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

A $250,000 life insurance policy costs $28 per month on average for women and $35 for men with a 20-year term. Whole life insurance averages $274 for women and $294 for men. Rates vary widely by policy type, age, gender, term length and health status.

Find out if you're overpaying for life insurance below.

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Updated: August 19, 2026

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Key Takeaways
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A $250,000 term life policy costs an average of $28 per month for a healthy 40-year-old woman, less than many households spend on streaming subscriptions. It can help cover a mortgage, final expenses, child care or family income needs, but it falls short of the 10x income guideline for anyone earning more than $25,000 per year.

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Smoking has the largest effect on rates at this coverage level. A 40-year-old male smoker pays $107 per month for a 20-year term policy, more than three times the $35 rate for a nonsmoker. Health has a smaller effect, with men in poor health paying $38 per month compared with $35 with average health.

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Penn Mutual and Lincoln Financial have the lowest rates for $250,000 policies in our analysis, starting at $21 per month for a 40-year-old woman on a 20-year term.

How Much Is a $250,000 Life Insurance Policy?

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 a healthy 40-year-old man and $28 for a woman. At the same age and coverage level, whole life averages $294 for men and $274 for women, while universal life averages $187 for men and $160 for women. Term life is the most affordable option at the $250,000 coverage level by a wide margin.

The right policy type for you depends on how long you need coverage. Term life lasts 10 to 30 years and pays a death benefit only if you die during the term. Whole and universal life provide lifelong coverage and build cash value but cost five to 10 times more. Most buyers who need $250,000 in coverage choose term life.

Estimate Your Life Insurance Cost

Estimates are based on term policies for people in average health with $250,000 in coverage.

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Average Monthly Rate—

$250,000 Term Life Insurance Cost

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.

Our data shows the largest rate increase begins around age 50. A male nonsmoker’s monthly premium for a 20-year policy rises from $35 at age 40 to $77 at age 50, a 120% increase. Buying coverage in your 40s locks in a lower rate before that increase. A 20-year term can also cover major financial obligations, such as a mortgage, raising children and college costs.

20
$15 (F), $19 (M)
$17 (F), $20 (M)
$19 (F), $22 (M)
$21 (F), $25 (M)
$28 (F), $35 (M)
25
$18 (F), $22 (M)
$20 (F), $24 (M)
$22 (F), $26 (M)
$24 (F), $30 (M)
$33 (F), $41 (M)
30
$16 (F), $20 (M)
$18 (F), $21 (M)
$20 (F), $23 (M)
$22 (F), $26 (M)
$31 (F), $38 (M)
35
$19 (F), $24 (M)
$21 (F), $26 (M)
$24 (F), $28 (M)
$27 (F), $32 (M)
$38 (F), $47 (M)
40
$22 (F), $26 (M)
$25 (F), $31 (M)
$28 (F), $35 (M)
$33 (F), $41 (M)
$48 (F), $61 (M)
45
$27 (F), $33 (M)
$31 (F), $39 (M)
$35 (F), $44 (M)
$42 (F), $52 (M)
$61 (F), $77 (M)
50
$41 (F), $52 (M)
$50 (F), $65 (M)
$59 (F), $77 (M)
$71 (F), $94 (M)
$112 (F), $150 (M)
55
$53 (F), $69 (M)
$64 (F), $84 (M)
$75 (F), $100 (M)
$111 (F), $143 (M)
$130 (F), $176 (M)
60
$93 (F), $131 (M)
$124 (F), $171 (M)
$157 (F), $215 (M)
$147 (F), $194 (M)
N/A
65
$121 (F), $169 (M)
$164 (F), $223 (M)
$178 (F), $245 (M)
N/A
N/A
70
$217 (F), $321 (M)
$291 (F), $398 (M)
N/A
N/A
N/A
75
$268 (F), $396 (M)
$352 (F), $481 (M)
N/A
N/A
N/A

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

Average Cost of $250,000 Term Life for Smokers

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. At 50, male smokers pay $243 per month versus $77 for nonsmokers, a difference of $166 per month or $1,992 per year.

After 12 consecutive months without smoking, you can qualify for nonsmoker rates. At age 40, that can reduce the monthly cost of a 20-year policy from $107 to $35, saving you $864 per year.

