The Best Term Life Insurance Companies

Flexible coverage that protects you for decades to come

Flexible coverage options
A.M. Best A+ or better
Shortest minimum term lengths

Best Term Life Insurance

How we narrowed down the field.

Term life insurance is a good place to begin if you've never had life insurance before. These policies are generally cheaper than whole or universal life insurance, and they still provide solid protection for a set number of years.

The most important things to consider when choosing term life insurance are the amount of coverage you receive, the available riders for customizing your policy, and, of course, the price. The insurance provider's financial strength is also a factor, as you want to be sure the company's going to be around for a while. Using this information as a guide, we came up with this list of the best term life insurance companies.

  • Transamerica
    • Affordable:
      Transamerica's term life insurance rates are among the most affordable in the industry.
    • 30-year terms:
      Transamerica is one of few life insurance companies to offer 30-year policy terms.
    • Flexible coverage options:
      Transamerica offers term life policies with minimum coverage levels as low as $25,000.
    Find the best company:
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    • A.M. Best Rating
      A+
    • Term length
      10 - 30 yrs
    • Minimum coverage
      $25,000
    • Maximum coverage
      $1,000,000
  • New York Life
    • Financially stable:
      New York Life has earned the highest financial strength rating from A.M. Best.
    • Easily customize your policy:
      Add riders to cover terminal illness, family members and your estate.
    • Short policy terms:
      New York Life allows you to purchase life insurance policies with terms as short as five years.
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    • A.M. Best Rating
      A++
    • Term length
      5 - 20 yrs
    • Minimum coverage
      $100,000
    • Maximum coverage
      Varies
  • Northwestern Mutual
    • Term 80 policy:
      The Term 80 policy offers renewable coverage up until your 80th birthday.
    • Strong financial outlook:
      Northwestern Mutual boasts an A++ rating from A.M. Best.
    • Numerous policy riders:
      Customize your policy with disability income, estate protection, and long-term care riders.
    Find the best company:
    Get Quote
    • A.M. Best Rating
      A++
    • Term length
      10 - 20 yrs,
      Term 80
    • Minimum coverage
      $100,000
    • Maximum coverage
      Varies

Coverage

The best term life insurance offers flexible coverage levels and policy terms. It's not uncommon for companies to impose $100,000 minimum coverage levels, but there are a few that offer cheaper policies. These are better options if you're on a budget. As far as coverage terms, most life insurance providers have 10-, 15- and 20-year policies, though you can find longer or shorter terms with a few companies. If you're planning on switching to whole or universal life insurance once your term is up, it's best to choose a company that allows you to convert your policy, preferably without a medical exam. In terms of coverage and flexibility, Transamerica scores the highest, although New York Life and Northwestern Mutual have their advantages as well. It all depends on what you're looking for.

Policy Riders

Policy riders help you customize your life insurance to give you extra coverage where you need it. Common policy riders include accelerated benefits for terminal illness, additional insured, disability income and estate protection riders. New York Life falls slightly behind the others because they don't offer disability income or long-term care riders, so if you are interested in these, Transamerica or Northwestern Mutual is a better fit.

Financial Strength

A life insurance company's financial strength is as important as the coverage they offer. Since term life policies can last 20 years or more, you want to be sure the company you choose is going to be around that long. There are several organizations that measure a company's financial strength, including A.M. Best, Moody's, and S&P. Comparing these ratings is a simple way to gauge the likelihood that your life insurance provider will be there when you need them. All the companies on this list have strong financial outlooks, with New York Life and Northwestern Mutual earning A.M. Best's highest rating.

Price

You must get quotes from multiple companies to find your most affordable price. Not all life insurance companies offer online quote tools, so you may have to speak to a representative over the phone to get this information. Transamerica is a good company to start with, as their policies are generally affordable.

The Bottom Line

Transamerica is our top pick for the best term life insurance, but any of the companies on this list are solid options. Get quotes from all of them and explore the available riders to find a policy that best lines up with your needs.