The following term life insurance rates by age charts are for someone in their 40s in excellent health, with no other risk factors.
The life insurance quotes provided are from top rated life insurance companies rated by AM Best with an A- rating and higher.
- Term Life Insurance Rates in Your 40s
- Whole Life Insurance Rates in Your 40s
- Term Life vs Whole Life Insurance Quotes
- So Why Buy Life Insurance in Your 40s
- Top 5 Reasons to Consider Whole Life
Term Life Insurance Rates in Your 40s
Whole Life Insurance Rates in Your 40s
| Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 20 | $83 | $151 | $293 | $580 |
| 25 | $92 | $178 | $348 | $689 |
| 30 | $105 | $216 | $422 | $839 |
| 35 | $121 | $267 | $522 | $1038 |
| 40 | $141 | $326 | $639 | $1273 |
| 45 | $173 | $401 | $789 | $1571 |
| 50 | $214 | $499 | $982 | $1959 |
| 55 | $270 | $629 | $1239 | $2473 |
| 60 | $324 | $802 | $1582 | $3158 |
| Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 20 | $56 | $132 | $255 | $504 |
| 25 | $66 | $156 | $304 | $602 |
| 30 | $79 | $188 | $368 | $729 |
| 35 | $96 | $230 | $450 | $894 |
| 40 | $115 | $278 | $544 | $1081 |
| 45 | $143 | $350 | $685 | $1364 |
| 50 | $175 | $429 | $843 | $1681 |
| 55 | $223 | $549 | $1082 | $2158 |
| 60 | $280 | $700 | $1381 | $2756 |
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Term Life vs Whole Life Insurance Rates
So, Why Buy Life Insurance in Your 40s?
Chances are if you own a TV you’ve probably heard the commercial that goes something like this…
“Meet John. John is a 42-year-old male and we were able to secure a $250,000-dollar 10-year term life insurance policy for him for less than $17 a month.”
(And life insurance rates for a female are even less than for males).
Which given the fact…
That we’ve all seen this commercial or something really close to it at least a thousand times tells us it must be really effective, otherwise it wouldn’t play over and over.
The problem is…
As anyone in my family can attest to (because every time this commercial airs I yell) …
“What happens in 10 years when this really affordable 10-year term life insurance policy ends?”
What happens then?
In this scenario, John is only going to be 52, so will all of his insurance needs suddenly disappear?
Or will John now need to apply for life insurance all over again, only this time he’s going to be in his early 50s as opposed to his early 40s.
What happens if…
Over the next 10 years, John develops some type of medical condition?
What if John suffers from an injury that prevents him from being able to work full time?
In other words,
“What happens if John isn’t that perfect applicant any longer?”
Well…
This is when John might start “re-thinking” whether or not that really affordable term life insurance policy he purchased 10 years ago was such a good idea.
Now…
The good news is that most of the time, these super low 10 year term life insurance rates are used to “capture” someone’s attention so that they’ll call in, at which time a “full review” of one’s insurance needs can be done.
Then a client will usually be offered additional term life insurance products ranging from 10 years all the way to 30 year term life insurance policies.
The problem is…
That a lot of times, many of the nationwide insurance agencies that handle extremely large amounts of potential clients fail to offer other types of life insurance policies, including cash value whole life insurance.
Now…
We here at I&E can’t say for sure why most of these larger insurance brokerages fail to make all options available to their clients.
However, we assume that it’s probably because the “sales cycle” for these other types of life insurance products is longer that it is for most term life insurance policies.
And also because it’s difficult to find qualified life insurance agents who fully understand advanced markets life insurance.
Some brokerages…
Even go so far as to say that they “refuse” to offer any type of permanent life insurance policies because in their opinion, they are a “rip off” and the only reason why any life insurance agent would offer them to a client is so that they can earn a higher commission for themselves.
And while…
It is true that in many situations insurance agents will earn a higher commission for selling a whole life insurance policy than they would for selling a term life insurance policy, we here at I&E feel that there are some very valid reasons why someone should at least consider purchasing whole life insurance vs term life insurance.
And that is why we believe that those agencies who refuse to offer them to their clients simply aren’t living up to the fiduciary duty.
Which is…
Quite a statement to make without providing some “real world” examples where purchasing a whole life insurance policy might be a good idea for a particular client.
So, we will give you 5 …
Top 5 Reasons To Consider Buying Whole Life Insurance in Your 40s
Never ending insurance needs
For the sake of argument, let’s assume that right now you are 45 years old and are in great shape. Chances are you’ll be able to qualify for a 30 year term life insurance policy, and in theory this policy should be quite affordable.
“Mission Accomplished”
But what if…
At age 75 your insurance needs haven’t gone away?
What if all the reasons why you bought an insurance policy at age 45 are still there at age 75?
Sure, at 75 you probably don’t still have a mortgage, you children are all grown up and out of college and you’re no longer working so you don’t necessarily need to worry about any lost wages in the event of your death “post age 75”.
In theory…
That 30 year term life insurance policy that you bought at 45 did exactly what it was supposed to do, it provided the protection you needed during your families most vulnerable years.
But what if…
- You’re the parent of a special needs child who wasn’t able to provide for him or herself?
- Or you have a younger spouse who may be counting on your life insurance proceeds to help with their own retirement planning?
Or maybe…
Utilizing some of the financial benefits of owning a cash value whole life insurance that aren’t available to those who only purchase a term life insurance policy might also be beneficial.
You see…
Because we here at I&E work with folks from all walks of life, we know that it’s just irresponsible for us to automatically assume that a term life insurance policy is the “only” type of life insurance policy that makes sense for everyone.
Conversely, we also understand that a whole life insurance policy isn’t always going to be the “best” option either!