20
$36 (F), $48 (M)
$41 (F), $54 (M)
$42 (F), $56 (M)
$45 (F), $62 (M)
$64 (F), $88 (M)
25
$43 (F), $56 (M)
$49 (F), $64 (M)
$50 (F), $66 (M)
$52 (F), $73 (M)
$74 (F), $101 (M)
30
$39 (F), $49 (M)
$47 (F), $59 (M)
$49 (F), $63 (M)
$55 (F), $74 (M)
$76 (F), $100 (M)
35
$48 (F), $59 (M)
$57 (F), $72 (M)
$59 (F), $76 (M)
$68 (F), $90 (M)
$93 (F), $120 (M)
40
$60 (F), $76 (M)
$76 (F), $97 (M)
$82 (F), $107 (M)
$102 (F), $132 (M)
$136 (F), $180 (M)
45
$77 (F), $97 (M)
$97 (F), $124 (M)
$104 (F), $135 (M)
$128 (F), $167 (M)
$175 (F), $231 (M)
50
$125 (F), $168 (M)
$159 (F), $217 (M)
$179 (F), $243 (M)
$223 (F), $299 (M)
$325 (F), $411 (M)
55
$161 (F), $222 (M)
$205 (F), $284 (M)
$227 (F), $312 (M)
$293 (F), $398 (M)
$388 (F), $487 (M)
60
$296 (F), $418 (M)
$381 (F), $530 (M)
$420 (F), $584 (M)
$497 (F), $698 (M)
N/A
65
$381 (F), $537 (M)
$486 (F), $680 (M)
$471 (F), $664 (M)
N/A
N/A
70
$610 (F), $908 (M)
$687 (F), $1015 (M)
N/A
N/A
N/A
75
$740 (F), $1103 (M)
$849 (F), $1310 (M)
N/A
N/A
N/A

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

Average Cost of $250,000 Term Life Insurance for People in Poor Health

Minor health issues, like slightly elevated cholesterol or well-managed high blood pressure increases a 40-year-old’s 20-year term premium by $3 per month in our analysis. More serious conditions, like Type 2 diabetes, a history of cancer or heart disease, require individual review. Depending on your condition’s severity and management, you may qualify for standard or substandard rates or be denied coverage.

20
$17 (F), $21 (M)
$18 (F), $22 (M)
$20 (F), $24 (M)
$21 (F), $27 (M)
$31 (F), $39 (M)
25
$20 (F), $25 (M)
$22 (F), $27 (M)
$24 (F), $29 (M)
$25 (F), $32 (M)
$36 (F), $46 (M)
30
$18 (F), $23 (M)
$20 (F), $24 (M)
$21 (F), $26 (M)
$24 (F), $29 (M)
$34 (F), $43 (M)
35
$22 (F), $27 (M)
$24 (F), $29 (M)
$26 (F), $31 (M)
$29 (F), $36 (M)
$41 (F), $52 (M)
40
$24 (F), $28 (M)
$28 (F), $34 (M)
$31 (F), $38 (M)
$35 (F), $44 (M)
$52 (F), $68 (M)
45
$30 (F), $36 (M)
$35 (F), $43 (M)
$39 (F), $48 (M)
$44 (F), $56 (M)
$66 (F), $86 (M)
50
$45 (F), $58 (M)
$55 (F), $72 (M)
$65 (F), $84 (M)
$75 (F), $102 (M)
$121 (F), $162 (M)
55
$59 (F), $77 (M)
$71 (F), $93 (M)
$83 (F), $109 (M)
$118 (F), $153 (M)
$136 (F), $183 (M)
60
$102 (F), $144 (M)
$135 (F), $191 (M)
$172 (F), $240 (M)
$158 (F), $219 (M)
N/A
65
$133 (F), $188 (M)
$179 (F), $252 (M)
$194 (F), $275 (M)
N/A
N/A
70
$239 (F), $358 (M)
$312 (F), $438 (M)
N/A
N/A
N/A
75
$294 (F), $443 (M)
$387 (F), $524 (M)
N/A
N/A
N/A

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

Cheapest $250,000 Term Life Insurance Companies

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, where Penn Mutual leads at $21 per month, and the fifth-cheapest option costs $3 more.

Still, small price differences add up over time. For example, the $9 monthly difference between Penn Mutual and Protective totals $2,160 over a 20-year term for the same death benefit.

Penn Mutual
$21
Penn Mutual
$25
Lincoln Financial
$22
Lincoln Financial
$28
John Hancock
$22
John Hancock
$28
Guardian Life
$24
Guardian Life
$29
Banner Life
$24
Banner Life
$29
Transamerica
$24
Transamerica
$29
Pacific Life
$25
Cincinnati Life
$31
Fidelity
$25
Fidelity
$32
Cincinnati Life
$25
Columbus
$33
Protective
$27
Protective
$34

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

Cheapest $250,000 Life Insurance With No Medical Exam

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.

The cost gap between no-exam and fully underwritten policies is small for $250,000 policies. 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.

Lincoln Financial
$22
Penn Mutual
$28
Penn Mutual
$23
Lincoln Financial
$28
John Hancock
$25
John Hancock
$31
Guardian Life
$26
Guardian Life
$32
Banner Life
$26
Banner Life
$32
Transamerica
$26
Transamerica
$32
Pacific Life
$27
Pacific Life
$37
MassMutual
$30
MassMutual
$38
Nationwide
$32
Nationwide
$38
Prudential
$33
Prudential
$42

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

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WHAT IS ACCELERATED UNDERWRITING?

Most no-exam carriers use accelerated underwriting, which reviews prescription history and driving records instead of requiring a physical exam. You can receive approval within 24 to 72 hours, compared with four to six weeks for traditional underwriting.

