Our Top Picks for Term Life Insurance
Here are the top life insurance companies that provide term life coverage and what we like most about each one:
- Banner Life: Best for term life insurance
- MassMutual: Best for permanent life insurance
- Guardian Life: Best for an in-person experience
- State Farm: Best for customer satisfaction
- Transamerica: Most affordable coverage
- Pacific Life: Our pick for universal life coverage
- John Hanco*ck: Best for people with diabetes
Compare 7 Best Term Life Insurance Companies
| Company | Best For | Monthly Cost | BBB Rating | Visit Site |
|---|---|---|---|---|
| Best for term life insurance | $17-$39 | A+ | Our Review |
| Best for permanent life insurance | $18-$40 | A | Our Review |
| Best for an in-person experience | $21-$45 | A | Our Review |
| Best for customer satisfaction | N/A | A+ | Our Review |
| Best for affordable life insurance | $23-$47 | N/A | Our Review | |
| Our pick for universal life coverage | $17-$40 | N/A | Our Review | |
| Best for people with diabetes | $23-$54 | B | Our Review |
| Company | BBB Rating | Best For | Monthly Cost | Visit Site |
|---|---|---|---|---|
| A+ | Best for term life insurance | $17-$39 | Our Review |
| A | Best for permanent life insurance | $18-$40 | Our Review |
| A | Best for an in-person experience | $21-$45 | Our Review |
| A+ | Best for customer satisfaction | N/A | Our Review |
| N/A | Best for affordable life insurance | $23-$47 | Our Review | |
| N/A | Our pick for universal life coverage | $17-$40 | Our Review | |
| B | Best for people with diabetes | $23-$54 | Our Review |
No results were found.
Note: We based cost data on quotes collected for 35- and 45-year-old men and women without a history of tobacco use seeking $250,000 in coverage.
MARKETWATCH GUIDES TIP
Term life insurance is usually the cheapest option for most people, especially compared to permanent coverage such as whole life or universal life. The most popular option is 20-year term coverage, according to the Insurance Information Institute (Triple-I).
Banner Life
Best for term life insurance
4.6
Our Rating
Coverage: 4.7/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 4.6/5
BBB RatingA+Maximum Issue Age75Term Lengths Available10, 15, 20, 25, 30, 35 and 40 years
Pros and Cons
Pros Offers selection of riders to allow policyholders to customize their coverage Has a total of seven term periods, more than any provider we reviewed Holds an A+ financial strength rating from the credit rating agency AM Best Cons Does not offer whole life policies Offers fewer riders than some competitors we reviewed
Why We Picked Banner Life
Banner Life scored points in our review for offering seven options for its term life policies, more than competitors we reviewed, including a 40-year term. The company also stands out because all of its term plans feature the option to convert to permanent coverage, and its no-exam plans offer up to $1 million in coverage.
Banner Life also excels in customer service and trustworthiness based on scores from the National Association of Insurance Commissioners (NAIC) and AM Best. The company’s 0.10 NAIC complaint index score indicates 90% fewer complaints than expected for a company its size. AM Best gives the provider an A+ financial strength rating, indicating a “superior” ability to meet its financial obligations such as death benefit payouts.
Coverage and Cost
Banner Life offers the following types of life insurance policies:
- Term life insurance
- Universal life insurance
Cost
After researching Banner Life’s rates, we estimated monthly premium costs for a 20-year term policy for a tobacco-free applicant who qualifies 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
MassMutual
Best for permanent life insurance
4.8
Our Rating
Coverage: 4.7/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 4.6/5
Our Review
BBB RatingAMaximum Issue Age75Term Lengths Available10, 15, 20, 25 and 30 years
Pros and Cons
Pros Offers several permanent life insurance options, including whole life and variable universal plans Rated A+ in financial strength by the credit rating agency AM Best Offers guaranteed issue policies Cons Sets coverage limit of $25,000 for whole life policies, lower than some options on our list Must speak with an agent to get quotes for term policies
Why We Picked MassMutual
MassMutual offers a wide range of permanent life insurance options, including a guaranteed issue plan for applicants ages 50 to 75 who might have trouble securing standard life insurance because of underwriting concerns. The company also offers flexibility with universal life and variable universal policies, which round out its permanent insurance products. Founded more than 170 years ago, MassMutual assures financial peace of mind to policyholders with an A++, the highest financial strength rating possible, from AM Best.
