Last Updated: November 2020
Life insurance is a financial tool used to provide your beneficiaries with something when you are gone. At 46 years old, many people begin considering purchasing life insurance.
There are plenty of reasons why someone at age 46 would need to consider purchasing a life insurance policy. Below, you’ll learn everything you need to know about life insurance for a 46-year-old.
- Why Do I Need Life Insurance at Age 46?
- Sample Life Insurance Rates for 46-Year-Olds
- The Best Life Insurance Companies at Age 46
- The Best Types of Life Insurance Policies for 46-Year-Olds
- Finding the Best Life Insurance Rates at 46 Years Old
Life Insurance is Boring. Let’s Get To The Root Of It! Here are the key takeaways…
Purchasing life insurance at the age of 46 is a wise choice and quite affordable. Rates can start as low as $11/month for a $100,000, 10-year term policy. Rates will depend on your health & financial needs. Banner Life, AIG, and Protective are among some of the best life insurance companies for this age.
Why Do I Need Life Insurance at Age 46?
When purchasing life insurance in your 40s, you are in one of the best health brackets possible. Therefore, investing in an insurance policy in your forties, even your late forties will get you a much better rate for your premium.
If you choose a permanent life insurance policy or you get a level term policy, you can lock in those rates for the duration of your policy. If you want to budget properly and make sure you have enough in your retirement, this could be a great way to do it.
In your forties, you probably have a family you are supporting some car loans and a mortgage. If the rest of your family and beneficiaries would be unable to pay this off in your absence a life insurance policy is the best solution.
You might be a single parent with children who are underage dependent. In this case, it is imperative that you have a life insurance policy. At the very least you want a burial insurance policy so that no one must bear the financial burden of your final expenses.
Paying into a Term Policy would at least give your children the money they need to get by until they turn 18.
Sample Life Insurance Rates for 46-Year-Olds
The costs for someone who is 46 are contingent upon health, smoking, and hobbies.
If you fall into the “preferred” category because you have above normal health and a safe lifestyle, the non-smoker monthly rates are as follows:
| Term | $100,000 | $200,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|---|
| 10 years | $11 | $18 | $30 | $52 | $97 |
| 15 years | $14 | $23 | $41 | $74 | $143 |
| 20 years | $17 | $29 | $53 | $100 | $194 |
| 25 years | $22 | $39 | $74 | $140 | $275 |
| 30 years | $26 | $47 | $88 | $168 | $331 |
| Whole | $136 | $232 | $424 | $800 | $1,552 |
While this is a normal example of a “preferred” candidate, your health and lifestyle habits have a significant impact on your premiums.
Rates for Smokers
This is an example of a smoker who otherwise has the same health components as the applicant above:
| Term | $100,000 | $200,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|---|
| 10 years | $34 | $64 | $132 | $240 | $474 |
| 15 years | $41 | $77 | $168 | $323 | $641 |
| 20 years | $43 | $101 | $224 | $437 | $869 |
| 25 years | $74 | $143 | $308 | $606 | $1,207 |
| 30 years | $89 | $174 | $375 | $744 | $1,484 |
| Whole | $424 | $808 | $1,792 | $3,496 | $6,952 |
So, with advanced age, costs are significantly higher for someone who is currently a habitual smoker of cigarettes. Now, you can always work to reduce smoking habits or remove them entirely to get a cheaper price.
This is not the only aspect of health that can hinder coverage premiums. Other health aspects like heart disease, high cholesterol, and diabetes can hurt too.
Rates With High Cholesterol
This is an example of someone who has high cholesterol:
| Term | $100,000 | $200,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|---|
| 10 years | $13 | $20 | $32 | $54 | $99 |
| 15 years | $16 | $25 | $43 | $76 | $145 |
| 20 years | $19 | $31 | $55 | $102 | $196 |
| 25 years | $24 | $41 | $76 | $142 | $277 |
| 30 years | $28 | $49 | $90 | $170 | $334 |
| Whole | $138 | $234 | $426 | $802 | $1,555 |
The Best Life Insurance Companies at Age 46
While there are a lot of options out there for life insurance, generally, these are some of the best life insurance companies for 46-year-olds.
