Term life insurance policies are a unique type of life insurance policy because they don’t last for your whole life. They have a limited duration, known as the “term.” You can set up a term life insurance policy to last for 25 years.
A 25-year term life insurance policy can be a useful tool for protecting your family financially. This type of term life insurance policy is best for someone who has a good grasp of their longer-term financial needs and how insurance can offer protection.
What is a 25-year term life insurance policy?
A 25-year term life insurance policy is an agreement between you and the insurance company. You’ll make regular payments for 25 years. In exchange, the insurer agrees to pay out a lump sum of money if you die. This is called the death benefit.
Both your premiums and the death benefit will be determined and agreed upon between you and the insurer before your policy begins.
How does a 25-year term life insurance work?
When you apply for life insurance coverage, you’ll provide information about your health, lifestyle, and habits.
The insurer will use this information to determine how risky it would be to insure your life for the next 25 years.
Upon reviewing your application — a process called underwriting — the insurance company will offer you a price based on how confident it is that you’ll be alive at the end of the 25-year term.
If you agree to its terms, you’ll sign the policy documents, make your first payment, and your coverage will begin.
After 25 years, your policy will expire. At that time, if you still need insurance, you’ll have a few options to consider, like renewing your policy or applying for a new one. If you do nothing, your coverage will end.
Who needs a 25-year term life policy?
A 25-year term policy can provide valuable financial protection for a majority of your adult life. Setting up this type of policy can provide stability for many of your working years.
Parents of young children
If you have young children, a 25-year term life insurance policy can provide financial protection for your family — and give you peace of mind. This type of policy can ensure that if you die, your children will be taken care of until they become financially independent.
Your family will be able to replace your lost income and cover living expenses, including the cost of your kids’ education. After your children grow up, you likely won’t need as much life insurance.
People with long-term insurance needs
Twenty-five years is a significant period of your adult life. A 25-year term policy is best-suited to people who are confident in what they’re expecting of their financial future. This is often the case for people who are caring for aging parents or adult children. If you have a significant amount of private debt, a 25-year term policy could help cover that as well.
Homeowners paying off a mortgage
Because most mortgages last 30 years, a 25-year term life insurance policy is an effective tool to cover most of this this debt and make sure your loved ones will be able to keep your home if you die before the mortgage is paid.
Adults planning their retirement
If you’re in your forties, a 25-year term policy can help protect your income during your working years leading up to retirement. A 25-year term policy can help ensure that your financial goals, like protecting your family and leaving a legacy, will be possible even if you die before you retire.
Advantages & disadvantages of 25-year term life insurance
Advantages
Simplicity. A 25-year term policy is a great way to protect yourself financially for decades with minimal administrative maintenance. With this type of policy, you apply once, and as long as you make your payments, there’s no other work required to maintain your coverage.
Affordability. Getting a 25-year term policy allows you to lock in the cheapest rates available to you for a rather long period of time.
Disadvantages
Fewer options. Not every insurer offers 25-year term life policies.
Harder to plan for. Not everyone is in a position to anticipate their financial needs for the next 25 years.
How much does a 25-year term life insurance policy cost?
The cost of a 25-year term policy will depend largely on your health, lifestyle, and habits. A 30-year-old female with no health issues and no dangerous hobbies could pay less than $28 per month for a 25-year term life insurance with a $500,000 payout. A 30-year-old male with the same profile would pay less than $35 per month for the same policy.
A 30-year-old female with a moderate health issue such as rheumatoid arthritis or narcolepsy, or who participates in a hazardous activity like scuba diving, can expect to pay about $42 per month for the same coverage. A 30-year-old male with a similar profile can expect to spend about $52 per month for the same coverage.
A 30-year-old female smoker would expect to pay about $97 per month for a 25-year term life insurance with a $500,000 payout. A 30-year-old male smoker can expect to pay about $132 per month for the same coverage.
Cheap 25-year term life insurance rates
Age | Gender | $250,000 coverage amount | $500,000 coverage amount | $1 million coverage amount |
30 | Female | $17.95 | $27.47 | $47.82 |
Male | $21.74 | $34.56 | $58.99 | |
40 | Female | $26.12 | $43.78 | $80.12 |
Male | $32.99 | $54.43 | $100.84 | |
50 | Female | $57.20 | $97.77 | $183.20 |
Male | $75.53 | $232.19 | $248.29 | |
60 | Female | $174.87 | $309.42 | $579.19 |
Male | $234.66 | $433.28 | $843.78 |
Methodology: Average monthly estimated rates are calculated for male and female non-smokers in a Preferred health classification obtaining a $250,000, $500,00, or $1,000,000, 25-year term life insurance policy. Life insurance averages are based on a composite of policies offered by Policygenius from Corebridge Financial, Foresters Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 02/01/2024.