$250,000 Whole Life Insurance Cost

A $250,000 whole life insurance policy costs $274 per month for a 40-year-old nonsmoking woman and $294 for a man. That is nearly 10 times the cost of a 20-year term policy for women and more than eight times the cost for men.

The premium difference funds a cash value component that grows tax-deferred over time. The higher rates of whole life insurance are worthwhile if you need lifelong coverage for estate planning, a lifelong dependent or business succession. For most buyers, term life provides the necessary protection at a fraction of the cost, while separate investment accounts offer greater flexibility.

20
$161
$215
$176
$234
25
$183
$245
$198
$264
30
$208
$279
$222
$297
35
$239
$322
$256
$345
40
$274
$373
$294
$401
45
$315
$445
$361
$509
50
$336
$504
$443
$646
55
$468
$711
$569
$847
60
$665
$1,019
$732
$1,113
65
$936
$1,509
$1,034
$1,636
70
$1,328
$2,274
$1,469
$2,438
75
$1,971
$3,137
$2,216
$3,418
80
$2,958
$4,334
$3,363
$4,799

* Rates shown are averages for people in average health.

$250,000 Universal Life Insurance Cost

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.

Universal life costs less than whole life because it give you more flexibility. You can adjust your premiums and death benefit over time, but cash value growth depends on the interest rate credited by your insurer. If rates decline, your policy can underperform its projections or require higher premiums to keep it active.

20
$83
$130
$96
$156
25
$98
$149
$112
$178
30
$114
$180
$130
$215
35
$135
$213
$156
$254
40
$160
$263
$187
$318
45
$161
$311
$230
$386
50
$131
$384
$283
$496
55
$223
$493
$360
$617
60
$389
$671
$431
$816
65
$524
$870
$620
$1,047
70
$704
$1,232
$846
$1,467
75
$972
$1,667
$1,179
$1,984
80
$1,389
$2,521
$1,704
$2,979

* Rates shown are averages for people in average health.

Is $250,000 Enough Life Insurance Coverage?

A common guideline is to carry life insurance equal to 10 to 12 times your annual income. This can replace several years of income and help cover a mortgage and other family expenses. Based on this guideline, a $250,000 policy would suit someone earning $21,000 to $25,000 per year.

A 35-year-old earning $80,000 who buys $250,000 in coverage replaces just over three years of income. If they die five years into the policy, their family receives a lump sum equal to roughly three years of earnings, well below the 10 to 12 years recommended for income replacement.

Who Should Consider a $250,000 Life Insurance Policy?

  • babyAndMother icon

    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 provides financial protection until children reach financial independence, though families planning multiple children should factor in extended timelines and potentially higher coverage needs.

  • homeowner icon

    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.

  • family icon

    For Single-Income Families

    Single-income families have the most to lose from underinsurance at this coverage level. A $250,000 payout replaces two to three years of median household income, which may not cover a mortgage, childcare and living expenses through a child's school years.
    A 20-year term addresses the full dependency window for most families with young children today. Buyers with one income earner should model whether a $500,000 policy better fits their actual obligations before settling on $250,000.

  • businessOwner icon

    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 is enough if your mortgage balance is under $200,000, you have no dependents under 18 and you earn less than $30,000 per year. If your financial obligations are higher, compare rates for $500,000 and $1 million policies.

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$250K Term Life Insurance Policy: Bottom Line

A $250,000 term life policy is a practical choice for people with moderate coverage needs like paying off a mortgage, supporting dependents or clearing debt. Above that income, the policy falls short of the common guideline of 10 times annual income, so it's worth comparing against $500,000 policies. 

Penn Mutual is the cheapest option for most ages, averaging $25 per month for a 40-year-old male nonsmoker with a 20-year term. The next four lowest-cost insurers in our analysis charge within $4 per month of that rate.

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Term Life Insurance With $250K Coverage: FAQ

A $250,000 life insurance policy costs different amounts based on your age, lifestyle, health and insurer. We analyzed thousands of quotes from over 30 major life insurers to show you what you'll pay and which companies offer the best value for your situation.

Most people shopping for $250,000 coverage want two things: affordable premiums and confidence their beneficiaries will get paid decades from now. We started with a baseline profile of a 40-year-old male nonsmoker with average health rating. We then modified age, gender, tobacco use and health status to gather quotes for a range of customer profiles. We also collected quotes for different term lengths and permanent policies.

Related Pages: Compare Coverage Amounts

About Patrick Bryant

Patrick Bryant, Vertical Lead, Life & Health Insurance, MoneyGeek

Patrick Bryant is the Vertical Lead for Life and Health Insurance at MoneyGeek, where he researches insurance products, writes consumer guides and maintains the scoring methodologies behind our provider comparisons. He analyzed more than 50 life insurance carriers across multiple policy types, collecting thousands of quotes nationwide to evaluate rates, coverage options and underwriting factors. His methodologies are reviewed quarterly to reflect current market conditions and carrier data.

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