Life insurance for 40 year olds

Why 40 is often the peak need

In your 40s, your income, mortgage and family costs are usually at their highest at the same time. Children may be 10 or more years from finishing school. Your partner may rely on your income to stay in the home.

Start with the mortgage balance and debts, then add years of income and college costs. Subtract savings and any group life through work. Our calculator does the math.

Check any group life coverage through work, but do not count on it alone. It is tied to your employer's plan, so find out what happens to it if you change jobs.

Choosing a term length at 40

Choose a term that ends when your biggest obligations do. If your youngest is 5 and you have 25 years left on the mortgage, a 25 or 30-year term fits. If the kids are teens and the mortgage is half paid, 20 years may be enough.

A 30-year term costs more per month than a 20-year term but protects you through 70. Compare both tables above. Laddering two policies, such as a 20-year and a 30-year, can lower total cost.

If you are buying for the house, see our mortgage protection cost guide.

Many 40 year olds want one policy that covers both the house and the family. A level term policy paid to your spouse can do both. Our MPI vs term life guide compares that with lender-paid mortgage insurance.

No-exam limits start to shrink

Several no-exam products cut their maximum coverage in the mid-40s to early 50s. American Amicable's Easy Term and Home Protector drop from $500,000 to $300,000 after age 45. Mutual of Omaha's Term Life Express drops from $550,000 to $250,000 after age 50.

If you want a larger no-exam policy, applying before those birthdays can matter. Transamerica's Trendsetter LB lists non-medical coverage up to $249,999 in its standard risk classes. Larger amounts at most carriers involve an exam. Read about no-exam life insurance.

Health factors that start to matter

Underwriters look at blood pressure, cholesterol, blood sugar and weight, and these readings tend to carry more weight as you get older. A well-controlled condition often still qualifies for good rates, but an uncontrolled one can move you down a class.

Prescriptions and doctor visits show up in the checks insurers run. Simplified-issue products from American Amicable and Americo, for example, use MIB and prescription checks. Be accurate on the application to avoid problems later.

If you were declined or rated in the past, apply again once a condition is stable. Different carriers treat the same history differently, so one decline does not mean every carrier will say no.

Conversion, permanent coverage and living benefits

A conversion option lets you switch term to permanent coverage later without new health questions. That matters if your health changes in your 50s or 60s. Conversion windows differ a lot between carriers.

Mutual of Omaha's Term Life Express can convert after policy year two. The window closes at the end of the level term or the anniversary after age 70, whichever is first. Transamerica offers conversion on Trendsetter Super without an additional medical exam during its conversion period.

If you want permanent coverage now, compare whole life and IUL with term. Many 40 year olds keep term for family needs and add a small permanent policy later.

Living benefit riders let you draw part of the death benefit if you become seriously ill. They are easier to get added when you buy than later. See our living benefits guide for how carriers like Mutual of Omaha and Transamerica handle terminal, chronic and critical illness.

What the application looks like at 40

At 40 you can usually choose between a no-exam application and a full exam. No-exam products rely on your answers plus MIB and prescription database checks. Transamerica may also order a phone interview or your doctor's records.

A full exam can cost you a few weeks, but it often wins on price if your numbers are good. If you have a condition that is well managed, gather recent test results before you apply.