Here at IBUSA, we’ll frequently receive calls from individuals looking to purchase a $25,000 life insurance policy typically so that they can have enough insurance on hand to take care of any final expenses, such as burial costs or outstanding debts, that may exist or arise at the time of their passing.
And for many, getting a whole life policy for final expense and burial is sufficient. They just want to make sure they have money set aside for family members and other loved ones to pay any bills and to cover funeral costs and burial expenses.
But what many individuals fail to understand is that, oftentimes, a $25,000 whole life insurance policy might be more expensive than say a $100,000 10, 15 or even 20-year term life insurance policy!
This is why we wanted to take a moment and discuss the differences between a whole life insurance policy and a term life insurance policy, as well as break down some of the pitfalls one should look out for when choosing to purchase a permanent life insurance policy.
But, before we get into all of that, let’s first take a look at some whole life insurance rates so that you can first get a better idea about how much one of these types of policies might cost you. And know that if you are looking for $25,000 term life insurance rates, your pricing will be much less depending on the term you are seeking.
$25,000 Whole Life Insurance Policy Rates
- Quotes for ages 20-45
- Quotes for ages 50-59
- Quotes for ages 60-69
- Quotes for ages 70-79
- Quotes for ages 80-85
The following sample whole life insurance quotes are for informational purposes only. All life insurance rates are subject to change.
All quotes are cost estimates for a $25,000 whole life insurance policy, with fixed premiums, guaranteed death benefit, and guaranteed cash value growth.
$25,000 Life Insurance Rates ages 20-45
All sample life insurance premiums shown below are fixed and will not increase.
| Age | Male | Female |
|---|---|---|
| 20 | 25.88 | 24.96 |
| 25 | 27.96 | 27.23 |
| 30 | 30.98 | 30.45 |
| 35 | 35.22 | 34.43 |
| 40 | 40.08 | 38.81 |
| 45 | 48.15 | 44.60 |
$25,000 Life Insurance Rates ages 50-59
All life insurance rates shown below are fixed and will stay the same for your lifetime.
| Age | Level | Graded | Guaranteed Issue |
|---|---|---|---|
| 50 | 64.80 | 82.09 | 108.85 |
| 51 | 67.83 | 84.41 | 117.10 |
| 52 | 71.06 | 89.02 | 124.67 |
| 53 | 74.48 | 93.65 | 131.77 |
| 54 | 78.05 | 98.28 | 137.96 |
| 55 | 81.55 | 102.91 | 143.46 |
| 56 | 85.36 | 107.55 | 147.58 |
| 57 | 89.33 | 112.16 | 151.25 |
| 58 | 93.07 | 119.11 | 154.46 |
| 59 | 96.97 | 126.06 | 156.75 |
$25,000 Life Insurance Rates ages 60-69
All life quotes shown below are guaranteed to stay the same for your lifetime.
| Age | Level | Graded | Guaranteed Issue |
|---|---|---|---|
| 60 | 101.54 | 132.98 | 158.35 |
| 61 | 106.15 | 139.93 | 170.04 |
| 62 | 111.28 | 146.88 | 181.04 |
| 63 | 117.09 | 156.12 | 191.58 |
| 64 | 123.56 | 165.39 | 201.67 |
| 65 | 130.03 | 176.97 | 211.52 |
| 66 | 137.54 | 188.53 | 220.23 |
| 67 | 144.40 | 200.11 | 227.79 |
| 68 | 152.17 | 213.99 | 234.89 |
| 69 | 159.55 | 230.18 | 241.08 |
$25,000 Life Insurance Rates ages 70-79
All life insurance quotes shown below are guaranteed to stay the same for your lifetime.
