40-Year Term Life Insurance: 5 Important Facts, Sample Rates, & How to Apply
last updated on February 25, 202140-year term life insurance is now available.
New to the market, and offered via Banner Life Insurance, it provides long-term financial protection.
Is a 40-year term policy right for you? Maybe.
You will want to understand the specific attributes of this type of coverage and compare them to your needs – before submitting an application.
Below is a complete guide to 40-year term life insurance, including product details, application steps, and sample rates.
Table Of Contents
- What is 40-Year Term Life Insurance?
- 5 Essential Facts About 40-Year Term Life Insurance
- 40-Year Term Life Insurance has a No Exam Option
- How Much Does 40-Year Term Life Insurance Cost?
- How Much Term Life Insurance Coverage Should You Buy?
- How to Apply for 40-Year Term Life Insurance
What is 40-Year Term Life Insurance?
So, what exactly is term life insurance?
Simply put, a term life insurance policy is life insurance that pays a death benefit for a specific period of time. In this case, that is 40 years, though this is far less common than 20 or 30-year terms.
The benefits of term are many:
- Economical
- Large face amounts are available
- Riders (additional benefits included in your contract)
- Tax-advantaged
- Convertible to a permanent policy
Another benefit – most top-rated carriers offer term life insurance with no exam. In other words, you can secure a policy and skip the needles, nurses, and liquid samples.
5 Essential Facts About 40-Year Term Life Insurance
Learn the essential facts about 40-year term life insurance before applying for coverage.
There are five details you need to know about Banner’s 40-year term life insurance, called OPTerm.
Currently, Banner is the only carrier selling this particular term length.
Important – you must be between the ages of 20 – 45 (40, if you use tobacco) to qualify for this product.
1. 40-Year Term Life Insurance is Affordable
Term life insurance is highly affordable compared to whole life insurance.
If you are in need of long-term coverage, but not indefinite, the new option of a 40-year term might be an excellent choice.
To compare, consider the difference in premiums:
40 Year Term and Whole Life Cost Comparison
| $250,000 40-Year Term Policy | $250,000 Whole Policy | |
|---|---|---|
| 20 Year Old Male | $25.23 | $151.11 |
| 20 Year Old Female | $20.58 | $132.08 |
| 30 Year Old Male | $28.47 | $216.52 |
| 30 Year Old Female | $22.61 | $188.96 |
| 40 Year Old Male | $61.58 | $326.33 |
| 40 Year Old Female | $48.96 | $277.99 |
Keep in mind, however, whole life insurance does offer features that term does not:
- Lifelong protection
- Policy loan feature
- Cash value
2. 40-Year Term Life Insurance has Level Premiums
Almost all term life insurance policies’ premiums are level, and Banner’s are no exception.
What is a level premium? For the life of your initial term (such as 40 years), your premiums (the amount you pay for coverage) are guaranteed to be the same price.
Level premiums give policyholders peace of mind because they can always budget for the same premium amount.
Note – after the initial term, premiums will increase on an annual basis. And, your coverage must end at age 95.
3. Many Riders are Available with 40-Year Term Life Insurance Policies
In addition to the death benefit, riders provide further features to your policy. Riders can make all the difference during a difficult time.
A 40-year term life insurance policy offers the following riders.
Waiver of Premium
If you experience total disability, your premium payments are waived and your policy remains in force.
Proof of total disability is required and must have continuously existed for at least six months.
Accelerated Death Benefit
If you are diagnosed with a terminal illness, the accelerated death benefit is available.
75% of your death benefit, up to $500,000, can be accessed.
Upon the death of the insured, the death benefit is reduced in proportion to the amount of money accessed via the accelerated death benefit rider, which is treated as a lien.
Term Rider
Additional term insurance offers further coverage for 10, 15, or 20 years. Your rates are the same per thousand of coverage as the policy (OPTerm) rates.
Not available in all states.
Children’s Rider
Death benefit protection for one or more children of the insured. One rider covers all eligible babies and children.
Children’s rider expires at the child’s 25th birthday, or the insured’s 65th birthday, whichever happens first.
Eligible babies and children may include an unmarried child, stepchild, and legally adopted child. Must be younger than 18 years old at the time of application.
Note – you can also purchase a separate policy for baby or child.
4. The 40-Year Term Life Insurance Policy is Convertible
You have the option to convert your term policy into a permanent product, without the need to demonstrate insurability.
This means you will not need to participate in underwriting again.
The allowed conversion period is during your initial level-premium period, up to age 70.
5. Multiple Health Classes are Available
Also referred to as rate class, a wide range of health classes are available.
- Preferred Plus Non-Tobacco
- Preferred Non-Tobacco
- Standard Plus Non-Tobacco
- Standard Non-Tobacco
- Preferred Tobacco
- Standard Tobacco
- Substandard through Table 12
What this means – during the underwriting process, you will be assigned a specific health rating based on a number of factors.
