Our editorial team follows a strict methodology for reviewing life insurance companies.
There are a lot of choices to make when selecting term life insurance. The term length and coverage amount you need, as well as personal details about you and your health, will determine which policy and insurer is right for you.
Our experts at the MarketWatch Guides team created this guide to help you identify the best term life insurance company for your needs. We cover key details about our top-ranked providers, including insights from our 2024 life insurance study and information that can help you understand your policy choices.
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
Best Term Life Insurance Companies
Compare key facts and features about our selections for the best term life insurance providers using the table below.
Note: The AM Best ratings for the best term life insurance companies listed above are accurate as of October 2024.
The Best Term Life Insurance Policies of 2026
The MarketWatch Guides team chose these seven companies as the best options for term life insurance after evaluating nearly 40 life insurance providers using our comprehensive rating methodology.
- Banner Life Best for term life insurance
- Mass Mutual Best for permanent life insurance
- Guardian Life Best for an in-person experience
- State Farm Best for customer satisfaction
- Transamerica Best for affordable coverage
- Pacific Life Best for universal life insurance
- John Hancock Best for people with diabetes
- Ethos Best life insurance broker
For your convenience, our team provided company summaries for each of the best term life insurance providers below.
Banner Life scored points in our review for offering seven term lengths for its policies, including a 40-year option. Most companies we reviewed offer between three and five term lengths comparatively. For savings-conscious consumers, the company offers term life rates 30% to 40% lower than some competitors. When we surveyed 1,000 policyholders nationwide in 2024, cost was the most important factor respondents considered before purchasing life insurance.
Banner Life also stands out because it holds an A+ financial strength rating from the credit rating agency AM Best, offering policyholders peace of mind that the company has the financial backing to pay their loved ones a death benefit.
Only provider we reviewed that offers a 40-year term policy
All policies offer term conversion options, giving flexibility to policyholders seeking permanent coverage later in life
Offers term life rates up to 50% lower than our calculated average for certain applicants
Lists online policy information through its parent company, Legal & General America, which could confuse consumers
Offers fewer riders than some competitors we reviewed, such as John Hancock
Banner Life offers one term life insurance product:
- OPTerm: Coverage amounts start at $100,00 and go up to over $10 million
The company offers the following riders, which extend or add coverage, with its term life insurance policies:
- Term rider
- Child rider
- Accelerated death benefit rider
- Waiver of premium
Cost
To get a better idea of the cost of coverage with Banner Life, we requested quotes for a 20-year term policy based on tobacco-free sample applicants who qualify for the preferred health rate class.
- 35-year-old man: $16
- 35-year-old woman: $14
- 45-year-old man: $30
- 45-year-old woman: $24
Although MassMutual is typically our pick for permanent life insurance, the company also offers six different term life plan lengths to give consumers more coverage options. Most companies we reviewed, such as Guardian Life, do not offer more than five term options. We like that each term plan with MassMutual offers the option to convert to permanent coverage if your financial goals change. For example, you might opt to convert your plan if you still need life insurance coverage but also want to build cash value to save for retirement.
Additionally, the company has solid customer satisfaction and financial strength ratings from industry analysts J.D. Power and AM Best, respectively.
Offers the option to convert term life insurance policies to permanent coverage for changing life situations
Term life policies include accelerated death benefits for terminal illness at no extra cost
Holds an A+ financial strength rating with AM Best, indicating an ability to pay death benefits
Must speak with a company representative to apply for a term life policy
Has more limited riders for extra coverage than some other providers we reviewed
MassMutual offers the following term life policy options:
- Vantage Term: Coverage amounts range from $100,000 to $5 million or more
MassMutual offers the following rider options with its term life policies:
- Accelerated death benefit for terminal illness rider (included at no additional cost)
- Waiver of premium rider
Cost
We requested quotes from MassMutual for tobacco-free applicants considered in good health seeking a 20-year term policy. Here are sample rates for men and women of varying ages.
- 35-year-old man: $19
- 35-year-old woman: $17
- 45-year-old man: $37
- 45-year-old woman: $29
Guardian Life has more than 3,000 financial representatives to help guide customers through the buying process, which earned it our pick for the best in-person experience. You can get a preliminary quote for term life insurance in 15 seconds from the Guardian Life website by filling out your age, gender, annual income, and whether or not you smoke. Guardian Life can then provide customer assistance if you need help finalizing your policy. Forty-one percent of our 1,000 survey respondents said they purchased a policy after getting a quote online.
