Life insurance for over 40s

Key takeaways

• Your age is just one factor to consider when reviewing life insurance. Your debts, dependants, income and existing cover can also be relevant
• Life insurance may be worth reviewing when your circumstances change, such as taking on a mortgage, having a child or taking on new family responsibilities
• There isn’t one set amount of life insurance that everyone needs at 40. The amount to consider depends on your individual circumstances
• Age and health may be relevant when applying for insurance, and different types of cover can have different eligibility requirements
• If you already have life insurance, your 40s can be an opportunity to check whether your existing cover still reflects your circumstances
• Different types of insurance may provide different forms of cover, so understanding the options can help you compare them with your needs

Life can look quite different in your 40s. Maybe you’ve taken on a mortgage, your family has grown, or you’re helping to support ageing parents. You might also be thinking differently about your health, finances and what your family would need if something unexpected happened.

That doesn’t mean turning 40 suddenly changes what you need from life insurance, and it’s certainly not a deadline. Real Life Insurance is available to Australian residents aged 18 to 74.  As you get older, age can be one factor that affects your premiums, which is one reason some people choose to review their options as their circumstances change. You can get a starting point for the amount of cover you may want to consider with our life insurance calculator.

Is it worth getting life insurance at 40?

There’s no simple yes or no answer. Your 40s can look very different from someone else’s, so whether life insurance is worth considering depends on what’s happening in your life and what you already have in place.

You may have a mortgage or other debts, children or other dependants, or people who rely on your income. You might also already have life insurance and simply want to check whether it still fits your circumstances.

Taking a closer look at your commitments and existing cover can help you see whether anything has changed.

Keep reading: How to choose life insurance

Should I get life insurance in my 40s?

You might start thinking about life insurance differently when the way you support the people around you changes. Your 40s can bring new responsibilities, shifting priorities and plenty of decisions about the future. Rather than focusing on age alone, it can be helpful to consider what’s happening in your life and whether your existing arrangements still reflect it.

For example:

• Your life as a couple may change: You might take on different financial responsibilities with your partner, whether that’s sharing household expenses or managing changes in your individual circumstances. If you’re sharing financial responsibilities with a partner, our guide to life insurance for couples explores some of the things to think about
• Your family may look different from how it did a few years ago: As children grow and your family’s needs evolve, the people who rely on you and the commitments you manage can change too. Exploring life insurance for established families can help put some of these considerations into context
• You may find yourself supporting ageing parents: Looking after older family members while managing your own household can add another layer to your responsibilities
• Other changes can prompt a closer look: A change to your income, financial commitments or the people who depend on you can all be reasons to revisit your arrangements. It doesn’t have to be tied to a particular birthday or one major life event

How does turning 40 affect your life insurance?

Turning 40 doesn’t suddenly change your eligibility for life insurance, but your age can be one of the factors considered when you apply. Your health and other circumstances may also be taken into account, so the cover and premiums available to you can depend on your individual situation.

For some types of cover, there can also be age limits to keep in mind. For example, optional covers such as Serious Illness Insurance may have an upper age limit for applications. That means it can be useful to check the eligibility requirements for the cover you’re considering, rather than assuming every option will remain available at every age.

So, while there’s no need to see turning 40 as a deadline, it can be a useful time to check the eligibility requirements for the types of cover you’re considering. This can help you understand which options may be available as your circumstances change.

How much life insurance do I need at 40?

There’s no magic number when it comes to life insurance. The amount of cover you choose to explore can reflect what you’d want the benefit to help with and how much financial support your family or other dependants may need.

You could start by thinking about the costs and commitments that would still need to be managed, such as:

• Outstanding debts: Consider what loans or other debts may remain and need to be accounted for
• Everyday expenses: Think about the regular costs your household would need to meet, from bills and groceries to other ongoing expenses
• Future financial needs: There may be longer-term costs to consider too, such as education or other expenses for children or dependants
• Income your household relies on: If others depend on your income, consider how long they may need financial support
• Other financial resources: Take into account any existing life insurance, savings or other resources that may already form part of your financial arrangements

Looking at these areas together can give you a clearer picture of the financial commitments you'd want cover to account for. Rather than relying on a standard formula, you can use a life insurance calculator to help explore an amount based on your circumstances.

Keep reading: How much life insurance do I need?

What kind of life insurance can you get at 40?

There are different types of insurance to consider, depending on what you’re looking to protect and the circumstances you want your cover to address. Understanding how each type works makes it easier to compare the options available.

• Life Insurance: Can provide a lump sum payment if you pass away or are diagnosed with a terminal illness. The benefit can help provide financial support to the people you leave behind, or to you when you need it most
• Term Life Insurance: Designed to provide cover for a specified period. It can be an option for people looking for life insurance protection during a particular stage of their life
• Serious Illness Cover: May provide a payment if you’re diagnosed with a covered serious illness and meet the policy conditions. Trauma insurance and critical illness cover are often used to describe similar types of cover, but insurers may define and name their products differently. Check the relevant policy information to understand what is and isn’t covered
• Life Insurance for Self-Managed Super Funds (SMSF): May be relevant for people who manage their own super fund and are considering life insurance through their SMSF.

Income Protection Insurance is a separate type of insurance rather than an add-on to the life insurance options above. It may be relevant if you’re thinking about how you would manage financially if you were unable to work because of illness or injury. You can learn more about Real Income Protection Insurance.

Keep reading: Life insurance vs income protection insurance

Tips for taking out life insurance in your 40s

Taking out life insurance is a personal decision, so it can help to take a little time to understand your options and what you’re applying for. A few practical steps can make the process easier to navigate.

1. Review any cover you already have: Before taking out a new policy, look at any life insurance you already hold. Consider the amount of cover, what it includes and whether it still reflects your current circumstances
2. Think about what you want your cover to do: Consider the financial commitments you’d want your policy to help address, such as outstanding debts, ongoing household costs or providing support for those who depend on you
3. Compare your options: Different policies can have different features, eligibility requirements, exclusions and costs. Take the time to understand how the options differ and read the relevant product information before making a decision
4. Understand what’s considered when you apply: Your age, health and other information may be relevant to the application process. Being clear and accurate when providing information can help ensure your application is assessed based on your circumstances
5. Keep your cover in mind as life changes: Life insurance doesn’t have to be a set-and-forget decision. Major changes in your circumstances may be a useful prompt to check your existing cover and see whether it still meets your needs

Get the right cover for your 40s

Whether you’re considering cover for the first time or reviewing an existing policy, understanding your circumstances and the options available can help you make a more informed choice.

Real Insurance offers straightforward life insurance options designed for different stages of life. To find out more, you can request a Real Insurance information pack or request a quote online.