A $25,000 life insurance policy is not that much coverage, but it may be enough to cover funeral costs, credit card bills, or other outstanding debts.
Plus, a $25K policy will not cost much, and you most likely can get it without taking a medical exam.
In this article, we will look at some reasons for buying coverage and help you decide whether or not it’s right for you.
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Why Buy a $25,000 Life Insurance Policy?
You may be wondering why anyone would buy a $25,000 policy when they could save the money and use it in an emergency.
Do you have $25,000 sitting around that you don’t mind parting with? If not, then you should seriously consider getting coverage.
There are a few reasons someone might need a $25,000 life insurance policy to ensure that their loved ones are taken care of financially.
Why You Need 25k of Life Insurance
- Debt Protection: If you have debts such as credit cards or personal loans, your loved ones can pay them off without selling your possessions or taking on more debt themselves.
- Final Expenses: Seniors can buy a life policy to cover funeral expenses that average close to $8,000. So, the minimum policy size should at least be a $10,000 death benefit.
Is $25,000 really enough coverage?
Considering inflation, $25,000 today will likely not go as far towards paying expenses in the distant future.
Plus, for people under 50, the additional cost of $50,000 or even a $100,000 life insurance policy is minimal.
Types of Life Insurance Policies
Types of Life Insurance PoliciesWhen it comes to buying life insurance, there are many options available.
While they all share the same goal of providing financial security for your family when you die, how each type of policy achieves this goal can vary greatly.
We will discuss the three most common types of life insurance coverage: term, whole, and universal life insurance.
We will also provide sample life insurance rates for each policy so you can decide which is best for your needs.
25K Term Life Insurance
25K Term Life InsuranceAre you looking for a way to get a basic life insurance policy without spending a fortune? If so, you may consider getting a $25,000 term life insurance policy because it is affordable.
Term insurance offers fixed premiums for between 10 and 40 years with a level death benefit.
Term policies are less expensive than permanent policies, such as universal life and whole life insurance.
Plus, most term-life policies have a conversion option that allows you to convert your policy to permanent coverage without undergoing a new medical exam.
If you only need a basic $25,000 term life insurance policy, Assuirty and Transamerica are solid options.
Assurity is usually the cheapest option, while Transamerica is the best option if you think you might convert to permanent coverage in the future.
What does a $25,000 term life insurance policy cost?
Because your premiums will depend on how long your policy will last, you can save money by matching your insurance needs with the proper term duration.
Comparing term life insurance rates by age is often helpful to understand which plan best fits your budget.
Here’s a brief look at two common term lengths and the prices associated with purchasing coverage.
$25,000 Term Life Insurance for 10 Years
We all know that life can be unpredictable, so it’s important to have some basic protection against financial loss in case something happens.
If you’re looking for an affordable way to cover short-term needs, consider a 10-year term policy.
For instance, a 10-year term is a good idea for someone looking for life insurance over age 50 to protect a child until they complete college.
Here are the monthly $25,000 life insurance costs at specified ages for ten years.
$25,000 10-Year Term Life for Males
| Death Benefit | $25,000 |
| 30 Years Old | $7 |
| 40 Years Old | $9 |
| 50 Years Old | $14 |
| 60 Years Old | $22 |
| 70 Years Old | $52 |
| 80 Years Old | $127 |
$25,000 10-Year Term Life for Females
| Death Benefit | $25,000 |
| 30 Years Old | $6 |
| 40 Years Old | $8 |
| 50 Years Old | $12 |
| 60 Years Old | $20 |
| 70 Years Old | $39 |
| 80 Years Old | $110 |
$25,000 Term Life Insurance for 20 Years
A 20-year term life insurance policy can be perfect for somebody looking to pay off any outstanding credit card debts or personal loans.
What does a 20-year term life insurance cost?
Please look at the average 25k term life insurance rates for males and females.
$50,000 20-Year Term Life for Males
| Death Benefit | $50,000 |
| 30 Years Old | $8 |
| 40 Years Old | $12 |
| 50 Years Old | $17 |
| 60 Years Old | $34 |
| 70 Years Old | $77 |
| 80 Years Old | $189 |
$50,000 20-Year Term Life for Females
| Death Benefit | $50,000 |
| 30 Years Old | $9 |
| 40 Years Old | $10 |
| 50 Years Old | $15 |
| 60 Years Old | $28 |
| 70 Years Old | $65 |
| 80 Years Old | $162 |
Longer-duration term plans are more expensive, and most carriers only offer term life insurance for seniors until a certain specified age.
So, some of the provided sample rates at older ages are term/ul products that last to a certain age.
So, if you want life insurance over 70, you must consider buying a term/ul or whole life insurance policy.
