Ben Nguyen 
If you’re a Canadian entering your 40s, now is the time to get serious about life insurance. This decade brings new financial obligations and risks that coverage can help you manage.
Having adequate insurance ensures that your family, business, and legacy are protected no matter what Unexpected circumstances may arise.
This guide will explore:
- Key reasons to get insured in your 40s
- Policy options for Canadians
- What goes into calculating life insurance rates for ages 40-49
- Strategies to lock in savings
- Working with the right broker
- Answering common questions
Follow our in-depth advice to understand your needs, smartly shop policies, and secure optimal life insurance rates for ages 40-49 tailored to your unique situation.
Why Do Canadians Need Life Insurance in Their 40s?
Your 40s are a crucial decade to secure life insurance, as this is often when responsibilities like mortgages, raising children, and retirement planning are at their peak. Additionally, life insurance rates tend to be more affordable in your 40s compared to later years, making it a smart time to lock in coverage while balancing both your financial needs and future security.
Mortgages and Debt Obligations
By your 40s, you’ve likely taken on major debts like a mortgage and car loans that represent obligations you’d want to spare your family from inheriting if you pass away unexpectedly. Life insurance creates a tax-free lump sum that can be used to pay off these outstanding balances.
Protecting Your Income
If you’re the primary breadwinner in your family, your ongoing income is likely dependent on maintaining your household’s lifestyle. Life insurance generates a death benefit that replaces this income, so your family’s standard of living is not jeopardized.
Saving for Retirement
Your 40s are an essential period for focusing on retirement savings and getting your nest egg on track. Life insurance can make sure your spouse can maintain their desired retirement lifestyle if you’re not there.
College and Education Costs
Many Canadians in their 40s are facing looming college costs for their children. Life insurance provides an asset to cover rising tuition and education fees in the event of your passing.
Leaving a Legacy
A life insurance policy with your children, grandchildren, or other heirs named as beneficiaries can create an inheritance and legacy.
Final Expenses and Funeral Costs
At a minimum, your life insurance death benefit can cover end-of-life medical bills, funeral arrangements and other final expenses so they do not fall on your family.
Business Continuation Planning
If you own a business, life insurance can provide liquidity to keep operations running smoothly until a transition plan is executed following your death.
As you enter your 40s, take time to thoroughly assess all the financial obligations and goals you have and determine an appropriate level of life insurance coverage.
Weighing Life Insurance Options In Your 40s
When shopping for life insurance in your 40s, there are two primary types of life insurance policies to choose from:
Term Life Insurance In Your 40s
Term life insurance provides affordable pure protection for a set period of coverage, typically 10, 20 or 30 years. You pay ongoing premiums to keep the policy active. If you pass away during the term, the policy’s death benefit is paid to your named beneficiaries.
Pros of Term Insurance:
- Lower premiums than permanent insurance
- Ability to match the term length to your needs
- Lock in rates based on your current age and health
Cons of Term Insurance:
- Coverage expires at the end of the term
- Premium rates may rise significantly at renewal time
Term insurance is ideal if you need coverage for temporary needs like paying off a mortgage, getting kids through college or replacing income until retirement.
Permanent Life Insurance In Your 40s
With permanent life insurance, which includes whole life and universal life, you get lifelong coverage as long as you continue paying the premiums. The death benefit, premium cost and cash value are guaranteed for life. Permanent policies also build cash value that grows on a tax-deferred basis.
Pros of Permanent Insurance:
- Lifelong coverage with guaranteed rates
- Cash value you can borrow against
- It can be used for estate planning needs
Cons of Permanent Insurance:
- Much higher premium costs
- Usually requires a medical exam
- Less flexibility if needs to change
Permanent policies are better suited for lifelong protection needs, estate planning goals or having supplemental funds in retirement.
Carefully consider whether you need lifelong coverage or not when choosing between permanent and temporary policies. Your financial goals, income stability, health outlook and more will shape this decision.
