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Life insurance is a financial vehicle that allows you to gain some sense of financial peace of mind that should you pass away, your financial obligations will be met and your loved ones will be taken care of. Policyholders pay a monthly premium, and in the event of their death, these insurance contracts pay out a lump sum to the named beneficiaries.
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What is Over-40’s Life Insurance?
Many life insurance products exist that target specific demographics and are designed to cater to their needs. Most commonly one would find life insurance targeted at the Over-50’s, but people are increasingly considering their financial future earlier, making Over-40’s life insurance a more necessary coverage for life insurance providers to offer. That means if you’re in this age range, now’s a great time to start looking at purchasing life insurance. If you’re in this age range but perhaps still on the fence about life insurance, here are a few reasons why you should consider it.
Why Buy Life Insurance at 40?
Personal Circumstances
For many, life insurance is obtained so that should they pass away, their financial obligations will be taken care of. Forty-years old can be the time when people’s financial responsibilities (mortgage repayments and living costs) and personal circumstances (children and income levels) have grown to a level that need to be protected. If this sounds like you, it might be pertinent to take stock of your individual situation and see if it might be worth taking out a life insurance policy yourself.
There are many different factors that can affect how much your monthly life insurance premium will be, but by far age has been shown to consistently drive where that total ends up.
Looking at a sample of life policy costs all looking at the same payout benefit of £125,000, we confirmed that the biggest differentiator between prices was age, and within those different age brackets the averages are as follows:
Average Monthly Cost for a 30 Year Old: £9.95
Average Monthly Cost for a 40 Year Old: £26.45
Average Monthly Cost for a 50 Year Old: £41.30
Average Monthly Cost for a 70 Year Old: £95.50
From this you can see how unlocking a six figure payout costs almost half the monthly price at forty years old than it does at fifty. That being the case, purchasing a fixed cost over-40’s life policy might end up being more cost effective than purchasing it 10 years later.
Preferential Terms and Conditions
It’s not just cheaper premiums that come as a result of purchasing life insurance at forty: better terms and conditions follow too. It’s good to check out the full suite of offerings available, but as a purchaser of over-40’s life insurance, there are two things that you should be able to take advantage of.
The first is no need for a medical check-up. Plenty of insurance companies offer this, but not after a certain age. The Exeter for example does have “no medical necessary†policies, but this is only available to those under forty-two years old.
You might also be able to purchase whole of life insurance, meaning rather than have your policy expire at a certain age, it lasts right up until your death, effectively giving you and your beneficiaries a guaranteed payout.
Things to Consider When Purchasing Over-40’s Life Insurance
We compare plans from the leading life insurance providers
Look at your corporate life insurance
Chances are that if you are in your forties looking at obtaining life insurance you in full-time employment. If that’s the case, your work-place benefit could include life insurance, and it’s something that whilst is common, many employees don’t necessarily realize it. Check with your HR department and see what coverage conditions and payout it includes. If what you find isn’t sufficient for your needs, you could either try to enhance that policy or else purchase another life insurance policy (you are able to purchase multiple life policies that payout on top of each other)
Purchase something flexible; things change over time
Obviously you’d hope that at forty, your life situation is pretty stable and set. However, don’t forget that these policies still run for a long time, up to fifty years and beyond. The amount of coverage you require could change over time – for example as your children get older, will hopefully depend on your financial support less and less. Or indeed long-term loan obligations should decrease too. You might also find that the amount of premium you are able to spend monthly can change too (either up or down). This is why when purchasing over-40s life insurance, it’s good to find a policy that allows coverage and premium changes when needed.
Don’t forget about inflation!
Over-40’s life insurance has every possibility of running for an extended amount of time, so much so that the effect of inflation could well reduce the value of your payout over time. Think about choosing an increased term policy: this will increase the value of your coverage amount in line with inflation so that it is protected against market movements and the long-term economy.
How to Find the Best Over-40’s Life Insurance
Whilst specifically “over-40’s†life insurance might not be as common as traditional life insurance policies, you can still find it with access to the right resources. Search Comparison Sites are always updating their product offering so that consumers have a full overview of what insurance companies are providing for them – the will give you a good summary of current market pricing and terms for the over-40s. You might be looking for life insurance at this age for a unique individual situation, and that being the case, it could be better to begin your search via an insurance intermediary. These professional experts should be able to find you a bespoke product that meets your needs.