Depending on your needs, a $250,000 life insurance policy could be the right fit for protecting your loved ones.
If you’re considering this amount of coverage, you may be wondering how much it will cost.
Below, we’ll provide you with sample rates for several term and permanent policies to give you an idea of what you can expect to pay.
We’ll also give you some pointers and our top picks for $250,000 of coverage.
Sample Quotes for a $250,000 Life Insurance Policy
If you’re wondering what premiums you’ll have to pay for a $250,000 policy, look no further.
We’ve compiled a series of sample rates to give you a general idea of what each type of policy will cost.
Just keep in mind your actual rates will depend on several individual risk factors related to your health and lifestyle.
As you look over the samples below, you’ll see that the length of the policy you choose will majorly impact your possible life insurance rates.
Be sure to weigh your short and long term needs to decide which policy makes the most sense financially.
We’ve broken down the sample rates by duration:
10-Year Term Rates
The sample rates featured here are for a non-smoker in great shape who needs coverage for just 10 years.
If you fit that description, you can expect to pay the following for coverage:
10-Year No Exam Term Rates
If you want to stick with a term policy but need it faster than the typical 4-6 weeks or just prefer to skip the needles when you buy, here’s what you might expect, cost-wise:
As you can see, it may be ever so slightly more expensive than fully underwritten, but the small increase can be well worth it for many.
However, as you age, that difference widens very quickly, making the blood test and exam much more valuable over the long haul.
15-Year Term Rates
For five more years of coverage, the same healthy applicant will pay around the following in premiums:
15-Year No Exam Term Rates
Here’s what rates might look like for you if you need a 15-year term but don’t want to take the exam:
20-Year Term Rates
The cost of a $250,000 policy increases again when you opt for a 20-year policy.
Here are the rates you can expect for two decades of coverage:
20-Year No Exam Term Rates
Again, here’s the increase you’d need to pay in order to bypass the medical and still secure coverage:
When you switch from term life insurance to permanent, the cost of coverage increases considerably.
Take a look at the sample rates here to decide whether or not lifelong coverage is worth the cost:
Additionally, you need to carefully consider whether or not a $250,000 life insurance policy is right for you to begin with.
In the next section, we’ll walk through a few questions to help you make the call.
Who Needs $250,000 Life Insurance Benefits?
With dozens of life insurance companies offering up to millions of dollars of life insurance, it can be challenging to decide how much coverage is sufficient.
But in many cases, $250,000 could be the perfect policy amount.
Here are a few specific scenarios where a $250,000 policy could work well:
- Income replacement: If your salary is $50,000 or lower and your kids are nearing adulthood, or you and your spouse are getting close to retirement, a $250,000 policy could be sufficient.
- Debt: If you have debts like a mortgage, private or cosigned loans, or credit card debt that could leave your family in financial distress, you need life insurance in place to protect them.
- Tuition: If you hope to fund your child or grandchild’s college education, a $250,000 life insurance policy could help you to leave a lasting legacy in your loved ones’ lives.
- Collateral: With a collateral assignment, a policy of this size could help you to secure a loan.
- Business: If you’re a small business owner, a life insurance policy of this amount could be used to protect your company in the event of a key employee’s passing.
- Final expenses: Last but not least, this amount of coverage is more than enough to provide for your end-of-life expenses. Whether it’s your funeral or leftover medical bills, you don’t want your loved ones to be burdened.
If your savings and retirement accounts are seriously lacking and you have debts and dependents galore, you probably need a bigger policy.
On the other hand, if you have been intentional with your retirement savings over the years and your expenses are declining, a policy of this size could supplement your savings.
Regardless, be sure to run the numbers. Assess your expenses, income, and the needs of your loved ones to land on the right policy amount.
You might even find that you could fare better with a smaller policy.
Who Doesn’t Need $250,000 of Life Insurance Benefits?
Most adults need life insurance, but every situation is different.
While we generally recommend you get coverage today, not everyone is in a position that warrants buying a policy.
If you don’t feel like the list above applies to you, there’s a chance you don’t actually need life insurance at the moment.
As affordable as the rates above are, especially for a term life insurance policy, there’s no reason to pay for a product you don’t need.
If you can check off the boxes in the list below, you might benefit more from putting your money to work elsewhere:
- No dependents: If you don’t have a spouse or kids to worry about clothing and feeding, there’s no need to worry about income replacement, the biggest reason for purchasing a sizable policy.
