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Compare life insurance for 40-year-olds
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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.
What's in this guide?
What’s the best life insurance policy for 40-year-olds?
We recommend: Convertible term life insurance
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.
Our top pick: Protective Life
★★★★★
$100,000 – $10,000,000
Coverage range
Coverage range
18 – 75 years
Issue age
Issue age
In the life insurance world, Protective is known for its affordable rates and streamlined application process. It offers term life insurance that lasts 10 to 30 years, with the option to convert to a permanent policy without taking a medical exam. You can purchase coverage between $100,000 and $5 million, and dress it up with a range of riders. These include less-common riders like a guaranteed insurability rider, which allows you to buy additional insurance at any time.
| Coverage range | $100,000 – $10,000,000 |
|---|---|
| Term lengths | 10, 15, 20, 25, 30, 35, 40 years |
| Issue age | 18 – 75 years |
| Medical exam required | Yes |
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’ve gone down the no-exam route. 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.
For a 40-year-old man in perfect health, our research suggests the average cost for a $250,000, 20-year term policy is $24.83 a month. A woman could expect to pay $21.26 for the same amount of coverage.
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.
Let’s use a 40-year-old nonsmoking woman as an example. According to our research, a $250,000 policy with AIG — the cheapest company — might cost $18.12 a month. If she wants to increase her coverage to $500,000, that insurer could charge $30.86 — a price difference of less than $15 a month for double the coverage. And to lift it to $1 million, she might pay $54.03 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 $250,000, 20-year term life policy from 10 major carriers. For a 40-year-old nonsmoking man, the cheapest insurer tends to be Pacific Life at $21.48 a month. Smokers always pay more for coverage. In this case, Legal & General might charge $69.05 a month.
A 40-year-old nonsmoking woman could score a rate of $18.12 a month with AIG. If she smokes, the rate could climb to $55.66 with Legal & General.
Average monthly cost of a 20-year, $250,000 term life policy for a healthy 40-year-old
| Company | Male | Female | |
|---|---|---|---|
| Legal & General | $21.61 | $18.54 | Get a quote on Policygenius |
| Pacific Life | $21.48 | $18.57 | Get a quote on Policygenius |
| Lincoln Financial | $33.69 | $28.77 | Get a quote on Policygenius |
| AIG | $21.75 | $18.12 | Get a quote on AIG |
| Protective Life | $21.80 | $18.55 | Get a quote on Policygenius |
*Based on sample rates from Policygenius, August 2019.
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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. When you’re determining your life insurance needs, 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.
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. As those responsibilities drop off, the policies expire.
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, for a healthy 40-year-old woman, the risk of dying in the next five years is 0.79%. For a man, it’s a little higher at 1.22%.
Those statistics are even better when you consider that in the US, a 65-year old man is likely to live until 84.3, while a woman can expect to live until the age of 86.6. These are averages — about a quarter of 65-year-olds will reach their 90th birthday and beyond.
Odds of dying for a 40-year-old
| Within the next… | Male | Female |
|---|---|---|
| Year | 0.21% | 0.13% |
| 5 years | 1.22% | 0.79% |
| 10 years | 3.07% | 1.99% |
| 20 years | 10.20% | 6.46% |
| 30 years | 23.40% | 15.26% |
Life expectancy rates are merely calculations based on averages of mortality among specific population, gender and age groups. They do not predict the specific life expectancy of any one person - including you. If you're concerned about your overall health and risks, talk to your doctor or health professional.
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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Ask an Expert
Is very challenging when looking for life insurance! I’m a 42 year old soon to be 43 and I need the best coverage for my spouse and I. My health is not the best but not the worst either.
Hi Eddy,
Thank you for reaching out to Finder.
The page we are on offers providers where you could get a quote on a policy that would fit the coverage you need. Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Get Quote” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. Hope this helps!
Cheers,
Reggie