Best Cheap Life Insurance for 40-Year-Olds | Finder Canada

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Compare life insurance for 40-year-olds

Purchase a policy now to set your family up for a future of financial freedom.

At age 40, you likely have a few financial responsibilities, such as a mortgage, spouse or children. A term life policy is an inexpensive way to ensure your loved ones will be taken care of if you pass away prematurely. Many term policies come with a conversion feature, which means you have the option to upgrade to a permanent policy before a deadline. That way, if you need life insurance for longer than you originally thought or want to treat your policy as a cash asset, you can convert your coverage.

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  • Age range: 18 - 75
  • Medical exam required: Typically no
  • Available in: Alberta, British Columbia, Manitoba, Nova Scotia, Ontario and Prince Edward Island
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What’s the best life insurance policy for 40-year-olds?

We recommend: Convertible term life insurance

Getting life insurance at age 40 makes sense if you have certain financial responsibilities like a mortgage, a spouse or children. A convertible term life insurance policy provides the coverage you need while you raise a family or pay off a mortgage, and gives you the option to convert to a permanent policy later on. Convertible term gives you the flexibility to maintain coverage as your financial situation evolves.

How much is life insurance for 40-year-olds?

The rate you’re offered is the result of factors like your age, health, family history, occupation, lifestyle and whether or not you opt to get a medical exam. It’s also a product of the insurer’s underwriting guidelines. Either way, as a 40-year-old, you can still qualify for coverage at competitive — and maybe even preferred — rates.

By age 40, you’ve probably climbed the career ladder to earn a comfortable salary. If you’re trying to decide between two or more levels of life insurance protection, there likely won’t be much of a price difference.

Using a popular life insurance company like Manulife as an example, a 40-year-old nonsmoking woman might be charged $25 a month for a $250,000 policy. To double that coverage to $500,000, Manulife may charge the same woman $42 a month, and to boost it to $1 million, the price goes up to $79 a month.

What’s the cheapest life insurance company for 40-year-olds?*

To find the most budget-friendly companies, we compared the rates for a $300,000, 20-year term life policy from 16 major carriers. For a 40-year-old nonsmoking man in perfect health, the cheapest insurer was Foresters Financial at $32.04 a month. A 40-year-old nonsmoking woman could score a rate of $24.21 a month with both Foresters and Empire Life. Keep in mind that smokers always pay more for coverage.

Monthly costs of a 20-year, $300,000 term life policy for a 40-year-old in excellent health and with a perfect driving record:

ProviderMaleFemale
Foresters Financial$32.04$24.21
Empire Life$32.85$24.21
BMO$34.47$30.15
RBC$34.73$26.58
Canada Life$36.72$27.00
Manulife$35.07$27.81
Desjardins$33.84$24.66

*Based on sample rates from PolicyAdvisor, June 2020.

How much life insurance do I need around age 40?

Life insurance should be affordable, and if you die, the death benefit should comfortably cover your beneficiaries needs. When you’re determining how much life insurance you should get, think about what you pay for now and what you predict you’ll be paying for in the future. Add up those costs, then consider taking out a policy to match that dollar figure.

Generally, life insurance experts suggest a number between 5 and 10 times your annual salary, but potentially more if you have a family or other financial obligations, like debt.