MassMutual offers six different term life plans, has a robust selection of add-on options and rates well in customer service. The company secured the third-place ranking on J.D. Power’s 2023 customer satisfaction survey, scoring 809 out of 1,000 points. However, MassMutual requires consumers to get quotes for some plans over the phone.
Coverage and Cost
MassMutual offers the following types of life insurance policies:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Variable universal life insurance
- No-exam final expense life insurance
Cost
To give you an idea of what MassMutual policyholders might pay for term coverage, we based the rates below on a 20-year policy for a tobacco-free applicant considered in good health.
- 35-year-old man: $19
- 35-year-old woman: $17
- 45-year-old man: $37
- 45-year-old woman: $29
Guardian Life
Best for an in-person experience
4.7
Our Rating
Coverage: 4.7/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 4.6/5
Our Review
BBB RatingAMaximum Issue Age75Term Lengths Available1, 10, 10, 20 and 30 years
Pros and Cons
Pros All term policies come with an option to convert to whole life insurance Holds an A++ with AM Best, the highest financial strength score possible Has more than 160 years of experience offering insurance Cons Customers must work through a life insurance agent to apply Website offers few policy specifics based on our experience
Why We Chose Guardian Life
Founded in 1860, Guardian Life is one of the largest mutual life insurance agencies in the U.S. and requires you to work with an agent to apply for coverage. For this reason, people who prefer in-person contact and individualized coverage plans may benefit from working with the company. All term policies that Guardian Life offers come with a provision allowing policyholders to convert to whole life plans within the first five years of the term.
The company scores highly based on industry-specific rating methodologies. Guardian Life holds the highest possible A++ financial strength score from AM Best and a low NAIC complaint index of 0.09. However, during our research, we found that the company’s website fails to offer much information on coverage and cost.
Coverage and Cost
Guardian Life offers the following types of life insurance policies:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Variable universal life insurance
Cost
To estimate rates for a Guardian Life term life policy, we based the rates below on 20-year coverage for a healthy, tobacco-free applicant who qualifies for the preferred underwriting class.
- 35-year-old man: $21
- 35-year-old woman: $19
- 45-year-old man: $45
- 45-year-old woman: $35
State Farm
Best for customer satisfaction
4.6
Our Rating
Coverage: 4.7/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 4.6/5
Our Review
BBB RatingA+Maximum Issue Age75Term Lengths Available10, 20 and 30 years
Pros and Cons
Pros Has ranked No. 1 in J.D. Power customer satisfaction survey for four straight years Website makes it easy to get quotes for term life coverage based on our experience Holds an A++, the highest possible financial strength rating from AM Best Cons Website only offers quotes for certain permanent life policies Only applicants under 50 years old can qualify for no-exam term life policies
Why We Picked State Farm
State Farm has established a reputation for financial stability and customer satisfaction over more than a century of providing insurance. The company has earned the No. 1 ranking on J.D. Power’s annual customer satisfaction survey for four straight years, scoring 843 out of 1,000 points in 2023.
Its financial stability is supported by the best possible A++ rating from AM Best, supporting its ability to pay death benefits. When we conducted a Pollfish survey of 1,000 life insurance policyholders in February 2024, 13% of respondents chose State Farm as their provider, which was more than any other company included in the survey.
The company’s term life policies are renewable up to age 95. Though customers can get term life quotes online, you must work with an agent to get quotes for permanent life insurance plans.
Coverage and Cost
State Farm offers the following types of life insurance policies:
- Term life insurance
- Whole life insurance
- Universal life insurance
- No-exam final expense life insurance
Cost
We were unable to obtain cost information for State Farm. You can contact the company for more details on pricing.
Transamerica
Our pick for most affordable coverage
4.4
Our Rating
Coverage: 4.7/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 4.6/5
Maximum Issue Age80Term Lengths Available10, 15, 20, 25 and 30 years
Pros and Cons
Pros Has a maximum issue age of 80 for term life, higher than some providers we reviewed Features two distinct term plan options, Trendsetter Super and Trendsetter LB Offers a Trendsetter Super term policy with coverage limits of $10 million and up Cons Ranked No. 20 out of 22 providers profiled in J.D. Power’s 2023 customer satisfaction survey NAIC complaint index score of 3.20 is higher than some providers on our list
Why We Picked Transamerica
Transamerica has a maximum age issue of 80 years old for both types of term life plans, a higher limit than some other competitors we reviewed. The company also earned our pick for most affordable coverage based on average rates of $31 per month for healthy 25- to 45-year-olds seeking a 20-year term policy with $500,000 in coverage. Founded nearly 120 years ago, the company holds an A rating from AM Best, offering financial security to beneficiaries and policyholders.
