Best Term Life Insurance Companies — As fall approaches, you may be dreaming of enjoying cooler temps and falling leaves. But before that dream comes true, consider devoting some time to financial planning. Life insurance is a vital part of a solid financial plan. If you don’t already have a policy, now is the right time to consider your options, and term life is a good place to start.
There are many competitively priced term life insurance options available. We evaluated costs and policy features from multiple companies to find the best-term life insurance companies.
Best-Term Life Insurance Companies
After analyzing 260 coverage details, here are our top picks for the best term life insurance policies:
- Pacific Life – Best Cost For $1 Million Term Life
- Principal – Great For High Issue Age
- Protective – Great For Long Level Term Length
- Symetra– Best For Term Life Insurance Rates
- Transamerica – Best For Buyers In Their 50s
- AIG/American General – Great For Choices Of Term Lengths
- Banner Life/Legal & General America – Great for Long Level Term Lengths
- Haven Life – Great Rates For Buyers Under Age 45
- Midland National – Great for Living Benefits
- Penn Mutual – Great For Older Buyers of 30-Year Term Life
Pacific: Best Term Life Insurance Companies
Pacific Life is strong across the board in our analysis thanks to its low rates and top-notch coverage features.
Pros and Cons
Pros
- Low average term life insurance cost among the companies we analyzed. Offers especially low rates for $1 million term life insurance.
- The policy is guaranteed renewable until age 95.
- You can convert a PL Promise Term policy into a Pacific Life universal life insurance policy until age 70.
Cons
If you choose to convert the term life policy, you’re limited to a universal life policy.
Principal: Best Term Life Insurance Companies
Principal’s term life policies offer competitive rates and valuable coverage features. Notably, there was not a single complaint last year to state regulators about its life insurance.
Pros and Cons
Pros
- Competitive term life insurance rates
- Term life insurance buyers may be able to get up to $3 million in coverage without a medical exam, depending on your age and health.
- High maximum issue age of 80 for 10-year term life
- You can renew the policy to age 95 (at higher rates once the level term period ends)
Cons
- You’ll have to buy the Conversion Extension Rider if you want the option to convert the policy throughout the level term period (or until age 70). Without the rider, the conversion period will be limited and depend on your term length.
- The minimum face amount of $200,000 is higher than many competitors.
Protective: Best Term Life Insurance Companies
Protective’s Classic Choice term life policy is notable for its low rates and superior choices of level term lengths during which you lock in the rate.
Pros and Cons
Pros
- Level term lengths include 35- and 40-year choices. Many competitors have 30 years as their longest-level term period.
- The policy can be renewed until age 95 (at higher rates every year after the level term period ends).
- Choice of up to 8 permanent life insurance policies from Protective if you choose to convert the term life.
Cons
Protective puts tighter restrictions than many competitors on using the accelerated death benefit: You can access only 60% or $1 million (whichever is less) of the death benefit. And you must have a life expectancy of no more than six months, while many competitors use 12 months.
Symetra
Symetra had the lowest average term life insurance rates in our analysis, making it a top option for term life shoppers.
Pros and Cons
Pros
- Lowest term life rates in our analysis
- Symetra SwiftTerm can be purchased online and with instant approval if you’re young and healthy.
- The policy can be renewed until age 95 (at a higher cost each year after the level term period).
Cons
- The maximum issue age of 60 for a 10-year term life is lower than many competitors.
- The maximum face amount of $3 million is also lower than many competitors.
- As a relatively young company (founded in 1957), Symetra lacks a long track record of demonstrating its ability to pay claims.
- The accelerated death benefit money available if you’re terminally ill is only up to $500,000 (or 75% of your death benefit, whichever is lower).
Transamerica
Transamerica’s Trendsetter Super policy is worth consideration for its top-notch policy features that are available for older ages and excellent rates.
Life insurance buyers interested in living benefits should take a look at Transamerica’s Trendsetter LB term life policy. With this policy, you’ll be able to access money from your death benefit if you develop a chronic or critical condition that qualifies.
Pros and Cons
Pros
- Best average term life insurance rates for healthy buyers in their 50s, among the companies in our analysis.
