A $250,000 term life insurance policy costs about $19 per month for healthy 40-year-old males and $16 per month for females. Rates vary based on age, gender, health and term length. Shorter terms typically have lower premiums, but coverage ends when the term expires.
How Much Does a $250,000 Life Insurance Policy Cost? (2025 Rates)
A $250,000 10-year term life insurance policy costs around $19/month for men and $16/month for women. Lincoln Financial offers the lowest monthly rate at $14.
Find out if you're overpaying for life insurance below.
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Updated: November 6, 2025
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Key Takeaways
A $250,000 term life policy provides moderate coverage at an affordable price, making it ideal for those with financial obligations like mortgage payments, education costs or everyday living expenses.
Rates depend on factors like age, health, smoking status and term length. For 40-year-olds with 10-year term life insurance, average monthly costs are $51 to $61 for smokers and $21 to $25 for people with poor health.
Lincoln Financial, Protective and AAA offer some of the most competitive rates, starting at $14 per month for qualified applicants.
How Much Is a $250K Life Insurance Policy?
Average Cost of a $250,000 Life Insurance by Term Length
A 10-year term life insurance policy with a $250,000 coverage amount costs an average of $19 per month for males and $16 for females. A 20-year term averages $30 for males and $25 for females.
Once you determine how much life insurance you need and decide on a $250,000 policy, you must choose a term length. Most insurers offer 10- to 30-year policies, but some provide 35- and 40-year terms. Your beneficiaries receive the death benefit if you die during the term.
Data filtered by:
Male
| 10 years | $19 | $229 |
| 15 years | $24 | $294 |
| 20 years | $30 | $362 |
| 25 years | $40 | $482 |
| 30 years | $50 | $598 |
| 35 years | $57 | $686 |
| 40 years | $85 | $1,023 |
*Rates are based on averages for 40-year-old nonsmokers with average health.
$250,000 Term Life Insurance Cost by Age and Gender
Age is one of the biggest factors impacting the cost of a $250,000 term life insurance policy. A $250,000 10-year policy for a female in her 30s costs as little as $10 per month, while a male in his 70s will pay around $364 per month.
Compare the cost by age, gender and term length below.
Data filtered by:
Select
Male
| 10 years | $19 | $229 |
| 15 years | $24 | $294 |
| 20 years | $30 | $362 |
| 25 years | $40 | $482 |
| 30 years | $50 | $598 |
| 35 years | $57 | $686 |
| 40 years | $85 | $1,023 |
MONEYGEEK EXPERT TIP
A $250,000 policy can vary in cost based on several personal profile factors. To estimate your life insurance cost, use MoneyGeek's quote calculator.
Average Cost of $250,000 Term Life for Smokers
Smokers who are 40 pay an average of $61 per month for males and $51 for females for a 10-year $250,000 term life policy. These rates are more than triple what a healthy nonsmoker pays.
The rate reflects smoking's health impact, such as heart disease, cancer and decreased life expectancy.
Data filtered by:
Select
Male
| 10 years | $61 | $733 |
| 15 years | $75 | $906 |
| 20 years | $93 | $1,118 |
| 25 years | $137 | $1,646 |
| 30 years | $155 | $1,860 |
| 35 years | $188 | $2,256 |
| 40 years | $286 | $3,443 |
Average Cost of $250,000 Term Life Insurance for People in Poor Health
A 40-year-old male in poor health pays an average of $25 per month for a 10-year term policy with $250,000 coverage. A 40-year-old female spends around $21 monthly for the same policy.
Diabetes, high blood pressure or a history of cancer may increase your risk profile, even if you’re a nonsmoker. Insurers adjust rates to show the potential for higher claims.
Data filtered by:
Select
Male
| 10 years | $25 | $297 |
| 15 years | $31 | $377 |
| 20 years | $39 | $466 |
| 25 years | $52 | $622 |
| 30 years | $64 | $770 |
| 35 years | $72 | $867 |
| 40 years | $116 | $1,404 |
Average Cost of a $250,000 Term Life Insurance Policy by State
Life insurance providers offer varying rates based on location. Find specific costs for $250,000 life insurance in your state below.
