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How Much Does a $250,000 Life Insurance Policy Cost?

250000 term life insurance rates

There are a number of factors that will determine how much an individual will need to pay for a $250,000 life insurance policy.  That said, it’s pretty safe to say that the biggest determinant will be what “kind” of life insurance policy are you considering.

Do you wish to purchase a term life insurance policy that will provide coverage for a set period of time?  Or are you looking for a more permanent solution like a whole life insurance policy that will offer coverage for your entire life?

Below, we’ve provided some sample $250,000 life insurance rates that you might typically expect for each type of  insurance so that you can get an idea how much your coverage might cost.

Then further below we’ve provided a brief breakdown of some of the pros and cons of each type of life insurance policy as well as an explanation detailing what a typical life insurance application will look like and how other factors including health and lifestyle choices may also affect the price you’ll ultimately have to pay.

$250,000 Term Life Insurance Rates

The best 250,000 term life insurance rates are listed below. These quotes are form top rated life insurance companies, are subject to change, and must be qualified for.

MaleFemale
$250,000 Life Insurance Rates for Men
The following sample life insurance quotes are based on a preferred plus male wanting ordinary whole life insurance to age 70 with an A- rated insurance company or better. Monthly Rates are for informational purposes only and must be qualified for.
250,00010 Year Term15 Year Term20 Year Term30 Year Term
Age 20$9.77$10.19$12.51$18.04
Age 30$9.77$10.38$12.69$18.77
Age 40$11.89$13.08$17.03$28.66
Age 50$24.17$31.26$39.33$68.68
Age 60$59.11$77.74$77.74N/A
Age 70$178.86$251.59$409.53N/A
All sample quotes are based on a monthly premium as of 05/20/2020 from an A- Rated Carrier and higher. Sample quotes are for a preferred plus male. Rates are for informational purposes only and must be qualified for.
$250,000 Life Insurance Rates for Women
The following sample life insurance quotes are based on a preferred plus female wanting ordinary whole life insurance to age 70 with an A- rated insurance company or better. Monthly Rates are for informational purposes only and must be qualified for.
250,00010 Year Term15 Year Term20 Year Term30 Year Term
Age 20$8.53$9.33$11.03$14.97
Age 30$8.71$9.68$11.24$16.10
Age 40$10.86$12.67$15.27$23.59
Age 50$20.78$23.95$30.44$52.10
Age 60$41.50$53.55$76.13N/A
Age 70$109.97$155.87$349.13N/A
All sample quotes are based on a monthly premium as of 05/20/2020 from an A- Rated Carrier and higher. Sample quotes are for a preferred plus female. Rates are for informational purposes only and must be qualified for.

$250,000 Whole Life Insurance Rates

The best $250,000 whole life insurance rates are listed below based on a preferred plus rate class for a male. These quotes are from A- rated carriers and better, are subject to change, and must be qualified for.

AgeMaleFemale
20$132$132
25$156$156
30$188$188
35$230$230
40$278$278
45$350$349
50$429$429
55$549$549
60$700$700
65$1019$912
70$1359$1255
75$1868$1788
80$2801$2428

Term Life Insurance:

Term life insurance is a type of life insurance that provides coverage for a specified period of time, known as the “term.” If the insured person dies during the term of the policy, the insurer pays a death benefit to the designated beneficiary. If the insured person does not die during the term, the policy expires without any value.

Term life insurance policies are typically less expensive than permanent life insurance policies, which provide coverage for the entire lifetime of the insured person. This is because term life insurance only covers a specific period of time, whereas permanent life insurance provides coverage until the insured person dies.

Term life insurance policies are often used to provide financial protection for a specific need, such as paying off a mortgage or providing income for a family in the event of the breadwinner’s death. They may also be used to provide temporary coverage while the insured person is young and healthy, with the intention of replacing the policy with a permanent one later on.

There are several different types of term life insurance policies available, including level term, decreasing term, and increasing term. The type of term life insurance policy that is right for you will depend on your specific needs and financial situation.

Level Term Life Insurance:

Level term life insurance is a type of term life insurance that provides coverage for a specific period of time at a fixed premium rate. The death benefit and the premium remain the same throughout the term of the policy.

Level term life insurance is a good choice for people who want to provide financial protection for a specific need, such as paying off a mortgage or providing income for a family in the event of the breadwinner’s death.

It can also be a good choice for people who want to provide temporary coverage while they are young and healthy, with the intention of replacing the policy with a permanent one later on.

One of the benefits of level term life insurance is that it provides a predictable and stable source of financial protection. The premium and death benefit remain the same throughout the term of the policy, so you know exactly what you are paying for and what your beneficiaries will receive in the event of your death.

Level term life insurance policies are available in a range of terms, from 10 to 30 years, with some companies offering up to 40 year term life insurance. The length of the term that is right for you will depend on your specific needs and financial situation.

It’s important to choose a term that is long enough to provide the financial protection you need, but not so long that you end up paying for coverage you no longer need.

Decreasing term life insurance:

Decreasing term life insurance is a type of term life insurance that provides coverage for a specific period of time at a premium rate that decreases over time. The death benefit remains the same throughout the term of the policy, but the premium decreases each year.

Decreasing term life insurance is often used to provide financial protection for a specific need that decreases over time, such as a mortgage or a car loan. As the debt is paid off, the need for financial protection decreases, so the premium can be adjusted accordingly.

One of the benefits of decreasing term life insurance is that it can be more affordable than other types of term life insurance. Because the premium decreases over time, the overall cost of the policy may be lower than a level term life insurance policy with the same death benefit.

