Term Life Insurance For 40 Year Olds’

by Jeff Rose on September 9, 2016 · 2 comments

in Term Life Insurance

term life insurance 40 year oldPurchasing life insurance in your 40’s can be complicated. It’s never a fun shopping trip, but it’s one that you can’t afford to skip.

The older you get the more expensive the premiums on your life insurance become.  If you are in your 40’s, your spouse may have several big financial responsibilities to take care of in your absence. There are a lot more people that rely on your income than there were 20 years ago. Life insurance is even more important now than it was back then.

These responsibilities can be a burden for your family if you are unprepared.

Here are a few examples of some of those responsibilities:

  • Funeral Expenses
  • Mortgage
  • College for your children
  • Day-to-day expenses of your household

The key is knowing exactly what your family needs.  A single person may only need a  large enough policy to settle any debts and pay for the funeral.  A person who has four children and a spouse will need to make sure their sum replaces any lost income as a result of their passing as well as set their family members up for success in the future.

Before you purchase a life insurance policy, sit down and think about how many people rely on your income and how long they will need it.  Are your children still living in your home, or are they off in college with their own jobs?   The answer to this question is greatly going to impact your insurance needs.

What type of insurance is right for me?

There are many options to choose from when selecting life insurance. You can go with a permanent policy such as a whole life policy. This type of policy will be more expensive, but they are guaranteed till age 100.  As long as you continue to pay the monthly premiums, you’ll have life insurance coverage.   They also have a cash value savings component. Here is an example of how much a $250,000 whole life policy would cost.

Whol Life policy $250,000

Whole life can be expensive

As you can see this policy will set you back $3,440 per year for a $250,000 policy. This is a lot of money for someone to have to pay for life insurance.  Typically, this why I’m not a big fan of whole life insurance.   If you’re in good health and can pass a routine medical exam, then term life will be the cheaper option. Sure, it’s nice to have a policy that you know will never expire, but that comes at a serious cost. If you like the comfort of the permanent premium, they are a great option, but not the cheapest.

Term insurance in Your 40’s

Term insurance is a great way to protect your family in the case of your absence. Even though you may now be in your 40’s, term life insurance is still quite reasonable.  In most cases, applicants are surprised to see just how affordable a term life insurance policy can be.   Here are a few examples of how much a $500,000 policy would cost.

$500,000 / 30 Year Policy

Term Life Insurance rates For 40 Year Olds's

$500,000 / 20 Year Policy

Term Life Insurance rates For 40 Year Olds's

How Long of Term Do You Need?

That’s the common dilemma that most 40 year-olds face when it comes to buying life insurance.   Do you need a 30 year policy to cover you until you are in your 70’s?  Or is buying a 20 year policy sufficient.  There are several different factors that you have to consider when deciding how long of a policy you need.   If you can afford it, we usually advocate purchasing the longer policy.

Why do we suggest a 40 year-old buy a 30 year policy?   First of all, people are living longer.   This is a fact you can’t ignore.   The other is purely determined on the amount of 60+ year-old that contact our office to purchase term life insurance.

Getting life insurance is that much more expensive (if even an option with your health) in your 60’s.   More than likely, if you get a 20-year term policy, you’ll still need coverage once that plan expires, but it’s going to cost you. Getting the longer policy now can save you money in the long run.  Because of that it makes sense to take out the 30 year term policy and then just stop paying on it if at some point you decide you don’t need it anymore.

There is no policy that works perfectly for everyone. There are several different kinds of life insurance policies that you have to consider. Each of them has advantages and disadvantages that you’ll have to weigh. Because each person and family has different needs, everyone is going to require a different policy.

40 Years-Old is Not Too Late to Buy Life Insurance

Just because you are 40 years-old, doesn’t mean it’s too late to purchase term life insurance, you can even purchase life insurance in your 50’s, but why wait?   You still have many good years ahead of you.  The longer that you wait to apply for the policy, the more expensive your monthly premiums are going to be. You never know what’s going to happen tomorrow. Don’t let an unexpected death put your family under a mountain of debt that you left behind for them.

One of the worst mistakes that you can make is to not have life insurance. If you were to pass away, all of your family is going to be left with all of your debt. Your mortgage, student loans, credit card bills, hospital bills, and much more. You could leave your family with thousands and thousands of dollars in unpaid expenses. Would they have the money to pay for all of those bills? All of that debt can add tremendous stress and discomfort on a family that is already in a difficult place as they struggle through the loss of a loved one. This is where life insurance can be one of the most important purchases you’ll ever make.

The Cost of Life Insurance

Yes, your premiums are going to be higher in your 40’s than they were when you were 20, but that doesn’t mean your insurance policy has to break your bank. There are several ways that you can get lower monthly premiums.

If you’re a smoker, it’s going to cost you dearly on your insurance plan. Being listed as a smoker on your application is going to cause your monthly rates to go through the roof. Smokers are going to pay two or three times more than a non-smoker. If you want to save money, then it’s time to drop the cigarettes.

One of the best ways that you can get the lowest insurance rates is to get quotes from several different companies before you choose the plan that works well for you and your family. Each company is different and all of them are going to have different monthly premiums, even for the same plan. Every insurance company ahs a different rating system, if you aren’t happy with the quotes you get from one company, you should always get quotes from multiple companies first.

You could spend hours talking to different companies while you get quotes from dozens of different agents. Your time is valuable, instead of wasting it on the phone, let us get the quotes for you. Simply fill out the quote form on the side and all the lowest rates will come to you.

Not only can our agents find you the best rates based on your age and health, but they can also answer any questions you have about life insurance and the different types of policies. It can be a long and confusing process when you’re looking for a life insurance policy, but you don’t have to go through the journey alone. Now that you have some basic rates I hope you are able to make a better choice when it comes to protecting your family in the case of an unexpected event.

{ 2 comments… read them below or add one }

Miriam Scucci February 12, 2013 at 11:59 am

My husband is 46 yr old we have two boys age 12yr old and a 14yr old and Iam 50 what type of life ins I should have.


Jeff Rose February 21, 2013 at 3:47 pm

@ Miriam It really depends on what your goals are and how much income protection you feel you need. If you contact our office we can assist you in determining how much life insurance you need.


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