However, Transamerica does not rank as well as some competitors with independent rating companies. The company’s score of 757 out of 1,000 in J.D. Power’s 2023 customer satisfaction survey places it at No. 20 out of 22 providers profiled. Transamerica’s 3.20 NAIC complaint index is also more than three times higher than expected based on its share of the life insurance market.
Coverage and Cost
Transamerica offers the following types of life insurance policies:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Indexed universal life insurance
- Indexed variable universal life insurance
Cost
To estimate costs for Transamerica policyholders, we received rates for a 20-year term policy based on a tobacco-free applicant considered in good health.
- 35-year-old man: $16
- 35-year-old woman: $14
- 45-year-old man: $31
- 45-year-old woman: $25
Pacific Life
Best for universal life insurance
4.3
Our Rating
Coverage: 4.7/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 4.6/5
Maximum Issue Age80Term Lengths Available10, 15, 20, 25 and 30 years
Pros and Cons
Pros Term life policies offer more rider options than some competitors we reviewed Has a high rating in J.D. Power’s annual customer satisfaction survey Higher-than-average maximum issue age of 80 years old for its PL Promise Term policy Cons Can only convert term life policies to universal life, not whole life coverage Customers must work with an agent to get quotes and buy coverage
Why We Picked Pacific Life
We selected Pacific Life because it offers flexibility and customization with up to 13 available riders for its many policy options, which include term, whole life and universal life. It issues its PL Promise Term policy to applicants up to age 80, a higher limit than some providers we reviewed. Over more than 150 years of operations, the company has also established a reputation for financial stability and customer satisfaction.
Pacific Life ranked sixth of 22 providers in J.D. Power’s 2023 U.S. Individual Life Insurance Study with a score of 799 out of 1,000. The company also demonstrates a strong ability to meet its financial obligations, including claim payouts, with an A+ rating with AM Best. However, you cannot purchase policies online and must connect with an agent to apply.
Coverage and Cost
Pacific Life offers the following coverage options:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Variable universal life insurance
Cost
To estimate how much Pacific Life policyholders might pay, we based the below rates on a 20-year term policy for a tobacco-free applicant in good health who qualifies for the preferred rating class.
- 35-year-old man: $16
- 35-year-old woman: $14
- 45-year-old man: $30
- 45-year-old woman: $24
John Hanco*ck
Best for people with diabetes
4.6
Our Rating
Coverage: 4.7/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 4.6/5
Our Review
BBB RatingBMaximum Issue Age80Term Lengths Available10, 15, 20 and 30 years
Pros and Cons
Pros Issues term life policies up to age 80, a higher limit than some competitors Allows applicants up to 60 years old to apply for no-exam coverage Offers up to $65 million for term life plans, higher than some providers we reviewed Cons Doesn’t offer whole life coverage options Customers must contact an agent to get quotes or apply for coverage
Why We Chose John Hanco*ck
John Hanco*ck stands out among the life insurance competitors we reviewed for 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. We selected the company for this review because it offers four term life insurance plans and coverage amounts as high as $65 million.
A household name in life insurance and financial services since its founding in 1862, John Hanco*ck issued more than $4.8 billion in policies in 2023. John Hanco*ck has an AM Best rating of A+, the credit rating agency’s second-highest possible score. However, John Hanco*ck does not provide online quotes or offer a traditional whole life policy option.
Coverage and Cost
John Hanco*ck offers the following types of life insurance policies:
- Term life insurance
- Universal life insurance
- Indexed universal life insurance
- Variable universal life insurance
Cost
To determine how much John Hanco*ck policyholders might pay for life insurance, we based the rates below on a 20-year term policy for a tobacco-free applicant who qualifies for the preferred health rate class.
- 35-year-old man: $25
- 35-year-old woman: $22
- 45-year-old man: $45
- 45-year-old woman: $37
Life Insurance Cost Calculator
Average Term Life Insurance Cost
Compare rates for varying coverage amounts, age and gender below.