Guardian Life is also one of the few companies we’ve researched that provides both term and whole life to people living with HIV. The company offers between $100,000 and $10 million in term life coverage to qualified HIV-positive applicants.
Includes a term conversion rider in your premium, a benefit if you eventually want whole life coverage
Offers wider variety of optional riders than competitors such as Banner Life
Holds an A++ with AM Best, the highest financial strength score possible
Website offers fewer coverage specifics than other companies we reviewed
Though you can receive online quotes, you cannot apply directly on the website
Guardian Life offers the following term life policy options:
- Level Term: Coverage starts at $100,000
Guardian Life offers the following rider options with its term life policies:
- Term conversion rider (included at no additional cost)
- Waiver of premium rider
- Waiver plus rider
- Guaranteed renewability rider
- Accelerated terminal illness rider
- Accidental death rider
- Charitable benefit rider
Cost
To estimate pricing for Guardian Life, we collected quotes for a 20-year term policy for tobacco-free applicants, both men and women, considered in good health.
- 35-year-old man: $21
- 35-year-old woman: $19
- 45-year-old man: $45
- 45-year-old woman: $35
State Farm may represent a strong option for consumers who value customer service and the financial security offered by an established life insurance provider. The company has over 100 years of experience and earned the highest marks possible in customer satisfaction and financial strength from the third-party entities J.D. Power and AM Best, respectively.
More respondents to our February 2024 survey (13%) purchased coverage from State Farm than from any other provider. Plus, our research shows you can get a preliminary term life quote on the State Farm website in under 90 seconds by entering your age, ZIP code, height, weight and health status.
Has secured the No. 1 ranking on J.D. Power’s annual customer satisfaction survey for five straight years
Holds the highest possible A++ rating from AM Best, offering financial security in the event of a policyholder’s death
State Farm auto insurance customers may receive a discount on premiums when purchasing a term life policy with the company
Only applicants under 50 years old can qualify for no-exam term life policies
Must work with an agent to purchase a term life policy, a drawback if you prefer digital processes
State Farm offers the following term life policy options:
- Select Term: Coverage starts at $100,000
State Farm offers the following rider options with its term life policies:
- Children’s term rider
- Select term rider
- Waiver of premium for disability
Cost
We were unable to obtain cost information for State Farm. You can contact the company for more details on pricing.
Transamerica offers term life rates that cost up to 50% less than the $32 monthly average — making it our pick for affordable coverage. Older applicants might want to consider the company because its maximum issue age of 80 years old for term life is higher than the limits imposed by State Farm or Banner Life. Transamerica features two distinct term plan options, Trendsetter Super and Trendsetter LB, to meet customer needs. Trendsetter Super offers a higher coverage amount — up to $10 million or more. Trendsetter LB automatically includes accelerated death benefits for terminal, chronic and critical illness.
Offers some of the lowest term life rates of the companies we reviewed
Qualifying applicants can get up to $2 million in coverage without a medical exam
Offers a Trendsetter Super term policy with coverage limits of $10 million and up
Ranked No. 18 out of 21 providers profiled in J.D. Power’s 2024 customer satisfaction survey, with a score of 615 out of 1,000
Has a customer complaint index more than three times higher than expected based on its market share, according data from the National Association of Insurance Commissioners (NAIC)
Transamerica offers the following term life policy options:
- Trendsetter Super: Offers the lowest premiums and $10 million or more in coverage
- Trendsetter LB: Offers up to $2 million in coverage and automatically includes accelerated death benefits for terminal, chronic and critical illnesses
Transamerica offers the following rider options with its term life policies:
- Disability waiver of premium rider
- Income protection option
- Children’s benefit rider
- Accidental death benefit rider
- Monthly disability income rider
Cost
We requested quotes for Transamerica to give you a better idea of pricing. We based the below rates on 20-year term policies for tobacco-free men and women considered in good health.
