Last Updated: February 6th, 2026
A 25-year term life insurance policy offers level premiums and a guaranteed death benefit for 25 years. It’s a smart middle ground between a 20-year and 30-year term, giving you more coverage time without the higher cost of a longer policy. Not every carrier offers this term length, so knowing which companies do is key.
You’ve probably seen 10, 20, and 30-year term options everywhere. But what about 25-year term life insurance?
It’s not as common, but a 25-year term can be the perfect fit depending on your age, your financial obligations, and how long you need coverage. The problem is finding the right company, since not every insurer offers this term length.
In this guide, we’ll cover who should consider a 25-year term, the top companies that offer it, and how it compares to other term life insurance options.
Why a 25-Year Term Life Insurance Policy Makes Sense
A 25-year term works well when a 20-year policy feels too short and a 30-year policy costs more than you need to spend.
Here are a few situations where a 25-year term is a solid choice:
- You’re in your early 40s and want coverage until retirement. A 25-year term takes you to your late 60s, right when most people’s financial obligations start to wind down.
- You can’t afford the jump to a 30-year term. The premium difference between a 25-year and 30-year policy can be significant, especially at older ages.
- You’re around 50 and want coverage into your mid-70s. A 30-year term may not even be available at your age, but a 25-year term often is.
- You have a remaining mortgage of about 25 years. Matching your term length to your mortgage payoff timeline keeps your family protected for exactly as long as they need it.
The key advantage is flexibility. You get five more years of protection than a 20-year term without the full cost of a 30-year policy.
How Does a 25-Year Term Compare to 20 and 30-Year Policies?
The biggest differences come down to cost, availability, and how long you need protection.
| Feature | 20-Year Term | 25-Year Term | 30-Year Term |
|---|---|---|---|
| Premium Cost | Lowest | Moderate | Highest |
| Coverage Duration | 20 years | 25 years | 30 years |
| Carrier Availability | Widely available | Limited carriers | Widely available |
| Best For | Short-term needs, budget-conscious | Mid-range coverage, mortgage match | Young families, long-term obligations |
| Max Issue Age | Typically up to 75-80 | Varies, often up to 55-65 | Typically up to 55-65 |
A 25-year term gives you a nice middle ground. You get five extra years of protection over a 20-year policy, and the premiums stay lower than a 30-year term. If your financial picture lines up with that 25-year window, it can be the most cost-effective choice.
Best Companies for 25-Year Term Life Insurance
Not every life insurance company offers a 25-year term. Here are four carriers that do, along with what makes each one stand out.
SBLI
SBLI (The Savings Bank Mutual Life Insurance Company of Massachusetts) has been around since 1907. They carry an A (Excellent) rating from AM Best and are known for competitive term life rates.
SBLI offers 25-year term policies with coverage from $100,000 to $5 million. They’re available to applicants ages 18 to 74, though not all term lengths are available at older ages. As a mutual company, SBLI is owned by its policyholders rather than shareholders, which often translates to lower premiums.
One standout feature is their accelerated underwriting program. If you’re under 60 and meet certain health criteria, you may be able to skip the medical exam entirely.
Protective
Protective Life has been in business since 1907 and holds an A+ (Superior) rating from AM Best, one of the strongest in the industry. Their Classic Choice Term product consistently ranks among the most affordable term policies available.
Protective offers 25-year term life insurance with competitive rates and a straightforward application process. They also offer a conversion option that lets you switch your term policy to permanent coverage without a new medical exam, which gives you flexibility down the road.
Their Velocity underwriting process can speed up approval times significantly for qualified applicants.
Transamerica
Transamerica has been in the insurance business since 1904 and carries an A (Excellent) rating from AM Best. They offer 25-year term policies through their Trendsetter product line.
What sets Transamerica apart is flexibility. Their minimum coverage amount starts at just $25,000, which is much lower than the $100,000 minimum most carriers require. This makes them a good fit if you need a smaller policy.
Transamerica also offers two term product options. The Trendsetter Super is designed for healthy applicants looking for the lowest rates. The Trendsetter LB includes living benefits, allowing you to access a portion of your death benefit if you’re diagnosed with a chronic, critical, or terminal illness. That living benefits feature is a valuable addition that many carriers don’t include with term policies.
