At the age of 40, you have a lot going on. You may have a home, children and big dreams about retirement. If you do not have life insurance in place yet, now is the time to get it. At this age, you usually still have a variety of options to choose from, especially if you are healthy. Work with your life insurance agent to create a customized policy to fit your needs. Do you know about your options?
Is Term Life Insurance Ideal?
Term life insurance stays in place for a set number of years. This can be 10 years or 30, for example. The longer the policy is, the higher the costs may be. However, it is likely to be less expensive to buy a 30-year term policy than trying to renew a 10-year policy three times.
Term life insurance can be helpful for several reasons.
- You want to have financial protection in place to cover the cost of your mortgage if you should die while repaying the loan.
- You have dependents at home. You want life insurance to help cover their needs until they are off on their own.
- You have other debts or want to provide your loved ones with the same standard they are living as a wage earner.
Term life at 40 can be a good option. However, it can also be limiting to those who want to have access to the funds during their lifetime. It also does not give you anything to fund your estate plan in the long term.
Is Whole Life insurance an Option?
At 40, you often can still get whole life insurance. It may cost more if you have health complications. However, this type of policy may be beneficial to those who want to have long-term financial protection.
Consider it if:
- You want to leave behind money no matter your age when you pass on, such as leaving money to your heirs or to your spouse.
- You want to have the ability to boost your retirement income through a plan that accumulates cash value.
Which one is right for you?
That depends on your goals. Work with your life insurance agent to compare term- and whole-life policy costs and coverage options. At 40, you will find your costs are likely to rise significantly over the next few years. Buying now can help you avoid that challenge.
Also Read: What is the Best Age to Purchase Life Insurance