- 35-year-old man: $16
- 35-year-old woman: $14
- 45-year-old man: $31
- 45-year-old woman: $25
A company spokesperson provided us with the following comment regarding Transamerica’s below-average J.D. Power and NAIC ratings:
“Transamerica exists to serve our customers, and their feedback is very important to us. We implemented a new customer service model last year that included hiring additional customer support staff to provide better and faster service for our policyholders. While the new service model will take the remainder of the year to fully implement, we are already seeing an improved service experience, and overall feedback from our customers has been positive. In addition, Transamerica will introduce a new policyholder website later this year to enable digital policy support for customers.”
We selected Pacific Life because it combines lower-cost term life plans with strong customer satisfaction and financial strength ratings. According to our cost data, its PL Promise Term policy is up to 50% cheaper than the average monthly cost of $32 for healthy 35- and 45-year-old applicants. Additionally, all Pacific Life term policies come with the option to convert to permanent coverage, specifically universal life insurance. For this reason, the company is our pick for universal life insurance.
Has a higher-than-average maximum issue age of 80 years old for its PL Promise Term policy, which older applicants may appreciate
Has a high rating in J.D. Power’s 2024 customer satisfaction survey
Holds “superior” A+ financial strength rating from AM Best
Does not offer online quotes for term life plans
Customers must work with an agent to get to buy coverage
Pacific Life offers the following term life policy options:
- PL Promise Term: Features a $50,000 minimum coverage amount
- Pacific Elite Term: Features a $750,000 minimum coverage amount but unlike Promise Term, does not offer 15- and 25-year terms
Pacific Life offers the following rider options with its term life policies:
- Accelerated death benefit rider (included at no additional cost)
- Waiver of premium rider
- Children’s level term insurance rider
- Terminal illness rider
Cost
We requested quotes from Pacific Life to learn more about monthly rates. Our quotes reflect tobacco-free applicants considered in good health applying for 20-year term policies.
- 35-year-old man: $16
- 35-year-old woman: $14
- 45-year-old man: $30
- 45-year-old woman: $24
People with a high net worth may benefit from John Hancock’s generous maximum death benefit of $65 million for its term life policies. Additionally, all term policies come with the Vitality program, which offers savings and discounts for maintaining healthy habits. John Hancock is also our pick for people with diabetes because of its Aspire program, which offers up to 25% in savings on life insurance and other rewards to policyholders living with Type 1 or Type 2 diabetes. This is a unique benefit not offered by other providers on our list.
Applicants seeking up to $3 million in term life coverage can forgo a medical exam and receive an instant decision
Term life policyholders can convert to permanent coverage up to age 70
Holds an A+ financial strength rating from AM Best, indicating financial stability
No contactless applications, meaning you must work with an agent to get quotes and apply for a policy
Has a slightly below-average score in 2024 J.D. Power customer satisfaction index
John Hancock offers the following term life policy options:
- Protection Term: Coverage amounts start at $250,000 and policyholders can add a Vitality PLUS rider
- Vitality Term: Coverage amounts start at $250,000 and the initial premium is 4% to 20% lower than the base premium for Protection Term, including a Vitality PLUS rider at no extra cost
John Hancock offers the following rider options with its term life policies:
- Total disability waiver rider
- Accelerated death benefit rider
- Vitality PLUS rider (automatically included with Vitality Term plans)
- Estate preservation rider
Cost
After requesting quotes from John Hancock, we estimated monthly premium costs for a 20-year term policy for tobacco-free applicants considered in good health.
- 35-year-old man: $25
- 35-year-old woman: $22
- 45-year-old man: $45
- 45-year-old woman: $37
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
Flip Card
Life Insurance Rating
The AM Best and J.D. Power scores listed for the best term life insurance companies above are accurate as of October 2024.
How We Ranked The Best Term Life Insurers
As we ranked and reviewed the best term life insurance companies, we developed a comprehensive rating methodology that considers factors such as overall term life coverage options, available riders, cost and brand trustworthiness. To accurately rate each provider, we gathered quotes using various applicant profiles, evaluated customer satisfaction using data from the National Association of Insurance Commissioners (NAIC) and J.D. Power, reviewed financial strength ratings from the credit rating agency AM Best and surveyed 1,000 life insurance policyholders nationwide. We also spoke with industry experts, including licensed financial planners and life insurance agents, to get their thoughts on term life insurance.