- Term life insurance buyers who are young and healthy won’t need a medical exam for up to $2 million in coverage.
- A low face amount of $25,000 will appeal to life insurance buyers who want only a small policy.
- The maximum issue age of 80 is higher than many competitors.
- The policy can be renewed to age 100, which is a higher age than many competitors.
- You can convert the policy to permanent life insurance until age 75, which is also older than many other insurers offer.
- Especially good rates for term life insurance buyers in their 50s
Cons
Rates were good but not the lowest among the companies we analyzed, although you do get top-notch coverage features.
AIG/American General
American General’s Select-a-Term breaks the mold when it comes to choices of level term lengths. You can choose a custom policy length, such as 12 years. American General’s Select-a-Term policy generally has very competitive rates that will appeal to any term life insurance buyer.
Cash value life insurance buyers will appreciate American General’s strong historical performance of its investments and its reliable policy illustrations.
Pros and Cons
Pros
- Very low term life insurance rates.
- High maximum issue age of 80.
- Term life insurance buyers can customize a level term length between 10 and 35 years, such as 18 years.
- To use the accelerated death benefit rider, you must have a life expectancy of 24 months or less—many competitors require 12 months or less.
Cons
- The Select-a-Term policy is not renewable at the end of the level term period.
- The ability to convert the policy to permanent life insurance ends at age 70.
Banner Life/Legal & General America
Banner Life is one of only a couple of life insurers that offer long-level term lengths of 35 or 40 years. (Protective is the other.) Most other companies top out at 30 years. Banner Life’s term life insurance rates are fairly competitive. If you’re looking to lock in a good rate for a long period, take a look at Banner Life.
Pros and Cons
Pros
- Very competitive rates.
- Superior choice of level term lengths.
- You can convert the policy to permanent life until age 70.
Cons
- This policy is not renewable after the level term period ends.
- The maximum accelerated death benefit available is only $500,000 or 75% of your death benefits, whichever is less.
Haven Life
Haven Life offers especially attractive term life rates to younger term life insurance buyers, but you won’t get the ability to renew or convert the policy.
Pros and Cons
Pros
- Superior financial strength thanks to its backing by MassMutual
- Online application process
- Policies include the Haven Life Plus rider. This gives policyholders access to free or discounted resources for creating trust and wills, end-of-life planning, and more.
Cons
- No ability to renew the policy after the level term period or convert it into a permanent policy. These features can be valuable if your health and/or needs change after you buy a term life policy.
- The maximum face amount of $3 million
- Rates are very high for buyers in their 50s and 60s.
Midland National
Midland National’s Premier Term policy deserves serious consideration because of the ample living benefits. Policyholders can get an accelerated death benefit after a diagnosis of a terminal illness, chronic illness, or critical illness. And Midland National delivers these benefits at very competitive rates that are often lower than some competitors’ policies without these living benefits.
Pros and Cons
Pros
- Ability to take money from your death benefit in cases of terminal illness, chronic illness, or critical illness.
- Competitive term life rates that include these living benefits.
- 30-year term life is available for buyers up to age 55 (50 for tobacco users).
Cons
Limited choice of additional riders, but likely offset by the living benefits included.
Penn Mutual : Best Term Life Insurance Companies
Penn Mutual offers great term life insurance rates across a variety of term lengths and coverage amounts.
Pros and Cons
Pros
- There are generally excellent rates for Penn Mutual’s basic term life policy but it can’t be converted to permanent life insurance in the future.
- If you have the convertible term, you can convert any time up to age 70.
- If you convert, you can choose from any Penn Mutual permanent life insurance policy available. Some other insurers limit your options or only have one choice of policy for conversion.
- Online application is available.
- Some life insurance buyers may not be required to do a life insurance medical exam.
Cons
- You’ll have to pay for the convertible term policy if you want that feature. The convertible term policy is much less price-competitive.
- No accelerated death benefit is available
Summary: Best Term Life Insurance Companies
For our ratings, we take into account several different factors—cost competitiveness, historical performance, reliability of policy illustrations, and financial strength—to determine the best life insurance companies that sell term life policies.
