According to LIMRA’s 2024 Life Insurance Barometer Study, approximately 42% of Americans say they need or need more life insurance. That’s a large number of people without financial protection for their families should the worst occur.
If you’ve been hesitant to get life insurance out of concern that it’s too costly, too difficult to get, or simply not necessary, know that term life insurance is the most affordable and easy-to-obtain type of life insurance available. If you’re under 40 and in good health, you can probably get enough 20-year or 30-year term life coverage for less than $100 per month.
That leaves just one question. Who are the best term life insurance companies? Keep reading to find out.
The Best Term Life Insurance Companies
These are the best term life insurance companies on the market right now.
Each does at least one thing really well, whether it’s underwriting larger policies without requiring a medical exam or offering great value-adds for little to nothing extra each month.
Our best overall pick offers the best value for the greatest number of potential life insurance applicants.
1. Bestow: Best Overall
- AM Best Rating: A+
- Available term lengths: 10 – 30 years in five year increments
Bestow is another digital-first term life insurance provider with an even speedier application process than Haven Life’s. Bestow claims you’ll spend no more than five minutes applying for coverage, all but eliminating the “not enough time” excuse.
Plus, Bestow’s underwriting process is completely algorithm-driven. It may approve policies as large as $1.5 million without requiring a medical exam. Terms range from 10 to 30 years; coverage starts at $100,000, and applications are open to age 60. Even for high coverage amounts, premiums start as low as $11 a month.
Pros
- Completely online application process
- May not need a medical exam
- Can get approval in a few minutes
Cons
- Policies are only good up to age 60
- Max term is 30 years
2. Guardian: Best for HIV Patients
- AM Best Rating: A
- Available term lengths: 10, 15, 20, and 30 years
Guardian has over 160 years of experience, proving its financial stability for generations of families. Millions of customers trust them to protect their families upon their passing including HIV patients, as they offer term and whole life policies for these patients by applying with a life insurance agent.
Guardian offers term and permanent life insurance options, but only term life insurance is available online. They have age restrictions for their term life insurance policies, so it’s best to purchase a policy when you’re young. For example, a 10-year policy is good up to age 75, but for every higher term, the age limit decreases by five years.
Guardian offers various riders to customize your policy and make it your own. Most customers can convert a term policy to a whole life policy within the first five years.
Pros
- Can apply online
- Many riders available
- Has a conversion option
Cons
- Strict age limits on term policies
- Not very transparent on their website
3. Pacific Life: Best for Conversion Options
- AM Best Rating: A+
- Available term lengths: 10 – 30 years, depending on the product
Pacific Life is one of the best term life insurance companies because of its large product selection. Not only does it offer different types of term life insurance policies, but it also offers more features than a basic term life insurance policy typically offers.
The Promise Term product has terms of 10, 15, 20, 25, or 30 years and a $50,000 minimum benefit. It includes a $10,000 policy for every child under 18, an acceleration benefit if you become terminally ill, or a premium waiver if you become totally disabled.
The Pacific Elite Term policy has a 10, 20, or 30-year term, and coverage starts at $750,000. You can add extra protection riders, like waiver of premium and accelerated death benefits. It also offers a conversion option for a policy that earns a cash value.
Pros
- Many product options
- Offers accelerated death benefits and waiver of premiums
- Promise policy includes coverage for children
Cons
- No online policies
- High minimum coverage amounts
4. MassMutual: Best for Financial Stability
- AM Best Rating: A++
- Available term lengths: 10 – 30 years
MassMutual focuses on providing affordable coverage that grows with you. They have six different term options, each with conversion options that allow you to upgrade to a permanent life insurance policy within a specific number of years.
Like many of the best term life insurance companies on this list, MassMutual offers accelerated death benefits for terminally ill clients and a premium waiver for anyone who becomes disabled. Policies start at $100,000, and many are available up to age 75.
Pros
- Financially strong company with a great background
- Options for many terms
- Ability to add riders
Cons
- Most policies need a medical exam
- Many policies have age limits
5. New York Life: Best for Riders
- AM Best Rating: A++
- Available term lengths: 10, 15, and 20 years
New York Life has historically been a financially stable company that offers term and permanent life insurance policies. They offer a level-premium term with coverage options of 10, 15, or 20 years and a yearly renewable term that renews each year and is available to applicants up to age 75.
New York Life is a mutually owned life insurance company whose policyholders own it. Both of its term life insurance options can be converted to permanent life insurance policies, and it offers a wide selection of riders with affordable premiums.
