25-Year Term Life Insurance

Eric Van Haaften Feb 1, 2025 Term Life Insurance

If you are looking for a 25-year term life insurance policy, you have come to the right place!

This informative guide is packed with innovative strategies and professional advice for effortlessly navigating the maze of term insurance options.

So get ready to navigate through all of your term life insurance choices like a seasoned veteran!

Quick Navigation Links

What does 25-year term life insurance mean?
Is a 25-year term the best option for you?
How much does 25-year term life insurance cost?
How do you purchase term life insurance coverage?
FAQ: 25-Year Life Insurance

What is 25-Year Term Life Insurance?

Term life insurance plans are usually available between 10 and 40 years, with longer-term periods having more costly premiums.

We recommend a 25-year term life insurance policy as a cost-effective solution for those seeking coverage over an extended time horizon.

By paying consistent premiums for 25 years, you can ensure that your beneficiaries receive a death benefit if you pass away.

A 25-year term is notably more affordable than permanent alternatives, as it offers coverage for a specific period instead of providing lifelong protection.

CONVERTIBLE Twenty-five YEAR TERM INSURANCE

If you outlive your term coverage, you can renew it, convert it to a permanent plan, or allow it to expire.

We encourage clients to try to select a term length that aligns with their anticipated coverage needs since renewal rates will climb annually after the initial period ends.

Luckily, many policies have a conversion feature that lets you transition to more expensive permanent coverage without undergoing health screenings.

If you still need coverage but don’t want to renew your existing policy or convert to a permanent one, you can always shop around for a new term policy.

Remember that your premiums will be based on your current age and health status, so they may be higher than you were paying before.

Is a 25-Year Term a Good Idea?

At our agency, we believe a 25-year term insurance policy offers excellent protection for clients with long-term coverage needs.

We always recommend matching your policy term with your longest financial obligations. This approach ensures you’re protected when it matters most.

Let’s explore some common scenarios where we’ve seen extended coverage make a real difference for our clients.

⊕

New Parents with Young Children

We often work with new parents, and we recommend 25-year term policies to ensure that your spouse and children are financially protected.

A term policy is particularly beneficial for those with young children, as it can provide affordable coverage during critical years, encompassing everything from childcare to higher education.

Term coverage can be customized to end when your children become financially independent, providing peace of mind that they will be supported during their formative years.

⊕

Protecting Income for Your Spouse

A 25-year term life insurance policy can be a smart choice for ensuring the financial security of a surviving spouse by replacing lost income.

More extended duration policies ensure that your partner remains financially stable in the event of your untimely passing, allowing time for asset accumulation and debt repayment.

While we typically suggest coverage of 7-10 times your annual income, we’ll work with you to fine-tune this amount based on your unique circumstances.

⊕

Providing Mortgage Protection

A 25-year term life insurance policy offers meaningful benefits for homeowners still paying off their mortgage.

If the unexpected occurs within the loan’s repayment timeframe, the policy’s death benefit can cover any outstanding mortgage debt.

We prefer traditional term policies because they maintain steady coverage throughout the term, unlike mortgage protection insurance, which decreases with your loan balance.

Plus, if the amount needed to pay off your loan is less than your policy’s face value, any leftover death benefits will paid to your family once the loan is fully paid off.

⊕

Buy Term and Invest the Rest

Buying a 25-year term policy is an economical choice while freeing up funds for investments in stocks, bonds, mutual funds, or real estate.

When discussing financial strategies with our clients, we often reference experts like Dave Ramsey and Suze Orman, who support our approach of choosing affordable term coverage over costly permanent policies.

However, we recognize that permanent coverage serves important purposes in certain situations. This includes continuous support for dependents, meeting estate planning requirements, or handling final expenses.

25-Year Term Life Insurance Cost

Life insurance rates depend on your age and health. The younger and healthier you are, the less you’ll pay.

For younger folks, many insurance companies now just require a quick phone interview instead of a medical exam. One phone call and you’re all set!

What about your health history? Yes, it matters, but don’t let that worry you too much. While medical conditions can affect your rates, most minor health issues won’t stop you from getting coverage.

Affordable Life USA works with many insurance providers who serve people with different health backgrounds, ensuring we can find policies that work for your needs and budget.

Shopping on a budget? Consider a 20-year term that offers more affordable premiums because it offers a shorter time frame.

However, according to the Guardian, a slightly more expensive 30-year term policy is often a better deal if you require extended protection.

Use our calculator to compare different term life insurance plans for your family in minutes—it’ll help you save!

What Does 25-Year Term Insurance Cost?

Select Duration
Select Amount
Press Get Quote

Check out the average 25-year term life insurance rates by age, with coverage amounts ranging from $250,000 to $1 million.

Life insurance premiums rise as individuals get older. For instance, a $500,000 policy costs a 45-year-old man $66 per month, but by age 55, the same policy costs $186 monthly.

This increase over a decade highlights the importance of consulting with one of our agents to get a policy tailored to your specific needs and budget.

25-Year Term Insurance Rates for Males

	$250k	$500k	$1mm
Age 35	$20	$29	$52
Age 45	$39	$66	$123
Age 55	$101	$186	$355

25-Year Term Insurance Rates for Females

	$250k	$500k	$1mm
Age 35	$18	$25	$42
Age 45	$29	$51	$93
Age 55	$75	$135	$255

Buying Term Insurance for 25 Years

We would like to help you understand what to expect when shopping for a 25-year term life policy.

First things first – we’ll look at top-rated insurance companies. We always check A.M. Best ratings to ensure we deal with stable, reliable insurers.

Based on our analysis, Banner, Pacific Life, Protective, and Transamerica are the top contenders in the 25-term life insurance market.

We’ll tackle the application once we find the right policy for you. This usually means a quick phone chat or medical exam.

If you need the exam, it’s pretty basic – they’ll check your blood, urine, height, weight, and blood pressure. Try to schedule it for early morning after fasting, and skip the coffee and gym for 24 hours before.

The application process typically takes a few weeks, but don’t worry—we’ll guide you through every step. Let’s find you the perfect coverage!

Tips for Buying Twenty-five-year Term Insurance

Coverage Requirements: Factor in existing debts, income substitution, and potential financial needs over the upcoming quarter-century.
Term Suitability: Ensure you need coverage lasting twenty-five years so you don’t unnecessarily overcommit to lengthy coverage periods.
Budget: Typically, 25-year term policies are more expensive than shorter durations. Ensure the premiums are manageable within your financial plan.
Conversion Feature: Check if your policy allows conversion to permanent life insurance without a new medical exam.
Available Riders: Consider enhancing your coverage with riders for extra protection in case of terminal illness, disability, or accidental death benefits.

FAQ: 25-Year Life Insurance

At what age can you no longer get a 25-year term life policy? Many insurers offer 25-year term life policies, but you must obtain one before turning 65. After that age, universal life insurance becomes a more suitable option.

Do you get a refund if you outlive your policy? If you survive your term policy, you typically won’t receive a refund. However, by choosing a return of premium term policy, you get all premiums spent throughout the term refunded to you tax-free.

What insurance riders come with a 25-year term policy? The terminal illness rider is included with most term insurance policies and enables you to access part of your death benefits early when diagnosed with a terminal illness.

Is a medical exam required to qualify for coverage? Depending on your age and medical history, you’ll either have a medical exam or participate in a health interview as part of a no-exam application process.

What happens after my 25-year term policy expires? Many insurance companies offer the option to extend it yearly at higher premiums or convert it into permanent coverage.