Compare life insurance for 40-year-olds

Name Product Types of Insurance Coverage Range Issue Ages Medical Exam Required Province Availability
RBC Life Insurance
Term Life
$50,000 - $25,000,000
18 - 75 years old
No
Ontario, Alberta and Manitoba
Select from two unique RBC term life insurance plans to get flexible and affordable coverage that suits your lifestyle and budget. Get a free quote through PolicyAdvisor.
PolicyMe Life Insurance
Term Life
$100,000 - $5,000,000
18 - 75 years old
No
Alberta, British Columbia, Manitoba, Nova Scotia, Ontario and Prince Edward Island
Get fast and affordable term life insurance without the need for a medical exam with PolicyMe.
Manulife Life Insurance
Term Life
$100,000 - $1,000,000
18 - 70 years old
No
Ontario, Alberta, Manitoba
Manulife's CoverMe Term life insurance is simple and straightforward coverage that suits your lifestyle and budget. Get a free quote through PolicyAdvisor.
Empire Life Insurance
Term Life
$50,000 - $10,000,000
18 - 75 years old
No
Ontario, Alberta and Manitoba
Empire Life offers affordable, flexible term life insurance coverage and can provide lifetime coverage if needed. Get a free quote through PolicyAdvisor.
BMO Life Insurance
Term Life
$100,000 - $5,000,000
18 - 75 years old
No
Ontario, Alberta, Manitoba
BMO Term life insurance provides you with coverage for 10, 15, 20, 25 or 30 years. Get a free quote through PolicyAdvisor.
Desjardins Life Insurance
Term Life
$50,000 - $10,000,000
18 - 75 years old
No
Ontario, Alberta and Manitoba
Desjardins offers a number of different term life insurance options to cover fixed-term needs including lifestyle protection and mortgage coverage. Get a free quote through PolicyAdvisor.
Wawanesa Life Insurance
Term Life
$50,000 - $10,000,000
18 - 75 years old
No
Ontario, Alberta and Manitoba
Wawanesa offers simple and straightforward term life insurance coverage. Choose from single and joint coverage options. Get a free quote through PolicyAdvisor.
Canada Life Insurance
Term Life
$100,000 - $10,000,000
18 - 75 years old
No
Ontario, Alberta and Manitoba
Choose from 4 different term life insurance options from Canada Life. Get a free quote through PolicyAdvisor.
Canada Protection Plan Life Insurance
Term Life
$50,000 - $1,000,000
18 - 70 years old
No
Ontario, Alberta, Manitoba
Canada Protection Plan's Preferred Term life insurance is suitable for those in good health. Get a free quote through PolicyAdvisor.
Assumption Life Insurance
Term Life
$50,000 - $4,000,000
18 - 75 years old
No
Ontario, Alberta, Manitoba
Choose from five different term life insurance plans with Assumption Life. Get a free quote through PolicyAdvisor.
Sun Life Go Simplified Term Life Insurance
Term Life
$50,000 - $100,000
18 - 69 years old
No
All of Canada
Sun Life Go Simplified Term Life Insurance covers you for 10 years, during which time your premiums are guaranteed not to rise. Apply for up to $100,000 in coverage.
Sun Life Go Term Life Insurance
Term Life
$100,000 - $1,000,000
18 - 69 years old
No
All of Canada
Sun Life Go Term Life Insurance is a standard term life insurance option that guarantees your premiums in the first 10 or 20 years of your policy.
Sun Life Go Guaranteed Life Insurance
Whole Life
$5,000 - $25,000
30 - 74 years old
No
All of Canada
Permanent life insurance coverage that guarantees fixed premiums until 95 years old (and no premiums thereafter).
 Life Insurance Through PolicyAdvisor.com
Whole Life, Term Life, Universal, No Medical
$25,000 - $5,000,000
18 - 75 years old
No
Alberta, Manitoba, Ontario
PolicyAdvisor is a digital life insurance brokerage that has partnerships with 20 insurers in Canada.
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What riders should I add to my policy?

As a Gen X-er, you might want to consider customizing your coverage with riders such as:

  • Waiver of premium. Pauses your premiums for a specified period of time if you become fully disabled and can’t work.
  • Accelerated death benefit rider. Pays out a portion of the death benefit if you’re diagnosed with a terminal illness. You can use the money for whatever you like, but the rider is designed to cover medical expenses.
  • Long-term care rider. Allows you to access money from your death benefit to pay for a nursing home or other long-term care services. To qualify, you typically need to prove you can’t perform two of the six activities of daily living (ADLs) — which include getting dressed and using the bathroom.

Can I buy more than one policy?

Yes — as long as you can prove to your insurer that you need them and can afford to pay the premiums. This strategy is called “laddering,” and it involves taking out multiple term life policies to match your financial obligations. You can plan it so that the policies expire as those responsibilities drop off.

Let’s say you’re a Gen X-er with young children and a 30-year mortgage. You might buy a 20-year policy to carry your kids through college and a 30-year policy to cover your mortgage. That way, your loved ones won’t be burdened with those expenses if you pass away prematurely.

What’s my risk of dying in the next five years?

According to our life expectancy data, a healthy 40-year-old woman is expected to live a further 45.1 years, while a man in the same situation can expect to live another 41.6 years.

Those statistics are even better when you consider that in Canada, a 65-year old man is likely to live until he is 84.4 years old, while a woman can expect to live until she is 87.1 years old.

Source: Life expectancy taken from Statistics Canada 2016-2018 Life Tables.

Bottom line

At 40, financial planning is probably at the forefront of your mind. If you have a family, business or financial assets, you might want to take out a life insurance policy. It can protect all of those things, plus give your family or employees a sense of security for the future. Life insurance becomes more expensive as you age, but if you apply now, there’s a good chance you’ll be offered a low premium.

As always, be sure to shop around to find a life insurance policy that fits your needs.

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