Term Life Insurance for Your 40s

by Jeff Rose on May 10, 2013

Term Life Insurance for Your 40sWhat worked for people in their 20s is not going to be what is appropriate in their 40s, and this includes what is covered under their life insurance plans.

After several years have passed, it benefits people to examine their coverage and decide if decreasing or increasing it would serve their needs better.

The Purpose of Life Insurance

When people are in their 20s, they tend to purchase life insurance because they have young dependents. They also like to ensure that the surviving parent can pay the mortgage in full so that the family can remain in the home. As people reach their 40s and beyond, their children are on their own or very close to being so, and they are almost finished paying off their mortgages. With this being the case, it would be reasonable for policyholders to decrease their coverage. Also as people age, their goals change, and their life insurance coverage needs to reflect those differences.

The Most Common Reasons People in Their 40s Purchase Life Insurance

People in their 40s and beyond begin to think about the very practical issues that life insurance can cover. For example, survivors will need to pay their loved ones’ end-of-life expenses, and life insurance can remove this financial burden. People of this age may also like to be able to leave a sum of money for their survivors, and this is something that can be accomplished with life insurance as well.

The Term Life Insurance Option

The least expensive type of life insurance is a term insurance policy because people can purchase coverage that will remain active for a pre-determined number of years. The term may be five years, 10 years or 20 years, but there are also policies that last as long as 30 years. Policyholders will need to pay a monthly premium to keep their policies active. As long as they do this, their beneficiaries will receive the death benefits if the policyholders pass away while their coverage is in effect.

The Cost of Term Life Insurance

A man who purchases a $250,000 term life insurance policy with a 30-year term may be able to obtain a premium as low as $69.17 a month. A woman can purchase the same policy with a monthly premium equal to $50.68. If a 10-year term is more appropriate, men and women can purchase a policy for under $30.

Purchasing Term Life Insurance at Age 40 and Beyond

Purchasing a new term life insurance policy will mean that applicants will need to prove that they are insurable, and they do this with a physical examination. Because people in their 40s are more susceptible to certain health conditions, it’s harder for them to pass these examinations. They may have a history of illnesses such as diabetes or high blood pressure. If this is the case, people in their 40s can opt to purchase a policy that doesn’t require a physical exam.

No medical examination term life insurance policies mean exactly that; no physical examination is required, but applicants may still need to answer some health-related questions. These policies are riskier for insurance companies because the companies will not know anything about the applicants’ current medical condition. Therefore, insurance companies will need to charge more for them. Keep in mind that if you are looking to get a non-medical policy, that these product are still fully underwritten. This means that they will still pull all of your medical information, they just don’t do the medical exam.

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