What is the Cost For Life Insurance In Your 40s?
Costs For Term Life Insurance In Your 40s
The tables below show estimated 10, 15, 20, and 25 years term life premiums for Canadians in their 40s:
| AGE | 10-YEAR TERM | 15-YEAR TERM | 20-YEAR TERM | 25-YEAR TERM |
|---|---|---|---|---|
| 40 | $20.16 (Male) $18.54 (Female) | $25.38 (Male) $22.32 (Female) | $32.94 (Male) $25.20 (Female) | $38.34 (Male) $29.34 (Female) |
| 45 | $28.44 $23.40 | $35.46 $27.72 | $48.96 $37.26 | $57.78 $42.66 |
| 49 | $37.26 $29.34 | $49.86 $37.44 | $70.56 $56.70 | $84.06 $60.66 |
A 10-year term policy offers very affordable rates but does require reapplying at the end of the term, when premiums may be higher due to age. This policy suits short or medium-term needs like covering a mortgage.
A 25-year term policy locks in savings for a longer period. It costs more upfront than a shorter term, but prevents having to requalify later when older. This suits longer-term needs like income replacement until retirement.
Costs For Whole Life Insurance In Your 40s
Here are estimated monthly premiums for $200,000 of whole life insurance policy, with two options for premium duration :
| AGE | WL POLICY (Premiums Pay for 20 years) | WL POLICY (Premiums Pay to age 90) |
|---|---|---|
| 40 | $663.42 (Male) $638.53 (Female) | $315.60 (Male) $312.48 (Female) |
| 45 | $721.37 (Male) $696.66 (Female) | $356.41 (Male) $352.88 (Female) |
| 49 | $773.06 (Male) $745.98 (Female) | $399.10 (Male) $392.75 (Female) |
Whole life costs significantly more than term insurance since it offers lifelong coverage and cash value. However, it does lock in rates for life. This suits Estate planning goals. Consider if permanent coverage aligns with your needs and budget versus affordable term life insurance.
What Goes Into Calculating Your Life Insurance Rates For Ages 40-49?
When applying for life insurance, the insurance company will thoroughly assess your risk profile based on several key factors:
Age
Age is one of the biggest determinants of life insurance premium costs. As you get older, your risk of passing away rises, and so do your rates. In your 40s, premiums are still lower than in later decades of life but higher than in your 20s and 30s. Locking in rates earlier provides long-term savings.
Gender
Statistically, women have higher life expectancies than men. This means they are seen as lower risk by insurers, so they can enjoy lower premium rates for the same coverage. However, the gender gap in pricing narrows as applicants age. By your 60s and 70s, premium differences based on gender are minimal.
Health Conditions
Your current health is carefully evaluated during the underwriting process. Pre-existing conditions like high blood pressure, high cholesterol, diabetes, heart disease, stroke history, cancer, high BMI and mental illness can significantly increase your premiums. Even minor problems you may consider routine have an impact. The healthiest applicants get the best rates.
Read more: Life Insurance with Pre-Existing Conditions in Canada
Family Health History
If you have close blood relatives who have had major illnesses like cancer, heart disease, stroke and diabetes, you will be seen as higher risk. Genetic predispositions to certain diseases make insurers worry about higher payout potential.
Lifestyle
High risk occupations, recreational activities and habits will raise rates. Jobs like firefighters, Police Officers, Scuba divers, doctors,and pilots are considered hazardous. Extreme sports hobbies like skydiving, rock climbing, and motor racing also increase premiums. Habits like smoking and excessive drinking are penalized by higher rates.
