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Ashlyn Brooks
Ashlyn Brooks is a finance writer with more than half a decade of experience, known for her knowledge in areas such as taxes, insurance, investing, retirement, finance news, and banking products.
Edited by
Natasha Cornelius, CLU
Natasha Cornelius, CLU, is an insurance editor for Bankrate, specializing in auto, home and life insurance.
Reviewed by
Tony Steuer
Tony Steuer, CLU, LA, CPFFE is an internationally recognized financial preparedness advocate, podcaster, and award-winning author. Tony developed the Get Ready Movement to empower and educate people on all areas of personal finance.
Updated Jul 10, 2024At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity ,this post may contain references to products from our partners. Here's an explanation for how we make money .This content is powered by HomeInsurance.com (NPN: 8781838). For more information, please see our Insurance Disclosure .
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On This Page Jump toTerm life insurance offers a straightforward and affordable way to protect your loved ones financially. Ideal for those with temporary needs such as raising a young family or paying off a mortgage, term life insurance provides coverage for a set period, typically between 10 and 30 years. If you pass away during this term, your beneficiaries usually receive a lump sum payment to help cover expenses and maintain their standard of living. Unlike permanent life insurance, term policies are known for their simplicity and lower premiums. Bankrate, a trusted source of financial advice, is here to guide you through choosing the best term life insurance policy that fits your needs and budget, helping ensure you make informed decisions to secure your family's future.
Compare life insurance providers quickly and easily
See which provider is right for you.
Please select age Coverage amountThe amount of coverage you need depends on many factors, including your age, income, mortgage and other debts and anticipated funeral expenses.
Please select Coverage amount Policy typeWhole life insurance combines life insurance with an investment component.
Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.
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This advertising widget is powered by HomeInsurance.com, a licensed insurance producer (NPN: 8781838) and a corporate affiliate of Bankrate. HomeInsurance.com LLC services are only available in states where it is licensed and insurance coverage through HomeInsurance.com may not be available in all states. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Why Lemonade? It's a fresh twist on life insurance: easy, accessible and affordable. See more providers in Choose from insurers inThe best term life insurance companies depend on an individual’s needs and preferences. While your quoted premium will typically not vary as much as for life quotes as home or auto insurance, different companies do offer different coverage types and levels. We chose the following companies based on their third-party financial strength and J.D. Power customer satisfaction scores, as well as the policy options and available coverage capacities (the maximum dollar amount a policy can be). It may be helpful to start your research with the following providers:
| Company | Best for… | J.D. Power score | AM Best | S&P |
|---|---|---|---|---|
| State Farm | Excellent customer service ratings | 843/1,000 | A++ (Superior) | AA |
| Mutual of Omaha | Easy online quoting for term policies | 805/1,000 | A+ (Superior) | A+ |
| Pacific Life | High potential coverage limits | 799/1,000 | A+ (Superior) | AA- |
| Northwestern Mutual | Digital tool availability | 790/1,000 | A++ (Superior) | AA+ |
| Guardian Life | Policy customization | 784/1,000 | A++ (Superior) | AA+ |
Why we chose it: State Farm has the highest J.D. Power score for customer satisfaction on our list.
State Farm is our 2024 Bankrate Awards winner for Best Term Life Insurer for the third year in a row thanks to its superior AM Best score and near-nationwide availability. State Farm offers several term insurance products, but its return-of-premium policy option may be particularly helpful for certain term life insurance policyholders. This add-on coverage (also known as a life insurance rider) lets policyholders choose between a 20- or 30-year payment term and receive a portion of their premiums back if they outlive the term. The return-of-premium policy can be renewed annually until age 95. While the return-of-premium option comes at an additional cost, it also builds cash value, which is rare in a term life insurance policy.
Why we chose it: Mutual of Omaha offers easy online quoting for its term life insurance policies and a wide array of riders for potential policy customization.
If you want to get an idea of how much term life insurance might cost, Mutual of Omaha offers a term life insurance quote tool online. Enter your gender, date of birth, tobacco usage and coverage amount to get a rate. Mutual of Omaha offers a plethora of additional riders that can be added to its term life policies. It should be noted that not every rider can be used with every type of policy. To verify how much coverage you need and which riders can be added to your policy, you may want to consult with an agent. This company also offers a locator service to help you find a financial advisor near you.
Why we chose it: Pacific Life has term life insurance policy options with high coverage levels.
Anyone wanting to tailor their term life insurance with riders or purchase higher coverage limits might consider Pacific Life for term life insurance. The carrier offers two policy options, Promise Term and Elite Term, both of which are convertible to cash value life insurance. Its Promise Term policy offers a minimum amount of $50,000 in coverage, while the Elite Term starts at $750,000 and goes to $3 million or more. Available options include a waiver of premium for disability, as well as a terminal illness and child term rider.
Why we chose it: Northwestern Mutual offers a wide array of informational resources and policy management tools online.
Northwestern Mutual is the second largest life insurer in the U.S. by direct premiums written, with just under 7 percent of the total market share. The company has been insuring consumers for more than 150 years. Its term policies allow you to select your coverage period based on either a set amount of years or until a specific age, depending on which option is most suitable for you. Northwestern Mutual plans are also convertible to whole life insurance, meaning you may be able to adjust your policy as your needs evolve. The company’s A++ (Superior) financial strength rating from AM Best is the highest level available. However, the company only offers one term life insurance rider, so if you want greater policy customization, it may not be the carrier for you.
