Best Term Life Insurance Companies [2023]

Term life insurance is the most popular kind of policy due to its affordable rates. People buy types of term life insurance to cover major expenses, and you might be looking for affordable coverage that lasts as long as your mortgage or business loan.

Banner Life offers the best rates for standard coverage, and most people can get quotes as low as $15 per month. But choosing from the best term life insurance companies will come down to more than just price.

Finding the right life insurance depends on how much coverage you need and how long you need it. First, take advantage of our free term life insurance calculator to determine your coverage needs. Then, use this guide to compare quotes from the largest life insurance companies in the country.

Our top five term life insurance companies are listed below.

The Best Term Life Insurance Companies

Which company is best for term life insurance? That depends on the kind of policy you’re looking for. 

If you want a standard policy from a financially stable insurer, you may want to shop for quotes from the largest term life insurance companies in the country. The top 10 companies listed below are the biggest by market share and hold A+ or higher financial ratings from A.M. Best.

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The best term life insurance company by market share is Northwestern Mutual — it dominates nearly 9% of the market. New York Life and MetLife round out the country’s top three largest term life insurance companies.

But bigger doesn’t always mean better. These providers may be popular, but does each company offer the kind of coverage and customer service you need from a life insurance company?

Some companies on this list scored below average in customer satisfaction, so you may want to shop elsewhere if you’re looking for a more personable insurance agent. To broaden your search for car insurance, consider checking out Northwestern Mutual Life Insurance review to provide valuable insights for expanding your coverage options and making an informed choice.

We compared multiple insurers to find the best term life insurance companies based on rates, customer satisfaction, and policy type. 

Our top five best term life insurance companies of 2022 are:

• Banner Life: Best term life insurance rates
• State Farm: Best customer satisfaction
• AIG: Best for renewable policies
• New York Life: Best without a medical exam
• Mutual of Omaha: Best for living benefits

Scroll through the list below to learn more about each company and its term life insurance ratings.

Best Term Life Insurance Rates: Banner Life

Banner Life consistently offers the lowest term life insurance rates to men and women in their 30s and 40s. Your quotes will increase with age, but Banner continues to have the most affordable coverage by providing a variety of riders to stack coverage for additional savings. Read our Banner Life Insurance review to learn more. 

Coverage is available in all 50 states and starts at $100,000. Terms last for 10, 20, 30, or 40 years, and you can choose riders to renew or convert to your policy at the end of the term. Banner may not be one of the largest companies, but it has a solid A+ financial rating from A.M. Best. 

Best Term Life Insurance for Customer Satisfaction: State Farm

State Farm earned the highest customer satisfaction rating from J.D. Power for its knowledgeable life insurance agents and streamlined online experience. It scored 15 points higher than Northwestern Mutual, the largest life insurance company, and 66 points higher than the market average.

It also has an A+ customer service rating from the Better Business Bureau (BBB).

State Farm life insurance is available in terms of 10, 20, or 30 years, and coverage starts at $250,000. Unfortunately, State Farm cannot underwrite life insurance in Massachusetts, New York, or Wisconsin. See our State Farm Life Insurance Review to learn more. 

Best Renewable Term Life Insurance: AIG

AIG Annual Renewable Term Life Insurance comes with a rider that allows policyholders to renew coverage every year after the initial term ends. Policies renew without a medical exam or any additional underwriting, and life insurance rates are only adjusted by age.

Most life insurance companies offer renewable terms until you turn 80, but with AIG you can renew your policy annually until your turn 95.

AIG also earned an A+ financial rating from A.M. Best, and coverage is available nationwide. Policies start at $250,000 for terms of 10, 15, and 20 years. Read our AIG Life Insurance Review to learn more. 

Best Term Life Insurance Without a Medical Exam: New York Life

Expect your insurance rates to go up if you have preexisting medical conditions. Some life insurance companies may reject you based on your medical history, so shop around for no medical exam coverage.

New York Life Insurance offers a variety of competitive term life options without a medical exam, including final expense and accident protection insurance. It also works directly with AARP to provide affordable life insurance for seniors up to 80 years old. Terms are available in shorter increments of one, 10, or 20 years. 

Best Living Benefits Term Life Insurance: Mutual of Omaha

Accelerated death benefits come standard with Term Life Express policies from Mutual of Omaha at no extra annual fee.

Benefits are immediately triggered if you’re diagnosed with a terminal, chronic, or critical illness, and you can receive up to 80% of your benefits (minus an admin fee and actuarial adjustment). Coverage starts at $100,000, and policies are available in terms of 10, 15, 20, or 30 years.

Read our article on Mutual of Omaha Living Promise to see if it’s right for you. 

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What is term life insurance?

Term in life insurance refers to how long policy coverage lasts. Unlike whole or permanent policies that last your whole life, term life insurance typically covers you for 20 or 30 years. Read our article on term life insurance vs. whole life insurance to learn more about the differences. 

