The Road Ahead: Life Insurance After 40 | Core Benefits Group

Posted on: Tuesday, May 28, 2013

As a young person in your twenties, you probably saw the road ahead of you as a limitless expanse of opportunity. You recognized the life changes that you likely would face, adopting the philosophy that you possessed the time and energy to tackle them without fear. Most importantly, the assets which you were seeking in life, such as a home, a life-partner, and a family of your own, were all in the distant future. Even assuming that you purchased life insurance in your teens or twenties, there was no discernible way to measure how much you would need twenty years down the road.

The principle behind owning life insurance is to protect your dependents and your life’s assets should something happen to you. You work hard and sacrifice your time to create a happy home and family. Sadly, for many, by the time the need for life insurance is fully recognized the cost has significantly increased. How will the mortgage, college bills, and debts be paid? Welcome to the insurance dilemma facing most of us as we approach our middle years.

Someone buying life insurance in their 40s could potentially pay twice as much per month as someone in their 20s. Before signing up for an insurance plan you should look at each type of insurance, assess your options and choose the one that best fits your needs:

  • Term Life Insurance: Many people approaching middle age choose to purchase term life insurance, which only pays death benefits. This way, they protect their loved ones through the years when their needs are greatest.
  • Universal Insurance: Premiums on permanent insurance are more costly because they involve a partial investment in a savings plan. Unlike term insurance, however, a permanent plan guarantees earnings in dividends, interest, or both.
  • Whole Life Insurance: In a whole-life policy, the insurer pays an often-high annual dividend, but the account is tax-deferred.

Of course, health is a crucial consideration when pricing out life insurance and calculating your premium. This is especially important, as we get older. Some factors considered include:

  • Smoking Habits
  • Family History
  • Healthy (or unhealthy) lifestyle habits
  • Age

There is no reason why anyone should hesitate to purchase life insurance after the age of 40. Assess your needs carefully, as well as the needs of your loved ones. You still have the time and energy to face the future. Let us help you map out a plan for your future. Contact us to get started on your journey.


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