Average 25-year term life insurance rates
Age | Gender | $250,000 coverage amount | $500,000 coverage amount | $1 million coverage amount |
30 | Female | $24.99 | $41.50 | $74.54 |
Male | $30.79 | $51.71 | $94.41 | |
40 | Female | $39.34 | $68.36 | $127.36 |
Male | $47.52 | $84.13 | $156.51 | |
50 | Female | $80.75 | $152.27 | $289.66 |
Male | $110.39 | $206.93 | $389.54 | |
60 | Female | $233.79 | $435.61 | $814.33 |
Male | $280.18 | $545.84 | $1,076.64 |
Methodology: Average monthly estimated rates are calculated for male and female non-smokers in a Standard health classification obtaining a $250,000, $500,00, or $1,000,000, 25-year term life insurance policy. Life insurance averages are based on a composite of policies offered by Policygenius from Corebridge Financial, Foresters Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 02/01/2024.
Learn more about term life insurance rates
25-year term life insurance rates for smokers
Age | Gender | $250,000 coverage amount | $500,000 coverage amount | $1 million coverage amount |
30 | Female | $52.61 | $96.73 | $185.13 |
Male | $70.38 | $131.76 | $254.59 | |
40 | Female | $99.22 | $185.54 | $357.44 |
Male | $130.02 | $244.86 | $473.42 | |
50 | Female | $230.71 | $436.93 | $855.61 |
Male | $290.89 | $555.52 | $1,092.62 | |
60 | Female | $606.61 | $1,143.18 | $2,246.58 |
Male | $749.02 | $1,411.86 | $2,813.92 |
Methodology: Average monthly estimated rates are calculated for male and female smokers in a Preferred health classification obtaining a $250,000, $500,00, or $1,000,000, 25-year term life insurance policy. Life insurance averages are based on a composite of policies offered by Policygenius from Corebridge Financial, Foresters Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 02/01/2024.
Learn more about life insurance for smokers
What happens after a 25-year term policy ends?
After the 25 year term ends, your coverage will stop. At this time you might be in a situation where you no longer need life insurance. This could be true for you if your children are grown and have become financially independent, your debt is paid, and you no longer have need for the coverage you had. But if this is not your case, you’ll have other options.
Renew your policy
Most term life policies have a renewable clause that lets you extend your coverage for one more year without having to reapply. Renewing your policy is one of the simplest solutions available to you, especially if you’re not sure how much longer you need coverage. You can keep renewing your policy every year until you’re 95 years old.
This option might be a good fit for one or two years, but renewing your policy indefinitely is not generally recommended because the cost goes up significantly every year.
Convert to a permanent policy
Most term life insurance policies come with an add-on called a term conversion rider. This rider allows you to convert your term policy into a permanent life insurance policy at the end of the term. You won’t have to complete another application or take a medical exam to convert your policy.
If you pursue this option, your premiums will increase when you convert, and then remain the same for the rest of your life. Converting your term policy to a permanent policy can be a good option if you’re older and need money for end-of-life costs, or you have a chronic or terminal illness and won’t be able to get more insurance if you had to go through a full application process.
Learn more about the differences between term and permanent life insurance
Get a new policy
For most people, the best thing to do when your term policy ends and you still need insurance is to get another policy. You’ll have to reapply, go through underwriting, and you may need to take a medical exam. But if you’re still relatively young and/or have limited health issues, you’ll be eligible to get more term insurance at an affordable price for the length of time that you need it.
Best 25-year term life insurance companies of 2024
We used industry data, pricing from Policygenius carrier partners, and ratings from third parties like AM Best and J.D. Power to pick the best term life insurance companies on the market. Our independent recommendations will help you get life insurance coverage with confidence.
Methodology
Why you can trust our picks
Our recommendations are based on internal and external expert analysis, as well as our Policygenius Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. When reviewing a life insurance company, our editorial team uses a proprietary scoring rubric with five factors — price, policy details, financial strength, transparency, and customer experience — to assign an unbiased rating between one and five stars. These ratings are also taken into consideration as part of our company recommendations. We don’t get paid for our reviews.
Our reviews and recommendations can help you find a reliable insurer for your family’s financial protection, but the best life insurance company for you depends on multiple factors. A licensed agent at Policygenius can support you during the application process to ensure you get the right coverage for your circumstances at the most competitive price.
2024 Policygenius award winner
Prudential
4.1
No-medical-exam option
Why we chose it
With nearly four million policyholders and 150 years to its name, Prudential offers competitive coverage options for seniors, as well as people with some of the most common medical conditions, including asthma, depression, and fibromyalgia.
Pros and cons
Pros
Good for people over 60
More flexible income requirements than some other insurers
Considers applicants with a variety of immigration statuses (visas and green cards)
Cons
Younger applicants will likely find better prices elsewhere
Best overall 25-year term life insurance: Prudential
Prudential is a trustworthy option for a 25-year term life insurance policy. The company offers coverage even for people with many pre-existing conditions.
