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$25,000 life insurance policy

Options for a low-coverage policy are limited, though they’re easy to qualify for.

Finding $25,000 of life insurance coverage may be limited. Very few insurance companies offer policies as low as $25,000, and those that do price them in such a way that your premium may be equal to or more than a premium for a much larger policy, since this type of policy doesn’t usually include a medical exam.

How much does $25,000 life insurance cost?

Researching the cost of a $25,000 policy can be restrictive because most online quote calculators don’t allow you to set coverage lower than $100,000. The only online quote we were able to find was from AAA, which listed rates at $23 per month for a 30-year-old man in good health and $20.44 for a woman.

You may need to call an agent to get quotes directly. But the main factors in determining price are still the same — your age and your health.

Policies of this size tend to be marketed toward seniors 60 years old and older who are looking to cover end-of-life expenses. These types of policies are often no-exam policies, such as guaranteed issue life insurance, but expect the premiums to be higher.

Can I get a $25,000 life insurance policy?

You may not have your choice of insurers, but the eligibility requirements for a policy this small shouldn’t be too strict compared to larger policies. And as with any insurance policy, your health and age are the major factors in both eligibility and how much you’ll pay. If you smoke, you’ll pay significantly more for your policy.

Can I get $25,000 coverage without a medical exam?

Because no-exam policies, such as guaranteed issue and simplified issue insurance, tend to have low-coverage caps, you might be able to purchase $25,000 in coverage without a medical exam. Depending on the insurer, you may still have to fill out a medical questionnaire.

Is a $25,000 life insurance policy right for me?

The coverage you need depends on your circumstances. A $25,000 benefit may not replace your income, but consider the following factors when determining the coverage you need:

  • Funeral expenses. The average cost of a funeral can range between $6,000 and $9,000, a cost your life insurance could help cover.
  • Medical expenses. Make sure your family can cover any medical bills associated with your death.
  • Debt and bills. Your insurance can cover any outstanding bills or debts you leave behind.
  • Family expenses. There may not be much money left over after all your end-of-life bills are covered, but any money left over can help your family grieve with fewer financial stresses.

What should I watch out for?

Expense may be among your top concerns when considering a lower coverage policy. Because so few insurers carry standard term or whole life $25,000 policies, you won’t have many options when shopping around. And no-exam policies typically cost more.

What if I need more coverage in the future?

If you think you may need more coverage, you can look for a policy that includes a future increase rider that allows you to expand your coverage later in life. Alternatively, you could also purchase an additional or replacement policy when you decide you need it.

Bottom line

If you’re single with little to no debt, a $25,000 policy could be just enough to cover any expenses you might leave behind. But when you compare life insurance companies, you may find that choosing a larger policy gives you more options, which could mean paying a similar or even less expensive premium for significantly more coverage.

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