A $250,000 policy is a commonly purchased amount of life insurance. It’s often enough to pay off a mortgage, typically the largest family debt, yet still very affordable.
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When deciding if a $250,000 policy is right for you, here are the three most common questions:
- Can anyone get a $250,000 life insurance policy?
- When does a $250,000 of coverage make sense?
- How much does a $250,000 life insurance policy cost?
To answer these questions, let’s take a closer look at some scenarios and example pricing for different age groups, genders, and term lengths.
Can anyone get a $250,000 life insurance policy?
Life insurance companies require financial justification for the coverage amount being applied for. Most people will be able to justify owning $250,000 worth of life insurance.
If you already own millions of dollars’ worth of life insurance and are at your insurability limit, then you may not qualify for another $250,000.
If you are not employed and have no income, then you may not qualify for $250,000. This scenario does not apply to stay-at-home parents, however. Stay-at-home parents can qualify for a $250,000 life insurance policy as long as the working parent also owns at least $250,000 worth of life insurance.
When does $250,000 of coverage make sense?
A $250,000 term life insurance policy makes sense in many scenarios. The premiums are affordable, and this death benefit can cover many expenses left by a provider dying unexpectedly.
The house your family lives in is often the largest asset you own and largest source of debt. According to research done in 2020, the average mortgage debt per U.S. household is $215,655.
If your life insurance can ensure your family remains in the home even after your death, then this is an accomplishment. When buying a term life insurance policy, be sure to choose a term length that is at least as long as the mortgage loan.
It’s important to note that the difference between the costs of a $250,000 term life insurance policy and a $275,000 or $300,000 policy is typically only a few cents or dollars per month.
One of the great things about buying life insurance through Quotacy is that our quoting tool is easy to use and you can see pricing instantly without giving up any contact information. Use the sliders to change the coverage amount and term length to see how it directly impacts the monthly cost.
You may easily be able to afford to buy a $300,000 term life insurance policy when you originally were only looking for $250,000. What else could your family pay for with an extra $50,000? Funeral costs, medical bills, children’s education funds? Your loved ones can use the life insurance funds however they wish.
How much does a $250,000 life insurance policy cost?
The cost of a life insurance policy is determined by a number of factors such as gender, age, health status, and the policy coverage and term length you choose. A $250,000 term life insurance policy is one of the most affordable options.
I’ll illustrate the cost of a $250,000 policy across various ages and risk classes. Term length options vary from 10 to 40 years, but I’ll show the most common to keep things simple.
| Cost of a $250,000 Term Life Insurance Policy | |||
|---|---|---|---|
| Insured: Male, Age 25 | |||
| Risk Class | 10-Year Term Monthly Premium | 20-Year Term Monthly Premium | 30-Year Term Monthly Premium |
| Preferred Plus | $11.90 | $12.30 | $17.49 |
| Preferred | $12.32 | $15.17 | $21.15 |
| Standard Plus | $14.83 | $18.06 | $26.31 |
| Standard | $17.13 | $21.21 | $33.56 |
| Preferred Tobacco | $28.05 | $35.61 | $55.25 |
| Standard Tobacco | $37.82 | $46.32 | $64.39 |
| Cost of a $250,000 Term Life Insurance Policy | |||
|---|---|---|---|
| Insured: Female, Age 25 | |||
| Risk Class | 10-Year Term Monthly Premium | 20-Year Term Monthly Premium | 30-Year Term Monthly Premium |
| Preferred Plus | $11.90 | $12.30 | $17.49 |
| Preferred | $12.32 | $15.17 | $21.15 |
| Standard Plus | $14.83 | $18.06 | $26.31 |
| Standard | $17.13 | $21.21 | $33.56 |
| Preferred Tobacco | $28.05 | $35.61 | $55.25 |
| Standard Tobacco | $37.82 | $46.32 | $64.39 |
| Cost of a $250,000 Term Life Insurance Policy | |||
|---|---|---|---|
| Insured: Male, Age 30 | |||
| Risk Class | 10-Year Term Monthly Premium | 20-Year Term Monthly Premium | 30-Year Term Monthly Premium |
| Preferred Plus | $11.90 | $12.30 | $17.49 |
| Preferred | $12.32 | $15.17 | $21.15 |
