How Much Is 250K Life Insurance a Month? Complete Cost Breakdown

A $250,000 life insurance policy is one of the most popular coverage amounts, offering meaningful financial protection at an affordable price point. If you’re wondering exactly how much a 250K policy costs per month, this guide breaks down typical premiums across different scenarios to help you understand what you might pay.

Average Monthly Cost of a $250,000 Life Insurance Policy

The monthly cost of a $250,000 life insurance policy typically ranges from $13 to $75+ for term life insurance, depending on several key factors. Here’s what you might expect to pay for a 20-year term policy if you’re in good health:

25-year-old male: $13-$18 per month
25-year-old female: $11-$15 per month
35-year-old male: $14-$22 per month
35-year-old female: $13-$19 per month
45-year-old male: $28-$45 per month
45-year-old female: $22-$35 per month
55-year-old male: $67-$95 per month
55-year-old female: $45-$70 per month

For permanent life insurance (whole or universal), monthly premiums for a $250,000 policy start around $160-$220 for young adults and increase substantially with age.

How Different Factors Affect Your Monthly Premium

Age Impact on $250,000 Coverage

Age significantly influences life insurance costs. For a $250,000, 20-year term policy for a healthy non-smoking male:

Age 30: ~$14 monthly
Age 40: ~$22 monthly (57% increase)
Age 50: ~$59 monthly (168% increase)
Age 60: ~$149 monthly (153% increase)

This demonstrates why purchasing life insurance earlier can secure substantially lower rates for the same coverage amount.

Health Classification Differences

Your health rating dramatically impacts monthly costs. For a 40-year-old male purchasing a $250,000, 20-year term policy:

Preferred Plus: $20-$25 monthly
Preferred: $27-$32 monthly
Standard Plus: $35-$42 monthly
Standard: $45-$55 monthly
Substandard/Rated: $65+ monthly

The difference between the best and standard health classifications represents savings of approximately $300-$360 annually.

Term Length Comparison

For a healthy 35-year-old female seeking $250,000 in coverage:

10-year term: $11-$14 monthly
20-year term: $15-$18 monthly
30-year term: $22-$27 monthly

Increasing your term length from 10 to 20 years typically raises monthly premiums by approximately 30-40%.

Smoking Status Premium Difference

Tobacco use significantly increases life insurance costs. A 40-year-old seeking $250,000 in 20-year term coverage might pay:

Non-smoker: $22-$30 monthly
Smoker: $70-$95 monthly (approximately 3-3.5x higher)

This represents one of the most substantial premium increases for any single factor.

Term vs. Permanent Insurance Monthly Costs

The type of policy you choose dramatically affects your monthly premium for $250,000 coverage:

20-year term life: $22-$28 monthly (40-year-old, good health)
Whole life: $200-$250 monthly (same person)
Universal life: $150-$200 monthly (same person)

While permanent policies include cash value accumulation and lifetime coverage, they typically cost 7-9 times more per month than term coverage.

How to Get the Best Monthly Rate on $250,000 Coverage

Compare quotes from multiple insurers: Rates for identical coverage can vary by 40% or more between companies
Apply when you’re younger and healthier: Each year of delay typically increases premiums by 8-10%
Choose the right term length: Match your policy duration to your specific needs rather than automatically selecting the longest term
Improve health metrics before applying: Reducing weight, lowering cholesterol, or controlling blood pressure can move you to a better health classification
Consider payment frequency: Some insurers offer discounts for annual payments versus monthly payments

Is $250,000 Coverage Right for You?

A $250,000 policy is typically appropriate for:

Young adults with limited dependents
Individuals wanting to cover specific debts like a car loan or small mortgage
Those seeking supplemental coverage to employer-provided insurance
People on tight budgets who need basic protection

The Bottom Line

A $250,000 life insurance policy typically costs between $15-$60 monthly for term coverage, depending primarily on your age, health status, and term length. This coverage amount offers an excellent entry point for those new to life insurance or those with modest coverage needs.

For many young families, a $250,000 policy represents an affordable starting point that can be supplemented with additional coverage as income grows and financial responsibilities increase. By shopping around and applying while you’re younger and healthier, you can secure this coverage at very affordable monthly rates.

Remember that while average costs provide helpful benchmarks, your individual premium will be based on your unique health profile and personal factors. Getting personalized quotes from multiple insurers is the best way to determine your exact monthly cost for $250,000 in life insurance coverage.