What if I am not sure which term strategy is best for me?
If you are unsure which term period is suitable, use our insurance calculator to compare affordable term life insurance plans.
25k Permanent Life Insurance
Permanent life insurance is a type of coverage that provides permanent financial stability for your family as long you pay your premiums.
There are two basic types of policies with varying features that may be right for you, so take some time and research which one will work best for you!
If you always need coverage to be there when you die, permanent insurance is more suitable than term life insurance.
Whole Life Insurance
Whole Life InsuranceWhole life coverage provides guaranteed premiums and death benefits and builds cash value and dividends over time.
Whole-life policies offer more stability because they last the policyholder’s entire lifetime.
Plus, with a policy loan from your insurer, you can access the cash value to help pay future expenses like college tuition or retirement.
With more expensive premiums, you can fund a small whole-life policy with a single payment or limited payments lasting only a few years.
A $25,00 whole life insurance policy is more expensive than term and universal life insurance coverage.
Universal Life Insurance
Universal Life InsuranceUniversal life insurance is a type of permanent coverage that combines the best parts of term and whole life insurance.
Universal life lasts for your entire life and has cash values that grow tax-deferred and can be borrowed against in an emergency.
Universal life insurance is an excellent option for those needing tailored coverage.
Unlike whole-life policies, you can adjust the death benefit and premium payments according to your circumstances!
How much does a universal life policy cost?
Please look at the average 25k universal life insurance quotes for males and females.
$25,000 Universal Life for Males
| Death Benefit | $25,000 |
| 30 Years Old | $18 |
| 40 Years Old | $28 |
| 50 Years Old | $44 |
| 60 Years Old | $64 |
| 70 Years Old | $84 |
| 80 Years Old | $189 |
$25,000 Universal Life for Females
| Death Benefit | $25,000 |
| 30 Years Old | $16 |
| 40 Years Old | $23 |
| 50 Years Old | $36 |
| 60 Years Old | $59 |
| 70 Years Old | $98 |
| 80 Years Old | $162 |
Is it smarter to invest in a $25,000 whole life policy or opt for universal life insurance?
If you need coverage until you die, guaranteed universal life insurance is a cheaper option than whole life.
We consistently recommend Pacific Life, but you can use our calculator to compare various permanent life insurance plans if you are not convinced.
What Does A $25,000 Life Insurance Policy Cost?
- Select Lifetime
- Select Amount
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Buying a $25,000 Life Insurance Policy
Affordable Life USA can help you decide whether term insurance will cover your needs or if permanent life insurance is a better option.
Most companies will want to know your current and past medical history by conducting a phone interview or a medical exam.
Whether you buy a $25,0000 or a $50,000 permanent life insurance policy, the process is pretty much the same.
$25,000 Life Insurance No Exam
According to CNN, a $25,000 life insurance policy is affordable, and you most likely can get it without a medical exam and blood tests.
The insurance company will call you to ask a few medical questions during a telephone interview instead of an exam.
They will gather additional underwriting information through an MIB check, a motor vehicle report, and your prescription drug records.
Buying a $25,000 life insurance policy with no medical exam is quick, and most people will qualify for coverage in less than a week.
Simplified issue life insurance with no medical exam is suitable for people with minor medical conditions that need up to a $25,000 death benefit.
On the other hand, people with significant health issues can buy a guaranteed issue policy with no health questions, and they are automatically approved!
These costly policies come with a two-year delay before your beneficiary can receive any death benefit payout.
AIG and Gerber Life offer easy-to-understand guaranteed issue policies.
We don’t recommend term life plans if you’re looking for a policy to pay final expenses because they can expire before you.
Reducing the death benefits to a $10k or $20k policy that fits your budget would be better. Remember, having a $10,000 or a $20,000 life insurance policy is better than nothing.
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Buyer Tip
If you are relatively healthy, you can get more coverage and lower premiums by doing an exam.
By skipping the medical examination, you will pay more money in premiums for convenience.
We can use your medical profile to shop for the most competitive offers from many companies.
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Affordable Life USA is dedicated to providing comprehensive life insurance solutions to families and business owners throughout the United States.
For over thirty years, our agency has provided a platform for comparing hundreds of life insurance policies without the stress of high-pressure sales tactics.
Our experienced team of financial planners has helped thousands of clients obtain affordable coverage through our efficient online application process.
Our founder, Eric Van Haaften, expanded our consumer-centric sales model nationally by leveraging the influence of renowned publications such as Time, Newsweek, and The Wall Street Journal.
Eric acquired his love for quantitative analysis while getting his business degree from Ferris State University, which provided a solid foundation for his analytical approach to financial planning.
Eric Van Haaften, LUTCF
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