Here is how premiums for a 40-year-old male may vary based on healthstyle :
| Healthstyle (HS) | 10-Year Term, $500K |
|---|---|
| HS1 (no use of tobacco or nicotine products > 15 years, excellent health and a low-risk lifestyle) | $23.72 |
| HS2 (no use of tobacco or nicotine products > two years, very good health and a low-risk lifestyle) | $27.32 |
| HS3 (no use of tobacco or nicotine products > one year, good health and standard lifestyle) | $29.12 |
| HS4 (use of tobacco or nicotine products other than cigarettes and/or marijuana) | $55.72 |
| HS5 (use of cigarettes and/or marijuana) | $73.34 |
Your specific health, family history and lifestyle will further impact your quoted premiums and eligibility for preferred policy classes. Investing in improving your health pays dividends through policy discounts.
Coverage Amount
The total death benefit you want to purchase impacts rates. Due to the higher potential payout, more coverage means higher overall premium costs. Buy only the amount aligned with your actual needs and obligations.
Here is an example of how monthly premiums for a 40-year-old male (non-smoker) rise with higher death benefit amounts:
| Coverage | 10-Year Term | 20-Year Term |
|---|---|---|
| $250,000 | $18.68 | $28.58 |
| $500,000 | $29.70 | $45.00 |
| $1,000,000 | $51.30 | $84.60 |
Comparing Life Insurance Rates for Ages 40-49 from Top Insurers in Canada
When shopping for life insurance in your 40s, it’s important to compare quotes from the top insurers in Canada to find the best rate for your situation. Here is an overview of sample monthly premiums from some of the biggest providers in the country:
Sun Life
- 10-Year Term, $500K – $46
- 20-Year Term, $500K – $59
- Whole Life, $500K – $210
Full review: Sun Life Insurance Canada
Manulife
- 10-Year Term, $500K – $50
- 20-Year Term, $500K – $65
- Whole Life, $500K – $240
Full review: Manulife Life Insurance
RBC Insurance
- 10-Year Term, $500K – $44
- 20-Year Term, $500K – $57
- Whole Life, $500K – $185
Full review: RBC Life Insurance
Canada Life
- 10-Year Term, $500K – $51
- 20-Year Term, $500K – $63
- Whole Life, $500K – $195
Full review: Canada Life Insurance
Desjardins Insurance
- 10-Year Term, $500K – $43
- 20-Year Term, $500K – $56
- Whole Life, $500K – $180
Full review: Desjardins Life Insurance in Canada
As you can see, rates can vary significantly between top life insurance companies in Canada. Make sure to get quotes from a broker who has access to all the major insurers so you can find the best fit for your budget and needs. A difference of a few dollars each month really adds up over the policy term!
Strategies to Lock in the Best Life Insurance Rates For Ages 40-49
Use these tips to make sure you secure the most affordable life insurance pricing:
Compare Quotes From Multiple Providers
Rates can vary dramatically based on the insurance company. Take the time to get quotes from at least 5-10 different insurers and compare them to find the best value based on your specific situation. Look for big names with strong financial ratings, as well as smaller players who aim to compete on price.
Prioritize and Improve Your Health
Insurers reward healthy lifestyles with lower premiums. Do what you can to keep fit with regular exercise, eat healthy, lose excess weight, limit alcohol, and quit unhealthy habits like smoking. Get recommended medical checkups and screenings. Work on controlling any conditions through diet, exercise, medication, or other methods.
Lock In Rates Early in Your 40s
This decade is usually the healthiest for getting low rates before age starts, significantly impacting premiums. Don’t wait – insurers raise rates an average of 8-10% per year just based on your age! Lock in the best pricing now.
Choose an Appropriate Policy Term Length
Match the term length to your needs and financial horizon. Longer terms, like 20 or 30 years, have higher overall rates but allow you to lock in savings for decades to come. Shorter terms are most affordable but will require reapplying and possibly higher rates at renewal time.
Pay Premiums Annually Rather Than Monthly
Paying your entire year’s premium at once saves money compared to paying monthly. Just make sure to budget properly so you don’t miss annual payments – that can cancel your policy. Setup automatic withdrawals for ease.
