Updated: August 12, 2025
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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.
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.
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.
| 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.
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.
| 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 |
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.
Smokers aged 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 increase reflects smoking's health impact, such as heart disease, cancer, and decreased life expectancy. Insurers charge higher premiums to offset this added risk.
| 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 |
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. These rates are slightly higher than the average rates for healthy individuals.
Conditions like diabetes, high blood pressure or a history of cancer may increase your risk profile, even if you’re a nonsmoker. Insurers adjust rates accordingly to reflect the potential for higher claims.
| 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 |
Life insurance providers offer varying rates based on location. Find specific costs for $250,000 life insurance in your state below.
Lincoln Financial offers the cheapest $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.
The table below compares average monthly premiums for different term lengths from various companies.
| 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.
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.
| 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.
Choosing the right coverage amount can feel overwhelming when you balance adequate protection with affordable premiums. A good rule of thumb is multiplying your annual income by 10 to 12 times. However, if you own an expensive home or provide for children, you may need more coverage.
Different life situations require tailored approaches to coverage. Understanding how $250,000 in life insurance aligns with your specific needs helps ensure your loved ones remain financially secure.
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.
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.
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.
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.
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 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.
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. Below are our answers to some frequently asked questions about $250,000 life insurance rates.
On average, a $250,000 life insurance policy costs $19 per month for males and $16 per month for females. These rates are for our base profile (40-year-old nonsmoker with average health rating).
Final premiums depend on factors like your lifestyle, overall health, gender, age and term length.
Lincoln Financial offers the cheapest $250,000 term life policy at just $14 or $165 per year for a 10-year term.
Age dramatically impacts life insurance costs, with rates increasing as you get older. For example, a 30-year-old male pays around $12 monthly for a 10-year $250,000 policy, while a 70-year-old male pays approximately $364 monthly for the same coverage.
A $250,000 term life insurance policy provides coverage for a specific period (typically 10 to 30 years) in exchange for regular premium payments. If you die during the term, the insurance company pays your beneficiaries the $250,000 death benefit tax-free, which they can use for any purpose. If you outlive the term, coverage ends unless you renew or convert the policy, though premiums will be higher based on your new age.
A $250,000 policy is typically sufficient for people with minimal financial commitments or older adults with fewer expenses. However, the general recommendation is to have coverage that's 10 to 12 times your annual income, so younger families with mortgages and children often need $500,000 or $1 million in coverage.
Young, healthy people may qualify for instant, no-medical-exam life insurance with coverage of $250,000. These policies are convenient and have almost immediate coverage but sometimes can cost more than policies that require an exam.
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. Term suits temporary needs like mortgages, while whole life works for permanent needs and estate planning.
Traditional underwriting takes four to six weeks. Accelerated underwriting reduces this to one to two weeks without medical exams. Some insurers offer instant decisions for qualified applicants. Simplified issue policies provide approval within 24 to 48 hours, but at higher rates.
Most term policies include conversion rights, allowing you to switch to permanent coverage without new medical underwriting. This must typically occur before age 65 to 70 or within the first 10 to 20 years. Conversion protects your insurability if your health declines.
Your personal life insurance continues as long as you pay premiums. It's not tied to employment. Options during financial hardship include grace periods (30 to 31 days), reducing coverage amount, using cash value (permanent policies), or premium deferrals. Contact your insurer immediately if payment issues arise.
Shopping for a $250,000 life insurance policy feels overwhelming when you're comparing dozens of companies and coverage options. You need enough coverage to protect your family without overpaying for features you don't need. We designed our 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 scoring 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:
Each company's score incorporates:
Our standard customer profile for quotes:
We then modified this profile by age, gender, height, weight, tobacco use, health rating and location to gather quotes for various customer types. This approach helped us 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, and coverage amounts, 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 we specify otherwise, all premiums reflect our standard profile, ensuring you can accurately compare costs across insurers.
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