Types of Life Insurance
Life insurance policies are designed to pay out a lump sum to beneficiaries when you die, but features can vary from one policy to the next. Below is a breakdown of the two types of policies — term life insurance and permanent life insurance.
Term Life Insurance
Term life insurance policies cover you for a preset term, such as 10, 20 or 30 years. Since there’s a time limit on coverage, these policies tend to be cheaper than life insurance policies that accrue cash value and cover you for your entire life.
Under the term life insurance umbrella, here are the different types of policies you can obtain, according to the National Association of Insurance Commissioners (NAIC):
- Level term:A term policy where premiums and coverage stay the same for the entire term.
- Decreasing term: A term policy where the death benefit decreases throughout your term. This type of policy can make sense if you purchase insurance to cover a specific expense that decreases, like college costs that get lower the closer your child gets to graduation.
- Renewable term: A policy that allows you to renew at the end of the term without additional underwriting or another medical exam.
- Convertible term: A policy that can be converted to a permanent policy that builds cash value.
- Return of premium term: A policy where you get a return of your premium payments at the end of the term if you outlive the policy term.
Permanent Life Insurance
Permanent life insurance policies cover you for your entire life as long as you keep up with premium payments. Aside from providing a death benefit, permanent life policies accumulate cash value as you pay premiums. This cash value grows tax-deferred and is money you can draw from during your lifetime. Below are different types of permanent life insurance:
- Whole life: A permanent life insurance policy where coverage and premiums are fixed, and the policy builds a guaranteed amount of cash value.
- Universal life: A permanent life policy where premiums may be adjusted, and you get a cash value account that earns interest.
- Index universal life: A permanent life insurance policy where you can adjust your premiums and cash value earns a return according to a market index, like the S&P 500.
- Variable universal life: A permanent life policy where premiums can adjust, and cash value built up can be invested to grow your assets. Money may be invested in stocks, bonds, mutual funds and more.
Factors That Affect the Cost of Life Insurance
During underwriting, life insurance companies review your information and family history to decide the risk of insuring you. Below are factors that may affect your insurance premiums.
- Age:Generally the older you are, the more you’ll pay in life insurance premiums because you’re a higher risk for insurance companies to cover.
- Health: Insurance companies may require that you go through a health exam as part of the application process, and having health conditions could make you more expensive to insure. Family medical history can also affect your rates. If you’re worried about your health affecting your ability to get insurance, there are some companies that offer no-exam life insurance.
- Tobacco use: Use of tobacco can lead to a higher risk of illness and can increase your life insurance rates.
- Occupation: Working in a dangerous job could increase your insurance costs. For example, a life insurance company could consider you a high-risk applicant if you work in construction or mining.
- Hobbies: If you engage in hobbies that are higher risk, like flying an airplane, rock climbing or skydiving, your insurance rates could be higher.
Debt and Term Life Insurance
Term life insurance is used as a form of financial protection to cover debt in the event of your death. The death benefit payout can help your beneficiaries cover mortgage payments, outstanding credit card balances, funeral costs and other forms of debt. However, since term life policies do not have a cash value component, you cannot use benefits to pay off debt while you’re alive.
Permanent life insurance policies such as whole life and universal life are examples of plan types that build cash value. Once your cash value reaches a specific amount, you can generally borrow against your policy to pay off debt. Some term policies have an option to convert to permanent coverage, which would potentially allow you to borrow against the policy.
How To Find the Best Term Life Insurance Company
Before you start shopping for the best term life insurance provider, begin by understanding your financial needs and current situation. Consider factors including your desired policy duration and how much coverage you need. Think about the specific features in your policy, such as an accidental death and dismemberment rider or a long-term care insurance add-on. Once you know your needs, you can look for the right insurance provider.
We recommend requesting quotes from at least three companies to ensure you’re getting a fair deal. You can find savings by shopping around since each insurer may evaluate your application differently.
You can also review each provider’s financial stability ratings — the independent credit rating agency AM Best is a good place to start. Also, it can help to check customer reviews, policy terms and understand the claims process. If you still cannot decide on the right company or coverage, consider talking to a financial advisor.