2024 Policygenius award winner
Corebridge Financial
4.6
30+ year terms
All 50 states
Why we chose it
With competitive pricing and a range of flexible term periods for its Select-a-Term product, Corebridge is a solid option for many life insurance shoppers. Note: We are currently using AIG’s financial strength ratings until Corebridge has its own rating.
Pros and cons
Pros
Competitive pricing for all ages
Favorable underwriting for people with heart conditions and diabetes
Good for current and recently pregnant people, including people with gestational diabetes
Cons
Not the best for people with mental health conditions, including anxiety and depression
No no-medical-exam term option
Best 25-year term life insurance for families: Corebridge Financial
Corebridge Financial is one of the best insurers for families because it offers a customizable child rider that you can add to your policy. Child riders can cover your children under the same policy. These add-ons can be for coverage amounts as low as $500 and as high as $25,000. Corebridge is also available to people applying at any stage of pregnancy.
2024 Policygenius award winner
Legal & General America
4.9
30+ year terms
All 50 states
No-medical-exam option
Why we chose it
Legal & General America, which also does business as Banner Life and William Penn, has some of the longest term lengths — up to 40 years — and most competitive life insurance rates available, even for people with a history of medical conditions.
Pros and cons
Pros
Competitive rates for a variety of health conditions
Fast instant-decision option for qualifying applicants
Variety of term lengths up to 40 years
Cons
Application underwriting can take longer than average
Does not have the most competitive rates for older applicants
Best no medical exam 25-year term life insurance: Legal & General America
Legal & General America, which also does business as Banner Life and William Penn, offers consistently low rates for 25-year term policies, and whenever possible, will waive the in-person medical exam requirement. If you have limited health issues, you may even be able to get an instant response to your application during your initial call.
Read more about the best no-exam life insurance companies
Comparing the best 25-year term life insurance of 2024
Policygenius rating | Best for | AM Best rating | ||
4.9/5 ★ | No-medical-exam | A+ | ||
4.6/5 ★ | Families | A | ||
4.1/5 ★ | Overall | A+ |
Learn more about the best life insurance companies of 2024
How to buy 25-year term life insurance through Policygenius
Alternatives to 25-year term life insurance
If a 25-year term policy isn’t the best option for you, you’ll have other options for insurance coverage. Explore these other types of policies that may better meet your needs.
25-year term vs. 20-year term life insurance
Generally speaking, you’ll have more options for insurance policies if you opt for a 20-year term, rather than a 25-year term. And the more options you have, the greater your chances to get a cheaper rate will be.
However, there are situations where a 25-year term is better for you. If you’re 40 years old, a 25-year term will better help you prepare for retirement. Or if you want a policy that covers you until your newborn child finishes college, consider a 25-year term policy.
25-year term vs. 30-year term life insurance
Similarly, you’ll probably have more options for policies available to you if you’re willing to consider a 30-year term, rather than a 25-year term. Most mortgages last for 30 years, so it’s very common for new homeowners to choose a 30-year term.
Because a 30-year term life insurance policy is longer, it will likely be more expensive than a 25-year term. If you’re open to different term lengths, share that with the agent you work with. They’ll help you compare quotes and get the best policy available for you.
25-year term vs. whole life insurance
Depending on your situation, you might be better off with a whole life insurance policy rather than a 25-year term. While term life insurance is often cheaper, whole life policies offer additional features.
If you have dependents who require lifelong care, such as a child with a disability or an aging parent, whole life insurance could be a better fit because it won't expire after 25 years. Additionally, if you want to use life insurance as part of your estate planning strategy, whole life insurance offers advantages such as tax savings that you won't get with a 25-year term policy.
Learn more about the differences between term and whole life insurance
Other term life insurance options
Frequently asked questions
Do you need to take a medical exam for a 25-year term life insurance policy?
Insurers need to confirm your health status before they agree to insure your life. This is usually done through an in-person medical exam. Insurers can often waive the exam and use your medical records and a prescription history check to confirm your health instead. Waiving the medical exam is more likely if you have mild or moderate health issues.
What factors affect the cost of a 25-year life insurance policy?
The cost of your policy will be based on how confident the insurer is that you’ll live through the 25-year term. The insurer will make this assessment based on a combination of information they have about your health, lifestyle, and habits. If the insurer thinks you’ll outlive your coverage, your policy will be cheaper. If they’re less sure that you’ll outlive the policy, your insurance will be more expensive.
Can you extend a 25-year term life insurance policy?
Many 25-year term life policies will have a term conversion clause called a rider, which will allow you to convert your term life insurance to a permanent life insurance policy when the term ends. If you use this rider, you won’t need to reapply to take a medical exam.
Can you cash out a 25-year term life insurance policy?
There’s no cash value account associated with term life insurance, so you can’t cash out this type of policy. Not having a cash value account is one of the reasons that term life insurance is much cheaper than permanent life insurance policies with the same death benefit.
