Life Insurance For 40 Year Olds

Written by Jeff Root

There are many reasons why a 40-year-old would need life insurance. In your forties you have just reached a critical threshold, what most doctors would say is the halfway point in your life.

On average men live to be 79 years old and women live to be 82 years old, so your early forties are a critical point to purchase life insurance.

Why 40 Year Olds Needs Life Insurance?

1. Breadwinners

In your early forties, you have children to think about in some cases. If you are a parent and your children still live at home, they are dependent upon you and particularly upon your income.

If you were to pass away unexpectedly your children might still need money for many things. If you have very young children you might need to provide income to cover childcare costs.

2. Stay at Home Parents

Even if you are not the primary breadwinner, and you are a stay-at-home parent, you should still consider life insurance at this age to cover the cost of the things you do around the house.

As a stay-at-home parent, you might be the one who provides those childcare services. You are probably the one who gets the children to and from school. If you were to pass away unexpectedly you might need to have money for the services, for a nanny, for a food delivery company, for many different things.

3. Mortgage Payments

You also have to worry about your mortgage. You might have just purchased your first house. You might be a few years into a new mortgage.

But what if you were to pass away? If your income were no longer there, it would fall upon your family to cover that mortgage. Not every family is equipped to cover the cost of an outstanding mortgage.

With life insurance policies you can set up a policy that runs the length of your mortgage so that if at any point between now and the time the mortgage is paid off, your beneficiaries would have the money needed to pay it off.

4. Other Debts

There are of course other debts that you might consider. If you just purchased a new car after receiving a promotion at work, you might be fiscally responsible and only pay 10 to 20% of the total cost so that you can pay the rest of it over the long term and have another line of existing credit while simultaneously paying your bills every month and increasing your credit score.

You might be doing this to combat the dip your credit takes after taking out a mortgage or you might be doing it to improve your score before you take out a mortgage. In either case, if you have outstanding debt for things like a vehicle, this will also follow up on the shoulders of your loved one.

Tips for Getting the Best Life Insurance

If you are in your forties you are better off getting covered now rather than waiting. Your health and your age are truly the keys to getting affordable premiums.

Younger, healthier people will pay less.  This is simply because they pose less of a risk to the Life Insurance Company. So how much does your health in your age?

Let’s look at some life insurance quotes for people in their 40s:

A non-smoking 46-year-old male who is in the preferred rating would get a premium quote of approximately $65 per month if they decided to get $500,000 in coverage over a 20-year Term Policy.

By comparison, if you waited until you were 57 years old under the same health circumstances, you would be charged $181 per month for $500,000 and covers over a 20-year.

This is almost three times as much and would result in paying over the course of that 20-year term almost $28,000 more than the applicant who took out the policy at a younger age.

Another example is a 47-year-old male under the preferred category who is a non-smoker. That person would pay approximately $71 for $500,000 in coverage if they took a 20-year Term Policy.

By comparison, if that same person waited just two years, when they turn 49, they might have deteriorating health and qualify instead for a standard policy at which point they would pay $132 per month on average for the same coverage.

This means that the difference between a 47-year-old and the 49 year-olds with deteriorating health would be a total of almost $15,000 by the time is over.

Obviously what you see here is the fact that health and age play a critical part of your insurance. As you get older you are going to pay more so you should not wait until an emergency has happened. If you are in your early forties it is still incredibly affordable to take out a policy.

Term Life Insurance Rates for Males in Their 40s

The below rates are for males in their 40s who are in the preferred health classification, are non-smokers, looking for a 20 year term life insurance policy.

Age $100,000 $250,000 $500,000 $1,000,000
40 Year Old Male $20.55 $34.80 $65.41 $121.66
41 Year Old Male $22.88 $37.72 $73.06 $133.95
42 Year Old Male $24.73 $41.05 $79.49 $146.99
43 Year Old Male $26.60 $45.42 $87.71 $165.37
44 Year Old Male $28.95 $49.59 $97.56 $182.00
45 Year Old Male $30.79 $54.17 $107.19 $198.89
46 Year Old Male $33.79 $58.97 $115.82 $216.49
47 Year Old Male $36.14 $66.72 $126.44 $235.72
48 Year Old Male $38.53 $73.28 $138.69 $260.22

Term Life Insurance Rates for Females in Their 40s

The below rates are for females in their 40s who are in the preferred health classification, are non-smokers, looking for a 20 year term life insurance policy.

Age $100,000 $250,000 $500,000 $1,000,000
40 Year Old Female $14.79 $31.80 $58.42 $114.16
41 Year Old Female $15.34 $33.24 $60.61 $116.95
42 Year Old Female $17.73 $34.41 $65.19 $121.49
43 Year Old Female $20.64 $37.42 $73.87 $133.65
44 Year Old Female $22.45 $41.95 $77.65 $146.82
45 Year Old Female $24.94 $45.17 $87.29 $165.98
46 Year Old Female $26.43 $49.73 $96.82 $182.21
47 Year Old Female $28.52 $54.62 $106.44 $198.23
48 Year Old Female $30.12 $58.34 $115.39 $216.34

How Age Affects Life Insurance Rates 

Let’s see how life insurance companies pass on the risk you pose in the form of premiums.

Example 1:

A 40-year-old male who is a non-smoker and falls into the preferred rating is looking for $500,000 in coverage.

If that person takes out a 20-year Term Policy it might cost an average of $37 per month. In total, over 20 years that person is paying $8,880.