Generally, the most common reasons someone would be placed in a more expensive health class includes:
- Smoking
- Overweight
- History of drug or alcohol abuse
- Driving citations, like a DUI conviction
- History of mental illness, like depression
- Serious medical condition, like cancer
- Risky hobby, like rock climbing
40-Year Term Life Insurance has a No Exam Option
Is no exam life insurance available for a 40-year term policy? Yes.
Banner Life Insurance uses what is called, accelerated underwriting.
In other words, you must qualify to skip the medical exam via the health questionnaire and database checks. Typically, only healthy candidates qualify for the no exam option.
For example, if you have a history of cancer or you are a diabetic, skipping the medical exam is likely not an option for this particular policy.
If avoiding the physical exam is a must for you, assess the top-rated no physical life insurance companies.
How Much Does 40-Year Term Life Insurance Cost?
Banner’s 40-year term policy is available for face amounts between $100,000 – $1 million.
To gain a general idea of cost, consider sample quotes. Keep in mind, however, sample quotes are just that – examples of cost.
For your personal rate, fill out your free quote.
40 Year Term Life Insurance Quotes Male
| $100,000 | $500,000 | $1 Million | |
|---|---|---|---|
| 20 year old | $17.01 | $42.80 | $71.97 |
| 25 year old | $17.01 | $42.80 | $71.97 |
| 30 year old | $19.24 | $52.18 | $102.57 |
| 35 year old | $20.21 | $64.49 | $135.94 |
| 40 year old | $27.73 | $114.14 | $222.63 |
| 45 year old | $41.93 | $188.99 | $370.06 |
40 Year Term Life Insurance Quotes Female
| $100,000 | $500,000 | $1 Million | |
|---|---|---|---|
| 20 year old | $15.52 | $33.98 | $57.12 |
| 25 year old | $15.52 | $33.98 | $57.12 |
| 30 year old | $15.82 | $38.48 | $72.63 |
| 35 year old | $17.58 | $52.74 | $93.12 |
| 40 year old | $23.27 | $91.26 | $176.84 |
| 45 year old | $34.18 | $145.15 | $288.87 |
How Much Term Life Insurance Coverage Should You Buy?
To calculate how much term life insurance you should purchase, conduct a needs analysis to determine if a 40-year term policy is your best option.
- What are the financial needs of your beneficiaries?
- How long will your beneficiaries depend on you?
- Do you have debts? (e.g. mortgage, credit card, car loan)
- What is your annual income?
- How many years until retirement?
- Do you have charitable goals?
That is to say, determine how much coverage you need and for how long.
How to Apply for 40-Year Term Life Insurance
There are two things you need to do in order to purchase 40-year term life insurance (and possibly skip the medical exam):
- Partner up – collaborate with an independent life insurance agent (that’s us). Independent agents have your best interest at heart and are not held captive to a specific life insurance company. They will shop the top-rated carriers to find the best policy at the most competitive price.
- Prepare – in order to be ready for your life insurance application and interview, have important information easily available. This includes your basic information (DOB, SSN, etc.), your medical history, your occupation, and beneficiary information.
Banner’s application process for their 40-year term policy is straightforward and easy. We will explain each step of the process below.
1. Apply Over the Phone or Online
With the help of an independent agent, your application will likely be submitted online or over the phone.
The initial application includes basic information, like your full name, address, date of birth and desired life insurance policy.
2. Be Prepared for the Interview
A representative of the carrier will contact you for a phone interview.
Be ready to answer questions about:
- U.S. citizenship
- Occupation
- Height/Weight (to determine if you are under or overweight)
- Avocations (rock climbing, aviation, SCUBA diving)
- Health history, including but not limited to:
- Heart disease
- History of stroke
- Cancer
- Diabetes
- High cholesterol
- Mental health, including depression
- Liver, kidney, or lung disease
- High blood pressure
- Surgical events
- Tobacco use
- History of alcoholism or drug abuse
- Medical history of close, blood-related family members
- Driving (DUI conviction or multiple citations)
- HIV status
Always be honest during the application process. Withholding information could cause your application to be declined.
3. Possible Exam and Database Checks
After the phone interview, your underwriter will schedule a paramedical exam for you, if it’s deemed necessary.
Typically, your age, face amount, and health history are the major factors in determining whether you need to participate in a medical exam.
Note – a number of no exam life insurance options exist.
Further information is collected from online databases:
- Medical Information Bureau (MIB) – history of previous insurance applications
- Motor Vehicle Report (MVR) – driving record
- RX History Check – database of prescriptions
- FCRA Consumer Database Check – credit history, criminal background, etc.
4. Underwriter Reviews Your Application
Your underwriter reviews your application, interview, and database checks.
Turnaround time can range from a few hours, up to a few weeks.
The wide range in time for the review process is usually dependent on whether or not a medical exam is required.
5. A Decision is Made
Finally, you will receive one of three decisions on your 40-year term life insurance application:
- Approved – approved as applied. Best case scenario.
- More information needed – sometimes, additional information is. need before a decision can be made, like further medical records.
- Decline – not approved for the policy you applied for. Do not fret because plenty of life insurance options are available, including guaranteed issue.
To get started, fill out your free quote.
