Life insurance policies often come in six figures or more in order to cover a variety of expenses, debts, and of course absence of income.
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.
Best $25,000 Term Life Insurance Providers
Plenty of companies offer small term life policies, but the three providers below stand out above the rest. Let’s take a look at what each has to offer.
Fidelity Life
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.
If you aren’t in bad 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 will get:
- Non-smoker rate: $16 a month
- Smoker’ rate: $30 a month
Transamerica
This company is similar to Fidelity Life in many ways, with some key differences. 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).
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
The first two companies on our list have a lot of similarities, so it’s important to remember the following key differences 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”.
Haven Life
Fidelity Life and Transamerica offer excellent coverage and come with plenty of benefits. If you’re looking for the quickest coverage, though, there’s no comparison to Haven Life. Haven Life offers a speedy, streamlined application and the fastest approval time around.
The application takes less than an hour tops, and so could the time it takes to get covered. With their InstantTerm tool, Haven Life is able to quickly assess the risk of the applicant, placing them in a rating class almost instantly.
If you’re healthy and your DMV records and general medical information check out, you could be covered as soon as you apply, barring a minority of applicants in poor health who may be asked to undergo a medical exam.
Haven Life offers term life coverage of up to $3 million. They also offer a number of useful riders and a Free Look Period, in which you get 10 days to decide whether or not you want to keep your policy or receive a refund.
Do You Need a $25,000 Life Insurance Policy?
Before you purchase life insurance coverage, regardless of which company or type of plan, it’s important that you calculate how much insurance your family will need.
If you don’t know how much you should buy, keep reading, as we will walk you through the calculations.
Debt
Start by covering the foundations. Get out all of your unpaid bills and debts. This includes your mortgage, student loans, and any other major loan.
Once you’ve added these numbers up, this is your starting point.
Income
After you’ve got this number, you’re not finished. Now take a look at your monthly income, and multiply it by 60.
You want your family to have a stable stream of money if you were to pass away. Your life insurance can replace your paycheck.
Additional Costs
If you’re looking to leave an inheritance to your children, you need to factor it into your decision.
Maybe your goal is to pay for your children’s college education. If so, get a term policy that at least lasts until that time and will adequately cover college expenses. Do you own a business or plan to start one? If you do, consider the associated costs.
3 Tips for Getting Cheaper Life Insurance
There are no coupons you can cut for life insurance, but there are a couple of techniques to save money. They aren’t as easy as clipping the Sunday paper, but they can save you hundreds or thousands of dollars.
1. Stop Smoking
The first thing we tell every client is to take a year and quit smoking. Yes, we are telling some people to WAIT to buy life insurance. If you are tobacco-free for one whole year, you qualify for non-smoker’s rates.
2. Get Healthy
If you buy a no exam plan, you won’t have to take the medical exam, but for everyone else, the exam is the biggest part of deciding your premiums. It’s simple, get better medical exam results and you get better premiums.
3. Shop Around
There are a lot of companies out there who offer $25,000 worth of insurance, but not all companies are the same. Just because plenty of companies offer it, doesn’t mean you should buy the first one you see.
Which $25,000 Term Policy Is Best?
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 affordable life insurance is a difficult task, but that’s where we can help. It’s our mission to ensure that you’re getting the best plan possible.
Unless you’re waiting to get life insurance for a specific reason (like quitting smoking), then we suggest getting a plan as soon as possible.
Want to learn more about getting a $25,000 policy?
Call one of our agents at 800-712-8519 to get a personal quote and more information about getting the most affordable life insurance coverage.