Coverage will end if you outlive your life insurance policy term, and you won’t get any of your premiums back unless you buy a policy or rider that gives you this option. 

How does term life insurance work?

When you buy term life insurance, you choose the term length you want. Some companies offer very short one-year or five-year policies, but most prefer when customers buy 15-30 years of coverage.

Should you pay life insurance premiums monthly or annually, you will make payments for the course of the term and receive benefits if you die within the length of the policy.

The insurance company will keep your premiums and give you the option of buying new coverage when is comes to the term life insurance policy end.

However, it may require another medical exam unless you choose a renewable or convertible policy. These types of term life insurance allow you to extend coverage or change to whole life insurance.

Are there different types of term life insurance?

Standard term life insurance policies are level term, meaning that your annual rates and benefit amount remain the same for the entire length of the policy. However, your financial needs might require more (or less) coverage. That’s when you can opt for a different type of policy.

The most common types of term life insurance are:

• Renewable term life insurance: Policyholders have the option to renew coverage for a set period of time after the initial policy term ends.
• Convertible term life insurance: Policyholders can convert the term policy into whole life insurance at the end of the term.
• Decreasing term life insurance: With this short-term policy, the payout amount decreases monthly or annually until it reaches zero and coverage ends. 
• No medical exam term life insurance: Policyholders aren’t required to have a medical exam to qualify, but annual rates are higher and coverage might be limited.
• Living benefits term life insurance: This policy rider covers the costs of long-term care, hospice, and permanent or temporary disabilities.
• Return of premium term life insurance: This policy returns a lump sum of your insurance payments if you outlive the term length.
• Extended term life insurance: This is a former whole life insurance policy that can be converted into a term life insurance policy.

The type of policy you choose will impact your life insurance rates. For example, you may pay more per month for the additional coverage with a living benefits policy. If you choose convertible or renewable term life insurance, your rates will go up every year after the level term policy ends.

Certain types of coverage may not be available with one company, so determine what kind of life insurance you need before comparing quotes online.

How much does term life insurance cost?

The biggest benefit to buying term life insurance is affordable coverage. It’s much less expensive than whole life and provides excellent short-term coverage should you die unexpectedly and leave behind any outstanding debts.

Term life insurance rates will increase with age and benefit amount, just like whole life insurance, but you can buy coverage as low as $15 per month if you’re under 40. 

Rates increase slightly if you opt for $1 million or more in coverage.

Low monthly rates make term life insurance an excellent investment for those who can’t afford whole life insurance yet. Buying term life insurance while you’re young can lead to lower whole life insurance rates in the future when you’re given the option to convert your policy. 

Who needs term life insurance?

Term life policies are made for people and families who need to cover a specific debt for a certain amount of time. It can replace lost income, pay off mortgages, and cover funeral expenses.

Not sure if you need term life insurance? Consider this: 

• Are you the breadwinner in your family? Term life insurance can replace your lost income if you die.
• Do you have a mortgage or business loan? Your dependents can use a portion of the death benefit to pay off loans and large debts.
• Are you investing in your children’s college education? Death benefits can be saved in an account for your dependents to use later. 

Term life insurance can help cover these debts and more without you overpaying for coverage you don’t need. If you want more life insurance coverage, you can buy term life insurance now at lower rates and convert to permanent coverage later. 

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How to Find the Best Term Life Insurance Rates

Banner Life may offer the cheapest rates overall, but your term life insurance quotes will depend mostly on your lifestyle and what kind of term life insurance you need.

Common factors that determine your life insurance rates are:

• Age: Older policyholders pay more for coverage, and rates start to increase after you turn 45.
• Gender: Men historically pay more for life insurance than women. Read Women vs. Men: Term Life Insurance Rates to learn more. 
• Medical history: Standard term life insurance requires a medical exam, and people with high blood pressure, who smoke, or who have poor health histories will pay higher rates.
• Occupation: More dangerous careers cost more to insure, and pilots and loggers pay some of the highest life insurance rates.  
• Hobbies: Risky hobbies and sports like skydiving or boxing can raise your term life insurance rates.
• Term length: Longer policies cost more upfront, but you will pay less than average as you age.
• Death benefits: Policies with higher payouts will cost more per month, and complementing death benefits with policy riders also increases rates.

You’ll get the best quotes when you determine how much coverage and what term you need before you start shopping. For example, choosing a longer term or adding any policy riders will raise your rates, while opting for less coverage and shorter terms will get you cheaper quotes.

Read How Term Life Insurance Rates Are Calculated to learn more. Follow the steps below to learn more about shopping for term life insurance.

Determine How Much Life Insurance Coverage You Need

It’s hard to shop for life insurance online if you don’t know how much coverage you need. On average, most people buy 10 times their annual salary in order to cover any loss of income and remaining debts. So, if you earn around $50,000 per year, you would need a $500,000 term life insurance policy.

