Buying Life Insurance in Your 40s – Savings Tips and Sample Quotes

Last Updated: June 9, 2020

When you’re in your 40s, chances are you’re in the prime financial time of your life. You’ve settled into a career and have a mortgage to pay off and family to take care of.

Those are just a few of the reasons it’s important to buy life insurance while you’re aged 40 to 49—you want to make sure your family and loved ones are protected from any financial strain should something happen to you.

In this article, we’ll give you the information you need to buy life insurance in your 40s, including the type of policy you should buy, how much coverage you need, and how to buy it from the comfort of your own home.

Quick Article Guide:

1. Why You Should Buy Life Insurance in Your 40s
2. How Health & Age Affect Your Premium Rates
3. Why Term Life Insurance Quotes for 40-49 Years Old Are Cheaper Than You Think
4. Types of Term Life Insurance Available to You in Your 40s
5. Deciding on a Term Length
6. Deciding on a Coverage Amount
7. Other Things to Consider When Buying Life Insurance in Your 40s
8. Tips for Saving Money on Your Life Insurance While You’re in Your 40s

Why You Should Buy Life Insurance in Your 40s

Income replacement is the primary reason people are looking for term life insurance quotes at ages 40-49. If you are the primary earner in your family, what would happen to your spouse and kids if you passed? Illness and death are topics no one wants to think about, but it’s essential to take a look at your family’s needs if you want to ensure their financial security in the future.

Purchasing-Life-Insurance-in-Your-40s-Quotes-by-Age-Gender-40-to-49Life insurance provides a financial safety net that will protect your family from potentially losing your income one day. The idea is that you will have a term policy in place until you retire and your financial obligations cease or decrease to the point where they are manageable for your estate when you die.

For every year that passes and every year you get older, your rates increase quite substantially. So there’s no better time than now to take advantage of the benefits of life insurance. Every year you wait results in higher premiums, and you run the risk of developing a medical condition that may result in you not qualifying for the best health classifications. This could mean you’ll end up paying premiums that are as much as 25% higher than if you had applied years earlier!

How Health & Age Affect Your Premium Rates

Younger, healthier people pay much less for life insurance. This is because there is less risk for the life insurance company. They pass their confidence on to you via less expensive premiums.

Here are some example quotes that show how much health and age can impact your premiums.

Preferred Rating for a Non-Smoking 46-Year-Old Male Compared to a 57-Year-Old Male Non-Smoker

  • A 46-year-old non-smoking male, who qualifies for a preferred rating:
    500K 20-year term $65.00 per month (approx.)
  • A 57-year-old non-smoking male, who qualifies for a preferred rating:
    500K20-year term$181.00 per month (approx.)

    *Rates are accurate as of 11/20/2017 and are provided for illustrative purposes only.The difference is a $27,840.00 more for a 57 year old!

47-Year-Old Male Preferred Rating and 49-Year-Old Male Standard Rating

  • A 47-year-old non-smoking male who qualifies for a preferred rating:
    500K20-year term$71.00 per month (approx.)
  • A 49-year-old non-smoking male who qualifies for a standard rating:
    500K 20-year term$132.00 per month (approx.)

    *Rates are accurate as of 11/20/2017 and are provided for illustrative purposes only.The difference is an astounding $14,640.00 more than the 49-year-old would have to pay!

The numbers don’t lie! Health and age are an incredibly important part of planning your life insurance needs. As you age, it becomes more costly to purchase life insurance. But buying it in your 40s—especially if you’re in good health—is still incredibly affordable.

Even if you have a preexisting medical condition, we can help you find the best rates for life insurance. Every insurance company has different underwriting guidelines, and our team at Term Life Advice will find the company that is most lenient for your unique set of circumstances.

Why Term Life Insurance Quotes for 40-49 Years Old Are Cheaper Than You Think

Term life insurance is the least expensive policy option available, and it still provides comprehensive protection for the years you’ll need it most. It’s important to purchase life insurance as soon as you can, though, because it becomes more costly as you age (and get closer to the date of your mortality). That being said, your 40s are still a great time to buy coverage.

Let’s say you are a 41-year-old non-smoking male in good health that just qualified for a Preferred rating. You are making a nice living and don’t have a lot of debt, so you think $500k in coverage and a 30-year term will provide enough support for your family should you die. You could qualify for a premium of approximately $73.00 per month and your family would be protected until you’re 71.


