Life insurance policies often come in six figures (sometimes more) because their purpose is to cover a variety of expenses like funeral and burial costs, leftover debt, and of course the absence of the income previously being earned by the deceased. In fact, a lot of life insurance companies have minimum policy amounts between $50,000 and $100,000. That said, a $25,000 policy is attainable— you just have to know where to look.
At Bestlifequote.com we work with 30+ companies and have years of experiencing helping people get the term life insurance policies they need. As far as $25,000 term policies go, both Fidelity Life and Transamerica have proven to be good options.
Life insurance is one of the best investments that you’ll ever make for your loved ones. It’s one of the only ways that you can ensure that your family will have the money that they need, regardless of what happens to you.
When you’re shopping for life insurance protection, it’s important that you find the best plan for you and your family. We know that shopping for life insurance can be a long and confusing process, but that’s where we come in. It’s our mission to ensure that you’re getting the best policy to meet your needs.
One of the great things about Fidelity Life is that you can get a decision from them fairly quickly. An application for a $25,000 policy, for example, can get approved within 24 hours with their “Rapid Decision Express” coverage option (offered for policy amounts between $25,000 and $250,000). These rapid decision policies from Fidelity Life are for applicants between the ages of 18 and 65, but the insurance coverage itself can last up to age 95.
This option is available in 10 to 30-year terms and also requires no medical exam. As an alternative, the application just requires that you answer a short list of health history questions. This is good because it helps you get approved faster, but if you are in excellent health, you may actually want to consider applying for a policy that does require a medical exam as it could end up being much cheaper.
On that note, what is pricing like? Let’s say Greg is 40 years old and wants $25,000 in life insurance coverage for a term of 20 years. With Fidelity Life, he is likely to be offered the following:
Non-smoker rate: $16 a month
Smoker’ rate: $30 a month
This company is similar to Fidelity Life in many ways, with some key differences (as summarized at the end of this article if you want to skip ahead). For example, Transamerica can take three to four weeks to approve your application, even if it is for a policy as low as $25,000. On the other hand, it is worth mentioning that Transamerica will approve people up to age 85, and if you’re age 60 or younger, you don’t even need to submit to a medical exam if you’re applying for a $25,000 policy (especially good news for New Yorkers, whose state has rather limited selections when it comes to no medical exam life insurance).
Now, whereas many insurance providers (including Fidelity Life) will deny you if you are labeled a “high risk” applicant, Transamerica is not so quick to do so. Instead, you can expect them to request to see your medical records, and from there they will look them over and possibly approve you based on what they find. In other words, there is more opportunity for approval with Transamerica.
So, what is pricing for Transamerica like? It is actually pretty comparable to Fidelity Life. If you remember Greg, our 40-year-old example from earlier, you’ll recall that he was offered between $16 and $30 (depending on his tobacco use) from Fidelity Life. With Transamerica, however, Greg is offered the following:
Non-smoker’ rate: $14 a month
Smoker rate: $25 a month
Quick Comparison of Fidelity Life and Transamerica
Now that you’ve had an overview of each company, it’s important to remember the following key differences between them when it comes time to make your decision:
Fidelity Life offers policies for people up to 65 years old, while Transamerica goes up to 85 years old.
It can take as little as 24 hours to get approval from Fidelity Life, whereas it can take up to a few weeks with Transamerica.
Transamerica is open to approving certain pre-existing health conditions, whereas Fidelity Life will not approve people with pre-existing conditions or are considered “high risk”.
How much Life Insurance do you need to buy?
Before you purchase life insurance coverage, regardless of which company or type of plan, it’s important that you calculate how much insurance that your family will need. Not having enough life insurance is one of the worst mistakes that you could ever make for your loved ones. There are several factors that you need to consider when you’re determining how much coverage to buy.
The first number that you should look at is your annual income. If you were to pass away, your family would be stuck with all of your debts and other final expenses. They can be stuck with thousands and thousands of dollars of debt, but that’s where your life insurance comes in. It will give them the money that they need to pay off any bills that they would be responsible for. Make sure that your life insurance plan is large enough to pay off all of those bills and debts.
The next number that you should look at is your annual income. If you’re the main income earner in your home, then your family would struggle to pay for any necessary bills or expenses. Your life insurance plan will give your family the money that they need to stream of income.
Once you’ve calculated your family’s life insurance needs, you might be shocked to see how much life insurance that you will need to buy. Most families find that they are going to need at least 1 million dollars of insurance protection. Don’t worry, regardless of how much life insurance you need, it’s possible to get affordable life insurance protection.
Getting Cheaper Life Insurance
There are several ways that you can secure lower insurance premiums. Making a few simple changes could save you thousands and thousands of dollars every year on your life insurance protection.
One of the best ways that you can do is cut out any tobacco that you currently use. If you’re listed as a smoker on your life insurance plan, then you should expect to pay much higher rates for your insurance protection. Smokers are going to pay at least twice as much for their coverage versus what a non-smoker is going to pay for the same sized plan. Quitting your bad habit is one of the best ways to ensure that you’re getting the lowest premiums available.
Another way to save money is to improve your overall health. Depending on how much life insurance that you buy, the insurance company could require that you take a medical exam. The results of the medical exam are going to play an important role in how much you pay for your life insurance.
One of the only ways that you can ensure that you get the best plan is to compare dozens and dozens of plans before you choose the one that’s best for you. Every company is different, and you’re going to get drastically varying rates depending on which company that you choose. Finding the perfect company is the difference in getting an affordable plan or one that breaks your bank every month.
There are hundreds of companies on the market, which means that you could spend weeks calling different companies to get the best quotes. Instead, let one of our independent insurance agents do all of the hard work for you. We work with dozens and dozens of highly rated companies across the nation. We know that shopping for life insurance is a difficult task, but that’s why we are here to help. It’s our mission to ensure that you’re getting the best plan possible.
You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get that coverage that your family deserves. Contact one of our agents today and we can bring all of the best insurance quotes directly to you. We work with some of the best insurance companies on the market. Working with us will save you both time and money on your life insurance search.
Want to learn more about getting a $25,000 policy? Feel free to give us a call at 888-552-6159 to get a personal quote and more information about getting the most affordable life insurance coverage or compare quotes using our quote tool right on this page.