Cheapest $250,000 Life Insurance Companies
Lincoln Financial offers the most affordable $250,000 10-year policy, averaging $14 per month or $165 per year. Protective matches Lincoln Financial's monthly rate but has a slightly higher annual average at $166. AAA follows closely behind.
Data filtered by:
10 years
| Lincoln Financial | $14 | $165 |
| Protective Insurance | $14 | $166 |
| AAA | $16 | $193 |
| Fidelity Life | $17 | $205 |
| North American | $18 | $211 |
| Midland National | $18 | $211 |
| TransAmerica | $18 | $211 |
| CoreBridge | $18 | $211 |
| Principal National | $18 | $214 |
| Securian | $18 | $217 |
| Gerber Life (Fabric) | $18 | $217 |
| Legal&General | $18 | $220 |
| Pacific Life | $18 | $220 |
| Cincinnati Life | $18 | $220 |
| Guardian Life | $19 | $225 |
| SBLI | $20 | $239 |
| Columbus Life | $20 | $243 |
| Foresters Financial | $21 | $249 |
| Assurity | $21 | $251 |
| Life Insurance Co of The South West | $21 | $255 |
| National Life Group | $21 | $255 |
| Nationwide | $21 | $257 |
| Mutual of Omaha | $22 | $266 |
| Prudential | $23 | $282 |
| John Hancock | $26 | $311 |
*Rates are based on averages for 40-year-old male nonsmokers with average health.
Cheapest $250,000 Life Insurance With No Medical Exam
No-exam policies offer quick approval and are cost-effective for younger buyers. However, older adults may pay more due to increased risk for insurers.
MoneyGeek found Lincoln Financial offers the best affordable no-medical-exam life insurance at $14 per month for a $250,000 term policy. It also has the lowest average rate for 15-, 20- and 30-year term policies. Pacific Life offers the lowest rates for 25-year policies.
Data filtered by:
10 years
| Lincoln Financial | $14 | $165 |
| AAA | $16 | $193 |
| Fidelity Life | $17 | $205 |
| Gerber Life (Fabric) | $18 | $217 |
| Pacific Life | $18 | $220 |
| Assurity | $21 | $251 |
| Nationwide | $21 | $257 |
| Mutual of Omaha | $22 | $266 |
*Rates are based on averages for 40-year-old male nonsmokers with average health.
Is a $250,000 Life Insurance Policy Right for You?
Choosing the right coverage amount can feel overwhelming. A good idea is to multiply your annual income by 10 to 12 times. But, if you own an expensive home or provide for children, you may need more coverage.
$250,000 Life Insurance Coverage: Who May Benefit Most?
Understanding how $250,000 in life insurance matches your specific needs helps make sure your loved ones are taken care of.
For New Parents
New parents should consider how $250,000 aligns with their growing financial responsibilities. This coverage level works well for families with one child when combined with existing savings or dual incomes.
Key considerations include childcare costs through age 18, future education expenses, and maintaining your family's lifestyle. A 20-year term typically provides financial protection until children reach financial independence, though families planning multiple children should factor in extended timelines and potentially higher coverage needs.
For Homeowners
Homeowners need coverage that addresses both mortgage obligations and family protection. A $250,000 policy suits those with moderate mortgage balances, providing funds for loan payoff plus additional family support.
Consider matching your term length to your mortgage timeline, potentially adding five to 10 years for extra security. If your mortgage represents most of the coverage amount, evaluate whether additional financial protection through riders or supplemental policies better serves your family's needs.
For Single-Income Families
Single-income families face vulnerabilities that make adequate life insurance crucial for financial stability. A $250,000 policy can provide a multi-year financial bridge, covering immediate expenses while allowing the surviving spouse time to adjust career plans or enter the workforce.