Our expertise is backed by:
- A survey of 1,000 life insurance policyholders nationwide
- Rating almost 40 life insurance providers using our in-depth methodology
- Over 40 years of combined life insurance experience between our writers and editors
- Gathering more than 60,000 quotes using 150 different applicant profiles from 60 providers nationwide
How To Find The Best Term Life Insurance Policy For You
The top factors our team recommends you consider when choosing a term life policy are the length of your plan and how much coverage you need. Typical term lengths range from 10 to 30 years, and coverage amounts, or face values, range from $100,000 to $1 million or more. Many term life policies offer optional riders that allow you to attach additional coverage to your base plan, usually for an additional cost.
Choosing a Coverage Amount
It is important to consider you and your family’s current and future financial needs and burdens when estimating life insurance coverage amounts. Use our calculator below to estimate the amount of life insurance you need by adding together your debt, income, mortgage and education expenses.
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
The amount of life insurance coverage you need depends primarily on the financial needs of your dependents, such as your spouse and children, if you were to pass away. There are a few aspects to consider when figuring out those financial needs, which combine into a formula known as the DIME method. DIME stands for debt, income, mortgage and education and, when taken together, can provide a general estimate of your coverage needs.
Debt
Term life insurance benefits can cover debts you may have when you pass away, shielding your family from taking on that burden themselves. Add up all non-mortgage debt you have to properly account for what would need to be paid off, such as credit cards and personal loans. Money management apps or working with a financial advisor can make this task easier.
Income
Your income is an important factor because it provides your loved ones with financial stability. Using life insurance to replace your income can help your loved ones maintain their quality of life if you pass away unexpectedly. Multiply your annual income by the number of years you want to cover your family to find an estimated figure.
Mortgage
The general advice when calculating life insurance coverage is to treat mortgage debt as separate from other accounts. For the DIME formula, find the total remaining mortgage balance or what you have left to pay.
Education
Life insurance benefits can also help cover education expenses for your children or other loved ones. Consider educational goals when estimating costs, including whether your children might attend college, graduate school, and housing and fees.
According to data from Educationdata.org, the average cost of public university tuition for the 2022 to 2023 school year was $9,750. That number increased to $35,248 for the year for private schools. Keep in mind that the cost of education grows over time, and if you have young children when you purchase a policy, you will need to estimate the cost of education by the time they attend. Since the 1993 to 1994 school year, public tuition has grown an average of 4.8% per year and private tuition by 4.1% per year.
A simpler way to calculate your ideal coverage amount is the “10x rule” or simply multiplying your income by 10. If you have children who plan on attending college, you might want to add tuition costs to that number. You can also use this formula as a comparison point to the DIME method.
What Is the Best Length for Term Life Insurance?
According to the Insurance Information Institute (Triple-I), a 20-year term is the most popular option. If you have young children or an outstanding mortgage balance, a 20-year term policy could provide financial protection for your family, for example. If you were to pass away, the death benefit could cover your family home’s outstanding mortgage and your children’s college tuition.
Common Life Insurance Term Lengths
Most term life policies have terms of between 10 and 30 years in intervals of five or 10. However, some companies offer term lengths above 30 years. For example, Banner Life offers 35- and 40-year term length options.
Here are the most common term lengths and life situations that might best fit each option.
- 10-year term: If you have short-term or relatively insignificant debt, such as less than $50,000, and want to pay the lowest life insurance rate possible, a 10-year term could make sense.
- 20-year term: If you have younger children, several more years of peak income and reasonable debt such as a mortgage, a 20-year term can offer an affordable way to protect your loved ones.
- 30-year term: If you have substantial debt and a longer timeline to pay it off, such as a 30-year mortgage and hefty student loans, or are a high earner or sole breadwinner, a 30-year term might suit your needs. Note that you can always terminate a policy early if you pay off all your debts.
Some companies also offer 15-year and 25-year term life policies. Of the companies we reviewed, Banner Life is the only provider that offers a 40-year term life plan.
Should You Add Riders to Your Policy?
Insurance riders can offer a way to customize your term life insurance policy. According to our February 2024 survey of 1,000 policyholders, nearly 45% of respondents added riders to their base policy. Adding a rider to your policy generally tacks on an additional fee to your life insurance premium, though some riders are occasionally included in policies at no added cost.
