Your 40s usually comes with some pretty important milestones. Perhaps you’ve worked hard in your career and it’s finally paying off, leading to a management spot and a steady climb up the corporate ladder. Your kids, if you have any will probably be getting older too. Do you need life insurance tips?
Once you’re in your 40s, you might be finally at a place where you can afford the type of lifestyle you’ve always wanted – one filled with travel, leisure, and financial freedom. Before you get too cozy, however, make sure you have the proper insurance policies in place. While everything may be going great at the moment, all it takes is an unfortunate series of events to turn your world upside down.
In addition to making sure you have the right auto insurance, homeowners insurance or renters insurance (to protect your possessions), and disability insurance in case you can’t work, you should make sure you have the right amount of life insurance as well. If you don’t, you could leave your family in dire financial straits. And, who wants that? Obviously not you!
Life insurance tips for people in their 40s
If you don’t have life insurance or you know your current policy is lacking, now is the time to do something about it. Here are some tips to consider as you search for the perfect policy for this stage of life.
1. Don’t assume it’s too late to buy meaningful life insurance coverage.
While turning 40 might make you feel old on the inside, you’re still young enough to buy a policy that can protect your family in the event of your death. Actually, most insurance companies that write term life insurance policies will insure people up until their 60s and more! Still, time is of the essence. Because life insurance rates tend to rise as you age, the cheapest time to buy a policy is now. You can find the answers to all of your life insurance questions here.
2. Your life insurance coverage at work is probably not enough.
If your employer offers life insurance as part of your compensation plan, you might be left with little more than a false sense of security. Because workplace policies are typically only worth less than you think.
Keep in mind that most people need ten to fifteen times their annual income in life insurance, and potentially more if they have kids and lots of financial obligations. There’s nothing wrong with finding value in your workplace policy, but you shouldn’t rely on it as your only form of coverage.
3. Rates for term policies can be inexpensive – even in your 40s.
While it’s easy to imagine life insurance rates are pricey once you reach your 40s, that couldn’t be further from the truth. Precluding any major health issues, term policies are notoriously inexpensive, even if you’re in your 30s, 40s, or 50s when you buy. Don’t assume life insurance is out of reach.
4. You can buy more coverage now – even if you have a policy already.
A lot of people in their 40s still own life insurance policies from years ago. Maybe you purchased term insurance when you had a child in your late 20s and haven’t updated your policy since — and had more kids along the way.
While having an older life insurance policy isn’t a problem, it’s not too late to purchase more coverage in your 40s. Chances are good your income and liabilities have changed over the last decade or more. If so, your life insurance needs have also changed whether you’ve been paying attention or not. If you’re earning more money or have more liabilities, buying more life insurance coverage isn’t just inevitable – it’s necessary.