MARKETWATCH GUIDES TIP
Term life insurance can offer an affordable choice for parents or for people whose loved ones depend on them financially. Your named beneficiaries can use term life coverage to cover outstanding debt such as a mortgage or student loans or replace lost income if you pass away.
Is Life Insurance Worth It?
Whether or not it makes sense to purchase life insurance comes down to who relies on you. The goal is to avoid leaving behind a financial burden. If you’re single or retired without dependents and a paid-off mortgage, life insurance probably isn’t necessary.
However, if you have financial obligations, like a mortgage, and your family would struggle financially after losing your income, buying life insurance could be a good move. A life insurance payout can help loved ones pay for your funeral costs and other living expenses. Plus, cash left over could be inherited by children, giving them a financial head start in adulthood.
Term life insurance is the simplest and lowest-cost type of life insurance coverage. If your main goal is to cover a certain expense after death, like funeral costs or college tuition, this is the type of policy to go for. Meanwhile, a permanent life policy can be worth considering if you can afford higher premiums and you want to build assets while living. Whole life, universal life or variable universal life policies offer cash value accrual that you could eventually borrow or withdraw from.
Select
Best Term Life Insurance What is Term Life Insurance? Term vs. Whole Life Insurance 20 Year Term Life Insurance Convert Term to Whole Life Insurance Benefits of Term Life Insurance How Long Term Life Insurance Should Last Level Term Life Insurance Short Term Life Insurance Annual Renewable Term Life Insurance Term Life Insurance Expires
Our Conclusion About Term Life Insurance
Life insurance is a financial tool that can help family members make ends meet after losing your source of income. Affordable life insurance can come in small amounts of $25,000 to $50,000, which could be just enough to handle your final affairs. You can also purchase higher amounts of insurance to handle bigger financial obligations, but this will increase your life insurance cost.
If you’re interested in purchasing life insurance, you don’t necessarily need to set up a meeting to talk about your options in person with an insurance agent. Today, many companies provide coverage details on the website for you to compare options, and there are online forms where you can get life insurance quotes. When shopping around for life insurance, review terms, coverage limits and rider options across multiple policies to find the right one for your family. We recommend that you compare quotes from at least three different providers.
Frequently Asked Questions About Term Life Insurance
There’s no best life insuranceacross the board — it varies by person and situation. The right insurance for you provides sufficient coverage at a price that fits into your budget. Experts recommend purchasing life insurance with a value that’s ten times your annual salary.
So, if you earn $60,000 per year, aim to have a policy that’s $600,000 per year. However, you could decide you need more if you want the insurance payout to be able to pay off your mortgage balance and cover education costs for multiple children.
Term life insurance may be worth buying if you have people who rely on your income. After you die, funds from the life insurance payout can go to paying for funeral costs and other final expenses. Your family can also use the money for day-to-day bills until they’re able to adjust their budget.
Term life insurance is inexpensive compared to other insurance that lasts a lifetime. And at the end of the term, you could renew, or you could consider converting to a permanent life policy that offers wealth-building opportunities through cash value accrual.
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 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.
Methodology: Our System for Ranking Life Insurance Companies
Our team researches and ranks life insurance companies using an in-depth scoring system that considers the factors most important to consumers like you. Our analysis includes a comprehensive review of each provider we feature based on available coverage, customizability, availability, customer service and company reputation. Here are the factors we take into consideration when rating life insurance providers:
- 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 and Associates customer satisfaction surveys, AM Best credit rating scores and the National Association of Insurance Commissioners (NAIC) complaint index. The higher a company scores in each area, the more points it receives.
- Coverage (33%): The more policy options a life insurance company offers, the more opportunities you have to obtain the right coverage for your specific needs. For this reason, we give companies the most points for offering multiple types of life insurance, including various term, permanent and no-exam options.
- Availability and ease of use (19%): Since life insurance coverage options can be 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 endorsem*nts allow policyholders to better customize their coverage. In this category, we determine how many riders a company offers and award the most points to providers 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 ourfull life insurance methodologyfor reviewing and scoring providers.AM Best Disclaimer
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.
Graham RaySenior Author
Graham Ray is a writer with two decades of experience in journalism, digital marketing and advertising. He has written everything from corporate brand guides and websites to public relations campaigns. Graham’s knowledge of the insurance sector is bolstered by his experience as a licensed life and health insurance agent in more than 30 states.
Tori AddisonEditor
Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.