- Protective Life is best for term life insurance. They offer low rates and great options if your term coverage expires and you still need some coverage.
- Northwestern Mutual is our top pick for whole life insurance. They have a strong dividend performance for people in their 40’s.
- AIG life insurance is the best choice for high-risk life insurance for people in their 40’s. They have lower-priced policies for people with many unique high-risk medical conditions.
The Best Types of Life Insurance Policies for 46-Year-Olds
At this age there are three types of insurance policies you can purchase:
Permanent Life Insurance
Permanent life insurance is permanent, meaning it’s there until you pass away. You will never have to reapply, renew, or undergo additional medical exams.
This is the most expensive option on the market, but it also comes with more benefits and features than any other plant.
You can obtain a higher amount of coverage and take advantage of things like cash value where your plan earns cash value which you are allowed to take out in the future if you need or borrow against.
Term Life Insurance
This is something you set up for a specific amount of time usually 10 years, 20 years, or 30 years. This option is designed for people who have expenses for a specific length of time for which they must plan.
A newly married couple with a 30-year mortgage, for example, might want to invest in a 30-year term life insurance policy whereas someone in their 40s who have already had children and started to pay off a mortgage but has accumulated a car loan and some credit card debt in the process might want a 20-year Term Policy for a higher amount of coverage.
In any case, these are meant for people who need to provide income for a set amount of time, usually whatever the difference is between an unexpected death now and the final payoff for those bills or expenses like college.
Burial Insurance
This is the cheapest option you will find. In many cases, burial insurance does not require any type of medical exam, so it is ideal for someone who might not be able to procure the other two types at an affordable rate.
It is designed to simply cover the cost of burial. So, if you don’t need money to cover things like outstanding debt or provide income replacement for your family, this could be the perfect solution.
There are also special plans called “Return of Premiums” ideal for someone in their 40’s.
Return of Premiums Term Policies
Now, of course, everyone hopes to outlive their Term Policy but if they do they typically feel like they paid a lot of money into the policy without getting any benefit.
Those who have this concern can address them with one special policy. This is a term life insurance policy that has a rider attached to it which returns all your premiums to you should you outlive the term of the policy. It is also tax-free because it is not considered income it is just a refund.
It is called “Return of Premiums”. This is not a prevalent option and only accounts for roughly 5% of insurance sales. However, it is an option you should consider.
It gives you term coverage and if you outlive the policy term, you get a refund of all your premium payments.
Pros:
- This policy has a death benefit the same as any other Term Policy should you pass away during the term.
- You can choose a term length that makes sense for your situation.
- If you outlive the policy your premiums are returned, and they are tax-free.
- Returning the premium forces you to put money in a savings plan even if that is not your intent.
- a savings plan even if that is not your intent.
Some of these premium policies do build cash value and you are able to take loans out against them. If you do this the loans have to be repaid or they will be taken out of your death benefit.
Cons:
- The premiums are going to be more expensive compared to normal term policies.
- If you cancel the policy prior to the expiration date you will get a much smaller refund, if you get one at all.
- You don’t earn any interest on that money like you would with a permanent plan.
Finding the Best Life Insurance Rates at 46 Years Old
When you research life insurance policies at this age it is important to use tools available on the internet and use brokers to help you find the best policy options based on your situation.
You already saw how much financial difference things like health concerns and smoking can have on your premiums.
Age is an important factor but when you are only 46 you do have a few years that you can toy with before your premiums increase substantially based on your age alone.
To get the best life insurance rates, you want to work with an independent life insurance agent who can help you and your family find the best life insurance rates for your specific situation.
Give us a call today, or get started finding the best life insurance rates for 46-year-olds using our online quoting engine!
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