- No debt: Being debt-free is rewarding in more ways than one. As long as you have no debts than can be transferred to your loved ones, you might be good to go without life insurance.
- No legacy: If you aren’t concerned with leaving behind an inheritance, funding your descendant’s college education, or giving a charitable gift, you’ve eliminated another major reason for purchasing coverage.
- No final expense needs: A lot of people have sufficient funds saved for their funeral services. If your final expenses are covered and you meet all the other criteria in the list, you can hold off on life insurance.
Should You Buy Term or Permanent Coverage?
Life insurance comes in two basic forms: term and permanent.
When you purchase a $250,000 life insurance policy, you’ll have multiple policy options in both categories.
First, let’s look at term life insurance. With term life insurance, you lock in level premiums and a death benefit for a period, or term, of time.
As you can see from the sample rates above, the shorter the term of your coverage, the lower the rates are.
Permanent life insurance, on the other hand, provides you with protection for your entire life, with a cash value in addition to the death benefit.
If you are looking for $250,000 of permanent coverage, you have two options:
- Whole: Whole life insurance gives you guaranteed growth, death benefit, and premiums. All those guarantees come at a high price.
- Universal: A universal policy is a less guaranteed and more adjustable option, which can secure you permanent coverage at a lower cost.
Permanent life insurance is worth purchasing if you’re buying coverage for lifelong needs like long-term special needs dependents and estate planning.
However, in most other cases, and especially for this amount of coverage, term life insurance is a far wiser choice.
Top Companies Who Provide $250,000 Life Insurance Policies
If you’ve determined that $250,000 is just the right size life insurance policy to protect your loved ones, take a look at the providers below.
They’ll offer you the best value on a quarter-million-dollar policy.
Best Companies for a 10-Year $250,000 Term Policy
You can count on the following companies to provide you with great coverage for a 10-year term policy.
Protective should be at the top of your list if you’re looking for a short term product at this level.
Protective is a tried and true provider, securing “A” ratings from all of the major credit rating agencies.
They bring some of the best-priced policies in the industry to the table. If you’re looking for no-fuss affordable coverage, Protective could be your best bet.
2. North American
North American might not be as well-known as other life insurance companies on this list, but it isn’t any less impressive.
The “A” rated provider is a trusted name in the industry.
It’s also a company you can trust to give you fair prices on simple term life insurance policies.
At the $250,000 level, it’s one of the best options for 10-year term life insurance.
3. American National
If you want to look beyond Protective and North American, consider another less widely known company, American National.
American National is as trustworthy and financially stable as the other providers on the list, with an “A” rating from A.M. Best.
Their policies start out in annual renewable increments and coverage can be extended to 30 years, with affordable 10-year policies in the middle.
Best Companies for a 20-Year $250,000 Term Policy
If you need 20 years of coverage, here are a few providers who might work well for you:
This company is one of the best out there, finding its way to the top of our list of the nation’s best life insurance companies year after year.
Banner is one of the most respected names in life insurance, with an “A+” from A.M. Best to back its reputation.
One of its most excellent products is its 20-year term life insurance policy.
The company is known for its unmatched underwriting, which treats less healthy applicants fairly and rewards applicants in excellent health with great rates, too.
No surprise here. Protective is a superb choice for 20-year term life insurance as well as 10-year coverage.
The company’s sterling reputation and affordable premiums make it stand out, but so do its riders.
You can customize your policy with add-on benefits made to meet a wide range of needs.
Lincoln is another top-tier company that excels at providing 20-years of coverage.
The company holds “A” ratings from all the major credit rating agencies, so you don’t have to worry about whether or not your policy is in good hands.
You can easily obtain no exam coverage from this provider, too, and Lincoln’s policies can be underwritten in as little as a day or so.
Best Companies for a 30-Year $250,000 Term Policy
For even longer term coverage, the companies below are likely to offer you the most bang for your buck:
Once again, Protective steals the number one spot for a 30-year term.
Alongside their phenomenal track record, competitive rates, and additional riders, Protective is a great choice due to its convertibility.
If you find yourself in need of additional coverage at the end of your 30-year term, converting your coverage into a permanent policy is a piece of cake.
If you want to compare a few more options, look at Lincoln, who makes the list again for 30-year coverage.
