Rob Pinner is the founder and CEO of Pinner Financial Services servicing all 50 states. Rob started his insurance career in 2002.
Last Updated: August 4th, 2023
You might already be familiar with a 20 or 30 year term, but have you heard of 25 year term life insurance?
The following article discusses the benefits of buying such a policy and the differences in price between the 20, 25, and 30-year term policies.
We’ll also cover the best life insurance providers that offer 25-year term policies.
In this article:
Why Buy a 25 Year Term Policy?
There are several cases when a 25-year term life insurance policy would be ideal.
For example, if you are not able to afford a 30 year term policy, but you feel that a 20-year term is not sufficient for your current family needs.
You might also want to consider a 25-year term if you are 50 and you want to be covered until you are in your mid-70s.
People who are 40 and want to be covered until they reach the retirement age of 65 are also perfect candidates.
Best 25 Year Term Life Insurance
The majority of life insurance providers offer life insurance policies with terms of 10, 20 or 30 years. However, not every company has a 25-year term policy available.
Let’s take a look at the top 4 companies that currently offer life insurance policies with 25 year terms.
SBLI
SBLI is an insurance company with an A+ rating from A.M. Best that offers an affordable 25-year term life insurance policy.
When you are attempting to price term life insurance, their rates are considered to be among the best.
Protective
Founded in 1907, Protective Life Insurance also carries the distinguished A+ rating given by A.M. Best.
Their rates on 25-year term life insurance policies are considered to be competitive and they have a unique term life policy.
Transamerica
Another A+ rated company, Transamerica is unique for several different reasons. Most life insurance providers will only allow people who are a maximum of 55 years old to purchase a 25-year term policy. They would be no more than 80 years old when it expires.
Transamerica has a cutoff age of 65 for 25-year term life insurance policies. This is a great option for seniors who can’t get life insurance from other companies.
Most life insurance providers have a minimum coverage amount of $100,000. However, Transamerica has a minimum of only $25,000. If you are looking for less than $100,000 of coverage, Transamerica is an excellent choice.
Transamerica also allows policies that do not require a medical exam. A policy of up to $250,000 can be obtained by people up to the maximum age of 60. People up to age 70 can obtain as much as $50,000 of coverage.
American General
American General is an ideal company if you are looking for a 25-year term life insurance policy and you are considered to be slightly high risk.
They offer competitive rates for people suffering from diabetes, Crohn’s disease, multiple sclerosis, and other various conditions.
How Much Does a 25 year Term Life Insurance Policy Cost?
In order to examine how much people can expect to pay, let’s use the example of a 50 years old male, non-smoker.
Here’s how much the various terms would cost for a $100,000 policy:
- 20-year term standard non-tobacco rate for a 50-year-old male: SBLI charges $440/year.
- 25-year term standard non-tobacco rate for a 50-year-old male: SBLI charges $632/year.
- 30-year term standard non-tobacco rate for a 50-year-old male: Transamerica charges $775/year.
A 25-year term can be a good alternative to a 20 or 30-year policy. You can get a longer-term than a 20-year policy while saving the money that a 30-year term would cost.
If you get approved, you can switch to a policy of 20 or 25 years once you have the approval. A 25-year term gives you more options regarding which policy to choose after your approval.
Get Cheap 25 Year Term Life Insurance
25-year term plans tend to be very affordable. Most companies offer competitive rates that should fit in your budget.
Still, there are even more ways you can knock those rates down.
Improve Your Health for Better Rates
You probably know that smoking cigarettes isn’t good for your health, but it’s terrible for your bank account. Not only do you buy the cigarettes, but you also have to pay drastically higher insurance premiums. Smokers have are riskier applicants. More risk means higher rates.
After you’ve quit smoking, continue improving your health by going to a Zumba class or going for a jog around your neighborhood. When you take the medical exam, they are going to bring a weight scale. Lower numbers on the scale mean less money out of your bank account in premiums.
Who Has the Cheapest 25 Year Term Insurance?
There are a lot of companies out who sell 25-year term plans. All of them are not the same. Some companies have cheaper 25-year plans than others. We assume you want the cheapest life insurance policy, but how do you find it?
That’s where we come in. We work with more than 30 highly rated companies. Instead of having to take the time to contact different companies and receive your quotes for a 25-year term plan, we can bring you the 30 different quotes. We basically serve you quotes on a silver platter.
We are independent agents, and you might be wondering what we do. We can actually direct you through the whole process. From beginning to end. We can help you decide between term or whole, how long you need life insurance, how much you’ll need, and much more.
Compare rates for a 25-year term using our quote tool at the top of this page, or call us at 800-712-8519.