However, it’s important to note that decreasing term life insurance may not provide as much financial protection in the later years of the policy as it does in the early years.

This is because the death benefit remains the same, but the premium decreases, meaning that the policy may not cover the full amount of the outstanding debt if the insured person dies in the later years of the policy.

Increasing Term

If your premium increases every year, or every five years, then you probably have an increasing term life insurance policy. These policies are popular for people looking for smaller face amounts and more affordable premiums.

The problem with an increasing term life insurance policy is that the premiums increase but the death benefit stays the same. Another problem is the policy typically has an end date, such as age 80. So when you get this type of term coverage, you are getting a policy that gets more expensive and ends at an age when you probably need it most.

Whole Life Insurance:

Whole life insurance, also known as permanent life insurance, is a type of life insurance that provides coverage for the entire lifetime of the insured person. As long as the premiums are paid, the policy remains in force and the insurer pays a death benefit to the designated beneficiary upon the insured person’s death.

Whole life insurance policies typically have two components: a death benefit and a cash value component. The death benefit is the amount of money that the insurer pays to the beneficiary upon the insured person’s death. The cash value component is a savings element that builds up over time and can be accessed by the policyholder while they are alive.

One of the benefits of whole life insurance is that it provides a guaranteed death benefit and a guaranteed cash value component that accumulates over time.

The premiums for whole life insurance are generally higher than those for term life insurance, but the policy remains in force for the entire lifetime of the insured person, as long as premiums are paid.

There are several different types of permanent life insurance policies available, including traditional whole life insurance discussed above, but also universal life insurance, and variable life insurance.

Universal Life Insurance:

Universal life insurance is a type of permanent life insurance that provides coverage for the entire lifetime of the insured person. It combines a death benefit with a cash value component that accumulates over time and can be accessed by the policyholder while they are alive.

One of the key features of universal life insurance is that it offers flexibility in terms of the premiums and the death benefit. The policyholder can choose to pay a higher or lower premium, and can also choose to increase or decrease the death benefit as their needs change. The excess premiums above the cost of insurance are credited to the policy’s cash value, which can be accessed through policy loans or withdrawals.

Universal life insurance policies typically have a minimum and maximum premium payment requirement, as well as a minimum and maximum death benefit. The policyholder must pay enough in premiums to cover the cost of insurance, but can choose to pay more in order to build up the cash value of the policy.

Universal life insurance can be a good choice for people who want the flexibility to adjust their premiums and death benefit as their needs change, and who want to build up a cash value that can be accessed while they are alive.

Indexed Universal Life:

Indexed Universal Life (IUL) provides the flexibility of universal life but with gains tied to the performance of an index, such as the stock market.

An IUL offers a cap and a floor, so you can only earn up to a certain percentage of a return, typically 10-12% maximum, but there is also a floor, generally around 0%, that protects your policy from having a negative return.

Variable Life Insurance:

Variable whole life insurance is a type of permanent life insurance that provides coverage for the entire lifetime of the insured person. It combines a death benefit with a cash value component that is invested in a range of investment options, such as stocks, bonds, and mutual funds.

The cash value of the policy can fluctuate based on the performance of the underlying investments.

One of the key features of variable life insurance is that it offers the potential for higher returns on the cash value component of the policy, as the policyholder can choose to invest in higher-risk, higher-reward investment options.

However, it’s important to note that the value of the policy’s cash value can also go down, depending on the performance of the underlying investments.

Variable life insurance can be a good choice for people who are comfortable taking on investment risk and who want the opportunity to potentially earn higher returns on their life insurance policy’s cash value.

However, it’s important to carefully consider the terms of the policy, the financial strength of the insurance company, and the potential risks and rewards of the investment options before making a decision.

Which $250,000 Life Insurance Policy is Best for Me?

There is no one-size-fits-all answer to which type of life insurance policy is best, as the right policy for you will depend on your specific needs and financial situation. Here is a recap of the different types of coverage and the benefits of each:

  • Term life insurance: Term life insurance provides coverage for a specific period of time, and is generally less expensive than permanent life insurance. It can be a good choice for people who want to provide financial protection for a specific need, such as paying off a mortgage or providing income for a family in the event of the breadwinner’s death.
  • Whole life insurance: Whole life insurance provides coverage for the entire lifetime of the insured person. It typically has a higher premium than term life insurance, but also has a cash value component that accumulates over time and can be accessed by the policyholder while they are alive. Whole life insurance can be a good choice for people who want a guaranteed death benefit and a guaranteed cash value component.
  • Universal life insurance: Universal life insurance is a type of permanent life insurance that offers flexibility in terms of the premiums and the death benefit. The policyholder can choose to pay a higher or lower premium, and can also choose to increase or decrease the death benefit as their needs change. Universal life insurance can be a good choice for people who want the flexibility to adjust their premiums and death benefit as their needs change, and who want to build up a cash value that can be accessed while they are alive.
  • Variable life insurance: Variable life insurance is a type of permanent life insurance that offers the potential for higher returns on the cash value component of the policy, as the policyholder can choose to invest in higher-risk, higher-reward investment options. However, the value of the policy’s cash value can also go down, depending on the performance of the underlying investments. Variable whole life insurance can be a good choice for people who are comfortable taking on investment risk and who want the opportunity to potentially earn higher returns on their life insurance policy’s cash value.

Ultimately the decision will be up to you, however we here at IBUSA are experts at helping individuals just like yourself come to a decision that is going to be the right one for you.  So, just give us a call when you’re ready, we’re here to help!

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