If that person takes out a 30-year term policy it will cost an average of $65 per month. That individual will end up paying $23,400 over the course of the policy.

This means that if that person bought a 20-year Term Policy they would save $14,520.

Example 2:  

A 48-year-old male who is a non-smoker and falls into the preferred category is searching for $500,000 in coverage.

If that person takes out a 20-year Term Policy they will pay approximately $77 per month which means they will pay a total of $18,480 over the course of the entire policy.

If that person takes out a 30-year term policy they will pay $139 per month and in the end, they will pay $50,040 over the course of the life insurance policy.

This means that the person could save $31,560 if he purchased a 20-year term over a 30-year term.

As you can see your health and age are very important and you need to make sure that you review all of the different components that could possibly play a role in the premiums you are going to pay.

Is Term Life Insurance Best for Me?

With this comparison what you want to keep in mind is the reason for getting your policy and whether you are getting a Term Policy. Term policies are designed for people who have financial needs with a finite end.

This would be the mortgage, or the auto loan mentioned above. If you are only going to take out a 10-year policy to cover something like this, it is obviously in your best interest to take out a policy sooner rather than later.

However, if you plan to set up something like a Term Policy specifically to cover your financial needs at which point you are going to convert it into a different plan, you might be better off picking a permanent policy now or picking a longer Term Policy like a 30-year policy.

If you get a 30-year policy, the longest amount of time you can, you can lock in that lower rate for a longer amount of time which will offset the increase in cost that comes from taking out a secondary Term Policy at an older age.

An example of this would be a 40-year old taking out a 30-year policy and then once they turn 70 taking out a 10 or 15-year policy. This might be cheaper than a 40-year-old taking out a 10-year policy and then at age 50 taking out a 30-year policy and then at age 80 having to take out another 10-year policy.

Obviously quotes that you get now for different ages like 40 years or 50 years or 60 years old will change subject to your health and your lifestyle have it. If you pick up smoking or you are diagnosed with a heart condition 15 years from now, it will certainly change the costs you are quoted in the future.

Permanent Life Insurance Rates for Males in Their 40s

The below rates are for males in their 40s who are in the preferred health classification, are non-smokers, looking for a permanent life insurance policy.

Age $100,000 $250,000 $500,000 $1,000,000
40 Year Old Male $88 $108 $248 $464
41 Year Old Male $96 $117 $272 $508
42 Year Old Male $104 $132 $308 $562
43 Year Old Male $116 $149 $342 $632
44 Year Old Male $128 $165 $387 $702
45 Year Old Male $136 $182 $416 $760
46 Year Old Male $148 $201 $468 $838
47 Year Old Male $162 $226 $527 $942
48 Year Old Male $179 $259 $602 $1,035

Permanent Life Insurance Rates for Females in Their 40s

The below rates are for females in their 40s who are in the preferred health classification, are non-smokers, looking for a permanent life insurance policy.

Age $100,000 $250,000 $500,000 $1,000,000
40 Year Old Female $80 $100 $216 $376
41 Year Old Female $84 $108 $236 $416
42 Year Old Female $90 $116 $256 $462
43 Year Old Female $96 $128 $278 $506
44 Year Old Female $102 $132 $300 $552
45 Year Old Female $112 $142 $328 $600
46 Year Old Female $124 $155 $356 $648
47 Year Old Female $136 $172 $384 $698
48 Year Old Female $150 $198 $412 $748

Is Permanent Life Insurance Best for Me?

Deciding on term or permanent health insurance policies really comes down to what you need your policy for. A permanent policy is better suited for people who will have a permanent financial need in the event that they pass away.

If you have a large estate and you want to provide an inheritance for one child while giving your business to another, permanent policies are best.

If you want to offset the cost of estate taxes or use your life insurance policy as an investment tool, again, permanent policies are best. If, however, you only have very specific and finite financial Insight, a Term Policy is best because you can set up the term you need to cover that financial need.

Best Companies For Life Insurance

Obviously the best company is going to be based upon your individual needs, however, below are some of the top contenders:

Company Policies Offered A.M. Best Customer Reviews
Banner Life
  • Term Life Insurance
  • Universal Life Insurance
A+ 4.5 / 5
Lincoln Financial
  • Term Life Insurance
  • Universal Life Insurance
  • Variable Life Insurance
A+ 4.2 / 5
Mutual of Omaha
  • Term Life Insurance
  • Universal Life Insurance
  • Whole Life insurance
  • Indexed Universal Life Insurance
A+ 4.1 / 5
Protective Life
  • Term Life Insurance
  • Whole Life Insurance
  • Universal Life Insurance
  • Survivorship Life Insurance
  • Variable Life Insurance
  • Child Life Insurance
A+ 4.3 / 5

Finding the Best Life Insurance Policy as a 40 Year Old

When it comes to finding the best life insurance policy, the options can quickly become overwhelming and confusing.

Before making a decision, we always recommend that you speak with an expert, in order to make sure that you are aware of all your options.

Give our independent life insurance agents a call today to learn more about some of the best life insurance companies on the market, and the policies that they offer for your specific needs and profile.

Or, get started comparing life insurance quotes for 40-year-olds using our quick and easy life insurance quote tool.

Compare the Best Life Insurance Rates for 40-Year-Olds

Great rates from the Best Life Insurance Companies.



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About Best Life Insurance Companies

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