We’ve listed some of the most common term life insurance riders in the table below.
| Optional Riders | Description | Best For |
|---|---|---|
| Child rider | Pays a benefit if one or more of your children passes away | Parents |
| Accelerated death benefit | Gives you access to a portion of your death benefit while you’re still alive | People with a family illness history |
| Term conversion | Allows you to convert a term life insurance policy into a permanent policy without having to take another medical exam | Flexibility-focused consumers |
| Return of premium | Reimburses some or all of your paid premiums if you outlive a policy term | Value-conscious buyers |
| Guaranteed insurability | Allows you to purchase additional coverage for specified events in the future, such as marriage or the birth of a child, without having to take another medical exam | Families |
| Long-term care | Can help pay for medical care at home or in a facility, filling in gaps that health insurance or Medicare will not cover | Older policyholders |
| Accidental death benefit rider | Pays an additional amount if the policyholder’s death is caused by an accident, such as a car crash | People in high-risk occupations |
| Disability waiver of premium | Allows you to stop paying your premiums if you become disabled and cannot work | Forward-thinkers |
How Much Does a Term Life Insurance Policy Cost?
The average cost of a 20-year, $250,000 term life insurance policy for a 35- to 45-year-old considered in better health than the average population is around $32 per month, based on rates we gathered from the insurance companies in this review.
Average Term Life Insurance Costs
Term life insurance premiums vary depending on the length of your coverage. Our team determined the following costs for the same applicant profiles mentioned above, including men and women, seeking varying term lengths:
- 10-year term: $19
- 20-year term: $32
- 30-year term: $42
Policy premiums depend on the applicant’s age, gender, health status, coverage amount and more. Term life insurance policies can cost anywhere from $14 per month to nearly $500, depending on those factors.
Term life insurance is substantially cheaper than whole life insurance. According to Policygenius, a 30-year-old nonsmoking male in good health can expect to pay an average of $26 per month for a $500,000 20-year term life policy. Meanwhile, the average cost of whole life insurance with the same coverage amount is $451 per month.
Term Life Insurance Cost by Age
Life insurance premiums are highly personal, but average costs can help you get a better idea of what you might pay. For example, average term life premiums tend to cost more for men than for women, especially as men get older. We’ve included average term life rates for $100,000, $200,000 and $500,000 coverage amounts across varying age ranges in the following sections to help you learn more.
Average Term Life Insurance Rates for Males
The table below shows average 20-year term life premiums for men ranging from 20 to 65 years old across three different coverage amounts.
| Applicant Age | Monthly Cost for $100,000 in Term Life Coverage | Monthly Cost for $250,000 in Term Life Coverage | Monthly Cost for $500,000 in Term Life Coverage |
|---|---|---|---|
| 20 | $19 | $22 | $35 |
| 25 | $11 | $13 | $17 |
| 35 | $17 | $24 | $39 |
| 45 | $29 | $47 | $82 |
| 55 | $151 | $140 | $186 |
| 65 | $128 | $266 | $449 |
Average Term Life Insurance Rates for Females
In the table below, you’ll find the average 20-year term life insurance premiums for female policyholders ranging from 20 to 65 years old across three different policy amounts.
| Applicant Age | Monthly Cost for $100,000 in Term Life Coverage | Monthly Cost for $250,000 in Term Life Coverage | Monthly Cost for $500,000 in Term Life Coverage |
|---|---|---|---|
| 20 | $16 | $18 | $15 |
| 25 | $10 | $11 | $14 |
| 35 | $15 | $20 | $33 |
| 45 | $25 | $38 | $64 |
| 55 | $49 | $100 | $139 |
| 65 | $94 | $186 | $305 |
Source: Our team obtained cost data from Redbird Advisors, an insurance consulting agency. Rates were generated in December 2023 and reflect term life insurance pricing based on tobacco-free applicants of various ages qualifying for the preferred health rate class. Sample applicants included six male and six female age groups ranging from 20 to 65 years old.
Term Life Insurance Costs by Company
The companies in this review cost between $14 and $25 for a 20-year term policy with $250,000 in coverage for a 35-year-old applicant considered in good health. Here’s how our top-rated providers compare based on monthly premiums:
Term life insurance is typically the cheapest type of policy you can buy because it offers temporary, term-based coverage instead of lifelong coverage as with permanent life insurance policies. Permanent policies, such as whole life insurance, also accrue cash value you can use while still alive. Consider these differences when searching for the right policy for you and your family’s needs.
