Buying life insurance at 42 years is a great way to protect your family from future financial burdens. Fortunately, buying insurance in your 40s is more affordable than buying it in your 50s or 60s. Still, there are factors that you should consider about what type of insurance you need to buy. For instance, you must take note of your finances, goals, and health to decide which policy is best suited for you.
What We'll Cover
- What Is Life Insurance?
- What Does Life Insurance Cover?
- Why Should You Find Cheap Life Insurance Providers If You're 42 Years Old?
- You Have Debt
- You Have Kids That Depend on You
- You Want to Leave Some Form of Inheritance for Your Kids
- You’ll Be Planning for Your Funeral
- How Do You Pick the Best Cheap Life Insurance Provider at 42 Years Old?
- Take A Medical Examination
- Choose The Right Coverage Amount
- Compare Several Life Insurance Companies
- Which are the Top Cheap Life Insurance Companies for A Person 42 Years Old?
- Average Monthly Premiums By State for People aged 42
- Get the Best Cheap Life Insurance Providers for Being 42 Years Old Today
Once you decide on these factors, you can go ahead and compare different options. Meanwhile, here's what you should know about the best cheap life insurance providers for both males and females at 42 years old.
What Is Life Insurance?
Life insurance is a type of insurance that provides death benefits to beneficiaries after the policyholder dies. Death benefits can help reduce the financial burden associated with affairs like debt settlement, funeral costs, mortgage, children's education, and so on. The purpose of life insurance is to relieve the financial burden on your family after your death.
Please note, your beneficiaries can use the money from your life insurance cover for any purpose of their choice. There are two types of life insurance: term life insurance and whole life insurance. Whole life insurance provides insurance throughout your lifetime, while term-life insurance protects for a particular period. This article focuses on term life insurance for people at 42 years old.
What Does Life Insurance Cover?
As stated above, life insurance provides several death benefits to its policy holder's beneficiaries. Some of the benefits that your loved one can enjoy are as follows:
- Monthly Bills and Expenses: Life insurance will most likely help you cover your family's rent, groceries, utilities, household necessities, and child care. If you want your life insurance to cover these expenses, it's advisable to take insurance worth 10-15 times your current income to ensure that your family maintains their current lifestyle once you die.
- Co-signed Debt: If you have cosigned a mortgage, student loan, auto loan, or any other loan, life insurance would be suitable to cover your portion once you're gone. Remember, debts that are not cosigned by a loved one or family member can also be their responsibility after your death. Life insurance can help cover these debts even after your absence.
- College Tuition and education: If you're responsible for your child's college tuition or education, life insurance can help you cover your children's tuition, regardless of the fee
- End-of-Life Expenses: Life insurance can also cover the cost of your end-of-life insurance. Surprisingly, the average funeral cost is $7,640, which is a huge amount for your family. Life insurance is suitable for relieving this kind of burden on your family.
- Dependent Care: Life insurance can cover dependent care expenses from daycare, after-school programs, nannies, and other expenses. By covering for these expenses, your loved ones can continue living the same quality of life even after you've passed on.
Why Should You Find Cheap Life Insurance Providers If You're 42 Years Old?
It depends. At 42, you are probably handling both personal and professional fronts. You might also be caring for your aging parents. Regardless of your situation, you should find affordable life insurance at 42 years old for the following reasons:
You Have Debt
Should you die, your debts like mortgages will be passed on to your loved ones. You probably don't want to put your family through this.
According to CNBC, the average debt balance for people between 40 to 55 years old is $135,841. Leaving this amount of debt for your family can be a big burden. Fortunately, by securing life insurance, you will ensure that your debt is not passed on to your family members.
You Have Kids That Depend on You
At 42 years of age, you probably have teenage kids or small children, depending on when you were married. As a parent, there are valid reasons why you should consider getting life insurance coverage at this age. There are day-to-day expenses like housekeeping, childcare, and future college expenses.
By securing life insurance, you will ease the burden on your loved ones by providing the financial assistance that your loved ones need when you are gone.
You Want to Leave Some Form of Inheritance for Your Kids
Life insurance can help you leave a meaningful inheritance for your kids unless you're overly wealthy and have managed to stash away substantial assets for your child. To make things better, your children wouldn't have to pay income tax on the death benefit if they claim the benefit once you pass on.
You’ll Be Planning for Your Funeral
Funeral budgets aren't cheap. The average funeral cost is $7,000 to $12,000, depending on your state. Buying term life insurance at 42 years could help you prevent your loved ones from bearing the cost during tough times.
Understandably, planning for your funeral isn't easy. However, if it means that you'll be relieving a financial burden on your family, there's no better way to do it than buying life insurance.
How Do You Pick the Best Cheap Life Insurance Provider at 42 Years Old?
It would be best to consider specific factors when finding affordable life insurance when you’re 42 years. Here are three crucial tips that will help you.
Take A Medical Examination
Figuring where you stand regarding your health is a good place to start determining which life insurance policy is suitable for you. Remember, some insurance companies allow policyholders to use part of their coverage to cover their medical expenses. Therefore, knowing your health condition can benefit you while comparing different policies from companies at your disposal.
Choose The Right Coverage Amount
Your financial situation is crucial in determining how much you should pay for your policy. You should also consider the average funeral cost for your state and what to leave behind for your loved one to determine how much premium you can afford. This will help you pick a policy that you can afford.
Compare Several Life Insurance Companies
All insurance companies are not the same. You can work with an independent agent or research by yourself. Every insurance company has its own underwriting guidelines, which you can use to review their policies and their benefits. An insurance professional would be best suited to help you through this process.
Which are the Top Cheap Life Insurance Companies for A Person 42 Years Old?