| Age | Level | Graded | Guaranteed Issue |
|---|---|---|---|
| 60 | 169.94 | 246.58 | 246.58 |
| 61 | 180.33 | 267.26 | 269.04 |
| 62 | 191.72 | 288.64 | 291.04 |
| 63 | 204.11 | 310.64 | 311.67 |
| 64 | 217.56 | 333.74 | 330.92 |
| 65 | 232.07 | 357.39 | 347.42 |
| 66 | 262.79 | 386.10 | 405.85 |
| 67 | 280.53 | 422.84 | 462.00 |
| 68 | 300.53 | 462.44 | 515.85 |
| 69 | 319.00 | 501.25 | 567.41 |
$25,000 Life Insurance Rates ages 80-85
All life insurance rates shown below are fixed for life and will not increase.
| Age | Level | Graded | Guaranteed Issue |
|---|---|---|---|
| 80 | 344.52 | 534.58 | 616.91 |
| 81 | 370.06 | 579.04 | 691.74 |
| 82 | 395.61 | 608.96 | 711.84 |
| 83 | 422.75 | 636.24 | 788.61 |
| 84 | 449.90 | 660.44 | 826.87 |
| 85 | 477.04 | 669.79 | 865.38 |
$25000 Life Insurance FAQs
Now, let’s now take a moment and answer some of the most common questions we receive from individuals looking to purchase a whole life policy for final expenses.
Questions such as:
- What are final expense insurance policies?
- What is the difference between a simplified issue life insurance policy and a guaranteed issue life insurance policy?
- What is a graded death benefit?
- What are the main things I should know before applying for a final expense insurance policy?
- What can I do to help myself find the best final expense insurance product?
So, without further ado, let’s dive right in!
What are final expense insurance policies?
Final expense insurance, also known as burial insurance policies, are a type of life insurance policy that is specifically designed to cover the costs associated with end-of-life expenses, such as funeral and burial costs.
Generally, these are permanent life policies and are typically smaller in size than other types of insurance policies. They are intended to meet the life insurance needs of those looking for future financial protection for loved ones who may be responsible for paying for these expenses.
Some final expense insurance policies may also include additional benefits, such as a cash payout to help cover other expenses related to the policyholder’s death, such as unpaid bills or outstanding debts.
Generally speaking, there are two main types of burial insurance policies: simplified issue term life or whole life insurance and guaranteed issue whole life insurance.
What is the difference between a simplified issue life insurance policy and a guaranteed issue life insurance policy?
Simplified issue life insurance policies and guaranteed issue life insurance policies are both types of life insurance policies that do not require a medical examination as a condition of coverage. However, there are some key differences between the two types of policies.
Simplified issue life insurance policies:
Simplified issue life insurance policies typically require the policy applicant to answer a series of medical questions, either on the application form or in an interview with an insurance agent. The insurer will use the answers to these questions to assess the applicant’s health status and determine the premium and coverage amount for the simplified life policies.
Simplified issue policies may be more expensive than traditional life insurance policies that require a medical exam, but they are often more affordable than guaranteed issue policies and may offer more coverage options.
Term Life vs Whole Life
Simplified issue can be both term life and whole life policies. Many of the life insurance companies that offer $25,000 term policies do not offer level premiums, but will increase the premiums after a specific period, such as every 5 years.
However, the life insurance companies offering whole life will not raise your premiums, i.e. the premiums are fixed for your whole life and the coverage amount remains the same.
Many people will try and save money by buying life insurance for shorter term length, only to find they are buying coverage that might not be there when they die. That is why we strongly recommend the additional cost of a permanent policy so you are guaranteed it will be there when you need it most.
Guaranteed issue life insurance policies:
Guaranteed issue life insurance policies, AKA guaranteed acceptance, do not require the applicant to answer any health questions or medical questions or provide any information about their health history. These policies are usually available to people who have been turned down for other types of life insurance coverage due to health problems or other “lifestyle” factors.
However, since no health questions are asked, the insurer is taking on more risk by providing coverage to potentially high-risk individuals, therefore guaranteed issue policies often have much higher premiums and may have lower coverage limits than other types of life insurance.
In addition, guaranteed acceptance policies will have a waiting period (referred to as a graded death benefit) before the full death benefit is payable. During the waiting period, the life insurance plan will only pay out a portion of the benefit or no benefit at all.
