The cost of guaranteed universal life insurance
As with other traditional life insurance products, you will be fully subscribed when you apply for guaranteed universal life insurance. By fully signed, we mean your age, gender, smoking status, family history and health and lifestyle factors will all be evaluated to determine your risk class – in addition to having a medical examination.
Your risk class is what determines the price you pay for life insurance. In essence, the more risky you are for the insurance company to insure, the higher your premiums.
How much guaranteed coverage you want to buy also affects the cost of a YELLOW insurance. Again, your YELLOW coverage can be your whole life so no matter what coverage amount you choose is the guaranteed death benefit that your recipient will receive when you die.
I ran a couple of quotes for a healthy non-smoking 40-year-old woman. As you can see in the screenshots below, the cost of a YELLOW with $ 500,000 guaranteed death benefit is much more expensive than a YELLOW with $ 1
Laddering Life Insurance Policies: A Different Strategy
For individuals who want full life insurance over life insurance, it is often because they want to leave some money behind no matter when they die. With term insurance, the coverage only lasts for a certain period of time (often 10, 20, 30 or even 40 years) and if you do not die within that time, your beneficiaries will not receive any payment.
Term life insurance is a good product for families. It is affordable and provides protection for your loved ones during their most financially vulnerable years, the years when you pay a mortgage, support a spouse and raise children.
But if you want the life insurance to apply until you do not die if you die, life insurance will not reduce it. An alternative is to step up various life insurance policies.
»Compare: Guaranteed Universal Life Insurance Quotes
Buy a term insurance with enough coverage to reimburse about 10 times your income and pay off all the major ticket items if you died unexpectedly, such as a mortgage and your children higher education. Then also buy a small guaranteed universal life insurance to provide money for your funeral, end-of-life expenses and a small inheritance.
Let's look at an example.
He is healthy and plans to live a long time, but should the unexpected happen, he wants to ensure that his wife and their children can stay in their homes and that their children can go to college without financial struggle.
He hopes to live a long, happy life and die peacefully in his bed in old age. If this happens, he still wants to leave an extra income for his wife and some money for his children.
John can achieve his goals by purchasing both a term life insurance policy and a guaranteed universal life insurance policy.
He buys a $ 30,000 life insurance policy for 30 years for $ 55 a month and also buys a $ 150,000 universal life insurance policy for $ 100 a month.
If John dies before the age of 65, his family will receive $ 900,000 in total death benefits. . If he lives to be 65, his family will receive $ 150,000 no matter what age he dies.
Who should consider a guaranteed universal life insurance?
Honestly, most families only need life insurance. But a YELLOW insurance is a good option for those who want lifelong protection but their budget does not allow a full life insurance.
- Have a need with special needs
- Have a small business
- Have debts that are expected to last until or into retirement
- Need death protection
- Want to leave an inheritance
- Are older and your term policy has expired but you still want coverage
and then look into guaranteed universal life insurance.
You can easily compare the costs of life insurance and YELLOW with our quotation tool. Simply go to our quote tool, insert your basic information and move the slider Coverage length all the way to the right to "Forever" on the other side. Compare prices anonymously and then apply online in just a few minutes.