Is there 40-year term life insurance? Yes – and you get a quote for free, right here on our website. We’ll explain why you should consider the longest term you can afford and show you some sample rates below. You might also be interested in our best-kept term life insurance secrets.
As of 2023, 40 year term life policies are relatively new. Only two insurers currently offer them: Banner Life and Protective Life.
The reason 40 year terms are likely to become more common is because people are living longer, healthier lives. Thanks to improved medical care – including early diagnosis and better treatments for illnesses – Americans are living longer than their grandparents and great-grandparents.
Here’s a quick snapshot of American life expectancy and how it’s increased over time.
Average American Life Expectancy at Birth*
If you just look at the years 1970 – 2019, that’s an increase of 8 years. So it makes sense that insurers are offering coverage that lasts longer than 30 years, which used to be the longest term policy length.Get a Free Quote Now
Keep in mind that insurers will only offer 40-year terms to applicants age 45 and under. If you’re age 46 or over, you can still apply for a 30 or 35-year term.
Not sure how much coverage you need? Use our Life Insurance Needs Calculator!Get a Free Quote Now
To understand why you might want a 40 year term, we need to explain a little bit about how life insurance is priced. When you buy life insurance, the price is determined partly by your age and health. If you’re young and healthy, the insurance company probably won’t have to pay out on your behalf anytime soon. They have a long time to collect payments from you, and that money earns interest over time that will help them make that death benefit payment to your loved ones.
In other words, if you’re young and healthy, life insurance is never going to be more affordable than it is at this moment. So if you can afford it, it’s a good idea to get the maximum amount of coverage you can afford before you develop any health problems that may make waiting a costly choice.Get a Free Quote Now
If you’re young and healthy, you want a policy that’s going to cover you for the length of your financial obligations. Those obligations could include paying off a mortgage, raising kids, or providing replacement income for all your working years.
And since people are living longer, that means they’re working longer. They’re earning longer. And they may have more financial obligations to cover during those working years. People need affordable coverage that isn’t going to expire before they reach retirement. And if you’re 30 years old, for example, it’s reasonable that you could work until you’re about 70. That’s a 40-year span for your working life. And that’s exactly what life insurance is designed to cover.Get a Free Quote Now
Let’s say you’re 44 years old and don’t have another 40 years of working life left. Why would you still opt for a 40-year term?
In this case, you probably still want to buy the longest term you can to ensure that policy pays out. After all, if you’re still alive when your term ends, your loved ones won’t get a payout. Term life only pays if you pass away during the policy’s term. (Permanent life insurance is the only type that offers a guaranteed death benefit payout no matter when you pass away.)
Now, with longer term lengths, it’s possible to buy a 40 year term with the expectation that you might pass away before it’s expired. If cost is your primary consideration, a long term life policy is going to be more affordable than a permanent policy. Of course, none of us can accurately predict when we’re going to pass away. There’s always the possibility that you may outlive even a 40-year term. It’s up to you to evaluate how likely that is. But this new longer term length at least gives you the option to consider.Get a Free Quote Now
Let’s look at a few sample rates for the longest currently available term of 40 years. Keep in mind that your health, age, tobacco status, gender, home state, and lifestyle all contribute to the cost of your coverage. In the estimates below, we’ll take the same quotes through a variety of coverage amounts so you can see how the cost changes based on how much coverage you need.
Quotes shown above valid as of 5/31/2023. Carriers quoted are Banner Life, William Penn, and Protective. Your actual term life insurance premium can only be determined by a full application and the carrier's underwriting process, which may include some medical testing at their expense. Depending on the carrier, premiums can be paid on an annual, semi-annual, quarterly or monthly basis. Monthly premium rates may be available via EFT (electronic funds transfer). Not all carrier policies are available at all durations for all ages in all states.