Is Guaranteed Universal Life Insurance Worth the Cost?
Comparing the GUL rates with the Term Life rates, you can quickly see that Guarantee Universal Life is more expensive.
Is the higher premium worth the added cost?
For many, it absolutely is. In the examples above, the GUL is approximately twice the cost of the Term Life policy, but you’re getting coverage for 66 years with the GUL. The 30 year term will run out when the insured is 85 years old and the GUL covers to age 121.
It is very common to live past age 85 today.
Advances in medicine, health and diet are improving our lives. If you outlive your term policy and want to get a new policy at age 85, you’re going to very limited in your choices. You won’t have the opportunity to buy traditional term life with a death benefit of $100,000 or more. If you buy annual renewable term life insurance, it is going to very expensive.
Annual renewable term will be much more expensive than the GUL in the examples above.
The Guaranteed Universal Life insurance is worth the cost if your main goal is to have life insurance for your entire lifetime.
If your life insurance goals are only for protecting in the short term, then Term Life may be a better option.