According to funeral-tips.com, the average funeral cost in the United States is between $7,000 to $10,000.

If that’s the case, why do most people call us asking for $25,000 to $100,000 of life insurance or more?

In this post we’ll discuss the reasons to purchase a smaller amount of life Insurance Coverage such as $25,000 or $50,000, and tips for finding the lowest cost policies.

Article Quick Guide

• Sample Quotes
• Sample 10 Year Term Quotes
• Sample 15 Year Term Quotes
• Sample 20 Year Term Quotes
• Sample 30 Year Term Quotes
• Guaranteed Lifetime Coverage
• Reasons to Buy Smaller Amounts of Insurance
• Smaller Policies
• Special Approvals

Sample Life Insurance Quotes for $25,000 to $100,000

Below, we’ve provided sample rates for you from 30 years old to 80 years old. Keep in mind the rates are for a man in excellent health.

If you have any health conditions or are female, the rates may be slightly different. You can get a free quote using the form on the right or by calling us at 855-247-9555.

You’ll notice the pricing for $50,000 of coverage is nearly the same as $100,000 and in some cases $75,000 of coverage costs MORE than $100,000 of coverage.The reason is there are fewer carriers who offer $25,000 to $75,000 of coverage, whereas we have access to dozens of companies who offer $100,000 of coverage, so the pricing is more competitive.

10 Year Term

As the name implies, a 10 year term life insurance policy fixes your premium for an initial period of 10 years. After this term, premiums increase annually thereafter. 10 year term is typically the lowest priced policy any carrier offers and is good for shorter term needs such as to cover a business loan or other short term debts.

15 Year Term

Similar to the description for 10 year term, the 15 year term policy fixes your premium for a period of 15 years. You’ll notice there are no 15 year options for 80 year olds. This is because term policies have maximum ages. Most carriers have a max age of 70 for 15 year term.

20 Year Term

20 Year term is the most common term length we sell. While still very affordable, in most cases, it also covers a long period. Even if you plan to work more than 20 years, a 20 year term might suffice as you can pay down your debts and increase your assets while you hold the policy. The maximum age with most carriers for 20 year term is 60, which is why there are no options below age 60 below.

30 Year Term

Most people buy 30 year term coverage for income replacement purposes. For example, if you are in your 30’s or 40’s and plan to work into your 60’s or 70’s, you know you’ll need long term protection, so you might opt for the 30 year term. Unfortunately, most carriers have a max age of 50 to 55 years old for this term length.

Guaranteed Lifetime Coverage

For whole life or universal life quotes, which can provide you with guaranteed level premiums for life, use our quote form on the right or call us at 855-247-9555.

While term policies are appropriate for most life insurance needs, lifetime policies are great for charitable planning and estate planning.

Reasons for $25,000 to $100,000 of Life Insurance

1. Final Expenses – A lot of our clients call us needing nothing more than a simple policy to cover funeral expenses, burial, etc. In that case, we typically recommend a simple $25,000 guaranteed universal life policy.

We have a handful of carriers who offer less coverage, such as $10,000 to $20,000, but they typically don’t require an exam and are higher priced than our $25,000 option.

2. Pay off Debts – Do you have a mortgage or credit card bills that you would stick your spouse with if you were to die unexpectedly. Many financial advisers recommend you leave enough coverage to your spouse to either pay off all the outstanding debts, or at least enough to help pay those bills for 5 to 10 years after your passing.

For example, let’s say you have a $250,000 mortgage balance with a monthly payment of $1,500. You might consider $75,000 to $100,000 of coverage to help pay the mortgage.

No, it’s not enough to pay off the mortgage completely, but it could help your surviving family members pay the mortgage for several years.

3. Income Replacement – If you’re married and earn an income, you might want to consider how long your spouse could sustain his or her lifestyle.

Would your spouse be able to continue living in the same house, for example?

Most financial advisers recommend you leave 5-10x your annual income. In this case, most people will have to buy more than $100,000 of life insurance and can see sample rates for that on our site as well.

Smaller Life Insurance Policies for Liquidity

There are a few other reasons someone might buy a lower amount of life insurance.

Say you have real estate or business holdings and most of your cash is tied up. Having a small $50,000 to $100,000 of liquid cash can come in handy for any family, regardless of their income status.

So even if you’re a more affluent individual and don’t see the “need” for life insurance, providing liquidity to your estate is one potential reason you may just purchase a small policy such as $25,000, 50,000, or $75,000.

Applying for Coverage – Special “Streamlined” Approvals for Lower Face Values

One of the benefits of applying for lower life insurance face amounts is many carriers make it a lot easier to qualify. For example, we have multiple companies that offer approvals in as little as a couple days for lower death benefit amounts.

Basically, the more coverage you request, the more stringent the requirements. Most companies require a medical exam and order medical records for policies for $100,000 or more.

Note: If you’re younger, you may not even need an exam for $100,000 of coverage. As you request more coverage, the requirements go up.

Many carriers, for example, even require an EKG when you buy a $1,000,000 policy amount or higher. So the nice thing with a smaller policy is many of these requirements are waived making approval times very quick.

Also visit our article for people in excellent health who want to learn about the special perks you get when buying life insurance.

The best way to get a quick quote and apply for coverage that can be approved quickly is to call us rather than using our quote form.

Like I said, very few companies offer policies for less than $100,000 of coverage, so your best bet is to speak with one of our knowledgeable agents by calling 855-247-9555.