I recently wrote up a lengthy proposal for a healthy, 64 year old male needing permanent life insurance coverage. He is in excellent physical condition with no history of medical conditions and no current medications. My only concern is his weight at 5’9, 230 lbs. At this build, the best life insurance rating he can qualify for is Select with Genworth, and possibly can qualify for Preferred if he can weigh in at around 220 lbs on the medical exam. Here’s an example where my client needs coverage for his whole life, so I quoted him a guaranteed universal life insurance policy from Genworth with level premiums to age 110, and another guaranteed to age 120.
It’s important to understand that universal life insurance with a no lapse guarantee to age 110 or 120 will build little to no cash value. That’s okay, because every company who offers universal life usually has a type of UL product available with a rider, which says something to this effect “The policy illustrated contains a No Lapse Guarantee feature that may provide guaranteed death benefit protection when your policy values are otherwise insufficient to keep your policy in force.” In other words, even if the cash value is zero, as long as you pay your scheduled premium, your no lapse rider will kick in and keep your coverage in force. There are many names for this no lapse guarantee. Genworth’s rider is called the Coverage Protection Guarantee. ING’s is called the Lapse Protection Value. Every company refers to the rider differently, but they all do the same thing… keep your policy in force with zero when there is zero cash value. Having said that about my quotes guaranteed to age 110 and 120, you should also know that you can overfund a universal life policy and, if you pay enough premiums, get some cash value accumulation, which is what I illustrated in scenario 3. The cash accumulation life insurance strategy at 64 years old would cost about double the premium to make sense. Here is the email proposal I sent him:
“All of the quotes we discussed on the phone a moment ago were also provided by Genworth Life Insurance of NY. I’ve given a summary of the three strategies below, which are level premiums to age 110, level premiums to age 120, and a cash accumulation strategy where you overfund the policy to grow guaranteed cash value.
1. $300,000 Face Value, 64 Years Old with Guaranteed Level Premiums to Age 110
Preferred Class – $520.61 Per Month
Note: You will need to weigh 223 lbs or below on the insurance exam to qualify for Preferred class
Select Class – $623.00 Per Month
2. $300,000 Face Value, 64 Years Old with Guaranteed Level Premiums to Age 120 – At age 120, if death has not yet occurred, premiums are no longer charged, and coverage is guaranteed for life.
Preferred Class – $605.04 Per Month
Select Class – $679.62 Per Month
3. $300,000 Face Value, 64 Years Old with Additional Premiums Paid for Cash Accumulation – The base policy is the same as in option 2, but with additional premiums paid, the policy grows cash value, whereas options 1 and 2 will have little to no cash value. In Option 3, the minimum premium required to accumulate any substantial cash is $1500 per month. At $1500 per month, you will accumulate cash on a guaranteed and non-guaranteed basis as follows:
Guaranteed Future Cash Values – 3.0% Guaranteed Interest Rate – Cash values below are the minimum net cash values your policy would have if you pay $1500 per month and take no loans or withdrawals.
10 Years – $123,357
20 Years – $298,562
30 Years – $463,602
40 Years – $601,279
Non-Guaranteed Future Cash Values – 3.75% Assumed – Cash values below are projected cash values, not guaranteed, based on an assumed interest rate of 3.75%. Actual interest rates credited may be higher or lower, which could affect the values below. Since interest rates are likely to rise, it is very possible that your cash value would actually be credited with a higher interest rate and the values below will be higher. These values are also based on a monthly premium of $1500.
10 Years – $152,489
20 Years – $400,515
30 Years – $707,080
40 Years – $1,007,550
Please also see the attached illustrations showing your guaranteed and non-guaranteed cash values from option 3. **These were attached in the actual email but are not available on this post.
For more information or to apply, please call us at 877-443-9467. Thank you.”
If you are 64 years old looking for whole life insurance, please get a quote to age 100, 110, or 120 in our form on the right, or call us at the number above for an accurate quote.