Only Purchase the Coverage You Need
Don’t overpay for extra death benefit amounts you realistically don’t need. But also don’t risk being underinsured. Do a thorough financial analysis to determine obligations that would need to be covered if you passed away.
Review Your Needs at Major Life Milestones
Shop new rates whenever your financial obligations, income, dependents, or health outlook changes. Key events like new children, new debts, new health diagnoses, or career changes all impact the coverage you need. Review at least every 2-3 years.
Finding the optimal balance of tailored coverage for the best rate takes effort. But smart shopping from a young age pays dividends in peace of mind for decades to come.
The Value of an Independent Insurance Broker When Getting The Best Life Insurance Rates For Ages 40-49
Working with an independent insurance broker can provide tremendous value throughout the life insurance process. Here are some of the key benefits:
Access to Multiple Carriers
An independent broker has contracts with dozens of insurers and can compare personalized quotes across a large network of providers to find the optimal rate for your situation. This saves you time from contacting companies individually.
Expert Needs Analysis and Product Guidance
A broker will ask about your financial obligations, goals and budget and then advise you on the right policy type, length, and coverage amount that aligns with your needs at the best value. Their insight helps avoid overpaying or being underinsured.
Simplified Application Process
The broker will walk you through every step of the application, paperwork, medical requirements, and underwriting. They serve as your guide from start to finish, avoiding hassles.
Demystifying the Policy Details
Life insurance policies can be filled with complex legal, technical and financial terminology. Your broker will ensure you thoroughly understand all the clauses, exclusions, limitations, fees and renewability provisions so there are no surprises down the road.
Ongoing Policy Management
A broker continues to serve as your advocate after issue. They can assist with beneficiary changes, updating coverage for life events, facilitating the claims process, and securing better rates at renewal time.
Unbiased Guidance
Unlike an insurance company’s sales team, an independent broker has a fiduciary duty to act in your best interest. They avoid pressure sales tactics in favour of transparent advice.
Time and Money Savings
By leveraging their established industry connections and experiences, a broker simplifies the complicated process to save you significant time, effort and money compared to going direct.
Don’t tackle life insurance on your own. A trustworthy independent broker has your back throughout the process to ensure you secure the optimal, tailored coverage. Their expertise provides peace of mind.
See our other articles to get the inside scoop on how life insurance rates increase by age in Canada. We provide extensive details on average premium costs for all age groups – whether you’re in your 20s, 40s, 60s or anywhere in between. Our experts explain what causes rates to rise as you age and provide tips to minimize your costs. Learn how to secure coverage at the best price, no matter your age:
- Best Life Insurance Costs for Ages 20-29
- Best Life Insurance Rates in Your 30s (Ages 30-39)
- Life Insurance for Seniors Over 50 in Canada
- Life Insurance for Seniors Over 60 in Canada
- Life Insurance for Seniors Over 70 in Canada
Entering your 40s is when getting life insurance should become a top priority. Follow this guide’s advice to understand your needs, strategically shop, and secure optimal rates tailored to your situation. Locking in the right policy now will provide long-lasting peace of mind, knowing your assets and family are protected moving forward.
Frequently Asked Questions (FAQs) about life insurance rates for ages 40-49
How do pre-existing medical conditions impact life insurance rates for ages 40-49?
Pre-existing conditions like diabetes, heart disease, and cancer can increase life insurance rates for ages 40-49. The severity of the condition and how well it is controlled are factors. Disclosing conditions help insurers accurately price risk.
What types of policies typically have the lowest life insurance rates for ages 40-49?
Term life insurance policies, especially 10 or 20-year terms, generally have the lowest life insurance rates for ages 40-49 compared to permanent insurance like whole life. Term policies provide temporary protection.
Where can I find the best life insurance rates for ages 40-49 from top Canadian providers?
Speaking with an independent insurance broker is the best way to compare life insurance rates for ages 40-49 from top Canadian providers. They can quickly source real-time quotes from multiple insurers.
Why do life insurance rates for ages 40-49 start increasing so quickly year over year?
