and still pondering whether or not to buy a term life policy, you are approaching a cutoff where term life will no longer be viable (or even accessible, for that matter). If you are almost 50 and thinking about purchasing life insurance, read this article here.

Quick Article Guide

1. Term Life Rates By Age
2. Guaranteed Universal Life Coverage
3. Coverage Until Age 90 or Later
3. How Long Will You Live?
4. Work With an Expert

Term Life Rates By Age

After age 70, your rate increase becomes dramatic: roughly 15 to 16 percent each year. By the time you hit 75, the hike steepens at about 25 percent each year. Take a look at the tables below to see how much a male and female in excellent health can expect to pay for a 10, 15, or 20-year term policy based on their current age:

Monthly Rates for a Male in Excellent Health 10-Year Term

Monthly Rates for a Male in Excellent Health 15-Year Term

Monthly Rates for a Male in Excellent Health 20-Year Term

Check out our Rates By Age page for more sample rates at various terms. Rates are accurate as of 07/01/2016Why the “N/A”s?You’ll notice that 15-year terms are no longer available at age 79, and 20-year terms are no longer available after age 70. Term life policies are more affordable than whole life policies because they are designed to be outlived. Insurers do not want to write a term life policy to age 90, 95 or 100 because the mortality risk is very high, and it is very likely that they will have to pay a death benefit. Yes, the table shows that you can get a 15-year term policy at age 78 that would last until you are age 93. The cost is exorbitant, though—nearly $2,000 per month for a $500,000 death benefit that would have cost less than $500 per month had you bought the same policy at age 70. So, what do you do if you’re in your 70s and seeking coverage into your 90s, or perhaps even to 100? How can you find a policy that enables you to leave money for your heirs?Guaranteed Universal Life: Coverage to 90, 95, 100, 105 and BeyondGuaranteed universal life insurance (GUL) is a hybrid between whole life and term life insurance. Contrary to popular belief, guaranteed universal life is not whole life insurance. GUL policies do not build cash value, and do not carry the expensive management fees of whole life insurance. Instead, guaranteed universal life offers fixed premium rates through the life of the policy, just like a term policy. However, while term policies offer fixed rates for a specific number of years, GUL policies are to specific ages: 90, 95, 100, 105, 110, even 121. Since there is no cash value component (which we say is a good thing), guaranteed universal life is relatively affordable and one of the most popular choices for estate planning, pension maximization, and guaranteeing a modest inheritance.After the age of 75, GUL life insurance is often less expensive than a comparable term policy. In fact, guaranteed universal life insurance is the least expensive type of of lifetime coverage available. Unlike traditional non-guaranteed universal life, there are no investment risks involved with this type of coverage. Your rates are guaranteed to stay the same regardless of changes in the market or changes to your age and health. These policies are usually available up until the age of 80, but like term life insurance, they become more expensive as we get older. The tables below show average rates for a male in excellent health seeking a GUL policy to age 90, 95, or 100. If your family has longevity, and your worried about outliving your coverage, these policies are also available until age 105, 110, or even 120.Monthly Rates for a Male in Excellent Health to Age 90
Monthly Rates for a Male in Excellent Health to Age 95
Monthly Rates for a Male in Excellent Health to Age 100Check out our Rates By Age page for more sample rates at various terms. Rates are accurate as of 07/01/2016
We’re seeing that the best savings and smartest strategies are in buying a GUL at age 75 or older instead of a term life policy. For example, at age 75, you could buy a 15-year term life policy with a $500,000 death benefit for roughly $1,257.75. Or, you could lock in the same coverage up to age 90 with a GUL policy that would cost roughly $1,190.46. That’s a savings of over $800.00 a year for the same amount of coverage. If you want to leave money behind for an inheritance or to protect your estate, $500,000 coverage until the age of 100 is only slightly more expensive at $1,484.44 per month, and you’re much less likely to outlive it.How Long Will You Live?If only we all knew the answer to that question (or maybe we wouldn’t want to know). Life insurance can begin to feel like a puzzle when you consider the dozens of factors that determine rates and options. This calculator from the U.S. Social Security Administration provides a statistical look at your life expectancy, and may be helpful when determining the length of your coverage. Most of the men we work with feel comfortable purchasing coverage until the age of 95 or 100, while women typically purchase coverage until the age of 100 or later due to a greater lifetime expectancy. If you are purchasing insurance for estate tax reasons, most estate attorneys will recommend coverage until age 105 or later.Work with an ExpertIf you are seeking guaranteed universal life or term life insurance before 75, contact JRC for a free consultation. We’ll be happy to walk you through your options and help you find the policy that’s best for you. We represent dozens of top-rated life insurance companies and with a few questions, we’ll be able to find the best policy for your needs at the lowest rate available. Call us toll free at 855-247-9555 or request a free quote online.Free No Exam Life insurance quotes

