Advantages and Disadvantages of Lifetime Guaranteed Term

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Lifetime guaranteed term insurance, also known as guaranteed universal life, differs from ordinary level term life in that premiums are guaranteed not to increase.  It is a great fit if you need inexpensive coverage that you will not outlive. Following are some of the advantages and disadvantages of term insurance guaranteed for life.

Advantages of Lifetime Guaranteed Term Insurance

  1. Guaranteed Rates and Benefits. Lifetime term offers rates that are guaranteed not to increase as long as premiums are paid timely. Additionally, the insurance amount remains the same for the life of the policy.
  2. You Can’t Outlive It! Unlike level term insurance, lifetime guaranteed term coverage assures that as long as you pay your premiums on time, it will pay a claim when you die.  Most folks outlive level term insurance because they drop it once premiums increase!
  3. Lifetime Term is the Most Inexpensive Form of “Whole Life” Insurance. Lifetime term does not build cash value. You only pay for the guaranteed insurance costs which dramatically reduces the cost relative ordinary whole life insurance.
  4. Flexibility. Term insurance with a lifetime guarantee can be designed to meet your specific needs. You can increase premiums and get a “paid-up” policy. Also, some companies will allow you to “dial-in” a guaranteed rate to a specific age.

Easy to Understand. The concept of lifetime term is simple. You pay a fixed premium for a fixed amount of life insurance and both your premium and death benefits are guaranteed for your lifetime as long as premiums are paid on time.

Disadvantages of Lifetime Guaranteed Term Life Insurance

  1. More Expensive than Level Term. Since coverage is guaranteed for life, you will have to pay more to get it!
  2. Very Little Cash Value. Most whole life policies build cash value over time. Lifetime guaranteed term builds minimal cash value that decreases over time. Because the primary focus is on the lowest possible price, cash value usually erodes within the first 10 policy years.

Premiums Must Be Paid on Time to Maintain the Guarantees. Many permanent life insurance policies offer flexible premium options. However, with lifetime guaranteed term, it is imperative that you pay the required premiums on time. If a premium payment is skipped or missed for any reason, you may very well lose the lifetime guarantees!


Lifetime guaranteed term, commonly referred to as universal life, is by far the best type of life insurance if you are seeking inexpensive coverage for you “whole life”.  If you are shopping for life insurance, you should definitely consider lifetime guaranteed term when comparing options. Before making any policy choice, you should always weigh the advantages and disadvantages of each alternative. One of the most important considerations is your choice of life insurance agent. MEG Financial offers many types of life insurance including term insurance guaranteed for life. We represent over 80 life insurance companies and can help you select the best life insurance policy. Call MEG Financial today at (877) 583-3995 for questions or to request a free term insurance quote!

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