Factors That Affect Term Life Insurance Cost
Companies weigh various factors when determining term life insurance rates. This process varies from one company to the next, which is why shopping around between multiple insurers can typically help you save money and find the best coverage option.
The key factors companies consider when determining the cost of a term life policy include:
- Age and gender: As you age, you get closer to reaching your life expectancy, and your rate increases as a result. Women typically pay lower rates because they have a longer life expectancy.
- Health: Your height-weight ratio, prescriptions, medical conditions, family health history and whether you smoke play large roles in your rate. Life insurers typically charge more if an applicant is considered in poor health.
- Lifestyle: High-risk hobbies such as scuba diving and skydiving can negatively impact your coverage approval chances. Insurance companies often also consider your driving record.
- Financial history: Having a low credit score or a history of bankruptcies can result in paying higher rates or being declined for coverage.
- Coverage amount and term length: How much coverage you buy and the length of your term affect how much you’ll pay for your policy. Typically, more coverage and longer terms will result in higher costs and vice versa.
How To Buy Term Life Insurance
Buying life insurance is a big decision — the choices you make about your policy and provider could have a significant impact on the lives of your loved ones. Finding the best option for you takes careful consideration, but it doesn’t have to feel overly difficult.
Term Life Insurance Buying Guide: Step-by-Step
Our experts created this brief guide to help you navigate the term life insurance buying process. The ideal way to shop for coverage is first figuring out your policy needs and goals so you can narrow down an initial list of providers. Then compare offers from the companies that fit your requirements. Follow these steps to ensure you get the right plan and provider at an affordable price.
1. Figure Out Your Ideal Term Length
The first step in the buying process is to determine how long of a term you need. Generally speaking, consider a term that exceeds the age you plan to retire. This ensures your family won’t feel financial strain if they suddenly lose any income you provide, whether before or after retirement.
2. Determine the Right Coverage Amount
Once you’ve settled on the ideal term length for your life insurance policy, the next step is to figure out how much coverage you need. Earlier, we introduced the DIME method and the 10x method as ways to estimate coverage. Use either or both to help you determine the right amount of coverage for your term life policy. If you need more assistance, we recommend working with a financial advisor or life insurance agent.
3. Select Riders as Needed
You and your loved ones may consider certain riders that seem valuable to your situation. Riders such as long-term childcare (LTC) or family income benefit, for example, can help tailor a policy to the individual needs of policyholders. Consider these needs and list out the most important riders to you. Not all providers will offer the extended coverage you need, while some may include riders for free with term life policies.
4. Decide Whether You Want No-Exam Coverage
Term life policies can require a medical exam to provide the insurer with health risk information that factors into your premiums. However, many providers also offer no-exam coverage that waives the examination. These policies tend to cost more overall, but may offer a good choice for people concerned about health issues impacting their eligibility or rates. However, Michael Silverman, the founder of Silver Lining Insurance, says you shouldn’t assume that not having to take an exam doesn’t mean your medical history won’t come into play.
“Many carriers will offer underwriting without a medical examination but still secure medical information from the potential insured’s doctor,” Silverman said. “Post-COVID, this has been a change in underwriting procedures for younger clients.”
5. Find Providers Offering Policies That Match Your Needs
Create a shortlist of term life providers that can offer you the policy you’re looking for. This will come in handy at the next step, when you reach out for quotes on a policy. If you don’t know where to start, the companies listed on this page meet our team’s standards for recommended term life insurance providers. You can see details to help you identify which offer the term length, coverage amount and riders you need. Each listing also has links to full-length provider reviews for more information.
6. Compare Free Term Life Insurance Quotes
In this guide, we’ve provided average estimated premiums for a few types of term life insurance policies. But the only way to know for sure what you’ll pay is by getting actual quotes from providers.
You can reach out to the providers on your shortlist individually. However, the widget below allows you to get real offers from multiple providers after entering your information only once. It takes a few minutes to complete the process and you’ll start receiving quotes soon after.
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
Compare the offers you receive. Price is important for most buyers, but it is also important to find a provider you feel good about. Once you’ve selected the best term life insurance option for your needs, follow-up with the provider to begin the underwriting process.
