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When you reach 40 and over, your responsibilities have likely changed considerably. Most will have families, mortgages and debt, which makes life-insurance an attractive option to ensure financial protection should the unthinkable happen.
Here, we delve into everything you need to know about getting life insurance when you’re over 40 and why you should consider taking out a policy.
As mentioned before, most people’s responsibilities reach an all-time high by the time they hit 40. As a result, there are various reasons why getting life insurance makes sense from 40 onwards. Here are some of the most common reasons:
The best policy for you, such as term-based or whole life, will depend on your circumstances and requirements. However, we’ll go deeper into that later in the article.
Although most people would benefit from life insurance regardless of age, there are some advantages to getting a policy whilst in your 40s. The most obvious of which is that premiums will be relatively low since, in your 40s, you’ll likely still be in good health and your risk is much lower.
We compare plans from the leading life insurance providers
Taking out a life insurance policy in your 40s is no different to doing so at other stages of your life. All the usual factors are considered when deciding your premium, including age, lifestyle, general health, whether you smoke, and occupational and recreational risk.
The average cost of life insurance, if you’re in your 40s, will be around £15 per month, rising to approximately £35 per month when you hit your 50s. This estimate is based on a level term policy that covers mortgage and living costs. For a decreasing term policy, the average price for if you’re 40s is around £9 per month.
You should note that if you’re considering taking out a life insurance policy in your 40s, you’ll have to undertake a medical examination before doing so. Most providers don’t guarantee approval in your 40s, unlike over 50 plans.
However, it’s still beneficial to go ahead with taking out a policy, regardless of your health condition, since the premium will almost certainly be lower, and the payout sum will likely be more significant than when taking out a policy in your 50s.
To ensure that you’re getting a good deal, we’ve put together a few points for you to consider before taking out a policy.
Remember, taking out a life insurance policy in your 40s will give you access to cheaper premiums.
Life insurance is an important consideration for anyone over 40, as this is a time in life when many people start to think about securing their family’s future and ensuring that their loved ones will be taken care of in the event of unexpected death. We will explore the best life insurance options for those over 40 in the UK, including term life insurance, whole life insurance, critical illness cover, terminal illness cover, and life insurance no medical.
Term life insurance is a popular option for many people over 40 because it offers a relatively low-cost way to protect your loved ones financially. With term life insurance, you pay a set premium each month for a set period of time (the “term”), and if you die during that term, your beneficiaries will receive a death benefit. There are several different types of term life insurance, each with its own unique features and benefits.
Level term life insurance is the most basic type of term life insurance. With this type of policy, the death benefit remains the same throughout the term, and the premium is also fixed. Level term insurance is a good choice for people who want a guaranteed death benefit, but don’t want to pay for more coverage than they need. It’s also a good option for people who want to ensure that their loved ones will be able to cover specific expenses, such as a mortgage or children’s education.
For example, for a 40-year-old man in good health, a level term life insurance policy with a £500,000 death benefit and a 20-year term might have a monthly premium of around £20.
Decreasing term life insurance is a type of term life insurance that is typically used to provide coverage for a specific period of time, such as the length of a mortgage. With this type of policy, the death benefit decreases over time, while the premium remains the same. Decreasing term life insurance is a good choice for people who want to ensure that their loved ones will have enough money to pay off a specific debt, such as a mortgage, but don’t want to pay for more coverage than they need.
For example, a 45-year-old man in good health might pay £20 per month for a decreasing term life insurance policy with a £400,000 death benefit and a 20-year term. The death benefit would decrease over time, going down to £200,000 by the end of the 20-year term.
Increasing term life insurance is a type of term life insurance that provides increasing death benefit over the course of the policy. The premium stays the same throughout the policy term. Increasing term life insurance is a good choice for people who want to ensure that their loved ones will have enough money to cover inflation or the increasing cost of living.
For example, a 40-year-old man in good health might pay £20 per month for an increasing term life insurance policy with a £500,000 death benefit and a 20-year term. The death benefit would increase every year by 3% to keep pace with inflation.
It is important to note that each one of these types have their own specific advantages and disadvantages, depending on your specific needs and goals, therefore it’s important to research and compare them before choosing the right one for you. Consult with a financial advisor or insurance agent to learn more about the options available to you and get personalized quotes for premiums.
Whole life insurance can be an excellent option for people over 40 who are looking for long-term financial protection for their loved ones. Unlike term life insurance, which provides coverage for a set period of time, whole life insurance provides coverage for your entire lifetime, as long as you continue to pay the premiums. One benefit of this option is that the payout can cover inheritance tax, which in the UK is currently at 40% on anything over the Government-set threshold. Whole life insurance policies also include a savings component, which can grow over time and can be accessed by the policy holder in certain circumstances.