| Standard Plus | $14.83 | $18.06 | $26.31 |
| Standard | $17.13 | $21.21 | $33.56 |
| Preferred Tobacco | $28.05 | $35.61 | $55.25 |
| Standard Tobacco | $37.82 | $46.32 | $64.39 |
| Cost of a $250,000 Term Life Insurance Policy | |||
|---|---|---|---|
| Insured: Female, Age 30 | |||
| Risk Class | 10-Year Term Monthly Premium | 20-Year Term Monthly Premium | 30-Year Term Monthly Premium |
| Preferred Plus | $8.89 | $11.14 | $15.57 |
| Preferred | $10.20 | $13.17 | $18.24 |
| Standard Plus | $13.09 | $16.53 | $24.65 |
| Standard | $13.96 | $18.05 | $26.48 |
| Preferred Tobacco | $23.37 | $31.66 | $44.84 |
| Standard Tobacco | $29.11 | $36.97 | $57.59 |
| Cost of a $250,000 Term Life Insurance Policy | |||
|---|---|---|---|
| Insured: Male, Age 40 | |||
| Risk Class | 10-Year Term Monthly Premium | 20-Year Term Monthly Premium | 30-Year Term Monthly Premium |
| Preferred Plus | $16.36 | $17.64 | $28.46 |
| Preferred | $19.12 | $20.93 | $32.84 |
| Standard Plus | $20.84 | $27.37 | $46.02 |
| Standard | $26.35 | $31.06 | $51.89 |
| Preferred Tobacco | $47.39 | $69.06 | $110.07 |
| Standard Tobacco | $61.62 | $96.69 | $141.52 |
| Cost of a $250,000 Term Life Insurance Policy | |||
|---|---|---|---|
| Insured: Female, Age 40 | |||
| Risk Class | 10-Year Term Monthly Premium | 20-Year Term Monthly Premium | 30-Year Term Monthly Premium |
| Preferred Plus | $11.90 | $15.30 | $22.98 |
| Preferred | $13.98 | $18.22 | $27.16 |
| Standard Plus | $16.70 | $23.03 | $36.63 |
| Standard | $18.64 | $25.62 | $40.68 |
| Preferred Tobacco | $37.61 | $55.67 | $82.02 |
| Standard Tobacco | $49.94 | $71.19 | $103.49 |
| Cost of a $250,000 Term Life Insurance Policy | |||
|---|---|---|---|
| Insured: Male, Age 45 | |||
| Risk Class | 10-Year Term Monthly Premium | 20-Year Term Monthly Premium | 30-Year Term Monthly Premium |
| Preferred Plus | $18.27 | $26.19 | $42.86 |
| Preferred | $21.27 | $31.02 | $50.95 |
| Standard Plus | $26.73 | $40.67 | $70.68 |
| Standard | $30.74 | $48.35 | $80.49 |
| Preferred Tobacco | $68.64 | $106.46 | $175.74 |
| Standard Tobacco | $93.50 | $151.94 | $226.95 |
| Cost of a $250,000 Term Life Insurance Policy | |||
|---|---|---|---|
| Insured: Female, Age 45 | |||
| Risk Class | 10-Year Term Monthly Premium | 20-Year Term Monthly Premium | 30-Year Term Monthly Premium |
| Preferred Plus | $15.64 | $22.00 | $33.28 |
| Preferred | $18.47 | $24.97 | $38.53 |
| Standard Plus | $22.31 | $32.38 | $52.14 |
| Standard | $24.80 | $37.36 | $58.21 |
| Preferred Tobacco | $56.52 | $79.69 | $129.62 |
| Standard Tobacco | $74.16 | $108.71 | $154.27 |
| Cost of a $250,000 Term Life Insurance Policy | |||
|---|---|---|---|
| Insured: Male, Age 50 | |||
| Risk Class | 10-Year Term Monthly Premium | 20-Year Term Monthly Premium | 30-Year Term Monthly Premium |
| Preferred Plus | $25.71 | $38.90 | $67.27 |
| Preferred | $30.81 | $45.41 | $82.57 |
| Standard Plus | $38.42 | $62.56 | $111.65 |
| Standard | $44.42 | $70.21 | $127.63 |
| Preferred Tobacco | $99.45 | $166.39 | $266.90 |
| Standard Tobacco | $137.06 | $211.48 | $295.59 |
| Cost of a $250,000 Term Life Insurance Policy | |||
|---|---|---|---|
| Insured: Female, Age 50 | |||
| Risk Class | 10-Year Term Monthly Premium | 20-Year Term Monthly Premium | 30-Year Term Monthly Premium |
| Preferred Plus | $21.76 | $31.65 | $51.80 |
| Preferred | $25.07 | $35.95 | $58.91 |
| Standard Plus | $31.09 | $45.56 | $78.71 |
| Standard | $34.56 | $53.83 | $90.12 |
| Preferred Tobacco | $77.77 | $118.36 | $195.92 |
| Standard Tobacco | $103.91 | $155.34 | $240.76 |
If something happens to you, term life insurance will financially protect the loved ones you leave behind. You can take pride in knowing you’re shielding them from financial harm should you die unexpectedly.
A $250,000 life insurance policy is budget-friendly, but may not be the right amount for you.
Our life insurance needs calculator can help you determine the right about of coverage you need. Check it out here: life insurance needs calculator.
If you prefer to talk with an advisor to determine how much life insurance you need, contact us directly here at Quotacy. Our agents are happy to go over your needs, but won’t push you into buying coverage you don’t need.
Note: Life insurance quotes used in this article accurate as of March 29, 2021. These are only estimates and your life insurance costs may be higher or lower.
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