However, you may only want term life insurance for a specific debt. This reduces the amount of time and benefits you need from a policy. Find out more about How much term life insurance can you buy?

In this case, you can use a term life insurance calculator. Consider the amount of the debt and the remaining years until your retirement to determine how much term life insurance coverage you need.

Pick a Life Insurance Policy Term

If you’re covering a debt, buy term life insurance for the length of the loan or investment. This will ensure your dependents are financially prepared if anything should happen to you.

Realize that the most common term lengths are 20 or 30 years, and most companies won’t offer term life insurance for longer than 40 years. If you have a short-term loan, you can shop for quotes from companies that offer 10-year term life insurance or less. For example, New York Life is one of the few companies that offers one-year terms.

Ask About Term Life Insurance Benefits and Features

Term life insurance comes with low monthly rates, so you may have more room to invest in riders and other benefits. Determine your budget and ask about different features that can supplement your coverage. 

Some companies include certain features automatically.

Find out which companies offer the kind of term life insurance benefits you need by asking the following questions:

• Are there accelerated death benefits? Most policies include this rider at no extra cost. You can receive benefits when diagnosed with a terminal illness during the policy term.
• Are there any living benefits? This rider pays out a portion of your death benefits if you’re diagnosed with a chronic or critical illness during the policy term.
• Can I convert my policy to whole life? If you buy convertible term life insurance, check the rules regarding conversion — you may have to convert policies by a certain term or age. Read more about What happens when my term life insurance policy ends? 
• Can I renew the policy? Similar rules may apply to renewable term life insurance, so ask about renewal deadlines and rate increases before you buy. 

Other common term life insurance riders and benefits to ask about are child riders and accidental death benefits. Insurance companies will pay out an extra benefit if a child dies before a certain age or the insured is killed in an accident, but you will pay extra for these features.

Compare Term Life Insurance Quotes Online

If you know what kind of coverage and life insurance riders you need, and if you know the policy term length you’re looking for, it’s time to start comparing life insurance quotes. Get quotes online from at least three local companies to see how much similar policies cost in your area.

Some companies may ask you health questions when you ask for a term life insurance quote, so be prepared with your:

• Family health history
• Medical records and prescription history
• Driving records

You can often get coverage on the same day if you’re shopping for no medical exam term life insurance quotes. Otherwise, you will have to wait until you can schedule a life insurance medical exam to get your final rates and policy. Read more about how to buy life insurance. 

Case Studies: Illustrating Term Life Insurance Choices

Case Study 1: Sarah – Affordable Coverage for Mortgage

Sarah recently purchased her first home and wanted to ensure that her mortgage would be covered in the event of her unexpected passing. She researched different term life insurance options and found that Banner Life offered the best rates for standard coverage.

With quotes as low as $15 per month, she felt confident that she could secure affordable coverage for the duration of her mortgage.

Case Study 2: John and Lisa – Excellent Customer Service

John and Lisa were a young couple in search of a reliable term life insurance provider that offered exceptional customer service. After comparing different companies, they discovered that State Farm had earned the highest customer satisfaction rating from J.D. Power.

Impressed by the knowledgeable life insurance agents and streamlined online experience, they decided to choose State Farm for their term life insurance needs.

Case Study 3: Mike – Renewable Coverage

Mike was looking for term life insurance that provided the flexibility of renewable coverage without the hassle of additional underwriting. After thorough research, he found that AIG offered an Annual Renewable Term Life Insurance policy that allowed him to renew coverage every year without a medical exam. He appreciated the convenience and peace of mind that this policy provided.

Case Study 4: Emily – No Medical Exam Required

Emily had preexisting medical conditions and was concerned about the impact it might have on her ability to obtain life insurance coverage. She discovered that New York Life offered a variety of competitive term life options without requiring a medical exam.

This was a perfect solution for her, as she could secure coverage without worrying about her medical history affecting the application process.

Case Study 5: David – Living Benefits Coverage

David wanted to ensure that his term life insurance policy offered living benefits in addition to the standard death benefits. After thorough research, he found that Mutual of Omaha’s Term Life Express policies included accelerated death benefits at no extra annual fee.

This meant that if he was diagnosed with a terminal, chronic, or critical illness, he would receive up to 80% of his benefits, providing him with financial support during challenging times.

The Bottom Line on the Best Term Life Insurance Companies

The biggest term life insurance companies may not always be the best. Northwestern Mutual is the largest term life provider but has lower customer satisfaction than State Farm and higher rates than Banner Life. The easiest way to find the best term life insurance company near you is to compare at least three different companies at once. 

Take advantage of our free comparison tool below to get life insurance quotes from multiple local companies. You can compare rates, death benefits, policy types, and riders to find the right term life insurance company to meet your needs. 

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