When you take out a whole life insurance policy, you will be required to pay a set premium on a regular basis, typically on a monthly or annual basis. The premium will depend on several factors such as your age, health, and the size of the death benefit you wish to secure. The death benefit is the amount of money that will be paid out to your beneficiaries if you die while the policy is in force.
The premium for whole life insurance will vary depending on a number of factors, including the policyholder’s age, sex, and overall health. However, as a rough guide, here are a few premium examples for whole life insurance policies for someone in their 40s in the UK:
Whole life insurance policies also include a savings component, which is often referred to as the “cash value” of the policy. This cash value component of the policy will typically accumulate interest over time, and can be accessed by the policyholder in certain circumstances such as to pay for living expenses or for other financial needs. Policyholders also has an option to withdraw cash value or borrow against the policy, however it can have consequences in the death benefit pay out.
Ultimately, the best policy for you depends on your specific needs. If you’re looking for mortgage coverage, a term-based approach would probably be best. However, if you’re looking to cover inheritance tax or if your occupation is hazardous, then a whole life policy would probably be best suited.
Critical illness cover is an important type of insurance for people in their 40s, as it can provide financial protection in the event of a serious illness. It typically pays out a lump sum if the policyholder is diagnosed with a specified critical illness, such as cancer, heart attack, or stroke.
One of the main benefits of critical illness cover is that it can help with any additional financial costs that may arise as a result of an illness. This can include medical expenses, lost income, and other related costs. It can also provide peace of mind, knowing that your loved ones will be taken care of if you are unable to work.
It’s worth noting that critical illness cover is generally more expensive than term life insurance, but with the right policy, it can be an affordable option for those in their 40s. With the policy tailored to your specific needs and budget, you can ensure that you are protected should the unexpected happen. For example, a 40-year-old man in good health might pay £25 per month for a critical illness policy with a £100,000 benefit. It’s always best to shop around and compare different policies and providers to find the best deal for you.
This type of life insurance policy pays out a lump sum if the policyholder is diagnosed with a terminal illness and is not expected to live more than a specified period of time, usually 12 months or less. The death benefit can be used to help cover medical expenses, outstanding debts, or to provide financial support for loved ones.
One of the benefits of terminal illness cover is that it can provide peace of mind knowing that your loved ones will be taken care of financially even if you don’t have long to live. It is also worth noting that terminal illness cover typically pays out much earlier than a regular life insurance policy, which can provide much-needed financial assistance during a difficult time.
If you’re in your 40s, obtaining life insurance coverage without providing any medical information is not an option. The only way to get guaranteed acceptance without disclosing any health information is through an over 50s plan. However, this type of coverage is only available to people between the ages of 50 and 85, so if you’re in your 40s, you won’t qualify.
While it may be tempting to wait until you reach the eligible age bracket for an over 50s plan, there are some important things to consider. Firstly, these plans typically have higher premiums to account for the unknown risk to the insurer. So, 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 (the amount of coverage you will receive) is significantly lower than that available on either term-based or whole of life cover. While term-based and whole of life coverage can offer a potential sum assured of up to £1,000,000, the maximum available through an over 50s plan is £20,000.
So, it’s important to carefully consider the level of coverage you require, and weigh the trade-offs between guaranteed acceptance, lower premiums, and higher sums assured available through other types of coverage.
There are a number of questions that an insurance agent or representative may ask in order to understand the individual’s unique circumstances and determine the best policy for their needs. These questions may include:
Answering these questions can help the insurance agent or representative understand your unique needs and recommend the right coverage for you.
Also, keep in mind that an agent or representative may ask other personal questions, like what you do for a living, your financial stability, your marital status, and so on. They will also look at your previous medical history, so it’s important to be as honest and transparent as possible.
At Life Cover Quotes, we understand the importance of securing life insurance coverage at any age. For those over 40, finding the right life insurance policy can be challenging, which is why we offer a platform to compare over 40s life insurance quotes.
Our platform connects you with experienced brokers who can provide you with multiple quotes from different insurance companies. By comparing quotes, you can get a better understanding of the coverage options and costs available to you.
Some of the factors that may affect your over 40s life insurance quotes include your age, health, and lifestyle. For example, a person in their 40s who is a non-smoker in good health may be offered a lower quote than someone who is a smoker or has pre-existing medical conditions.
Our platform allows you to compare quotes for different types of life insurance policies such as term life insurance, whole of life insurance, over 50s plans, family income benefit, terminal illness cover and critical illness cover.
In addition to comparing quotes, our experienced brokers can also provide guidance and advice on the best policy to suit your specific needs and budget. With our platform, you can have the peace of mind that you are getting the best coverage at the best price.