Best term life insurance of August 2023
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Published 3:00 a.m. ET Aug. 1, 2023
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Comparing the best term life insurance companies can help ensure you find coverage that meets your needs. To help with your search, our insurance experts reviewed more than 20 life insurance companies to determine which offer the best term life insurance policy based on key factors such as rates, complaints and the option to convert your policy to a permanent life insurance policy.
Why trust our insurance experts
Our team of experts evaluates hundreds of insurance products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 28 insurers evaluated
- 1,837 rates reviewed
- 5 levels of fact checking
Key points
- Symetra and Pacific Life are the best term life insurance companies, according to our analysis.
- Protective and Banner/Legal each offer 40-year terms, the longest in our review.
- Comparing life insurance quotes can help you find the best coverage at the lowest rate.
Best term life insurance of August 2023
- Best for rates: Symetra
- Best for coverage amounts: Pacific Life
- Best for term lengths: Protective
- Best for policy perks: Haven Life
- Best for customer satisfaction: Penn Mutual
- Best for lengthy terms: Banner Life/Legal & General
- Best for customizable terms: Corebridge Financial
- Best for buyers in their 50s: Transamerica
- Best for living benefits: Midland National
Best term life insurance comparison
| Insurer and policy | Available Terms (Years) | Coverage Amounts | Convertible (Y/N) | Rating | LEARN MORE | ||
|---|---|---|---|---|---|---|---|
| Symetra - Symetra SwiftTerm | 10, 15, 20 or 30 | $100,000 to $3 million | Y | 5.0 stars | Compare Rates | Compare quotes offered by participating partners | |
| Pacific Life - PL Promise Term | 10, 15, 20, 25 or 30 | $50,000 minimum | Y | 5.0 stars | Compare Rates | Compare quotes offered by participating partners | |
| Protective - Classic Choice Term | 10, 15, 20, 25, 30, 35 or 40 | $100,000 minimum | Y | 4.5 stars | Compare Rates | Compare quotes offered by participating partners | |
| Haven Life - Haven Term 2.0 | 10,15,20,25, or 30 | $100,000 to $3 million | N | 4.5 stars | Learn More | Via Haven Life's Website | |
| Penn Mutual - Non-convertible Term | 10, 15, 20 or 30 | $250,000 minimum | N | 4.5 stars | Compare Rates | Compare quotes offered by participating partners | |
| Banner/Legal & General - OP Term | 10, 15, 20, 25, 30, 35 or 40 | $100,000 to $65 million | Y | 4.0 stars | Compare Rates | Compare quotes offered by participating partners | |
| Corebridge Financial - Select-a-Term | 10 to 35 | $100,000 to $41 million | Y | 4.0 stars | Compare Rates | Compare quotes offered by participating partners | |
| Transamerica - Trendsetter Super | 10, 15, 20, 25 or 30 | $25,000 minimum | Y | 4.0 stars | Compare Rates | Compare quotes offered by participating partners | |
| Midland National - Premier | 10, 15, 20 or 30 | $100,000 minimum | Y | 4.0 stars | Compare Rates | Compare quotes offered by participating partners |
Cost comparison: Best term life insurance companies of 2023
Here’s how the best term life insurance companies compare to one another in terms of cost. This table compares the average annual rate for a $250,000 20-year term life insurance policy for a 30-year-old.
What is term life insurance?
Term life insurance is a type of coverage that locks in your rates for a specific period of time, such as 10, 15, 20, 25 or 30 years. When the level term period expires, your coverage ends unless you renew the policy or purchase a new one, usually at a higher rate.
If you die during the policy term, your beneficiary will receive a death benefit, or a lump sum of money that reflects the amount of coverage you chose when you purchased the policy. If you die after the policy expires, your beneficiary will not receive the death benefit.
You can choose one or more beneficiaries, with common options including a spouse, partner, child or grandchild.
Who should get term life insurance? According to Alison Salka, Ph.D., senior vice president and director of LIMRA Research, term life insurance is generally a good option “if someone knows they’re only going to need [coverage] for a short period of time,” such as while they pay off a mortgage or have children living with them. She also points to term life insurance as the product that is typically more affordable and easy to understand, particularly when compared to permanent life insurance, which is generally more complex.