If you waited until you were 49 years old, the premium would increase to $152.00 per month (assuming you’re still in good health). You’d end up paying $28,440.00 more for the same amount of coverage amount and term length! Waiting just a couple of birthdays can translate into much more expensive premiums.

Types of Term Life Insurance Available to You in Your 40s

There are four main types of term life insurance policies you can choose from when you’re in your 40s.

  • Level Term: Premiums and death benefits don’t change during the term.
  • Decreasing Term: Death benefits decrease over the term and the insured enjoys a fixed premium. This is usually less expensive than level term.
  • Increasing Term: Death benefits and premiums increase at specific intervals. It’s great for someone with limited funds who expects to see a financial upturn later in life.
  • Age-specific Term: Most people don’t even know these exist! These policies allow you to choose the exact date you want your life insurance coverage to end, even if it’s outside the traditional 10, 20, or 30-year terms.

There are many different options available to you when you set up your life insurance policy. It’s so important that you weigh out your specific circumstances before you sign on the dotted line.

Sample Term Life Insurance Quotes for 40- to 49-Year-Old Non-Smoking Males, 30-Year Term

The below rates are for a Preferred rate class, which means they don’t represent the lowest possible premiums. If you are in good health and/or are a woman, the rates could be even lower.

Term Quotes Table Need to Add (Ages 40 to 49 – 100k, 250k, 500k, 1m)


*Displayed monthly rates are accurate as of 11/20/2017

Deciding on a Term Length

How long will you need coverage? This is a very important question, and everyone’s circumstances are different. At Term Life Advice, we often recommend that people in their 40s consider buying 20-year term insurance policy; this typically puts you around retirement age, and gives you time to pay down major debts.

The factors that need to be considered when deciding on the length of term are:

  • Age
  • Gender
  • Health Rating
  • Financial Situation

Pros of a 20-year Term Insurance Policy

These are some of the advantages of buying a 20-year term life insurance policy when you’re in your 40s.

  • Your children will be grown and less reliant on your income. In 20 years, your children would have their own careers and might even begin saving their own nest egg, so you wouldn’t need to worry about providing income replacement beyond 20 years.
  • This term length is super affordable. A 20-year term policy is less expensive than a 30-year term policy. For example, a 43-year-old male non-smoker who qualifies for a Preferred rate and wants $500K in coverage could pay $49.00 per month for a 20-year term, or $88.00 per month for a 30-year term. A shorter term that still covers your needs can be a substantially more cost effective option.

Cons of a 20-year Term Insurance Policy

  • It will not provide enough coverage for a child with special needs. If you have a child that will require care until or after your death, you should choose the longest period of coverage available. A 20-year term will not meet those needs.
  • Poor health may make this type of policy a less desirable option. Because your health plays a big role in the cost of your policy, a preexisting medical condition may not allow you to qualify for the best rating for a 20-year policy.
  • The policy length may not be enough. There is always the chance you’ll need coverage beyond your 60s. If your 20-year term policy expires, but you still need coverage, looking for and purchasing a new policy in your 60s becomes overwhelmingly more expensive. However, most term policies offer a conversion option, so if you survive until the end of your term, you can convert the policy to universal life, without proof of insurability. This is an important benefit that can save you money.

Choosing the right term length gives you the assurance your family will be covered if you die unexpectedly. Here are some example quotes that show how much your term length can impact your premiums.

40-Year-Old Male Non-Smoker, Preferred Rating, 500K in Coverage

  • 20 Year Term x $37.00 per month = $8,880 over the life of the policy
  • 30 Year Term x $65.00 per month = $23,400 over the life of the policy

He could save $14,520.00 in purchasing the 20-year term policy.

48-Year-Old Male Non-Smoker, Preferred Rating, 500K in Coverage

  • 20 Year Term x $77.00 per month = $18,480 over the life of the policy
  • 30 Year Term x $139.00 per month = $50,040 over the life of the policy

He could save $31,560 in buying the 20-year term policy.

Deciding on a Coverage Amount

Mortgages, car loans, student loans for your children, and credit card debt are just a few financial considerations you need to address when planning your life insurance needs. Raising a family is no inexpensive endeavor, and many people underestimate their life insurance needs.

life insurance Quotes by Age & Gender age 40 to 49To help you calculate the amount of life insurance you should have, it’s important to consider all your financial debt and obligations.