SI vs GI
In summary, simplified issue life insurance policies require the applicant to provide some information about their health, but do not require a medical exam, while guaranteed issue policies do not require any health information or a medical exam, but usually require a waiting period before paying out the maximum death benefit.
Guaranteed issue policies may be more appropriate for people who have been unable to get other types of coverage due to health issues, but they may be more expensive and offer less coverage than other options.
What is a graded death benefit?
A graded death benefit provision written into all guaranteed issue life insurance policies that provide a waiting period that limits when the policy will begin providing coverage for natural causes of death. Depending on the life insurance company, a graded death benefit will state that an insured will not be covered for a natural cause of death for a minimum of 2 or 3 years.
These provisions are included within every guaranteed issue life insurance policy because the insurer does not require any medical exam or ask any health-related questions at the time of the application.
Because of this, the insurer will have no idea what the health of the applicant is, which is why they won’t provide coverage for natural causes of death for the first 2-3 years (depending upon the carrier). Accidental causes of death will be covered immediately.
What are the main things I should know before applying for a final expense insurance policy?
Here at IBUSA, we always recommend that a client understand 3 things before they apply for a final expense insurance policy.
#1. When will the policy you are applying for end?
- This will help you understand if you are applying for a term or whole life insurance policy. From there you can determine if they policy is going to remain in effect long enough for you needs.
- Term life is for a set period of time and generally ends at a specified age, such as 80, 85, 90, etc.
- Whole life is permanent insurance and lasts your entire lifetime. Whole life also offers cash value that grows over time, although smaller policies tend to build cash value at a slower rate.
-
Depending on how much life insurance you need, choosing permanent policies versus term policies is usually the best choice for funeral expenses and burial costs.
#2. Does the policy contain a level death benefit?
- A level death benefit is a type of life insurance policy in which the death benefit (the amount of money that the policy pays out upon the policyholder’s death) remains the same throughout the term of the policy. This is in contrast to a graded death benefit policy, in which the death benefit increases over time.
- Level death benefit policies are typically simpler and more straightforward than other types of life insurance policies, as the policyholder and beneficiary know exactly how much coverage is provided by the policy. These policies may be suitable for people who have a stable financial situation and do not anticipate needing an increasing amount of coverage over time.
- Basically, you want to make sure that if you are buying a $25,000 life insurance policy today, it’s still going to be a $25,000 life insurance policy 10-years from today.
#3. Does the policy contain a level premium payment for the entire life of the policy?
- Level premium life insurance is a type of life insurance policy in which the premium (the amount you pay for coverage) remains the same throughout the term of the policy. This is in contrast to decreasing term life insurance, in which the premium decreases over time, or increasing term life insurance, in which the premium increases over time.
- So basically, you want to make sure that the price you pay tomorrow for your insurance will be the same you pay 10 years from now. Because the last thing you want to have happen is 10 years from now (when you really need your insurance) it becomes too expensive for you to maintain.
What can I do to help myself find the best final expense insurance product?
There are several things you can do to help yourself find the best final expense insurance policy:
Determine your life insurance coverage needs:
Consider the costs associated with end-of-life expenses, such as funeral expenses and burial costs, and the amount of coverage you need to cover these expenses.
Shop around:
Compare policies from multiple life insurance companies to ensure that you are getting the best coverage at the most affordable price. You can do this with ease by using our life insurance quote tool here.
Consider the insurance company:
Research the financial stability and reputation of the insurance company to make sure they are a reliable and trustworthy.
Understand the premium payment options:
Determine how you will pay the premiums for your life insurance plan, such as annually, semi-annually, quarterly, or monthly.
Read reviews and ask for recommendations:
Check online reviews and ask friends, family, or speak to an independent agent for recommendations on insurance companies and policies.
By taking these steps, you can increase your chances of finding a final expense insurance policy that meets your needs and budget. The good news, is that we can also help you with each of these steps!
So, what are you waiting for? Give us a call today and let us show you what we can do for you!