Corebridge Financial (Formerly American General)
Corebridge Financial was spun off from AIG in 2022. Policies are still issued by American General Life Insurance Company, and the financial strength ratings remain strong. If you’ve seen references to AIG or American General term life insurance, it’s now the same company under the Corebridge name.
Their Select-a-Term product stands out for its flexibility. While most carriers only offer fixed term lengths like 10, 20, 25, or 30 years, Corebridge lets you choose any term length from 15 to 30 years, plus 10-year and 35-year options. That 35-year term is one of the longest available in the industry.
Corebridge has also been a strong option for applicants with health issues. They’ve historically offered competitive rates for people with conditions like diabetes and heart disease, though underwriting standards can change. Their AU+ accelerated underwriting program allows many applicants to get approved without a medical exam.
Tips for Getting the Best 25-Year Term Rates
Your premium depends on several factors, and some of them are within your control.
Age matters most. The younger you are when you apply, the lower your rates. Every year you wait typically means higher premiums.
Health class makes a big difference. Carriers assign you a health rating based on your medical history, current health, weight, and lifestyle. Preferred Plus rates can be dramatically lower than Standard rates. If you’re on the edge of a better health class, losing a few pounds or managing your blood pressure before applying can save you real money over 25 years.
Tobacco use increases premiums significantly. If you’ve quit smoking, most carriers reclassify you as a non-smoker after 12 months. Some require you to be tobacco-free for 2 to 3 years. The savings are substantial.
Compare quotes from multiple carriers. Each company has different underwriting guidelines. One carrier might rate you Preferred while another gives you Standard. Working with an independent agent who represents multiple companies means you can compare rates side by side and find the best fit.
Frequently Asked Questions
Can I convert a 25-year term policy to permanent life insurance?
Yes, most 25-year term policies include a conversion option. This lets you switch to a permanent policy (whole life or universal life) without taking a new medical exam. Conversion windows vary by carrier. Some allow conversion anytime during the term, while others set an age limit or a specific number of years. Check the conversion details before you buy.
What happens when my 25-year term expires?
When your term ends, your coverage stops. Most carriers offer an annual renewal option, but the premiums increase each year based on your current age. These renewal rates are usually very expensive. If you still need coverage, converting to a permanent policy before your term ends or shopping for a new policy is typically a better option.
Is a 25-year term more expensive than a 20-year term?
Yes, a 25-year term costs more than a 20-year term because the insurance company covers you for an additional five years. The exact difference depends on your age and health class. For many people, the added cost is relatively small compared to the extra five years of protection.
What’s the maximum age to buy a 25-year term policy?
Maximum issue ages vary by carrier. SBLI accepts applicants up to age 74 for term life, though a 25-year term may not be available at all ages. Transamerica and Corebridge also have higher age limits compared to some carriers. Your best bet is to work with an independent agent who can check availability across multiple companies.
Do I need a medical exam for a 25-year term policy?
Not always. Several carriers, including SBLI and Corebridge, offer accelerated underwriting programs that can approve you without a medical exam. Eligibility depends on your age, coverage amount, and health profile. Policies over $1 million to $2 million typically still require a full medical exam regardless of the carrier.
Key Takeaways
- A 25-year term life insurance policy fills the gap between 20-year and 30-year terms, offering more coverage time at a lower cost than a 30-year policy.
- Not every carrier offers a 25-year term. SBLI, Protective, Transamerica, and Corebridge Financial are four strong options.
- American General life insurance policies are now issued under the Corebridge Financial brand after AIG’s 2022 spinoff.
- Your health, age, tobacco use, and coverage amount all affect your rates. Comparing quotes from multiple carriers is the best way to find the lowest premium.
- Most 25-year term policies include a conversion option, giving you the flexibility to switch to permanent coverage later without a new medical exam.
Ready to compare 25-year term life insurance rates? Use our free quote tool at the top of this page or call us at 800-712-8519. We work with 30+ top-rated carriers and can find the best rate for your situation, no pressure.