Pros
- Can customize term life insurance policies
- Financially stable company
- Offers the option to convert
Cons
- No online application option
- Charges a fee to convert to a permanent policy
Learn more about New York Life
6. Ladder: Best for No Medical Exam
- AM Best rating: Varies
- Available term lengths: 10, 15, 20, 25, and 30 years
Ladder is one of many life insurance companies that don’t require a medical exam as a condition of underwriting. What sets it apart is its unusual flexibility for no-exam applicants — you can get a death benefit as high as $3 million without an exam if you’re in excellent health and have no red flags in your medical history.
Ladder’s premiums start at $5 a month if you’re in excellent health, and if you need a policy larger than $3 million, there’s an in-home exam option. You’ll receive conditional approval within minutes and can scale down your coverage as time goes on if you wish.
Pros
- No medical exam
- High coverage limits
- Low premiums
Cons
- Ladder doesn’t provide the insurance (they are a tech site)
- No riders available
7. State Farm: Best If You Want to Work With an Agent
- AM Best rating: A++
- Available term lengths: 10, 20, and 30 years
State Farm is another one of the best term life insurance companies on this list that offers permanent life insurance coverage, such as universal life insurance and whole life insurance. It also places much greater emphasis on the human element in life insurance shopping and sales.
State Farm has a network of nearly 20,000 agents across the United States. If you need help thinking through your term life insurance options or aren’t yet sure if term life is the right call for you, there’s almost certainly an agent in your area waiting to take your call.
Some additional features offered by State Farm include an optional return-of-premium rider on 20—and 30-year level term policies and an Instant Answer policy worth $50,000 for ten years.
Pros
- Large number of agents available
- Has policies that don’t require a medical exam
- Great customer satisfaction ratings
Cons
- Age limits on some policies
- Must go through an agent
Bonus: Policygenius
Policygenius is an online insurance broker. It’s not limited to life insurance rates — you can also find:
Needless to say, that’s great news if you’re shopping for more than one type of insurance at the same time. And because Policygenius works with many insurers that offer more than just life insurance, you may find answers to all your insurance questions — and solutions for all your needs — under the same roof.
How Much Does Term Life Insurance Cost?
Term life insurance is much more affordable than permanent life insurance. Although the exact difference varies by policyholder, policy type, coverage amount, and other factors, you can expect whole life insurance premiums to cost at least five times as much as term life insurance premiums for the same coverage amount. Don’t be surprised by a difference of 10 times or even more.
Within the term life insurance category, policy premiums vary considerably by age, health status, coverage amount, policy term, and whether the policy requires a medical exam during underwriting. The longer the policy term and the higher the coverage amount, the higher the policy premium.
As an example, a healthy 30-year-old might pay $25 per month for a 30-year term life policy with a death benefit of $500,000. A healthy 45-year-old might pay $50 or more per month for the same policy.
Here are some sample rates for males and females at various ages for a $250,000 10-year term life insurance policy.
| Gender | Age | Premium |
| Male | 25 | $40 |
| Female | 25 | $37.50 |
| Male | 40 | $70 |
| Female | 40 | $52.50 |
| Male | 50 | $155 |
| Female | 50 | $132.50 |
| Male | 60 | $345 |
| Female | 60 | $275 |
| Male | 70 | $800 |
| Female | 70 | $685 |
Factors that Affect the Cost of Term Life Insurance
Life insurance companies base their premiums on several important factors, including the following:
- Age: The younger you are, the less risky you are to insurance companies. The more years have passed, the more likely the insurance company will have a claim. Many insurance companies have age limits to prevent this.
- Gender: According to the CDC, women have a longer life expectancy than men. Women have a life expectancy of 80.2 years, and men 74.8 years.
- Family medical history: If your family has a long history of inherited diseases, it could affect your life insurance premium.
- Your health: If you have any diseases or concerns that may shorten your lifespan, it could affect your premiums. However, if you can prove they are well-managed, your premiums may not increase as much.
- Occupation: High-risk careers, such as firefighters, roofers and stunt personnel, may pay higher premiums because of the risk they take daily.
- Lifestyle: Your habits, such as drinking and smoking, could affect your premiums, as could your hobbies. For example, skydiving or rock climbing could increase your premiums because of the risk involved.
- Coverage amount: The more coverage you need, the higher your premiums will be because it’s a higher risk for insurance companies. Ensure you purchase a policy with enough coverage to handle your family’s financial needs.
- Term: Many insurance companies offer various terms for term life insurance. The longer your policy is good for, the higher the premiums will be because it keeps the insurance company liable for a potential claim.
Term Life Insurance FAQs
You have questions about term life insurance and term life insurance providers. We have answers.
Can You Renew a Term Life Insurance Policy?
You can usually renew a term life insurance policy when the initial policy term ends. However, the renewal period is likely to be much shorter — typically a five-year or even one-year term — and your premium will be much higher.
If the insurer allows it, you could save money by converting your term policy to a permanent policy, depending on the new premium and term length.
