Life insurance in your 40s
For someone in their 40s, term life insurance might be the best option. Term is affordable, straightforward, and can be tailored to provide coverage during financially taxing years where you need it most. Here are some common examples of time periods you can structure a term policy around.
- Until your kids are finished with school
- Until you’ve paid off your debt (like a mortgage)
- Until you reach retirement
What does a term policy cover?
In the example to the left, we demonstrated common periods of time to have term life insurance coverage. Ultimately, it's up to the beneficiaries to decide how to use the death benefit. Here are some things it could help cover:
- Home mortgages or rent
- Lost income
- Loans & debt
- Living expenses
- Funeral costs
Our Financial Legacy Index found that many Americans aren’t prepared for the financial ramifications of their death. Here are some findings that particularly demonstrate the need for life insurance:
- 52% of Americans say they often worry about the financial situation they will leave behind for their children/future children after they pass away.
- 33% of Americans say their family would be left financially unstable or bankrupt in the event of their death.
- 82% of Americans value leaving behind a strong financial legacy, but 38% lack confidence they will do so.
Your 40s is one of the most critical, financially-demanding decades to protect. Being in the middle of childcare and eldercare, college, and retirement, means there’s plenty of expenses you want covered for your family who relies on you. Life insurance provides peace of mind knowing those expenses are taken care of should you pass away, making it a crucial piece of your financial legacy.
