As you get older, you get a bit wiser. You wish you purchased life insurance 20 years ago when you were just starting out. Now that you are in your 40s, you may not be sure you can purchase coverage. Should you do so? Will it be too expensive?
Term life insurance is still available to most people in their 40s, but there are a few things you want to take into consideration here.
What Do You Want to Cover?
A good place to start is with your desired coverage. Term policies are in place for a set number of years. This could be 10 years. It could be 30 years. Since you are older, it is usually less expensive to choose a shorter term. However, if you think you may want to renew coverage, it is best to continue with a longer policy.
Next, estimate your goals. Do you want to cover the last 10 years on your mortgage payments? Perhaps you have a child heading into college. You want to make sure there is enough money available to pay for it. You may want to cover your expenses for the next 20 years until your spouse reaches retirement age.
Use this information to determine how much coverage you want, too. A higher-valued policy will probably have a higher price point. However, you should choose enough coverage to match your family's specific needs.
Will It Be Too Expensive?
Many individuals worry about the cost of life insurance. However, even into your 40s, it may still be affordable. Policy costs range widely. Your health, where you live, and the amount of coverage you decide on are key factors. You may also want to consider purchasing life insurance policies for both spouses.
Permanent Life Insurance?
Some people may wish to consider whole life or permanent life insurance at this age. It is still available to many. It may be a better option for those who are still healthy and who want to leave behind funds to loved ones at the end of their life. Some forms can help you receive retirement income, too.
Term life insurance at 40 still makes sense. It can provide you with the peace of mind you need. You can protect your family and minimize their financial loss should something happen to you unexpectedly.