Which is why we here at I&E offer all sorts of life insurance products including term and whole life!
Supplemental Insurance please!
Another reason why someone might want to consider purchasing a whole life insurance policy is if they already have a term life insurance policy in place but would like to have a “smaller” supplemental whole life insurance policy as well, which would remain in place once their term life insurance policy expired.
For example…
Let’s think of an individual who has:
- Two small children in elementary school,
- Twenty-five years remaining on a 30-year mortgage,
- And a spouse that is dependent up them for income.
Clearly this individual has all the need in the world for a reasonably large life insurance policy.
That said however, in 30 years, many of the reasons why this individual decided to purchase a life insurance policy will go away.
Which is why…
It may make sense to have a large convertible term life insurance policy in place and simply supplement that coverage with a smaller whole life insurance policy so that when the larger term life insurance policy expires, they will still have some life insurance coverage in place.
Clearly this isn’t…
A very “controversial” reason why someone might want to purchase a whole life insurance policy which is why we find it so “strange” for some insurance brokerages to simply not want to offer this option to their clients.
Limited Insurance Needs
Another common reason why we may suggest a client might want to pursue purchasing a whole life insurance policy vs a term life insurance policy is when an individual’s insurance needs isn’t all that large.
In cases like these…
An individual may want to ensure that their final expense or the final expenses of a loved one would be covered in the event of their passing.
In cases like these, because one is simply trying to make sure that they won’t be on the “hook” for paying for burial expenses, it may make sense to purchase a small burial insurance policy rather than term life insurance policy which could expire prior to actually being useful.
We’ll commonly recommend…
These “types” of policies to individuals who are worried about being responsible for another family members burial costs such as a parent, a sibling or perhaps an aunt or uncle who won’t be able to cover their burial expenses, which will ultimately mean that the more “affluent” family members will be stuck having to cover the bill.
In cases like these, purchasing a small whole life insurance policy could be a huge help for everyone else involved.
It’s all you can get
Here at I&E, we often wonder what these other insurance brokerages do when they’re “dead set” on never offering a whole life insurance policy when an individual can’t qualify for a traditional term life insurance policy?
Do they offer them only accidental death insurance? Do they tell them they’re out of luck? Or do they tell them to “shop” around a bit because other brokerages may have an option for them?
We’re not sure…
But what we can tell you is that there is a large population of folks out there who simply cannot qualify for a traditional term or whole life insurance policy and may have to rely on an “alternative” whole life insurance policy, which is commonly referred to as a “guaranteed issue whole life insurance policy”.
Now…
In fairness, the vast majority of these “types” of life insurance policies will only be available to those 50 and older, and those companies that will accept folks at age 45 may not always have the “best” pricing out there.
But if you’re 45 years old and you’re really need to purchase a life insurance policy and you aren’t able to qualify for any other type of life insurance, these smaller whole life policies might work.
But before you…
Get your hopes up too high, we should mention that these types of life insurance policies will typically only provide around $25,000 dollars in coverage and they will usually contain either a 2- or 3-year waiting period before they will begin coverage an insured for “natural causes” of death such as:
- Cancer,
- Stroke,
- Heart disease,
- Diabetes,
- Etc
Accidental causes of death will be covered immediately, which is nice, but we understand that most folks want to be covered for both accidental causes of death as well as natural causes of death right away.
Unfortunately…
With these types of policies, that is simply not the case.
The good news is that because guaranteed issue life insurance policies don’t ask any underwriting questions other than citizenship, age, and residence, so even those who are seriously ill should be able to qualify for coverage.
A new way of thinking!
One of the biggest complaints many financial advisors will state when comparing term life insurance vs whole life insurance is that whole life insurance rates cost a lot more than term life insurance and that the only reason why a life insurance agent would recommend one of their clients purchase one is so that they can earn a higher commission for the sale.
And while…
We’ve tried to provide concrete examples where purchasing a whole life insurance policy might be better for an individual because of the importance of actually receiving the insurance death benefit, we now want to describe why someone may choose to purchase a whole life insurance policy for the simple reason that there are a LOT of benefits to whole life insurance.
The problem is…
That the first thing you’re going to need to understand is that a purchasing a whole life insurance policy should not be considered like purchasing a…
“Traditional Investment”
Because, if you do, the whole life insurance policy critics will be correct in that one could purchase a term life insurance policy for less and find better “investments” which could yield a higher return than a whole life insurance policy will.
Instead…
One needs to think of a whole life insurance policy as a way of creating a…
“Forced Savings Account”
In which your monthly premiums go into a cash value whole life insurance policy which will earn you a much higher return than they would in a traditional savings account in a bank.
The only difference is…
Now that this money is stored in your “cash value whole life insurance policy” earning a higher return than a bank savings account, you will also reap many other benefits not commonly discussed or understood by those who believe term life insurance is always better than whole life insurance.
Whole Life Benefits such as:
- Tax free loans,
- Tax deferred growth on guaranteed cash value growth,
- Improved cash flow and liquidity vs other types of “investments”,
- Guaranteed death benefit protection, and
- Guaranteed level premiums payments.
The problem is…
It does take a while for folks to “wrap their mind” around the idea which is why you generally won’t see advertisers on TV or Radio promote it because these “types” of whole life insurance policies and strategies generally don’t fit a call center insurance brokerage sales model.
The good news is that…
Here at I&E, we don’t operate like a call center. And we don’t assume any one “type” of life insurance policy is going to be the right kind for you.
This is why we have chosen to remain an independent life insurance brokerage that is able to offer a variety of insurance products from dozens of different insurance companies.
So, what are you waiting for? Give us a call today and see what we can do for you!
