Financial responsibilities in your 40s
Nowadays it’s much more commonplace to experience life’s major events at an older age.
With people establishing their careers before starting a family and the average age of a first-time buyer now being 32, it’s not unusual to have significant financial commitments well into your 40s.
Without adequate life insurance in place, if the worst were to happen to you could your family:
- Afford to pay the mortgage (average mortgage £121,678)
- Fund childcare costs (average full-time fees £222.36 per week)
- Replace your lost income
- Maintain their existing lifestyle.
The good news is that life insurance is easy to arrange in your 40s at an affordable price.
Although now classified as middle-aged, the world of life insurance may actually be more accessible than if you were 10 years younger.
In your 40s, you’re more likely to still benefit from good health but also be far enough through life that arranging lifelong cover may also be beneficial.
Meaning not only are you still young enough to obtain reasonably priced premiums with regards to term-based cover, but you are also far enough through life that whole of life may be a cost-effective solution.
How much is life insurance for a 40-year-old?
Securing life insurance in your 40s is no different from arranging cover at any other age.
The cost of your monthly premium is based on the amount of risk you pose to the insurer.
They take into account key factors such your age, health, smoking status, length of the policy and cover amount.
As a result, the sooner you arrange your policy, the younger and healthier you are and therefore the more attractive your premium price.
Should I get life insurance in my 40s?
Arranging your life insurance in your 40s can be extremely beneficial.
You’re still young enough to experience relatively low premiums with regards to term-based cover, but old enough that a whole of life policy could be a cost-effective option.
It all depends on what it is you’re looking to protect as to which type of cover best suits your specific needs.
Best term life insurance cover for over 40
Term-based life insurance provides a lump sum pay out to loved ones if you pass away within the set time period.
It tends to be a cheaper form of life insurance as a pay out is not guaranteed – if you outlive your policy term, the cover then expires and no pay out is issued.
Term-based life insurance cover comes in two forms.
Level term life insurance provides a fixed sum assured, meaning that regardless of when you pass away during the policy term, your loved ones will receive the same amount.
This type of cover is ideal for covering balances which don’t diminish over time. For example, an interest-only mortgage, an inheritance or help with day-to-day living costs.
Decreasing term life insurance, on the other hand, provides a sum assured which reduces over the term of the policy.
Therefore, the further into the cover you pass away, the less your loved ones will receive.
As a result, this type of cover is ideal for covering balances which will decrease over time, such as a repayment mortgage.
Regardless of which policy type best meets your needs, term-based cover is suitable for those who require protection for a fixed period, whether that be until your mortgage is cleared or until your children are financially independent.
Whole life insurance over 40
For those wanting a guaranteed pay out, whole of life insurance provides cover for as long as you live and can be a good option.
The sum assured remains fixed, meaning that regardless of whether you pass away 2 or 20 years into the policy, the amount paid out remains the same.
This type of cover does tend to be slightly more expensive though as the insurer is certain to pay out at some point.
However, arranging whole of life insurance comes with an important trade-off.
Whilst the younger you are, the cheaper your premiums; you’ll also be paying into the policy for a longer period, thus risking paying more into the policy than the overall sum assured.
Guaranteed life insurance over 40
Unfortunately, any life insurance policy you arrange during your 40s will require you to provide medical information.
As a result, acceptance can’t be guaranteed as this will be based on your health status.
Therefore, if, in particularly poor health, your application may be declined.
However, even if your medical history is less than perfect, we may be able to help you.
Our dedicated impaired risk team have helped get cover for 45% of people who have previously been declined elsewhere.
Life insurance over 40 no medical
Unfortunately, in your 40s there’s no option for obtaining cover without providing medical information, (regardless of what is said elsewhere on the internet).
An over 50s plan is the only form of life insurance which provides guaranteed acceptance without the need to disclose any health information.
However, the age criteria for this type of cover is 50-85 years old. So, if in your 40s, this makes you ineligible.
It may be tempting to hold out until you reach this age bracket, however, there are a number of things about over 50s plans it’s important to know…
Whilst acceptance is guaranteed, premiums tend to be higher to accommodate the unknown risk to the insurer.
Therefore, even if your health is less than ideal, you may benefit from lower monthly premiums by disclosing your issues at a younger age.
Secondly, the sum assured is significantly lower than that available on either term-based or whole of life cover.
Both term-based cover and whole of life cover offer a potential sum assured of up to £1,000,000, whereas the maximum available through an over 50s plan is £25,000.
Therefore, it’s important to consider the level of coverage you require.
Life insurance for parents over 40
Today’s society is increasingly becoming career-focused, leaving many couples waiting to start a family until later in life.
As a result, it’s not uncommon for those in their 40s to have very young children who depend on them financially.
Without adequate cover, if the worst were to happen to you, who would provide for your family?
Arranging life insurance can ensure that if you were to pass away your family could continue their lives with as little financial disruption as possible.
The pay out could be used to:
- Clear the mortgage
- Pay for your funeral
- Fund additional childcare
- Help with daily living costs
- Provide an inheritance
- Replace your lost income.
Joint life insurance for over 40
Joint life insurance for over 40s could save you up to 30% on your premiums when compared with that of two single policies.
Joint cover provides protection for two people simultaneously, however, is only available with regards to term-based life insurance.
A pay out is made upon the first death, at which point the cover expires and the surviving partner is left unprotected and requiring new cover at an older age.
As a result, to ensure adequate cover, if your budget allows it’s usually more beneficial to arrange two single policies.
Terminal illness cover for over 40
All life insurance policies provided through Reassured come with terminal illness cover as standard at no extra cost.
This means that if you’re diagnosed with a terminal illness and are predicted to live less than 12 months, you can make an early claim.
The pay out can then be used to fund whatever you like. For example, private medical treatment, make financial provisions for the future or simply enjoy with your loved ones.
Critical illness cover for over 40
When arranging life insurance with Reassured, it’s possible to include critical illness cover too.
Whilst this will increase the cost of your premiums, it does mean that if you’re diagnosed with a serious illness you could make a claim.
The pay out could then be used to make any necessary adaptations to your home, fund a carer or simply replace an income if you were no longer able to work.
Adding critical illness cover to your life insurance, however, does mean that if you make a claim, your policy is no longer valid.
It’s possible to purchase critical illness cover as a standalone product, but this will depend on your budget as it’ll require paying two monthly premiums.
Compare over 40 life insurance quotes
The cost and cover of life insurance over 40 can vary significantly between insurers.
To ensure you get the right cover, at the very best price, it’s imperative to compare quotes.
At Reassured we can do all the hard work on your behalf – saving you both time and money.
Simply get in touch today and we’ll compare the top insurers in the UK, to find you the best deal.
And the best bit…our award-winning brokerage service is completely free to use.
Whether you’re in your early 40s or late 40s there’s a policy for you and we can help you secure it.