Life insurance for 40 years old is a big decision. It’s a decision that you should not take lightly. When you reach the age of 40, you may have a lot of financial responsibilities such as education, vehicle, or home loan, and also like other responsibilities such as retirement planning or taking care of medical expenses, and others.
It’s never too late to buy life insurance. If you’re in your 40s are just considering a midlife life insurance policy. There are different types of life insurance policies for 40 year olds and how they can help you in your time of need. Whether you’re seeking a life insurance policy in your 40’s, there is no age limit on buying life insurance policy.
Buying life insurance policy can help you meet your life goals. In case of your unfortunate demise, it will help your family deal with the burden of loans and other financial liabilities. If you think the premium of such a life insurance policy is out of your budget, opt for the one with life cover by comparing the quotes online at PolicyBachat. Here you can select the suitable pay-out option according to your requirement.
Why Buy Life Insurance in 40 Years Old?
There are several reasons life insurance is important for 40 year old. In India, the 40s are the most financially productive and remunerative periods during their working life. At 40 years old you may have a lot of financial liabilities and additional financial hardships in your life. The necessities are being taken care of your children, looking forward to furthering education and EMIs are being paid on time, etc. So, In 40 years old, life insurance is the best choice because you have kids are financially dependent on you, you have to work post-retirement, you have any outstanding debts or loans, you're the sole breadwinner of the family, your wife is dependent on your pension and many other.
Reasons to Get Life Insurance in 40 Year Old
- Financial Protection: In your 4 0s, you have several financial responsibilities, and you likely have people who depend on you financially. A life insurance policy helps to minimize the risk of financial difficulties which would be faced by the families in case of the sudden death of the policyholder. You will also have more time to build up savings for retirement.
- Flexibility in choosing Plan: Getting life insurance at 40 years old is that you will have greater flexibility in choosing your plan. You have more options to select your life insurance policy.
- Tax Benefits: It will help you to save money on your tax. You can avail of tax benefits under section 80C of the income tax Act 1961. A maximum of up to Rs.1, 50, 000 can be pulled out of taxable income.
- Long Term Investment: 40s is a time when people need to secure their future by making long-term investments to manage the risk of death and survival both. Life insurance offers protection for life cover and pension plans as well.
- Retirement Planning: 40’s is the age of thinking about planning for retirement. Purchasing pension plans help secure a person’s as well as their spouse’s financial future. Pension plans ensure that the policyholder continues to receive the same income even after retirement.
- Affordable Premiums: At 40 years old life insurance policy premiums may be affordable even if the policyholder is healthy.
Types of Life Insurance for 40 Year Old
There are many kinds of life insurance plans available in India, including term insurance plans, whole life insurance policies, endowment policies, ULIPs, savings plans, protection plans, pension plans, etc.
- Unit Linked Insurance Plans: Unit linked insurance plan-ULIP is a type of insurance plan that combines insurance and investment benefits in a single policy. It offers life cover and acts as a wealth creation tool. It not only helps your money grow but also protects your loved ones’ future from the unexpected death of the insured.
- Endowment Life Insurance Plans: An Endowment policy is a life insurance plan that apart from covering the life of the insured against uncertain death helps to save a certain amount of money regularly over some time. In short, an endowment policy consists of both the Insurance coverage and the Savings option.
- Protection Life Insurance Plans: Protection plans provide comprehensive insurance cover to protect your family's future. Protection plans are a great way to protect one’s family in case of your absence. Protection plans offer sum assured, which could provide as much as seven times the policyholder’s yearly income to his/her family in the event of the policyholder’s death.
- Pension Life Insurance Plans: 40’s is the perfect time to start retirement planning. Retirement plans are insurance plans which help people meet their expenses after their retirement with periodic payments by the insurance company. The major advantage of pension plans is that the insurance cover is also available with the investment option. The amount collected from the policyholder is invested in safe bonds by the insurance companies and the period installments are paid to the policyholder. The policyholder can opt for the same amount of payout each month or increase payout depending on the expenses of the policyholder.
