In the realm of financial planning, life insurance is important as it provides financial protection and peace of mind for your loved ones when you pass away. Amidst the multiple available options, a $250,000 life insurance policy is a suitable choice for many people who are looking for sufficient coverage at an affordable cost.
But how much does a $250,000 life insurance policy cost? This is among the frequently asked questions individuals ask before deciding. To find out the cost factors related to a $250,000 life insurance policy, some helpful tips for finding the right policy for your needs, and the perfect time to consider purchasing this type of coverage, keep reading through this article.
How Much Does A $250,000 Life Insurance Policy Cost?
Our research reveals that the average annual premium for a 10-year, $250,000 term life insurance policy for a 30-year-old is around $130. On the other hand, a 20-year term costs $180 per year.
However, these rates are for healthy nonsmokers who are interested in getting a policy. The cost of a $250,000 life insurance quote can differ based on various factors like age, the insurance company or provider, health, policy type, and lifestyle.
Annual Costs for a 15-Year, $250,000 Term Life Insurance Policy
Here are the yearly costs of a 15-year, $250000 term life insurance policy:
| Age | Male | Female |
| 30 | $156 | $144 |
| 35 | $168 | $156 |
| 40 | $216 | $204 |
| 45 | $276 | $252 |
| 50 | $408 | $312 |
| 55 | $636 | $432 |
| 60 | $1,020 | $696 |
Annual Costs for a 20-Year
These are the annual costs of a 20-year, $250,000 term life insurance quote:
| Age | Male | Female |
| 30 | $192 | $168 |
| 35 | $204 | $180 |
| 40 | $252 | $228 |
| 45 | $348 | $276 |
| 50 | $504 | $384 |
| 55 | $804 | $576 |
| 60 | $1,368 | $960 |
Annual Costs for a 30-Year
Here are the annual costs of a 13-year, $250,000 term life insurance policy:
| Age | Male | Female |
| 30 | $276 | $240 |
| 35 | $288 | $264 |
| 40 | $372 | $300 |
| 45 | $576 | $444 |
| 50 | $900 | $660 |
| 55 | $1,596 | $1,140 |
| 60 | N/A | N/A |
$250,000 Term Life Insurance Policy Cost by Term Length
Here is the average cost of a $250,000 term life insurance policy depending on its term length for specific age groups:
| Term | 30-Year-Old Males/Year | 30-Year-Old Females/Year |
| 10-year term | $132 | $132 |
| 15-year term | $156 | $144 |
| 20-year term | $192 | $168 |
| 30-year term | $276 | $240 |
Average Cost of $250,000 Life Insurance Policy by Gender
Females usually pay less on life insurance because they live longer than their male partners. Here is how gender affects a 20-year term life insurance:
- At age 30, males pay $24 more annually, or 14% more than females.
- At age 40, males pay $24 annually, or 11% more than females.
- At age 50, males pay $120 annually, or 31% more than females.
- At age 60, males pay $408 annually, or 43% more than females.
When to Buy a $250,000 Term Life Insurance Policy
Deciding on when to buy a $250,000 term life insurance policy depends on various financial needs and life stages. In other words, an individual’s financial needs and stage in life affect their need for a $250,000 life insurance quote. Nevertheless, here are some of the ideal times to purchase this form of coverage:
- If you are budget-conscious.
- If you have significant debts.
- Individuals with dependents.
- When you are young.
- When you are taking on a significant mortgage.
If you are interested in taking out a term life insurance policy and you want to increase your policy’s value, you can ask for additional riders.
Is a $250,000 Term Life Insurance Policy Right for You?
You might want to consider purchasing a $250,000 term life insurance policy or find it beneficial if you
- You are on a budget
- Have a family or dependents.
- Have outstanding debts.
- Want coverage for a certain period?
On the other hand, if you have higher financial obligations or if you are searching for lifelong coverage with an investment opportunity, you should consider a permanent life insurance policy or higher coverage amounts.
Tips for Buying a $250000 Life Insurance Policy
It is considered a financial decision when it comes to choosing a life insurance quote, as careful consideration is required. However, if you are experiencing difficulties choosing, here are some tips you can use to make the right decision:
- Find out your coverage needs.
- Compare policies from different providers.
- Consider your lifestyle and health.
- Understand the terms and conditions of the policy.
- Review your insurance quote regularly.
- Check the financial strength and reputation of insurance companies.
- Ask for professional advice.
- Consider the benefits and long-term costs of the insurance policy.
Implement these strategies to make an informed decision when it comes to choosing a term life insurance policy for your needs.
Conclusion
Buying a $250,000 life insurance policy requires individuals to make careful planning and considerations. Additionally, you need to understand policy terms, evaluate your coverage needs, and consider your lifestyle and health to get sufficient protection for your loved ones in the event of your passing.