Lincoln’s term life products are accessible for older applicants as well as younger ones.
If you are young and in good shape, you’ll get especially favorable rates on a 30-year term policy with Lincoln.
One of your best options, a name you’re likely familiar with if you’ve researched life insurance at any length, is AIG.
AIG has brand recognition and “A” ratings from the top credit rating agencies.
While the company offers a number of solid life insurance products, they thrive with long term policies in this price range.
Their reasonable underwriting and affordable premiums make them a strong contender for this type of policy.
Best Companies for a $250,000 Universal Policy
If your life insurance needs are permanent, the three companies below are great choices for universal life insurance.
Read on to see what each has to offer:
AIG is a great choice whether you’re looking for term or universal life insurance, standing out as one of the nation’s best providers.
Their $250,000 universal policies could offer you the lowest premiums of any provider.
The company underwrites guaranteed universal, indexed universal, and variable universal policies, all of which are competitively priced.
Protective is a great call for universal life insurance as well as term and should be on your shortlist for this amount of coverage.
You can customize your Protective policy to meet your exact needs, choosing everything right up to the age your coverage expires.
If you get quotes from Protective, you’ll see that they’re among the most affordable providers for a universal policy.
3. Mutual of Omaha
Don’t leave Mutual of Omaha out of your search for a $250,000 universal life insurance policy.
With an “A+” from A.M. Best, the fairly well-known provider is one you can depend on.
Their universal roundup includes four diverse policy options, each of which comes with unique features that allow you to make the policy your own.
Best Companies for a $250,000 No Exam Policy
If you were eyeing of the one policies where you could skip an exam, here’s who we suggest.
1. Haven Life
Haven Life, one of the best no exam companies in America right now, specializes in high quality, affordable, and quickly approved term policies.
Backed by one of the nation’s strongest life insurance companies, Haven Life is sure to get you the policy you need, all without a needle or exam.
While they can go up to several million in coverage, they’re limited to term. If you were seeking a permanent policy, check out #3 below.
Savings Bank Life Insurance, or SBLI for short, has made huge progress in the last year on decreasing pricing for their no medical exam products.
A financially sound company, you can be confident you’re getting a great rate from a great company who will be there when you need them.
Be sure to compare the pricing you can get with both Haven Life and SBLI; you may be surprised at what is available based on your approval rating.
If you are looking for something a little more permanent, or even just the convertibility option, you may want to take a look at Sagicor.
Sagicor is our highest recommended, all-around no exam carrier, and they have been for a long time. They’re financially sound, and easy to apply with.
Check out Sagicor if you want a permanent policy without an exam, as they’re one of the few carriers who offer it without switching to graded or guaranteed policies.
3 Bonus Tips to Lower Premiums
If you’re looking to snag the lowest rates possible on life insurance, keep these three tips in mind.
They could lead to significant savings over the life of your policy.
1. Maintain a Healthy Weight
You can’t turn back the clock or undo some underwriting factors like your family health history, but others could be easier to control.
Your weight is linked to some major risk factors, so keeping it in check could impact your overall health and change the rating class you’re placed in.
Just note that drastic recent weight loss won’t necessarily garner good results.
Instead, you need to demonstrate to underwriters that you can sustain a healthy weight over time.
2. Stop Smoking
Anything beyond the odd cigar once in a blue moon is a price hike with virtually every insurer.
To get the absolute best rates, you need to halt your tobacco use. Moreover, being classified as a non-smoker takes time.
Expect to wait a year after you quit smoking to be eligible for non-smoker rates.
3. Get Quotes
Perhaps the best and certainly the easiest way to save money on life insurance is to shop around.
Rather than settling for the first company you come across, you should always compare quotes from multiple providers.
It’s a quick and simple process that allows you to find the best policy for your family’s needs and save money on premiums.
A great place to start is with the companies listed above as they’re perfect for a $250,000 policy.
But also consider taking a few moments to get quotes from even more top life insurance companies.
Final Thoughts on $250,000 of Life Insurance Coverage
Life insurance is a simple purchase with potentially life changing benefits.
Before you buy a policy, you need to take stock of your current expenses and future financial needs and goals.
If you find you need $250,000 of coverage and the sample rates above are within your range, there’s no time like the present to apply for a policy.
An affordable policy and the peace of mind your family relies upon could be just a few clicks away.