Why we chose it: Guardian life insurance offers four different term lengths and a long list of potential riders.
Guardian's term life insurance policies are available in four term lengths. The carrier also has a long list of riders for potential policy customization, including a guaranteed renewability clause in the event that you are diagnosed with a serious illness. However, be aware that the company does not offer a network of local agents, so if you prefer to handle your insurance needs face-to-face, you may not be satisfied with the level of service.
Many insurers now offer term life insurance with accelerated underwriting, allowing eligible applicants to obtain coverage without undergoing a medical exam. This process uses data from your application, health records and other sources to assess risk quickly, making it easier and faster to get insured.
Even if insurers do not explicitly advertise these no-exam options, it's becoming increasingly common for them to implement such processes. It's worth asking your insurer if no-exam options are available, as many companies may offer them even if they aren't prominently featured.
For those specifically seeking no-exam term life insurance, companies like Ladder, Ethos and Bestow primarily offer policies that do not require a medical exam. These providers streamline the application process, often allowing you to get covered in a matter of minutes if eligible.
There are several factors to consider when shopping for a quality term life insurance policy. Since your life insurance will ultimately be responsible for providing the coverage you want for your family, these considerations may be beneficial to keep in mind when determining which provider is right for you. In addition to policy types, you could consider the following.
Customer satisfaction scores may provide insight for consumers looking to purchase insurance products. These scores reflect how satisfied existing customers may be with the customer service and claims process. You might use these scores to get an idea of how your customer experience could be and which carrier might best fit your expectations.
A life insurance company’s financial strength score reflects its past ability to pay out claims and could help you decide if a company is financially sound. Third-party agencies such as AM Best, Fitch, Moody’s and S&P publish financial strength ratings for each major provider.
When sorting through the top term life insurance companies, it's important to consider your specific needs and circumstances. Term life insurance provides coverage for a set number of years, making it a suitable option for temporary needs like covering debts or providing for your children while they are young. However, it might not be the best choice if you require lifelong coverage.
Many term policies offer options for renewability or conversion, allowing you to extend your coverage or convert it to a permanent policy without undergoing a new medical exam. This can be a valuable feature if your needs change over time.
If you are looking for coverage beyond a set term, such as for final expenses or to support a lifelong dependent, permanent life insurance might be more appropriate. Here are a few options to consider:
Term life insurance quotes can vary significantly between insurers, depending on your individual risk factors. Comparing quotes is beneficial, as it can potentially save you a substantial amount of money, particularly if you have a pre-existing condition since insurers can evaluate and price various health risks differently.
Additionally, consider bundling life insurance with your home or auto policies. While this typically won't reduce your life insurance premium, many insurers offer multi-policy discounts. These discounts are often applied to your home and auto policies, which can lower your overall insurance expenses.
Term life insurance is a type of life insurance that offers coverage for a set period of time, or term. Term life is usually the most affordable type of life insurance because it only lasts for a specific number of years, usually 10 to 30 years. Unless you buy return-of-premium life insurance, you receive nothing back if you outlive the term. However, many term life insurance policies offer the option to convert to a permanent life insurance policy at the end of the term. Many carriers also provide the option to renew a term life policy annually if you still need coverage past the expiration date.
Term insurance is designed to provide a death benefit if the insured passes away within the policy term. As the name suggests, term life insurance remains active for a predetermined “term,” which is the window of time that the policyholder chooses — typically between 10 and 30 years. When the term expires, the policyholder stops paying the premiums and the death benefit will no longer be paid out. Whole life insurance, on the other hand, is a type of permanent policy designed to provide coverage for your entire life. It typically offers a death benefit and a cash value component you can borrow against. Because whole life insurance policies usually have larger payouts, premiums are often ten times more expensive than a term policy.
Life insurance premiums are largely based on mortality risk. In general, the higher the likelihood someone has of passing away while the policy is active, the higher the premium will be. Each insurer has its own underwriting algorithm for calculating your rate. Although each underwriting process is different, your age, gender, weight, health conditions, smoking history and occupation are typically used to help calculate your premium. The amount of coverage that you want to purchase is another key factor in determining the cost of life insurance. For those looking for cheap life insurance, it may be wiser to start shopping at a younger age.
Yes, having a preexisting condition can impact your ability to purchase term life insurance. Different insurers may view the seriousness of conditions differently, so comparing rates from various providers is important. If a life insurance provider approves you for a term life policy with a preexisting condition, your premium may be higher to reflect the health risks. However, insurers might be more likely to approve you if your condition is well-managed. For instance, maintaining a healthy lifestyle with Type 2 diabetes is likely to increase your chances of approval. Comparing rates is essential because each insurer has different underwriting guidelines, and finding the right one can help you secure better coverage at a more affordable rate. Speaking with a licensed insurance agent can also help you navigate your options effectively.
The cost of life insurance will vary based on your policy details and personal rating factors, but term life insurance coverage is typically cheaper than whole life insurance, a type of permanent coverage. This is because whole life insurance is designed to offer coverage for your entire life (maximum coverage ages range from 95 to 121) and guarantee a payout to your beneficiaries, as long as premiums are paid and terms of the policy are met. Term coverage, on the other hand, may not pay out a death benefit if you outlive the policy term and do not renew your coverage. That being said, the cost of life insurance coverage varies based on coverage amount and individual risk rating factors, so a term policy with a high coverage amount for an older individual may cost more than a permanent policy for a younger applicant with a low coverage amount.