Are you looking for the best life insurance? These are the best life insurance companies of 2023
Pros and cons of term life insurance
Term life insurance offers many benefits, but there are also some drawbacks to this type of coverage. Here’s what to consider.
Want coverage with an investment component? Learn more about cash value life insurance.
How much does term life insurance cost?
The average annual cost of term life insurance is $153, for a $250,000, 20-year term life insurance policy for a healthy, 30-year-old female.
A male of the same age and health will pay an average of $176 for the same policy.
A 20-year $1 million term life policy for the same female would cost an average of $325 annually. A male would pay about $408 on average.
Factors that will influence your term life insurance rate include:
- Age.
- Gender.
- Selected death benefit.
- Additional riders, if applicable.
- Policy term.
- Smoking status.
- Marijuana use.
- Medical history.
- Medical history of your parents and siblings.
- Height and weight.
- Prescription history.
- Risky occupations or hobbies.
- History of alcohol or substance abuse or treatment.
- Criminal history.
- Credit history.
- Driving record (such as DUIs).
Average annual cost of 10-year term life policy for female
Average annual cost of 10-year term life policy for male
Average annual cost of 20-year term life policy for female
Average annual cost of 20-year term life policy for male
Shopping for life insurance later in life? Best life insurance for seniors
How to find the best term life insurance policy
There are a lot of term life options available. These three steps can help you choose the term life insurance policy most suited to your needs.
1. Decide how much life insurance you need
When shopping for the best term life insurance, first determine how much coverage you need.
Asking yourself the following questions can help you identify a coverage amount that suits your financial goals.
- Do I need to replace my income? If so, how many years of income would you like to provide for your beneficiary?
- Do I have a mortgage payment? If so, how much coverage do you need to cover the balance?
- Do I have any other debts I want covered after my death? This might include car payments, personal loans or other outstanding debts.
- Do I want to cover my child’s educational expenses? Consider private tuition for grade school or high school as well as college expenses where applicable.
- Do I have any other life insurance policies? Some insurers offer supplemental life insurance policies, though the face value is generally low and coverage often ends when you leave your employer.
- Do I have any existing assets my family can rely on? This may include savings accounts, retirement plans and college 529 savings accounts.
- Do I want to cover my final expenses, such as funeral costs? The median cost of a funeral with viewing and burial is $7,848.
2. Determine the ideal length for term life insurance
Common choices for term life insurance policies are 10, 15, 25 and 30 years, with some companies offering terms up to 40 years. Consider what type of expenses you want the death benefit to cover — such as tuition or mortgage payments — and for how long.
Keep in mind that even though many term life insurance policies can be renewed, your rate will increase with each renewal. It’s best to choose a term that will fully meet your needs rather than rely on renewal options.
If you think you may eventually want to move to a permanent life insurance policy, look for a term policy with a conversion option.
3. Shop around and compare life insurance quotes
Many of the best term life insurance companies offer policies with similar term and coverage options, but not all are created equally. Before you choose a policy, get term life insurance quotes from multiple insurers to be sure you’re getting the best rate for the coverage you need.
Here are some tips:
- You can get quotes from multiple insurers, work with an independent broker or use term life insurance online marketplaces to compare policies and rates.
- Consider other factors, such as available riders or the option to convert to a permanent policy.
- Check company reviews written by insurance experts.
- Review each company’s financial stability by checking with independent review agencies such as AM Best or Standard & Poor’s (S&P).
Speak to a financial advisor
A term life insurance policy is a commitment — one that your family may be relying on. You should feel confident in your purchase, and according to Salka, speaking to a financial advisor is a good idea. Life insurance and policy features evolve, she says. “Having someone who can sift through all of that with an understanding of your needs” can be an immense help.
Still have questions? How life insurance works
Methodology
To determine the best life insurance companies, our life insurance experts evaluated 21 of the top life insurance companies that offer coverage in the United States. Each life insurance company included in our evaluation had the opportunity to earn up to 100 points, based on the following factors:
Term life insurance rates: 70 points. Term life insurance is often the most affordable coverage option, so we evaluated rates for both 30- and 40-year-old males and females, for term lengths of 10, 20 and 30 years and coverage amounts of $250,000, $500,000, $1 million and $2 million.