The best way to find an affordable life insurance company is by comparing different options. Here is our pick of the best affordable life insurance companies that would be best suited for you if you're 42 years old, including their policy, benefits, average pricing, and coverage.
Sproutt Insurance is an insurance company that offers online insurance options that people can buy. For a person age 42, you're eligible for term life insurance for people age 40, according to their options. Here is a monthly premium breakdown for a 20-year term policy for New Yorkers in their 40s, with a total benefit of $500,000.
- Male non-smokers - $40
- Male smokers - $137
- Female non-smokers - $32
- Female smokers - $107
SelectQuote is an insurance sales agency that helps customers find the best rate for their life insurance. Their insurance rates are based on gender, age, unhealthy habits, and general health. The following is a breakdown of a 20-year term life insurance cost for a $250,000, $500,000, and $1M coverage benefit for a 42-year-old male and female.
Monthly Premiums for Females at 42 Years:
- $12.63 for a policy coverage of $250,000
- $18.87 for a policy coverage of $500,000
- $31.42 for a policy coverage of $1M
Monthly Premiums for Males at 42 Years:
- $14.23 for a total policy coverage of $250,000
- $22.31 for a total policy coverage of $500,000
- $36.28 for a total policy coverage of $1M
Please note, this information represents policies for women and men in excellent health conditions.
Bestow is another online life insurance company that offers nearly instant coverage to its policyholders online. Applicants can apply for insurance through their online option, and the company will use its data and algorithms to set your premium.
You can get term life insurance of 10, 15, 20, and 25 if you're 42 years old. Their policies are worth up to $1.5M. Please note, for a 25-year term, male applicants at 42 years must be non-tobacco users. Smokers are only restricted to 18-39 years for women while men between 18-37 are eligible for this policy.
Ladder insurance offers a streamlined online experience for policyholders managed without agents. It also offers almost instant coverage after applying.
Policies can amount up to $8M with a time life of 10, 15, 20, 25, and 35 years. Males or females at 42 years cannot apply for the 30-year-time limit since there is an age limit of 70 years if you add your age and term length. Applications for coverage of $3M can be completed online without taking a medical examination. You can compare their policy using their calculator.
Banner Life is another online insurance company owned by Legal & General America that offers term and universal insurance with few customization options. For term life insurance, their policies have the following features:
- Available for 10,15, 20, 30, 35, and 40 years
- Coverage is available for applicants between 20 to 75 years old (applicants at 42 years can only apply for the 10,15, 20, and 30 year terms)
- Total coverage can start from $100,000
- Applicants can get online estimates
Pacific Life is an insurance company based in Sacramento, CA, founded in 1868. It offers a wide range of insurance products that applicants can choose from based on their age and finances. Their term life insurance policy has the following features and characteristics:
- Pacific Life Promise term available for 10,15, 20, 25, and 30 years
- Pacific Life Elite term available for 10, 20,30, years, with a 75-year-old age limit
- Total coverage between $50,000 to $3,000,000
- Term life policy convertible to a whole-life policy at the end of the term
- Renewable policies, meaning that they are extendable to higher rates
Protective Life is an insurance company based in Birmingham, Alabama. It operates as a parent company for companies like West Coast Life Insurance Company, Protective Life and Annuity Insurance Company, and MONY Life Insurance Company.
Protective Life term-life insurance policy has the following characteristics and options:
- Offered between periods of 10 to 40 years
- Available for coverage between $100,000 to $50 million
- Age limit of 85 years
- Available through agents or online application
Protective Life Monthly Option for 42-Old-Male for a Coverage of $500,000
- $21.50 for a 10-year term
- $35.69 for a 20-year term
- $65.79 for a 30-year term
Protective life Monthly Payment for a 42-Old-Female for a Coverage of $500,000
- $19.35 for a 10-year term
- $29.67 for a 10-year term
- $51.63 for a 10-year term
Average Monthly Premiums By State for People aged 42
The average monthly premium for term life insurance for a person aged 42 varies according to the state where the policyholder is residing. However, you should note that premiums don't differ by state based on the geographical location of your residence. The only thing that makes the difference is the regulations in every state.
Here is a breakdown of the average monthly premium for a 20-year term policy with 500,000 coverage for people aged 42 years in some of the states:
- California. The average monthly premium for a 20-year term life policy in California is $56.
- Texas. The average monthly premium for a 20-year term life policy in Texas is $53.
- Florida. In Florida, the average monthly premium for a 20-year term life policy is $52.
- New York. In New York, the average monthly premium for a 20-year term life policy is $56.
- Pennsylvania. The average monthly premium for a 20-year term life policy in Pennsylvania is $55.
- Kentucky. The average monthly premium for a 20-year term life policy in Kentucky is $50.
- Ohio. The average monthly premium for a 20-year term life policy in Ohio is $50.
Please note, the above monthly premiums can change based on the gender, marital status, health issues, and lifestyle issues. That's why you should seek professional guidance to be certain of the amount you should pay depending on these factors.
Get the Best Cheap Life Insurance Providers for Being 42 Years Old Today
On average, most term life insurance offers a 10 to 40-year term life cover that can be best suited for a 42-year-old person, based on the age limit that every company has. Pacific Life has the least coverage amount of $50,000, while Protective Life has the maximum coverage of $50 million.
Another crucial aspect you should note is whether your policy is convertible to a whole-life policy and whether there are fees that apply or medical examination. You should also note whether converting a term life policy might lead to higher premium payment before you decide on the company to depend on and whether your monthly premiums can be affected by your lifestyle choices. You can't do this without the help of a professional insurance advisor.
Still puzzled about the best affordable life insurance policy for you? Or are you having trouble choosing the right company for your life insurance? Don't worry. We can help you find the best cheap life insurance providers for when you’re 42 years old that's best suited for your age and finances when you click below to use our price comparison service.