When you are buying a life insurance policy, you need to think about where you and your family will be 5, 10, 20, or 25 years into the future. How will your family be able to sustain their current lifestyle without your income? It might not be possible to do so on a single income, so you have to make sure there are enough funds available to make this happen.

Pay increases, inflation, and changing needs should all play a role in your calculations. Too little insurance could make your family financially unstable after your death and unable to keep up with payments or demands; and too much life insurance wastes your hard earned cash that could be better spent elsewhere.

Let’s say you wanted to provide $100,000 of income per year for your spouse should you die. To generate this very basic figure, divide the amount of money you would like to provide per year, by .04, which is an achievable target interest rate. You can figure out your needs with this simple calculation:

$100,000/.04 = $2,500,000 of life insurance!

There are so many considerations when choosing a life insurance coverage amount in your 40s, and one of our Term Life Advice agents can help you calculate the appropriate amount based on your and your family’s needs.

Other Things to Consider When Buying Life Insurance in Your 40s

Before you decide on a term length or coverage amount, there are a few other things to consider.

  • Reduced Cost of Living: How much money does your partner really need to get by if you died suddenly? Would they need 100% income replacement to keep up with the bills or could they get by with a smaller amount and less extravagant lifestyle? If your partner is capable of working, they may not need as much coverage to survive.
  • Interest and Inflation: Life insurance death benefits will probably be invested, so they will earn interest—but inflation still plays a role.
  • Your Partner’s Health: This is especially important for people married to someone substantially older; in these situations, it’s unlikely your spouse will need 100% of your income replaced for 30 years, or that they may even live that long.
  • Potential Internal Rate of Return (IRR): While life insurance shouldn’t be looked at as an investment for additional cash, we do tell clients to look at the potential IRR should their policy pay out. For example, if a 45-year-old non-smoking male, purchases $500K in coverage for a 20-year term, and he were to die at 50 years old, his beneficiary would receive death benefits that would effectively pay out as if he invested that money and received a 256% return. If he passes away at 65, he would have had to invest money spent on premiums at 30% interest to match the death benefits.

Sample Life Insurance Needs for Non-Smoking Male Age 42 with a Preferred Rating
Here’s an example of how interest and inflation play a role in determining the amount of life insurance coverage you need.

If a 41-year-old non-smoking male who is in very good health (Preferred rating) were looking for 30 years of coverage, assuming 3% inflation and 6% interest, he would require $2,040,108 in death benefits to provide an annual indexed income of $100,000 for his family.

The figure would be less if he opted for a 20-year term. Again, assuming 3% inflation and 6% earnings, he would require $1,543,522 to provide an annual indexed income of $100,000.

Tips for Saving Money on Your Life Insurance While You’re in Your 40s

At Term Life Advice, we’re always trying to save our clients money on their life insurance premiums. Here are five simple tips that could lead to massive savings.

  1. Drop a couple of pounds and save 25%! Insurance underwriters have maximum weight categories they must adhere to and you may only be a few pounds away from qualifying for a better class. And a better class could save you 25% on your premiums! Eating healthier and exercising will also make an impact on your blood work.
  2. Layer your policies: You can save 10-30% by purchasing more than one term policy to minimize your risk at specific intervals. There are times when you need more life insurance than others and the additional coverage would drop off when you no longer need it.
  3. AVOID non-medical exam policies: Depending on your overall health, these types of policies can cost 10-40% more than traditional term policies that require an exam! Working with a great independent agent means you can take a medical exam and find a policy that’s lenient with your health conditions for a better rate.
  4. Choose an annuity payment for your death benefit: You can save 10-30% on life insurance if you allow the life insurance company to pay out the claim over a period of 10 years or more (instead of as a lump sum).
  5. Always choose an independent agent: An independent agency like Term Life Advice can save you thousands of dollars on your policy because we are not tied to a particular insurance company. We have access to dozens of companies with different underwriting guidelines and have more options to find you the best rate.

Contact Us Today for the Best Life Insurance Policy for 40-49 Year Olds

If you are looking to find term life insurance quotes from 40-49 years old, then you should call our independent agents here at Term Life Advice. We work with more than 60 top-rated life insurance companies and will sift through thousands of quotes to help you find the policy that best fits your situation and budget.

Call us today toll free at: 855-902-6494 to obtain an accurate quote based on your health profile, or you can request a free quote online below to get started. Our agency is licensed to sell life insurance in all 50 states.

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