Last Updated: November 2020
Choosing to purchase life insurance at any age is a big decision. For 40-year-olds, life insurance can be a crucial tool to protect loved ones in the event of an unexpected passing.
Below, you’ll learn why you might need life insurance at age 40. Then we’ll show you sample rates and the best life insurance companies for 40-year-olds.
- Why 40-Year-Olds Might Need Life Insurance
- Sample Rates: The Cost of Life Insurance at Age 40
- The Best Life Insurance Companies for a 40-Year-Old
- The Best Types of Life Insurance for 40-Year-Olds
- Tips for Finding an Affordable Life Insurance Policy as a 40-Year-Old
Life Insurance is Boring. Let’s Get To The Root Of It! Here are the key takeaways…
40-year-olds have many options for life insurance, even for 40-year-olds in poor health. Term life, whole life, and burial insurance policies are available. The best policy depends on your specific needs and situation. Always compare quotes from multiple companies to find the best rates.
Why 40-Year-Olds Might Need Life Insurance
As a 40-year-old, there are many reasons to take out a life insurance policy, and the amount of coverage you need is really based on which of those reasons applies to you. Each person is different and so are their needs.
Here are several reasons you might need life insurance at age 40.
- Parents with children as dependents should invest in life insurance for the period of childhood where children would be dependent upon their income. This ensures children will have financial protection in the event of your passing.
- Breadwinners should consider what money would be needed to cover household expenses, whether there should be enough to pay off the mortgage, whether there are any childcare services or in-house services required for a family to maintain their current standard of living without having to uproot and move.
- First-time homeowners should consider a policy for the length of the mortgage to make sure their loved ones are not left with the burden of paying off a home they might not be able to afford.
Sample Rates: The Cost of Life Insurance at Age 40
The cost of life insurance for a 40-year-old will change based on your risk. Things like health and age are the most important components. Also, for women, the rates will be lower because women statistically live longer.
Preferred Rates for 40-Year-Old Males
The sample monthly rates below are for a healthy non-smoker. The male is 40 years old, 5’9”, and weighs 165 pounds.
| Policy Type | $100,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|
| 10 Year Term | $8 | $19 | $30 | $56 |
| 20 Year Term | $11 | $31 | $58 | $111 |
| 30 Year Term | $19 | $45 | $108 | $208 |
| Whole Life | $88 | $216 | $464 | $888 |
Preferred Rates for 40-Year-Old Females
The sample monthly rates below are for a standard non-smoker. The female is 40 years old, 5’4”, and weighs 135 pounds.
| Policy Type | $100,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|
| 10 Year Term | $8 | $17 | $28 | $50 |
| 20 Year Term | $10 | $27 | $47 | $90 |
| 30 Year Term | $16 | $45 | $85 | $166 |
| Whole Life | $80 | $216 | $376 | $720 |
Smokers Rates for 40-Year-Old Males
There are many things that influence the cost of a policy, beyond age. Your health plays an important role too. Companies need to know what level of risk you pose to them. Things like smoking, for example, can change the costs.
The sample monthly rates below are for a 40-year-old male who smokes 20 cigarettes per day with no health problems other than that:
| Policy Type | $100,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|
| 10 Year Term | $26 | $81 | $146 | $289 |
| 20 Year Term | $37 | $133 | $249 | $496 |
| 30 Year Term | $52 | $216 | $245 | $848 |
| Whole Life | $296 | $1,064 | $1,992 | $3,968 |
Smokers Rates for 40-Year-Old Females
The sample monthly rates below are for a 40-year-old female who smokes 20 cigarettes per day with no other health problems:
| Policy Type | $100,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|
| 10 Year Term | $23 | $65 | $119 | $236 |
| 20 Year Term | $33 | $105 | $201 | $398 |
| 30 Year Term | $41 | $156 | $299 | $595 |
| Whole Life | $264 | $840 | $1,608 | $3,184 |
Diabetic Rates for 40-Year-Old Males
Diabetes is a serious problem, one that can drastically influence the rates you are offered by life insurance companies. The younger you are, the more expensive your policies will be if you wait and do not make changes to your health.
