3 things 40 year olds need to know about life insurance

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It’s not too late for many people to be covered.


Key points

  • An employer’s coverage may not be sufficient and it could disappear with job loss.
  • Many people in their 40s and 50s can still buy a policy.
  • Term life insurance policies are often more affordable than you might think.

Life insurance is an important purchase for people of all ages who want their surviving family members to be protected in the event of their death.

But it can be especially critical for people in their 40s to make sure they’re covered, as many people in this demographic have many financial commitments and are starting to develop health issues.

Here are three things people in their 40s need to know to be covered.

1. Work coverage may not be enough

Many employers offer benefits that include life insurance. Unfortunately, these policies may not provide all the protection people need. For example, the death benefit may not be large enough to replace all of the deceased person’s income or large enough to ensure that surviving family members can meet their financial obligations.

In addition, it is possible that a loss of employment leads to a loss of coverage. If so, it could be a disaster if their family depends on their income.

Rather than relying solely on work life insurance, those in their 40s may want to consider purchasing a separate term life insurance plan from an insurer that offers a large enough death benefit. to care for surviving dependents – and it won’t be lost if a job change occurs.

2. It’s probably not too late to get coverage

Many people in or near their 40s think it’s too late to buy life insurance. But this is not the reality.

Many insurers sell coverage to people well into their 40s and even 50s. And these are standard term life insurance policies – non-guaranteed issue coverage, which is available to anyone, regardless of health status, but offers much more limited protection.

Even for those with health issues, standard coverage can still be obtained in many cases. Although the premiums may be higher, people are generally not barred from purchasing a life insurance policy unless they have a fairly serious medical condition.

For those who cannot get standard coverage due to major medical conditions, guaranteed issue coverage should always be an option. And he can offer at least some money to help surviving family members with funeral costs and other expenses after a death.

Read more: Purchase life insurance with pre-existing conditions

3. Term policies can be affordable for many

Finally, many people assume that life insurance won’t be affordable once they reach their 40s, but that’s not true either. The premiums for a standard term life insurance policy could stay within many people’s budgets.

Remember, however, that the longer a person waits, the higher the premiums and the more likely they are to develop a condition that will make them uninsurable. To avoid this undesirable outcome, anyone in their 40s who does not yet have life insurance coverage should consider getting a policy as soon as possible.

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