When I’ve talked to people about universal life insurance products that have guarantees to 120 and longer, I’m often met with a bit of skepticism. People can’t seem to comprehend the idea of living past 100 even though it appears to be a popular past time.
My own parents are a good study in this issue. Inspite of some health issues, they are both in their mid eighties and going strong, at least most days. Forever it has been assumed that if you live past the mid 70’s, well, you’ve beat the odds and are living on borrowed time. More recently, and the reason life insurance companies are offering longer guarantees at affordable prices, studies are showing that if you reach your mid sixties in good health, the average life expectancy shoots out to between eight five and ninety. If that’s the average, then the century mark is just a few steps away.
So, while universal life is still not my recommendation at younger ages, when you reach that point in your life where you know what your permanent needs are, a product that is guaranteed beyond 100 is the appropriate step. And great news. It’s an affordable step thanks to products that are putting the old expensive whole products to rest. Universal life with a no lapse guarantee is a permanent term insurance policy and you can’t outlive it.
Bottom line. Quit poo-pawing the idea that you might live past 100. It’s real. It’s happening more frequently all the time and it doesn’t appear to be a trend that will be reversing itself.