How Much Does a $250,000 Life Insurance Policy Cost? (2026 Rates)

Based on our analysis of thousands of quotes from over 30 providers, a $250,000 term life insurance policy costs an average $35 per month for healthy 40-year-old males and $28 per month for females with a 20-year term. For the same age coverage, a whole life policy averages $294 for men and $274 for women. Universal policies average $187 for men and $160 for women. Term life is the most affordable option at the $250,000 coverage level by a wide margin. But the right policy type depends on whether you need temporary or permanent coverage.

A 10-year term life insurance policy with a $250,000 coverage amount costs an average of $26 per month for males and $22 for females. A 20-year term averages $35 for males and $28 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.

Our rate data shows the sharpest pricing jump arrives at age 50. A male nonsmoker's 20-year rate rises from $35 per month at age 40 to $77 at age 50, a 120% increase in one decade. Locking in a 20-year policy in your 40s avoids that jump entirely and covers most buyers through their peak financial obligation years.

* Rates shown are averages for nonsmokers in average health. Fields marked “N/A” reflect provider age limits for certain term lengths.

A 40-year-old male smoker pays $107 per month for a 20-year $250,000 policy. That's more than three times the $35 a nonsmoker of the same age pays for identical coverage. The rate reflects smoking's health impact, such as heart disease, cancer and decreased life expectancy.

The gap remains wide as you age. At 50, male smokers pay $243 per month versus $77 for nonsmokers, a difference of $166 per month or roughly $1,992 per year.

Quitting smoking for 12 consecutive months before applying can move you into nonsmoker rate classes with most carriers.

* Rates shown are averages for smokers in otherwise average health. Fields marked “N/A” reflect provider age limits for certain term lengths.

A 40-year-old man in poor health pays $38 per month for a 20-year $250,000 term policy. A woman of the same age pays $31. That's a $3 difference compared to the $35 and $28 a healthy nonsmoker pays at the same age.

Conditions like diabetes, high blood pressure or a prior cancer diagnosis push applicants into higher risk classes, but the rate impact varies by condition severity and how well it's managed. Buyers with controlled conditions often qualify for better rates than they expect.

* Rates shown are averages for nonsmokers in poor health. Fields marked “N/A” reflect provider age limits for certain term lengths.

For men, Penn Mutual's $25 per month rate for a $250,000 policy on a 20-year term is the lowest in our analysis, but the spread from first to fifth place is only $4. From Penn Mutual at $25 to Banner Life at $29, the difference is $48 per year. Rates are similarly tight for women among the cheapest companies.

The more meaningful gap is between the field leaders and the most expensive company in our analysis. Protective at $39 per month costs $168 more per year than Penn Mutual for identical coverage. Over a 20-year term, that difference adds up to more than $3,300 with no difference in the death benefit.

Rates are based on averages for 40-year-old nonsmokers with average health on a 20-year, $250,000 policy.

MoneyGeek found Lincoln Financial offers the most affordable no-exam life insurance for women at $18 per month on a 20-year, $250,000 term policy, while Penn Mutual is cheapest for men at $28 per month.

No-exam policies trade medical review for speed. Most carriers using accelerated underwriting approve applicants within 24 to 72 hours instead of the four to six weeks standard underwriting requires.

The cost gap between no-exam and fully underwritten policies is small at this coverage level. The cheapest no-exam options for men on a 20-year term start at $28 per month, compared to $25 for the cheapest fully underwritten policy. For buyers who need coverage quickly or want to avoid a medical appointment, that $3 difference is a reasonable trade.

Rates are based on averages for 40-year-old nonsmokers with average health on a 20-year, $250,000 policy.

Whole life insurance with $250,000 in coverage costs $274 per month for a 40-year-old nonsmoking woman and $294 for a man. That's nearly 10 times what a 20-year term policy costs for the same person.
The premium difference funds a cash value component that grows tax-deferred over time. Whether that trade-off makes sense depends on whether you need permanent coverage or have already maxed out other tax-advantaged savings options. For most buyers at this coverage level, term life covers the need at a fraction of the cost.

* Rates shown are averages for people in average health.

Universal life at $250,000 in coverage costs $160 per month for a 40-year-old nonsmoking woman and $187 for a man. That's less than whole life but still nearly six times the cost of a 20-year term.
The lower premium versus whole life reflects universal life's flexible structure: premiums and death benefits can be adjusted over time, but cash value growth depends on credited interest rates that can change. Our data shows a wide spread between carriers at the same age, which means comparison shopping matters even more here than with term plans.

* Rates shown are averages for people in average health.

At the common 10-to-12x income benchmark for assessing coverage needs, a $250,000 policy fits buyers earning $21,000 to $25,000 annually. At this level, there's a real coverage shortfall risk for people with higher incomes. A 35-year-old earning $80,000 who buys $250,000 in coverage has replaced just over three years of income. That's a gap worth evaluating before choosing this amount.

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.

A $250,000 term life policy is a practical choice for people with moderate coverage needs — paying off a mortgage, supporting dependents or clearing debt. Average rates start around $22 per month, and some providers come in lower than that. Penn Mutual and Lincoln Financial are among the most competitively priced options for this coverage level.

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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.