Complaints: 20 points. Life insurance claims are often filed during what may be an extraordinarily difficult time during a beneficiary’s life. As such, the customer experience is an important factor when identifying the best life insurance companies. To determine which companies offer the best service, we analyzed complaints submitted to the National Association of Insurance Commissioners.
Term life conversion availability: 10 points. Some life insurance companies allow policyholders to convert term coverage to a permanent life insurance policy. We factored this in.
To evaluate life insurance companies, we used data provided by Veralytic, an independent publisher of life insurance research and analytics, and AccuQuote, a national online insurance agency.
Why some companies didn’t make the cut
Of the 21 insurance companies we evaluated, only 10 made our rating of the best life insurance companies. Contenders received lower scores if they had higher than average rates or levels of complaints to state insurance departments and many did not make the final cut.
Term life insurance makes it possible to secure temporary coverage that is locked in for a specific rate and number of years. It is generally cheaper than whole life insurance and is a good option if you are on a budget or only want coverage for a specific amount of time.
Whole life insurance is permanent life insurance, so it lasts your lifetime, as long as you pay your premiums. It can also have a cash value or savings component that can be tapped into while you’re alive.
Each offers its own set of pros and cons and pricing, so if you’re unsure which one is right for you, it’s best to assess your needs and consult with a financial advisor who can help you determine the best life insurance company and policy for your short and long-term goals.
No, life term insurance policies don’t offer a cash value component. If you want a life insurance policy with a cash value component, you should consider permanent life insurance. There are several types of permanent life insurance, including whole life insurance, universal life insurance and variable life insurance.
Term life insurance may be worth it if you have people who rely on you financially, such as children or a spouse. Common reasons to purchase life insurance include covering a child’s tuition or an existing mortgage, ensuring your family can maintain their current standard of living or covering other existing debts or end-of-life expenses.
Most term life insurance companies offer policies with terms that last from 10 to 30 years, though some companies, like Banner/General and Protective, offer policies with terms as long as 40 years.
If you want a policy that lasts longer than 30 or 40 years, it’s a good idea to consider permanent coverage, like whole life insurance.
Term life insurance is a better option if you’re looking for temporary coverage at an affordable rate. That’s because term life insurance rates are lower than whole life insurance rates, and you can choose a specific term length based on your financial needs.
Whole life insurance may be a better option if you’re looking for life insurance that will cover you indefinitely. A whole life policy usually lasts a lifetime, meaning you won’t have to worry about renewing it after 10, 20 or 30 years. It can also be a better fit if you’re looking for a policy that offers an investment or savings component. Whole life insurance policies typically come with a cash value component that can be tapped into while you’re alive.
If you’re not sure which option is best, consider speaking to a financial advisor who can help you choose the best life insurance policy based on your finances and coverage goals.
A pre-existing condition can affect your rate, either directly or indirectly. If you’re shopping for coverage and opt for a policy that follows a traditional underwriting process (you’re required to complete a health exam and questionnaire) or an accelerated underwriting process (the insurer uses available data, like your prescription drug history, to determine rates), your rate may increase based on the nature of your pre-existing condition.
If you opt for a no-exam life insurance or guaranteed approval policy so you can avoid a health exam or questionnaire, you’re also likely to see higher rates than those associated with a traditional term life insurance policy.
Your age, gender and desired type and amount of coverage are primary factors in your life insurance rate. For instance, life insurance for seniors is more expensive than coverage for someone in their 20s and 30s. Similarly, the more coverage you purchase, and the longer the policy length, the more coverage will be.
Other factors include your
- Health.
- Height and weight.
- Family medical history.
- Nicotine or marijuana use status.
- Occupation and hobbies.
- Driving record.
- Criminal record.
- Additional riders, as applicable.
Every insurer determines life insurance rates differently, so shop around and compare quotes to get the cheapest life insurance.
With decreasing term life insurance, the death benefit decreases over time. It’s typically a more affordable type of life insurance and you may not need to pass a medical exam in order to secure a policy. Decreasing term life insurance might be of interest if you think your loved ones will need less financial help as time goes on.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