Does a Term Life Insurance Policy Have Cash Value?
Term life insurance policies do not have cash value. You can’t borrow against the policy during the term and won’t receive any payout if you outlive the policy, with the possible exception of premiums returned as part of a return-of-premium rider.
If you want to extract cash from your life insurance policy, you must either convert your term life policy to a permanent life policy or choose a permanent life policy in the first place. Converting your policy isn’t always possible.
Do You Really Need Term Life Insurance?
Probably. How much life insurance you need is a separate question, but most people need some amount of term life insurance. You’re a good candidate for this type of coverage if any of these situations apply to you:
- You have substantial debts that may outlive you, such as a mortgage on your first home
- You expect to incur substantial expenses in the future, such as college tuition for your kids
- Your family would be adversely affected by the loss of your income
- Your death would create additional financial or labor burdens for your survivors, such as childcare while your spouse is at work
- You’re a partner in a business that would be adversely affected by your death
What Happens if you Outlive your Term Life Insurance Policy?
Typically, if you outlive your term life insurance policy, it expires and you no longer have coverage unless you purchase a new one. However, some policies have options:
- Conversion: Some term life insurance policies allow you to convert to a permanent policy. They usually have strict timelines when you can do this, so pay attention to the requirements if it’s something you want to consider.
- Renew: Some term policies allow you to continue renewing the policy annually. However, the premiums typically increase each year as you age and become a higher risk for the insurance company.
What is the Age Limit for Term Life Insurance?
The age limit for term life insurance depends on the insurance company. Some allow applicants up to 80 with a medical exam. Others keep the limits much lower, or if they allow older applicants, they limit the coverage terms to 10 or 20 years. The age limits are typically lower for life insurance companies that don’t require a medical exam, and higher for those that require one.
How to Choose the Best Term Life Insurance Company
To find the best life insurance company for your situation, consider why you’re getting life insurance in the first place.
First, confirm that term life insurance is the appropriate choice. Then, consider whether you want temporary coverage, such as to cover your mortgage while you have it, or a policy that accumulates cash value that you can borrow against, like whole life insurance.
Next, figure out how much coverage you need. If you need a substantial coverage amount, make sure the insurers you’re looking at can accommodate. Some require a medical exam for coverage above $500,000 or $1 million. Others put hard caps on coverage even with full medical underwriting.
Don’t snooze on life insurance companies’ financial strength ratings either. For your beneficiaries’ sake, you want your insurer to be there to pay your policy’s death benefit, whether that’s necessary tomorrow or 30 years from now.
Methodology
We use several important criteria to assess the overall quality of term life insurance providers and narrow this list. Each factor relates in some way to the underlying value of the insurance products these companies offer.
Policy Terms and Age to Apply
The typical term life insurance company offers initial policy term lengths between 10 and 30 years, but some online life insurance companies top out at 20-year terms.
The available terms are based on age and the risk the insurance company can take. In most cases, older applicants have only 10 or 20 year options, but we looked for life insurance companies with the most choices.
Medical Underwriting Requirement
Many companies don’t require a medical exam as a condition of underwriting. Although they take personal and family health history into account, these policies are not fully medically underwritten. You may see them referred to as simplified-issue life insurance policies.
If that’s important to you because you’re concerned that a medical exam might reveal a health issue that results in a higher insurance premium or even gets your application denied outright, pay special attention to this criteria. We’re fans of companies with generous no-exam coverage options.
Coverage Amounts (Death Benefit)
Term life insurance death benefits usually start at $50,000 or $100,000 and range upwards of $1 million. If you’re willing to get a medical exam as a condition of coverage, you’ll likely qualify for a higher death benefit than on a no-exam policy.
All else being equal, we prefer life insurance companies that offer a wide coverage range — from modest policies designed to pay off specific debts or expenses to hefty policies meant to replace income for decades.
Application Process
Applying for life insurance is not as much of a chore as you might think. We look for companies with a simplified application process and the option to skip the medical exam or at least keep it simple.
Financial Strength Ratings
Third-party financial strength ratings measure the likelihood that an insurer will make good on its promise to pay life insurance death benefits. We use ratings from A.M. Best, which specializes in insurance companies, wherever possible.
Policy Add-ons and Riders
Most term life policies come with riders — policy add-ons that enhance the flexibility or usefulness of the policy. Some riders increase premiums; others come at no extra charge. All else being equal, we’re fans of companies that go above and beyond to create value for their policyholders through riders and nontraditional policy add-ons.
Common examples of riders include:
- Return of premium: Reimbursing the policyholder for premiums paid during the policy term
- Accelerated death benefit: Allowing terminally ill policyholders to access a portion of their policy’s death benefit while they’re still alive
- Accidental death rider: Boosting the death benefit if the policyholder’s death occurs in a covered accident
