Finding the Best Term Life Insurance for 40 Year Olds

Term life insurance is the least expensive policy available for a 40 years old person. At this age, you are still young and working to support your family.


It is the best time to get your policy because as you age, the policies will become costly.

It is a matter of understanding everything that is required so that you will select the right policy, the right premium, the right company and understand your benefits.

In this article, we will help you to find the best term life insurance for 40 year olds.

What is Term Life Insurance?

Maybe you do not understand very well what a term life insurance is. There are always two major types of insurance policies that one can take. You can go for whole life insurance whereby; you get insured until you die. In this case, your policies expire once you have died and it doesn’t matter when.

A term life insurance, on the other hand, is a life insurance policy in which you are insured for a certain period of time. You will benefit from the policy once this time expires. It can be a certain number of years. Maybe 5, 10, 20 years, etc.

Why Term Life Insurance at 40 Years?

You may be asking yourself this question and it is necessary. Why take a term life insurance at this age and not take whole life insurance?

The truth is its price. Term policy is way cheaper than a whole life insurance policy.

At the age of 40, it is very clear you are still young, healthy and strong. Most probably you are still working or self-employed and you are able to do a lot of things on your own.

In that case, the chances of death are low. And the chances of failing to take care of your expenses might be low as well.

Is There 40 Year Term Life Insurance?

No, the maximum term period is 30 years. However, after 30 years if you want to continue the policy you can convert it to whole life insurance if you find that profitable.

Most of the insurers don’t want to issue term life insurance over 30 years because it is a quite long time and no one can guarantee the future of the economy. Moreover, within this time you have a handsome saving with the policy.

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

It is a quite complicated question to answer. There are many factors associated with the price.

Here we are giving an average price estimation:

The average annual term life insurance cost of a 40 years old man is $650 with a 30-year term and $500,000 coverage. For a woman with the same parameters, the cost is $490.

The price changes every day and each company has its own regulations. You need to COMPARE RATES to find the exact price for today.

Reasons You Need Life Insurance for at 40 Years

There are many reasons why you should take a life plan at 40. However, we discussed a few of the below.

College Expenses for your Children

There are cases where you will find yourself with children who will join a college in the future. We all know that college expenses are very high.

You can plan yourself on a policy that will benefit you when that time comes. The best option to go for a term life insurance at 40 years since it can mature when your children are joining college.

Here is an example.

You have 2 children and all of them are aged 7 and 10 respectively. In a normal setting, you expect them to be in college in the next 10 years.

This means you can take a term life insurance for 10 years. At the end of 10 years, the policy will expire and you will get your benefits. You can use this money to take care of your children college expenses.

It is a good way of taking care of the future when you are uncertain of what will happen.


A mortgage is another reason why you can take a term life insurance policy. This is something people do and it works very well. When you have a mortgage issue and you know when it will be of need to pay, you can plan for that.

This is because you do not know how your financial stability will be at that time. As a result, you can take up such a plan that will assure you some money at the end.

Make sure you understand when you will be in need of that money, then take a policy that expires within that time to help you pay off.

Household Expenses or Debts

Yes, this is possible. You can comfortably take a term life insurance for the sake of your own household expenses in the future. When you are at the age of 40, most probably you have a family and you know so much about them.

You understand what they need and can also tell what they will require in the future. This is where policy becomes important.

You can predict what pressing household expenses will come up in the future and plan for them and you may also have some debts that are worth paying at a certain specific time.

Funeral Expenses

You can take a term life insurance to take care of funeral expenses. In this case, you will be preparing yourself and your family by making sure they do not have to suffer when it comes to your funeral. You do not want them to be left in problems due to expenses they are not ready for.

As always, a term life insurance will cover you for a specified period of time. Upon expiry of that time, then you will receive the benefits.

However, at the age of 40 years, life expectancy is still high. So, when taking a term life insurance for the purpose of the funeral, it is advisable not to work with funeral homes.

You should let the insurance company pay the benefit to your beneficiaries directly. This means that they can use the money for your funeral in case you have already passed on or if you are still alive you can benefit and use it elsewhere.

Tips Worth Following When Looking for a Policy

Here are some of the most important tips that will be of great help when you are looking for a term policy.

Do Not Rely Only on Your Work Life Insurance

In many cases, you will find employers who offer their employees life insurance cover. If this is the case, you also need to be careful about it and make the right decision. It is good to have such a plan, but it is not enough.

The most important part is that most of these policies will offer just $100,000. If you look at it in many cases it might not be enough. At the same time, you may have other needs that cannot wait for this.

Online Shopping Can Be Beneficial

Maybe you are busy, or you do not want to use an agent. One of them is that it is easy and quick. You can be able to compare many companies and their services right there and then.

Rates of Term Insurance are Inexpensive – Take Advantage

Some people end up settling for very little that strain them because they are worried about insurance rates. Here is something you should know. Term life insurance is always more affordable than a whole life insurance policy.

When you know this, you should get prepared to get the best for yourself. Make sure that you do not end up with something that will be insufficient for you.

However, if you are not in good health condition and want to get a guaranteed acceptance life insurance age 40, it will be expensive.

Get a Meaningful Policy

Actually, the whole deal is for you to try as much as possible and get a good term life insurance. This is because there are many ways in which this insurance policy can help you in the future. If you have the ability, take one that will change your life when it will expire.

How to Select a Suitable Term Life Insurance for 40 Year Olds

Life insurance requires a lot of care to make sure that you do not end up with regrets in the end. At the same time, there are so many procedures that are associated with all these processes.

Here are some of the tips to follow when looking for a term life insurance.

Get an Advisor

There is so much that goes on with life insurance companies. They have many rules and policies that are worth understanding very well before you can arrive at exactly what you want for yourself.

In that case, it is difficult to go all through these legal procedures alone. Getting an insurance advisor is just but the right thing to do.

There are very many advantages attached to this.

  • You get to understand so much you did not know about life insurance policies. An agent will teach you so much about life insurance policies that are important to you.
  • Will help you in making a decision on exactly what route you would like to follow as far as life insurance is concerned.
  • It will be easy to go through all the legal procedures required with an agent.
  • You will be able to ask any questions that insurance companies cannot answer you.

Know Your Budget

There is no way you will decide to take a term life insurance without knowing very well what your budget is. You need to understand how much you would like to spend in your insurance policy.

Or in other words, you need to know how much you are able to comfortably put into the insurance policy.

Looking at your budget is very important as it helps you to clearly plan what type of premium you would like to go for. There are different types of life insurance premiums where all of them come with different payment requirements. In that case, your budget is your determinant.

Term Period

This is a part where you should be very clear. Your term life insurance, of course, will be for a certain period of time. It can be for 5, 10, 20, 30 years. It all depends on you.

However, it is a crucial decision to make before you buy one. To consider all factors at your disposal and to arrive in a term that you are comfortable with.

All this depends on when you want to get the benefits, how much you are willing to spend. And what premiums you can manage.

Linda Chavez

I'm a burial & senior life insurance expert, independent agent, Founder & CEO of Seniors Life Insurance Finder. I have been working in this sector since 2004 and established my own company in 2014. I have a team of seven members, and we are trying hard to share the knowledge we've gathered. We know how difficult often it is to find an affordable policy. Hence, we are doing our best to help you.