Who needs a 25-year term life insurance policy?
If you’re thinking about buying a home or starting a family, you might want to think about a 25-year life insurance policy.
Are you thinking about applying for term life insurance? You’re probably wondering which term length is right for you. Some people can benefit from the decades of protection offered by a 30-year term life insurance policy, especially if they’re just starting their careers. Other people only need a 10-year term life policy, especially if they’re very close to retirement.
What about people who might be a few years into their career and are considering taking on some of life’s other major milestones such as marriage, homeownership or starting a family? If you’re looking for a life insurance policy that will see you through some of the most important years of your adult life, a 25-year policy could be a perfect fit.
Is a 25-year life insurance policy your best option? How much does a 25-year term policy cost per month, and how do those costs differ depending on the amount of life insurance coverage you need? Here’s what you need to know about a 25-year term life insurance policy — including how to decide whether a 25-year term length is right for you.
In this article:
What is a life insurance policy term length?
Unlike with permanent life insurance, when you sign up for a term life insurance policy, you’re taking out life insurance for a specific period of time. That’s the “term” in term life insurance — the length of time your life insurance policy will last.
If you’re buying a policy with level-term life insurance premiums, your rate remains fixed for the length of your term. That’s why it’s often a good idea to get life insurance while you’re young and healthy. That lets you take advantage of low monthly premium payments for a term life policy of 10, 15, 25 or even 30 years.
At the end of your life insurance policy term length, you have the option to continue the existing policy — but at a higher premium. That said, many people choose term life insurance plans that are designed to cover them during the years in which their loss of income is likely to have the largest impact on the people they love — which means that if you choose a term life insurance policy that ends when you plan to retire, you may not need to purchase additional life insurance after your initial term policy expires.
Why should you consider a 25-year life insurance policy?
A 25-year term life insurance policy covers you for a quarter of a century. If you apply for a 25-year term life insurance policy when you get married, for example, that policy will help protect your partner until your silver wedding anniversary. If you apply for a 25-year policy when you start your family, your life insurance could help protect your children until they graduate from college. If you take out a 25-year term life plan the day you and your partner buy your first home, your 25-year life insurance policy will help ensure that your partner can continue to make mortgage payments even in a worst-case scenario.
Many people look for term life insurance policies that provide affordable coverage and protection until they hit a major life milestone — until they retire, for example, or until their children leave the nest. If you just took out a 30-year mortgage on a house, a 30-year life insurance policy might be better for you and your family. If you’ve got the financial resources to retire early, you may only want a 15-year life insurance policy (although some early retirees choose to keep a life insurance policy active, especially if they have young kids).
Ask yourself how many years you’d like your life insurance policy to protect the people you love, and then look for the best life insurance term to match.
How much does a 25-year life insurance policy cost?
Term life insurance policy premiums are based on a number of factors, including coverage amount, term length, age, gender and health. This means that the monthly premium payments associated with a 25-year term life insurance policy might vary, depending on the person applying for the policy and the amount of life insurance coverage they’re requesting.
That said, 25-year term life insurance policies are designed to be very affordable coverage options. A 30-year-old non-smoking woman in excellent health seeking $500,000 in coverage could pay as little as $20.81 per month — and she’ll be paying those low premium rates for the next 25 years.
Here’s a chart to help you understand what a 25-year Haven Term life insurance policy might cost if you’re a non-smoker in excellent health:
Estimates based on pricing for eligible Haven Term applicants in excellent health. Pricing differences will vary based on ages, health status, coverage amount and term length. These prices do not reflect the rates for applicants in DE, FL, ND, NY and SD.
Age Coverage $250,000 $500,000 $750,000 $1,000,000 25 Male $15.61 $24.15 $33.09 $41.64 Female $13.23 $19.15 $25.59 $31.64 30 Male $16.03 $25.40 $34.97 $43.31 Female $13.74 $20.81 $28.09 $34.98 35 Male $18.30 $29.15 $40.59 $51.64 Female $15.86 $24.56 $33.72 $43.31 Source: Haven Life
Is a 25-year life insurance policy right for you?
Should you apply for a 25-year life insurance policy? To determine whether a 25-year life insurance term is right for you, ask yourself what your life might look like over the next 25 years. Do you plan on buying a home, getting married or starting a family? Are you paying off debts, including student loan debt, and could those debts become a burden on others if you were to pass away unexpectedly?
If you have loved ones who depend on your income to make ends meet — or if a sudden loss of income would make life harder for your partner, children or parents — you need life insurance to help them afford any financial obligations they’ll need to pay. If you plan on hitting a major life milestone within the next 25 years, such as retiring, paying off your mortgage or becoming an empty nest household, a 25-year life insurance policy might be the right insurance product for you. Once you determine the length and coverage amount of your term insurance policy, you can be on your way to finding the right life insurer that offers what you’re looking for.
Curious whether other term lengths might be a better fit? Read our guides to help you make the best decision for yourself and your loved ones:
About Nicole Dieker
Nicole Dieker has been a full-time freelance writer since 2012, with a focus on personal finance and habit formation. In addition to Haven Life, her work regularly appears at Lifehacker, Bankrate, CreditCards.com, and Vox. Dieker spent five years as a writer and editor for The Billfold, a personal finance blog where people had honest conversations about money, and is the author of Frugal and the Beast: And Other Financial Fairy Tales.Read more by Nicole Dieker
Our editorial policy
Haven Life is a customer-centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.
Our editorial policy
Haven Life is a customer centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.
Our content is created for educational purposes only. Haven Life does not endorse the companies, products, services or strategies discussed here, but we hope they can make your life a little less hard if they are a fit for your situation.
Haven Life is not authorized to give tax, legal or investment advice. This material is not intended to provide, and should not be relied on for tax, legal, or investment advice. Individuals are encouraged to seed advice from their own tax or legal counsel.
Haven Term is a Term Life Insurance Policy (DTC and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a Simplified Issue Term Life Insurance Policy (ICC19PCM-SI 0819 in certain states, including NC) issued by the C.M. Life Insurance Company, Enfield, CT 06082. Policy and rider form numbers and features may vary by state and may not be available in all states. Our Agency license number in California is OK71922 and in Arkansas 100139527.
MassMutual is rated by A.M. Best Company as A++ (Superior; Top category of 15). The rating is as of Aril 1, 2020 and is subject to change. MassMutual has received different ratings from other rating agencies.
Haven Life Plus (Plus) is the marketing name for the Plus rider, which is included as part of the Haven Term policy and offers access to additional services and benefits at no cost or at a discount. The rider is not available in every state and is subject to change at any time. Neither Haven Life nor MassMutual are responsible for the provision of the benefits and services made accessible under the Plus Rider, which are provided by third party vendors (partners). For more information about Haven Life Plus, please visit: https://havenlife.com/plus
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