As we age, the risk of developing health conditions rises, decreasing life expectancy. Life insurance rates for ages 40-49 reflect increasing mortality risk over this decade. Rates continue rising with age.
When is the optimal time to lock in life insurance rates for ages 40-49 before prices jump?
Your early to mid-40s are ideal for locking in life insurance rates for ages 40-49 before prices increase with age. Waiting too long means giving up savings from insuring earlier when risk is perceived as lower.
Do all life insurance companies calculate rates for ages 40-49 the same way?
Not exactly. While factors like age and health history are standard, some insurers may weigh certain criteria like family history or cholesterol levels differently in their pricing models for life insurance rates for ages 40-49.
Can I lower my life insurance rates for ages 40-49 by taking a medical exam?
Yes, opting to take a paramedical exam can result in better life insurance rates for ages 40-49 compared to a non-medical policy. The exam shows insurers you are willing to prove good health.
How much more do smokers pay for life insurance rates for ages 40-49?
Smoker rates for life insurance for ages 40-49 can be 2-3x higher than non-smoker rates. Quitting for at least one year qualifies you for the significantly lower non-smoker pricing.
What medical conditions impact life insurance rates for ages 40-49 the most?
Major conditions like heart disease, cancer, obesity and diabetes have the largest impact on raising life insurance rates for ages 40-49. Even small issues like high blood pressure can increase rates.
If declined, what can I do to improve life insurance rates for ages 40-49?
Making positive health changes like losing weight, reducing alcohol use, lowering cholesterol and blood pressure, and kicking bad habits like smoking after an initial denial can help improve your rates for life insurance in your 40s.
Do brokers have access to exclusive life insurance rates for ages 40-49?
Brokers have contracts with many insurers and can access real-time rate comparison platforms. But there are no truly exclusive rates. All insurers file public rate tables that outline pricing.
Is a longer-term policy always more expensive for life insurance rates for ages 40-49?
Yes, longer coverage terms like 30 years will have higher overall life insurance rates for ages 40-49 compared to shorter 10 or 20-year terms. You prepay fewer years upfront with a smaller term.
Should I choose term or permanent life insurance for rates in my 40s?
Term life insurance generally has significantly lower rates in your 40s compared to permanent life insurance. It offers temporary coverage that may suit short-term needs more affordably.
What is the average rate increase I can expect annually for life insurance rates for ages 40-49?
On average, life insurance rates for ages 40-49 increase about 5-8% per year as you age through your 40s. By the end of the decade, your premium could be 50-90% higher than at age 40.
How are life insurance rates for ages 40-49 impacted by risky hobbies?
Higher-risk hobbies like scuba diving, rock climbing, and aviation can increase life insurance rates for ages 40-49 since they increase the chances of death via accident. Disclosing them helps insurers properly evaluate risk.
Can I pay my life insurance rates for ages 40-49 annually or monthly?
You can pay annually or monthly. Annual payment saves about 5-8% in fees but requires budgeting a larger lump sum upfront. Monthly payment spreads costs out but incurs processing fees.
What is the best way to save on my life insurance rates for ages 40-49 when quoted?
If your quoted life insurance rates for ages 40-49 seem high, improving health factors like weight, diet, exercise, and cholesterol could help lower them. Also, avoid applying with multiple insurers simultaneously.
Article Sources:
For a deeper look at our dedication to accuracy, transparency, and independence, please refer to the Lifebuzz.ca Editorial Policy. We take great pride in being Canada’s most trusted life insurance news source:
- How Much Does Life Insurance Cost For a 40 Year Old (Ages 40-49)? – https://www.dundaslife.com/
- Life Insurance At 40: Should You Get Life Insurance in Your 40s? – https://www.cpp.ca/
- How much does life insurance cost for a 40-year-old? – https://www.policyadvisor.com/
- Buying Life Insurance in Your 40s and 50s – nerdwallet.com