Is Term Life Insurance Worth It?
Term life insurance is worth it, according to a large majority of policyholders in our 2024 life insurance survey. Among respondents with a term life policy, 70% said their sense of financial security for their family has improved since buying a policy.
Term life insurance is the simplest, most affordable type of life insurance coverage. If your main goal is to help your beneficiaries cover expenses if you pass away, such as a mortgage loan, college tuition or credit card debt, our team recommends a term life policy. The peace of mind you receive knowing your family’s financial future is secure is typically worth the relatively inexpensive rate you pay for a term life insurance policy.
Ask Life Insurance Experts: Is Term Life Insurance Worth The Cost?
“Term life insurance provides the best value for people…
“Term life insurance provides the best value for people interested in pure life insurance without a cash value component. For example, a 40-year-old non-smoker with a $500,000 policy can expect to pay $30 to $50 per month for 20-year term life insurance, whereas a whole life insurance policy will typically cost 10 times that for the same coverage.”
Click Here for More Term Life Insurance Resources
Frequently Asked Questions About Term Life Insurance
Term life insurance policies cover you for a specific amount of time and provide a death benefit that’s paid out to beneficiaries when you die. Whole life policies are permanent life insurance policies that stay with you forever as long as you pay premiums. Coverage includes two features — the death benefit and cash value.
The death benefit provides a lump sum payout at death. But as you make premium payments, cash value increases with a guaranteed return as well, providing you with cash you can tap into. Whole life insurance policies generally have higher premiums than term life policies but could be a tool for people who want lifetime coverage and the opportunity to grow assets.
Term life insurance is a life insurance policy that provides a tax-free payout to your beneficiaries if you die within the policy term. In some cases, term policies have living benefits that let you access money early if you become terminally or chronically ill.
If you live longer than the insurance term, you may be able to renew your policy to continue coverage. You could also convert your policy to a permanent one that accrues cash value during the term. However, renewing or converting your policy may require higher premiums.
Term life insurance does not have a cash value component, unlike permanent life insurance. After your term life period expires, the policy benefits end, although you may have the option to renew your policy. Some term life policies offer the option to add a return of premium rider for an additional cost, which reimburses some or all of the premiums you paid if you outlive the term.
If you no longer need income replacement, you probably don’t need term life insurance. For example, if you’re in your 60s or 70s, have paid off your mortgage, your children are financially independent and you’re debt-free, you don’t need to worry about life insurance. Some people choose to leave a life insurance policy as an inheritance or legacy for their children or grandchildren.
Methodology: Our System for Rating Term Life Insurance Companies
Our team researches and ranks life insurance companies using an in-depth scoring system that considers the factors most important when buying coverage. Our analysis includes a comprehensive review of each provider we feature based on available coverage, customizability, availability, customer service and company reputation. We also consider responses to our survey of 1,000 life insurance policyholders to determine what matters most to consumers.
Below are the factors we take into consideration when rating life insurance providers. We use each company’s final score to determine a five-star rating, which we then use to rank insurers.
- Brand Trust (40%): Life insurance payouts can exceed $100,000 or more, which makes choosing a reputable and trustworthy installer important. To assess brand trust, we use J.D. Power customer satisfaction surveys, AM Best credit rating scores and the National Association of Insurance Commissioners (NAIC) complaint index. The higher a company scored in each area, the more points it receives.
- Coverage (33%): The more policy life insurance options a company offers, the more opportunities a customer has to obtain the right coverage for their specific needs. For this reason, we give companies the most points for having multiple types of life insurance, including various term, permanent and no-exam options.
- Availability and Ease of Use (19%): Since life insurance coverage may seem complex, we consider the ways a customer can reach a company — and how easy communication is. For this category, we research how many communication channels a company offers for general customer support, claims processing and the application process. Companies earn the most points for offering various ways to interact with an agent, both in-person and online.
- Riders (8%): Companies offering various life insurance riders or endorsements allow policyholders to better customize their coverage. In this category, we determine how many riders a company offers and award the most points to those with more than 10 options.
We use our rating system to compare and contrast each company against key factors to help us determine the best life insurance companies in the industry. To learn more, read our full life insurance methodology for reviewing and scoring providers.
