Term life insurance is a type of life insurance that provides coverage for a specific period of time, known as the term. The term can range from 10 to 30 years, and in some cases, up to 40 years.
In contrast to permanent life insurance, such as whole life or universal life, term life insurance is typically less expensive and provides coverage for a specific period. The coverage ends once the term is over, and no cash value is associated with the policy.
40-year life insurance rates are affected by how old the person is, if they are a male or female, how healthy they are, what kind of job they have, if they smoke, and how much money the policy will pay.
In this article, we will discuss these factors in more detail.
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Factors that Affect Term Life Insurance Rates
- Age: As a person ages, the risk of death increases, making the policy more expensive.
- Gender: Historically, men have a shorter life expectancy than women, so men tend to pay higher rates for term life insurance.
- Health status: Policyholders in good health are considered lower risk and will pay lower rates. Individuals with pre-existing medical conditions or high-risk lifestyles will pay higher rates.
- Occupation: Dangerous or high-risk occupations, such as construction workers or professional athletes, can also affect rates.
- Smoking status: Smokers are considered a higher risk and will pay higher rates than non-smokers.
- Coverage amount: The more life insurance coverage you need, the more expensive the policy will be.
- Policy length: The longer the policy’s term, the higher the rates will be.
Average 40-Year Term Life Rates
Male Non-Smokers
| Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 25 | $20 | $30 | $53 | $98 |
| 30 | $22 | $35 | $65 | $124 |
| 35 | $25 | $49 | $92 | $178 |
| 40 | $36 | $82 | $159 | $312 |
Male Smokers
| Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 25 | $39 | $82 | $158 | $302 |
| 30 | $51 | $102 | $188 | $361 |
| 35 | $62 | $119 | $227 | $435 |
| 40 | N/A | N/A | N/A | N/A |
Female Non-Smokers
| Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 25 | $16 | $24 | $41 | $73 |
| 30 | $17 | $28 | $48 | $88 |
| 35 | $21 | $37 | $69 | $122 |
| 40 | $28 | $61 | $117 | $204 |
Female Smoker
| Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 25 | $38 | $71 | $114 | $198 |
| 30 | $43 | $77 | $140 | $258 |
| 35 | $46 | $83 | $158 | $309 |
| 40 | N/A | N/A | N/A | N/A |
The table shows 40-year term life insurance rates at various coverage amounts for male and female smokers and non-smokers at a range of ages and coverage amounts. As rates are higher for a 40-year term, many people also purchase 30-year term life insurance as rates are lower while still having long-term coverage.
Because smokers have a higher mortality rate, it costs life insurance companies more to insure them. For example, a 25-year-old male would pay $39 per month for $100,000 in coverage if he were a smoker, while a non-smoker of the same age would pay $20 per month for the same coverage.
And of course, rates go up as the coverage amount goes up. For example, a 30-year-old male non-smoker would pay $35 per month for $250,000 in coverage. But that same person would pay $65 per month for $500,000 in coverage.
Finally, rates for this insurance go up as the age of the insured increases. For example, a 25-year-old woman who does not smoke would pay $16 per month for $100,000 in coverage. But a 40-year-old woman who does not smoke would pay $28 per month for the same amount of coverage.
Who Should Get A 40-Year Term Policy?
A 40-year term life insurance policy is a good option for individuals who want coverage for a long, but set period of time. Some examples of people who might benefit from a 40-year term life insurance policy include:
- Parents with young children want to ensure that their children are financially protected in case something happens to them.
- Individuals with a mortgage or other significant debts they want to ensure will be paid off in case of their death.
- Individuals who are not yet retired and do not want to pay for coverage they may not need later in life.
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Who Should Not Get A 40-Year Term Policy?
While a 40-year term life insurance policy can be a good option for some individuals, it may not be the best choice for everyone. Here are a few examples of people who may not want to consider a 40-year term life insurance policy:
- Individuals nearing retirement age or already retired: For older individuals, a 40-year term policy may not make sense. This is because they may not need coverage for that long of a period.
- Individuals who want lifelong coverage: Term life insurance policies only provide coverage for a limited time. If the policyholder lives longer than the term, the policy expires and you are no longer eligible for a death benefit.
- Individuals with serious health conditions: If you have a serious medical condition, insurance companies will be reluctant to give you coverage. At the very least, they will make you pay more for the same coverage vs. an individual in good health.
How to Find the Best 40-Year Term Life Insurance Policy
- Comparison shopping: Comparing rates from many life insurance companies is the best way to find the most affordable policy.
- Working with an independent agent: An independent agent can be especially helpful when it comes to know which policies you will be approved for
Be careful not to simply choose the cheapest policy. You should consider how much coverage you need, how long you need it for, and any “riders” or benefits that a specific policy may have.
Final Thoughts
40 year term life insurance rates are determined by several factors, including age, gender, health status, occupation, smoking status, and the coverage amount.
These life insurance premiums are generally lower for younger and healthier individuals and increase as the policyholder ages, and their health deteriorates.
When looking for the best 40 year term life insurance rate, be sure to compare rates from multiple companies, work with an independent agent, and use online resources.