- Money Back Life Insurance Plans: Money Back plans as the name suggests returns the money invested by the policyholder. In a money back life insurance policy, the policyholder can get a certain percentage of amounts at regular intervals, instead of getting the lump sum amount at the end of the term.
Best Life Insurance Policy for 40 Year old
In India, there are many different types of life insurance policies available in the market. It's important to know which type of policy suits you best. It is not easy to make the right decision when it comes to choosing the best life insurance for 40 year old in India. The factors that one needs to consider before choosing a plan such as Age, Health, Dependents, Income, etc.
There are many things to consider when choosing the best life insurance for a 40-year-old. One of the most important considerations is whether or not the person smokes. If they do, they would likely be better off with a smoker's policy, which will cost more than a non-smoker's policy but will also provide more coverage.
When it comes to health risk factors such as obesity and diabetes, it is important to find out if the person has any of these conditions before purchasing a policy. Obesity can affect how much coverage one needs and diabetes can impact what type of coverage one needs. If someone has these conditions, then their best option may be a whole life policy that includes disability benefits as well as life insurance.
| Life Insurance Company |
Plan Name |
Claim settlement ratio |
Premium Per Month |
| Max Life Insurance |
Max Life Smart Secure Plus Plan |
99.4% |
1602/- |
| HDFC Life Insurance |
HDFC Life Protect Plan |
98% |
2152/- |
| PNB MetLife Insurance |
PNB Metlife Mera Term Plan Plus |
98.2% |
1411/- |
| ICICI Prudential Life Insurance |
ICICI Prudential Iprotect Smart Term Plan |
97.9% |
2302/- |
| Canara HSBC OBC Life Insurance |
Canara HSBC ISelect Star |
98.1% |
1283/- |
*Above mentioned premiums are for illustration purposes. Premium rates may vary as per the data entered by you.*
How to Buy Life Insurance for 40 year old in India?
The process of buying a life insurance policy for 40 years online has become simple with PolicyBachat. For buying a life insurance plan online please visit our website Policybachat.com Following are steps to compare life insurance quotes online in our portal.
- Visit the PolicyBachat Website and select the ‘Life’ tab.
- Enter your Name, Date of Birth, and Mobile Number.
- Click on the ‘View Plans’ button.
- Just Answer 5 Simple Questions.
- Select your ‘Gender’.
- Select ‘YES’ or ‘No’ if you have Smoked or Chewed Tobacco in the last 12 months.
- Select your ‘Annual Income’.
- Select your ‘Education Qualification’.
- Choose your ‘Occupation Type’.
- Enter your ‘Email Address.
- Then click on ‘Start Saving Money.
- Premium Quotes of top life insurance plans will be displayed as per data entered by you and which are suits your requirement.
- You can edit policy details, sum insured value, policy terms and you can choose your preferred company.
- Purchase the best life insurance policy using online payment.
FAQs of Life Insurance for 40 Year Old:
How Insurance Needs of 40 Years Old Vary From 20 And 30 Years Olds?
Insurance needs of 40 years old vary from 20 and 30 years olds. This is because the older we get, the more we value our time. We start to think about retirement and that we might not have enough money for retirement savings. There are three major differences in the insurance needs of 40 year olds when compared to 20 and 30 year olds:
- They pay more attention to their health
- They have too many dependents
- They need long term investments.
What are the Advantages of Life Insurance for 40 Year Old?
Life insurance can be taken by people of any age. The advantages of life insurance for 40 year olds are that they have a higher chance of living longer, which will give them more time to pay off any loans they have. They also have a higher chance of having children who will need financial support if something were to happen to them.
Some other advantages of life insurance for 40 year olds are:
- Provision of financial protection to your family in case you die prematurely.
- Life insurance can help to cover the mortgage, school fees, and other expenses.
- Provide income protection if you are unable to work due to illness or injury.
What are the Disadvantages of Life Insurance for 40 Year Old?
Life insurance is one of the most important financial products for individuals and families. It provides a guaranteed source of income to the beneficiaries in case of death or disability. The disadvantages of life insurance for 40 year olds are that they are expensive and the premiums can be high.