Consider a longer term (20 to 30 years) to protect through peak earning years and until children achieve independence, ensuring coverage addresses immediate needs and long-term financial transitions.
For Business Owners
Business owners must balance personal family protection with professional obligations when selecting coverage. A $250,000 personal policy can address family needs while keeping business interests separate through additional key person or buy-sell agreements. This coverage level works best for sole proprietors with minimal business debt or those with established succession plans.
Evaluate whether personal guarantees on business loans require additional coverage beyond family needs to prevent business obligations from impacting personal assets.
When to Consider Higher Coverage
A $250,000 policy works well if you have minimal financial commitments or are older with fewer expenses. Younger families should often consider $500,000 policies or $1 million policies. Use the life insurance need quiz below to determine your coverage needs.
$250K Term Life Insurance Policy: Bottom Line
A $250,000 term life insurance policy offers affordable financial protection for people with moderate financial needs, such as covering a mortgage, supporting dependents or paying off debt. Average rates start at around $16 per month, and top providers like Lincoln Financial and Protective offer even lower premiums.
Compare quotes and term lengths to find a policy that fits your life stage and budget.
Term Life Insurance With $250K Coverage: FAQ
Before taking out a $250,000 life insurance policy, there are several factors to consider so you can choose the option that best fits your needs.
Is a $250,000 term life insurance policy enough for me?
A $250,000 policy is typically sufficient for people with minimal financial commitments or older adults with fewer expenses.
Do companies offer $250,000 life insurance policies with no medical exam?
Young, healthy people may qualify for instant, no-medical-exam life insurance with coverage of $250,000.
What's the difference between $250k term and whole life insurance?
Term life provides temporary $250,000 coverage (10 to 30 years) at low cost. Whole life insurance offers permanent coverage with cash value, but it costs more.
How long does $250,000 life insurance approval take?
Traditional underwriting takes four to six weeks. Accelerated underwriting reduces this to one to two weeks without medical exams.
Can I convert my $250,000 term policy later?
Most term policies include conversion rights, allowing you to switch to permanent coverage without new medical underwriting.
Best $250,000 Life Insurance Rates: Our Review Methodology
Shopping for a $250,000 life insurance policy feels overwhelming when you're comparing dozens of companies and coverage options, especially when you need enough protection for your family without overpaying for features you don't need. We designed this research specifically for people seeking this common coverage amount, which is enough to pay off a mortgage, cover college costs, or replace several years of income.
We analyzed life insurance quotes from top insurers to find the average cost of $250,000 policies across different customer profiles and needs.
Our system awards companies up to five points in five categories, creating an overall MoneyGeek score out of 100. Here's how we weighted each factor:
- Affordability (30%): Cost data from online quotes for $250,000 policies
- Financial Stability (25%): AM Best financial strength ratings and years in business
- Buying Process (20%): Available tools like online product materials and payment flexibility
- Customer Satisfaction (15%): NAIC complaint data showing how companies handle claims
- Product Diversity (10%): Range of life insurance products offered
Why these weights: A $250,000 policy represents a significant financial commitment, making both affordability and insurer stability critical. Financial strength carries higher weight than typical because your beneficiaries need a company that will still exist and can pay claims 20 or 30 years from now. The buying process matters because term life shopping involves medical underwriting, and companies with streamlined applications save you time and hassle.
We quoted a 40-year-old male nonsmoker, 5 feet 9 inches tall, 160 pounds, with an average health rating. We then modified this profile by age, gender, height, weight, tobacco use, health status, and location to gather quotes for various customer types and identify the best companies for specific situations, whether you're a young parent, have health concerns, or live in an expensive insurance state.
We collected quotes for term life policies with different term lengths, revealing pricing patterns that help you understand how insurers evaluate risk. These trends show why seemingly small differences like being 5 pounds over a weight threshold can impact your rates.
Unless specified otherwise, all premiums reflect our standard profile, ensuring you can accurately compare costs across insurers.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.