Life Insurance for Over 40s

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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.

Reasons why you might consider getting life insurance in your 40s

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:

You’ve started a family

  • Once you have financial dependents, it’s always a good idea to ensure they’re protected should something happen.

You’ve got a mortgage.

  • In the UK, the average age of first-time property buyers is 34. As a result, more and more people still have considerable mortgage payments to make well into their 40s. If the worst were to happen, a life insurance policy would help clear your mortgage. It’s worth noting that a whopping 42% of people with mortgages in the UK don’t have life insurance coverage.

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.

Advantages of getting life insurance in your 40s

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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.

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.

How much is life insurance for over 40s?

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.

Getting approval for life insurance when over 40

We compare plans from the leading life insurance providers

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.

What to look out for when looking for life insurance for over 40

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.

  • Ensure that the policy you want covers all and only your needs. This will avoid any nasty surprises and will ensure that you’re only paying for what you need.
  • Never pull the trigger on the first life insurance policy offered to you. Get multiple quotes and compare. Most providers can be flexible in working out a deal.
  • Make lifestyle changes that can directly increase your premium. Of course, these can be difficult to make. However, putting an end to habits such as smoking and dangerous hobbies will positively impact your life insurance cost.

Remember, taking out a life insurance policy in your 40s will give you access to cheaper premiums.

Term-based vs whole life policies

There are various types of life insurance policies available on the UK market. Here we take a look at two of the most common types – term-based and whole life insurance.

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:

  • Level term life insurance: This is when the payout stays the same regardless of when you pass away over a set period.
  • Decreasing term life insurance: This is a policy where the insurance payout decreases over the stipulated period. It’s often used to pay a debt where the value also decreases, such as a mortgage.

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.

Should you consider joint-life insurance when over 40?

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.

Should you get life insurance when over 40?

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.

Life insurance types