How Much Does Life Insurance Cost for a 40 Year Old?


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You have just turned 40 and realized it’s time for purchasing a life insurance policy? Throughout this article, we’re going to find an answer to the question of how much does life insurance cost for a 40-year-old?

We’re going to shed light on the term and permanent policies as the best options for 40 years old.

How Much Does Life Insurance Cost for a 40 Year Old?

Life Insurance Cost for a 40 Year Old

Life Insurance Cost for a 40 Year Old

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When you apply for coverage, your insurer will investigate many different factors, the most important of which is your age. The older you are, the higher the premiums you will be charged. But don’t worry; there are many affordable options from which you can choose.

Cost of Coverage for 40 Year-Olds: Term vs. Permanent

Here is a brief comparison between term and permanent coverage in terms of the cost of both.

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Term Life Insurance Coverage

Let’s begin with the term coverage. Term life insurance is considered an expensive way to provide financial protection to your family members after your death for a certain period of time.

With this policy, you will have peace of mind recognizing that all your financial duties will still be met even after the event of your death.

To your surprise, since the age of 40 is still deemed to be young, you will still be eligible for cheaper rates if you’re in good health.

Regarding the price, a 40-year-old man purchasing a policy of $500,000 would need to pay $615 every year for 30 years (30-year term policy).

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Permanent Life Insurance Coverage

Permanent life insurance is a broad term for coverage plans that don’t have an expiry date. It typically includes a death benefit and a savings portion. It builds cash value from which the policyholder can borrow or withdraw money.

As the name suggests, permanent coverage provides coverage for the rest of one’s life. Thus, making sure your loved ones receive a death benefit regardless of the time when you pass away.

It’s worth mentioning that permanent coverage is comparatively more expensive than term coverage, for it covers beneficiaries for a long period of time.

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Permanent Policies are Broken Down into Two Types: Whole and Universal.

In whole life insurance coverage, you pay for your whole life. And in turn, your beneficiaries will receive your death benefit for a long period of time. The amazing thing about this type of policy is that you know very well that are going to get something in return for the money you pay in the end. It’s 5 to 7 times more expensive than a term coverage. Still, the cost depends on many factors including health and age.

No Medical Exam Policies

You might have heard of life insurance policies that do not involve doing any medical exams. They are true in case you meet some requirements and seek a policy of less than $399,000.

So, if you’re 40 years old and suffer from a chronic disease or a pre-existing condition, this policy is recommended for you. However, it’s often expensive.

Now that we’ve shed light on the cost of no-medical exam coverage, it’s worth saying that you will often get better rates if you take a medical exam as part of your application. No-medical-exam coverage is the only choice for many people, yet it has many drawbacks including the high cost.

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Getting Cheaper Coverage

Turning 40 should not be a roadblock that gets in the way of you obtaining an affordable plan. In fact, you might be eligible for cheaper premiums than you believe.

The first step is to apply as soon as you can. Age is the most important factor which will affect how much your premiums will be. The latter you apply, the more premiums you will pay on a monthly basis. If you wish to get a cheap policy, don’t postpone your application.

There is another way to save money in terms of the premium payments you will make: improve your overall health. Your health also plays a main role in determining how risky you are to your insurer. The healthier you are, the less you will pay.

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Final thoughts

To conclude, for a 40-year-old male in good health, studies have found that the typical cost for, let’s say, $500,000 coverage is $33 per month (20-year term), and $55 per month (30-year term). Regarding a 40-year old female in good health, the cost would be $27 per month (20-year term) and $40 per month (30-year term).

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