These monthly sample rates are for a diabetic male who was diagnosed in 07/2013. He has Type 1 diabetes. His last A1C reading was 5.4, with an average reading of 5.6. Other than that, he has no current health complications, is undergoing treatment, and his daily dosage is 30 insulin units:
| Policy Type | $100,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|
| 10 Year Term | $29 | $68 | $101 | $195 |
| 20 Year Term | $34 | $107 | $183 | $359 |
| 30 Year Term | $49 | $187 | $322 | $637 |
| Whole Life | $272 | $856 | $1,464 | $2,872 |
Diabetic Rates for 40-Year-Old Females
These monthly sample rates are for a diabetic female who was diagnosed in 07/2013. She has Type 1 diabetes. Her last A1C reading was 5.4, with an average reading of 5.6. Other than that, she has no current health complications, is undergoing treatment, and her daily dosage is 30 insulin units:
| Policy Type | $100,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|
| 10 Year Term | $21 | $55 | $88 | $169 |
| 20 Year Term | $29 | $83 | $145 | $282 |
| 30 Year Term | $40 | $140 | $244 | $481 |
| Whole Life | $232 | $664 | $1,160 | $2,256 |
Rates for Overweight or Obese Males
Obesity is going to heavily influence the rates you are given. As a 40-year-old male, if you are obese, you can see how much the prices change, and it might be in your best interest to wait one or two years, maybe just a few months, to make some lifestyle changes that would improve the rates you are offered:
| Policy Type | $100,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|
| 10 Year Term | $11 | $27 | $44 | $81 |
| 20 Year Term | $14 | $40 | $74 | $143 |
| 30 Year Term | $22 | $69 | $129 | $254 |
| Whole Life | $112 | $320 | $592 | $1,144 |
Rates for Overweight or Obese Females
Obesity is going to heavily influence the rates you are given. As a 40-year-old female, if you are obese, you can see how much the prices change, and it might be in your best interest to wait one or two years, maybe just a few months, to make some lifestyle changes that would improve the rates you are offered:
| Policy Type | $100,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|
| 10 Year Term | $10 | $23 | $38 | $69 |
| 20 Year Term | $12 | $34 | $62 | $117 |
| 30 Year Term | $18 | $54 | $101 | $198 |
| Whole Life | $96 | $272 | $496 | $936 |
Rates for Males with High Cholesterol
There are ample health conditions that you can change when you are around 40 years old, in an effort to improve your rates. Below is a sample of monthly premiums for a 40-year-old male with high cholesterol with cholesterol levels at 241, HDL ratio of 3.5, who was last treated 6 months prior to application:
| Policy Type | $100,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|
| 10 Year Term | $8 | $19 | $30 | $56 |
| 20 Year Term | $11 | $31 | $58 | $111 |
| 30 Year Term | $19 | $58 | $108 | $208 |
| Whole Life | $88 | $248 | $464 | $888 |
Rates for Females with High Cholesterol
Below is a sample of monthly premiums for a 40-year-old female with high cholesterol with cholesterol levels at 241, HDL ratio of 3.5, who was last treated 6 months prior to application:
| Policy Type | $100,000 | $500,000 | $1,000,000 | $2,000,000 |
|---|---|---|---|---|
| 10 Year Term | $8 | $17 | $28 | $50 |
| 20 Year Term | $10 | $27 | $47 | $90 |
| 30 Year Term | $16 | $45 | $85 | $166 |
| Whole Life | $80 | $216 | $376 | $720 |
What is a Good Price for Life Insurance at Age 40?
At 40, you have many price ranges available to you, based on your coverage amount and the type of policy you get. If, for example, you choose a permanent or whole policy, it is going to last longer and therefore will cost you more.
However, a good price is really based on your health and the industry average therein. Different factors can impact different rates you are given.
The reason for the changes in prices shown in the tables above is that your health puts you into a different category of risk. Each category of risk has subcategories.
Learn more about life insurance rate classes here.
For example, you might be put into a preferred plus, preferred, standard, or substandard risk category. From there, you might be ranked a, b, c, or d. A smoker, for example, will be put into standard categories more often than not.
If you have other health conditions as well, you might be put in standard B. For each subcategory, your costs incur 25% of the total premium in addition to your premium. If at 40, you are paying $40 per month, but you are in category B, you have to pay another 50% of that $40 per month rate additionally, bringing your monthly total to $60.
This is something to be aware of as you are comparing companies and policies. In many cases, it might behoove you to change certain aspects of health before you commit to a policy so that you get better premiums. If you are already in great health, you might benefit from locking in a permanent policy that is level right now, so that your premiums never change regardless of your age or health.
The Best Life Insurance Companies for a 40-Year-Old
There are many companies out there ideally suited to any number of life insurance policies for a 40-year-old applicant. You want to make sure that the company you have chosen fits your health situation and your financial needs.
You also want to make sure that they are financially sound, knowing that they will be around long after you pass away and perfectly able to pay out your death benefit.
| Life Insurance Company | A.M. Best Rating | Fitch’s Rating | Standard & Poor’s Rating |
|---|---|---|---|
| Protective | A+ | A+ | AA- |
| Banner | A+ | AA- | AA- |
| Prudential | A+ | A+ | AA- |
| Lincoln Financial | A+ | A+ | AA- |
| Principal | A+ | AA- | A+ |
| John Hancock | A+ | AA- | AA- |
| Mutual of Omaha | A+ | N/A | AA- |
| Transamerica | A+ | A+ | AA- |
Out of these life insurance companies, there are some similar policies offered. You can find the term and permanent policies for a wide range of face amounts.
Each of these companies, however, have a niche.
Some are more lenient toward diabetics while others do not punish smokers with higher policy premiums. Given your situation, you should explore which of these companies (or any others) are most favorable to your situation.
The Best Types of Life Insurance for 40-Year-Olds
People at age 40 have many policies available, including term, permanent (or whole), and burial.
Term life insurance policies are set for a length of time, for those who have financial needs that will expire at some point (kids move out of the house, a mortgage is paid off). At age 40, the longest term life insurance policy you can get is 30 years.
Of course, you can choose to get ten years, twenty years, etc. Most term policies afford you the option of converting your policy to a permanent policy once it expires.
Permanent plans are meant to replace income forever in your absence (cover the costs of a disabled child, replace income so that a spouse no longer has to work).
Burial insurance is a simpler, cheaper policy that provides just enough income for your family to cover the costs of a burial.
Tips for Finding an Affordable Life Insurance Policy as a 40-Year-Old
If you have set about finding a good policy at age 40, you should take your time and review the different companies and their niches. Review how much coverage you need and what features or riders each company has.
Company A might be cheaper per month, but they do not have riders whereas Company B is only $6 more per month but they have three riders that offer better benefits.
Work with a third party broker to figure out the details of your situation and compare rates therein.
Finding the Best Life Insurance Rates for 40-Year-Olds
Finding the best life insurance rates for you comes down to comparing rates from multiple companies.
The best way to do this is to use an online quoting tool that will show rates from some of the best life insurance companies for 40-year-olds. Give our quoting engine a try!
For those looking for more specific details on policy options offered by top life insurance companies, we recommend speaking with an independent life insurance agent.
Give us a call today to work with an agent or get started with our online quoting engine for quick and easy life insurance quotes for 40-year-olds.
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