You may asking yourself how long should I have life insurance? – Is 40-year term life insurance even available?
Quick Answer: YES!
Over the next 40 years, a lot can happen in life. Your mortgage will need to be paid. Your children may live at home longer to pay off their student debts. Perhaps your aging parents may need part-time caregiving in the future. A decision to buy 40-year term life insurance is an excellent way to help your loved ones cover future expenses like credit card debts, funeral costs, mortgage or any other bills.
Today we’re going to review the longest term life policy available to shoppers: 40 Year Term Life Insurance. What is the best life insurance company for 40-year term?
Let’s find out.
40 Year Term Life Insurance
40-year term life insurance policies are a great option for those looking for lengthy security, but not lifetime coverage:
A 40-year term is suitable for these common situations:
- You recently purchased a home.
- You have recently gotten married.
- You are looking to begin a family or have a baby on the way.
- You have a young family or have very young children.
If something should happen to you or the breadwinner in your household, a 40-year term can provide the income that your family will need. It will help get your children through college as well as provide financial support to your spouse and all your dependents.
>>Did you know? 88% of home buyers in the United States finance their purchases using a mortgage. Of those people, almost 90% of them choose a traditional 30-year fixed rate loan.
40 Year Term Life Insurance Rates
A 40-year term is a unique life insurance option which means you don’t have many companies to compare. In fact Banner Life is the only company who offers it.
Banner Life OPTerm
The good news is that 40-year term is offered by Banner Life, one of the best life insurance companies around. Banner Life’s OPTerm is very competitive for term policies. They are often in the Top 5 when it comes to lowest rates.
Sample 40-Year Term Life Insurance Quotes
We gathered sample 40-year term life rates for a $500,000 death benefit for men and women. Let’s look at the monthly rates based on a variety of health classes.
40-Year Term Quotes for Men
Quotes are based on monthly premium and non-tobacco rates.
| Health Status – Underwriting Class | Age 25 | Age 35 | Age 45 |
|---|---|---|---|
| (Excellent) Preferred Plus Non-Tobacco | $42.80 | $64.49 | $188.99 |
| (Very Good) Preferred Non-Tobacco | $53.22 | $81.99 | $205.86 |
| (Good) Standard Plus Non-Tobacco | $66.28 | $103.07 | $233.70 |
40-Year Term Quotes for Women
Quotes are based on monthly premium and non-tobacco rates.
| Health Status – Underwriting Class | Age 25 | Age 35 | Age 45 |
|---|---|---|---|
| (Excellent) Preferred Plus Non-Tobacco | $33.98 | $52.74 | $145.15 |
| (Very Good) Preferred Non-Tobacco | $41.59 | $62.47 | $167.70 |
| (Good) Standard Plus Non-Tobacco | $55.71 | $73.55 | $182.66 |
Pros and Cons of 40-year term life
Pros
- 40-year term provides long term coverage
- Less expensive compared to permanent policies like GUL & Whole life
- Great for income replacement and protecting your mortgage
- You may never need to buy another policy with 40-year term
Cons
- The price of 40-year term will be more compared to shorter terms
- Lack of competition from other companies (there aren't any)
- Do you really need coverage for 40 years or would 30 suffice?
- Doesn't provide lifetime coverage; You may outlive the policy
Term Life Insurance Definition
Let’s make sure that term is the life insurance type you’re looking for. Term Life insurance is a type of coverage for a specific period of time. The “term” is how long the life insurance policy will remain in force. There are various term life lengths provided by life insurance companies: 1 year, 5 year, 10 year, 15 year, 20 year, 25 year and 30 year are the most common. Now there is 40 year term life!
The Potential Outcomes to Every Life Insurance Application
After you apply for life insurance you’ll need to be approved. Here are the possible outcomes to your life insurance application.
1. Approved as Applied
Your agent will ask you the questions that the life insurance company will want to know before approving you. You’ll apply based on your specific details and you’re approved for the premium you applied for. Excellent!
2. Approved Better Than Applied
Your agent quoted you based on your specific health details and your application is approved at a better health class rating. This means you’re approved at a lower premium than what was originally quoted. Many life insurance companies that we have access to will provide healthy credits that can improve your health classifications from standard (more expensive) to a preferred rate class (less expensive). It all depends on the specifics of each case.
3. Approved Other Than Applied
With an AOTA, you applied based on your known details, however something was revealed in underwriting that changed your final approved rate class. Often times it simply comes down to your old medical records or lab results showing some a health issue. Some common reasons for AOTA:
- Elevated blood pressure
- Elevated cholesterol
- Elevated blood sugar levels
Typically 15% of all life insurance applications will come back as approved, other than applied. This is why it’s important to work with an independent agent who can find the best company based on your specific health details. Every company is different and rates can vary widely based on your health.
“A quote is just a quote. In the end, the insurance company will determine what the price of your life insurance will be.”
4. Bait & Switch
With a Bait and Switch, you were probably given a quote by your agent incorrectly, either by omission or on purpose. The life insurance policy ends up coming back at a higher priced premium and now you feel stuck with taking this policy because you need coverage. Protect yourself from a possible “bait and switch” by not using a call center agent who have huge quotas to fill. They are pressured to submit applications as quickly as possible.
Bottom Line
Life Insurance Blog works with over 60 of the top rated life insurance companies in the United States. We know each company’s niche in order to find the one that will give you the best deal. We don’t focus on any particular company or play favorites. Instead, we simply work with you to find out what you need. We then recommend the life insurance company best suited to meet your particular needs, based on your unique lifestyle and health. So, if price matters to you, give us a chance to earn your business.
What are you waiting for? Simply call us today or visit our Term Life Insurance Quotes page and see what we can do for you!
- Last Updated: March 6, 2023
Michael Quinn
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