Best Life Insurance Options for 40 Year Olds

Life insurance is a way to protect your family against serious financial hardships when you pass away. Whether your family needs money for a burial alone, you need to protect them from estate taxes, or you want to make sure they have income, you can find a suitable policy at 40 without issue.

Why 40 Year Olds 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.

  • 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 child care 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.

Types of Life Insurance for 40 Year Olds

Forty year olds have many policies available to term, including term, permanent (or whole), and burial. 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.

Term 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) whereas 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 which provides just enough income for your family to cover the costs of a burial.

Life Insurance Rates for 40 Year Olds

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, and for women, the rates will be lower because women statistically live longer.

Preferred Health – Males 

The sample rates below are for a standard non-smoker. The male is 40 years 0ld, 5’9” and weighs 165 pounds.

Policy Type $100,000 $500,000 $1,000,000 $2,000,000
10 Year Term $8/mo. $19/mo. $30/mo. $56/mo.
20 Year Term $11/mo. $31/mo. $58/mo. $111/mo.
30 Year Term $19/mo. $45/mo. $108/mo. $208/mo.
Whole Life $88/mo. $216/mo. $464/mo. $888/mo.

Preferred Health – Females

The sample rates below are for a standard non-smoker. The female is 40 years 0ld, 5’4” and weighs 135 pounds. Both are California residents.

Policy Type $100,000 $500,000 $1,000,000 $2,000,000
10 Year Term $8/mo. $17/mo. $28/mo. $50/mo.
20 Year Term $10/mo. $27/mo. $47/mo. $90/mo.
30 Year Term $16/mo. $45/mo. $85/mo. $166/mo.
Whole Life $80/mo. $216/mo. $376/mo. $720/mo.

Smokers – 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 samples below are for 40 year old males who are smokers, who smoke 20 cigarettes per day, have no health problems other than that, last smoked a cigarette today:

Policy Type $100,000 $500,000 $1,000,000 $2,000,000
10 Year Term $26/mo. $81/mo. $146/mo. $289/mo.
20 Year Term $37/mo. $133/mo. $249/mo. $496/mo.
30 Year Term $52/mo. $216/mo. $245/mo. $848/mo.
Whole Life $296/mo. $1,064/mo. $1,992/mo. $3,968/mo.

Smokers – Females

The samples below are for 40 year old females who are smokers, who smoke 20 cigarettes per day, have no health problems other than that, last smoked a cigarette today:

Policy Type $100,000 $500,000 $1,000,000 $2,000,000
10 Year Term $23/mo. $65/mo. $119/mo. $236/mo.
20 Year Term $33/mo. $105/mo. $201/mo. $398/mo.
30 Year Term $41/mo. $156/mo. $299/mo. $595/mo.
Whole Life $264/mo. $840/mo. $1,608/mo. $3,184/mo.

Diabetics – 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 samples are for diabetic males who was diagnosed in 07/2013. They have Type 1 diabetes. Their last A1C reading of 5.4, average reading of 5.6. Other than that they have no current health complications, are undergoing treatment and their daily dosage is 30 insulin units:

Policy Type $100,000 $500,000 $1,000,000 $2,000,000
10 Year Term $29/mo. $68/mo. $101/mo. $195/mo.
20 Year Term $34/mo. $107/mo. $183/mo. $359/mo.
30 Year Term $49/mo. $187/mo. $322/mo. $637/mo.
Whole Life $272/mo. $856/mo. $1,464/mo. $2,872/mo.

Diabetics – Females

These samples are for diabetic females who was diagnosed in 07/2013. They have Type 1 diabetes. Their last A1C reading of 5.4, average reading of 5.6. Other than that they have no current health complications, are undergoing treatment and their daily dosage is 30 insulin units:

Policy Type $100,000 $500,000 $1,000,000 $2,000,000
10 Year Term $21/mo. $55/mo. $88/mo. $169/mo.
20 Year Term $29/mo. $83/mo. $145/mo. $282/mo.
30 Year Term $40/mo. $140/mo. $244/mo. $481/mo.
Whole Life $232/mo. $664/mo. $1,160/mo. $2,256/mo.

Overweight/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/mo. $27/mo. $44/mo. $81/mo.
20 Year Term $14/mo. $40/mo. $74/mo. $143/mo.
30 Year Term $22/mo. $69/mo. $129/mo. $254/mo.
Whole Life $112/mo. $320/mo. $592/mo. $1,144/mo.

Overweight/Obese – Males

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/mo. $23/mo. $38/mo. $69/mo.
20 Year Term $12/mo. $34/mo. $62/mo. $117/mo.
30 Year Term $18/mo. $54/mo. $101/mo. $198/mo.
Whole Life $96/mo. $272/mo. $496/mo. $936/mo.

High Cholesterol – Males

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/mo. $19/mo. $30/mo. $56/mo.
20 Year Term $11/mo. $31/mo. $58/mo. $111/mo.
30 Year Term $19/mo. $58/mo. $108/mo. $208/mo.
Whole Life $88/mo. $248/mo. $464/mo. $888/mo.

High Cholesterol – Females

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/mo. $17/mo. $28/mo. $50/mo.
20 Year Term $10/mo. $27/mo. $47/mo. $90/mo.
30 Year Term $16/mo. $45/mo. $85/mo. $166/mo.
Whole Life $80/mo. $216/mo. $376/mo. $720/mo.

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.

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.

Best Life Insurance Companies for 40 Year Olds

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 best life insurance companies for 40 year olds, 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.

Tips for Finding a Good 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 40 year olds comes down to comparing rates.

The best way to do this is to use an online quoting engine that offers 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 the best life insurance companies for 40 year olds, we recommend speaking with an independent life insurance agent who works with multiple companies to provide clients with the best quotes.

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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About Jeff Root

is the owner of rootfin.com. He's an independent life insurance agent who has helped 1,000's of consumers purchase life insurance online and over the phone.

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