Age $100k of Coverage $250k of Coverage $500k of Coverage
70 $88.68 $172.48 $321.93
71 $99.13 $198.00 $367.67
72 $110.63 $226.76 $420.26
73 $124.82 $262.44 $483.53
74 $139.70 $299.85 $560.05
75 $155.73 $342.24 $654.90
76 $186.84 $407.98 $798.74
77 $221.09 $482.58 $940.01
78 $263.48 $574.71 $1,120.83
79 $307.85 $671.15 $1,310.82
Age $100k of Coverage $250k of Coverage $500k of Coverage
70 $125.36 $235.62 $462.88
71 $151.72 $313.91 $620.12
72 $176.71 $378.57 $718.59
73 $195.52 $432.47 $797.34
74 $216.43 $479.28 $897.97
75 $294.98 $636.55 $1,257.75
76 $348.49 $755.73 $1,480.06
77 $402.74 $865.59 $1,696.35
78 $469.39 $1,010.50 $1,981.87
79 N/A N/A N/A
Age $100k of Coverage $250k of Coverage $500k of Coverage
70 $180.77 $406.57 $807.97
71 N/A N/A N/A
72 N/A N/A N/A
73 N/A N/A N/A
74 N/A N/A N/A
75 N/A N/A N/A
76 N/A N/A N/A
77 N/A N/A N/A
78 N/A N/A N/A
79 N/A N/A N/A
Age $100k of Coverage $250k of Coverage $500k of Coverage
70 $200.25 $462.74 $925.48
71 $214.27 $490.74 $981.48
72 $225.61 $512.42 $1,024.82
73 $237.00 $533.38 $1,067.76
74 $250.80 $560.76 $1,121.52
75 $268.08 $595.23 $1,190.46
76 $332.94 $815.72 $1,620.50
77 $358.40 $879.38 $1,747.81
78 $395.59 $972.56 $1,934.19
79 $425.60 $1,047.38 $2,083.81
Age $100k of Coverage $250k of Coverage $500k of Coverage
70 $226.07 $522.41 $1,044.81
71 $242.63 $555.70 $1,111.40
72 $256.64 $587.33 $1,174.66
73 $269.76 $621.65 $1,243.30
74 $285.51 $660.15 $1,320.29
75 $312.99 $704.42 1,408.84
76 $339.68 $832.56 $1,654.19
77 $364.61 $895.13 $1,779.31
78 $400.49 $984.81 $1,958.25
79 $428.66 $1,055.25 $2,099.13
Age $100k of Coverage $250k of Coverage $500k of Coverage
70 $235.00 $558.30 $1,116.60
71 $250.30 $594.25 $1,187.00
72 $265.91 $631.12 $1,238.56
73 $281.40 $669.00 $1,324.00
74 $299.86 $716.18 $1,422.00
75 $324.90 $747.69 $1,484.44
76 $348.70 $855.00 $1,696.00
77 $375.60 $931.00 $1,857.00
78 $406.10 $1,007.25 $2,009.50
79 $440.60 $1,093.75 $2,182.00
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