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.
Term-based: The cheaper of the two options, term-based policies provide the policyholder with life insurance coverage over a determined period. This type of policy itself is split into two categories:
Whole life: These policies remain in place for life until you pass away. They tend to be more expensive as the payout is guaranteed if you provide all the correct details. 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.
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.
A joint policy with your partner is another fantastic way to lower your life insurance premium. It’s always cheaper to opt for this package instead of taking out two individual policies. The cost will be even more affordable if both are in their 40s.
Take a look at this useful guide, which provides an overview of what to consider when taking out joint-life insurance in the UK.
There are many advantages to taking out a life insurance policy in your 40s. As with anything, you should seek guidance from a reputable insurance provider to find what option is best for you.