Buying term life early can lock in lower premiums, but picking a carrier should be grounded in current evidence. To help you shop for life insurance, we refreshed our picks using 2025-focused criteria: current financial strength context from AM Best (Rating Center and FSR guide), the latest complaint benchmarking framework from the NAIC (Complaint Index), product and rider changes since 2022, and industry trends shaping today’s term offers (accelerated underwriting, instant decisions, and embedded digital buying per Insurance Barometer Study and Deloitte’s 2025 Outlook).

The 7 Best Term Life Insurance Companies

• Northwestern Mutual: Best Overall
• State Farm: Best for Young Families
• Nationwide: Best for Online Tools and Resources
• Mutual of Omaha: Best for Customer Service
• New York Life: Best for Customizable Coverage
• Principal Financial: Best for Flexible Term Limits
• Liberty Mutual: Best No-Exam Policies

Best Term Life Insurance Companies: Summed Up

* J.D. Power publishes the U.S. Individual Life Insurance Study on a 1,000-point scale; check the most recent edition on jdpower.com. Financial Strength Ratings (FSR) shown reflect the carriers’ long-standing tiers; verify current ratings and outlooks in AM Best’s Rating Center and see category definitions in AM Best’s FSR guide. NAIC’s complaint metric is updated annually; see methodology in the NAIC Complaint Index.

Northwestern Mutual

Northwestern Mutual remains a top pick for overall strength: a top-tier AM Best rating (verify specifics in the AM Best Rating Center), strong historical satisfaction, and consistently low complaint experience relative to market share per the NAIC’s methodology (Complaint Index). Its distribution blends advisors with modern e-apps, and many applicants may qualify for accelerated, no‑exam decisions aligned with 2025 underwriting trends (instant decision using Rx/MVR/EHR data as highlighted by Deloitte’s 2025 Insurance Outlook).

✓ Best For: Financial strength, advice-driven planning, and term-to-permanent flexibility

✗ Not For: Shoppers seeking broad online self-service without agent support

AM Best: A++ (see current rating and outlook in AM Best)

J.D. Power: Refer to the most recent U.S. Individual Life Insurance Study on jdpower.com for current scores

NAIC: See current NAIC index (index of 1.00 = expected complaint share)

Pros

• Term conversion option with guaranteed acceptance to eligible permanent products (longer conversion flexibility aligns with rising demand for future-proofing).
• Advisor-led planning plus digitized e-apps and faster underwriting pathways for qualified risks (accelerated and instant-decision trends supported by Insurance Barometer insights).
• Living benefits and riders increasingly standard (accelerated death benefits; see rider distinctions in NAIC consumer resources).

Cons

• Online quoting and fully DIY purchase flow are limited compared with pure direct-to-consumer term platforms.
• Medical evidence may still be required at higher face amounts or certain risk classes despite accelerated programs.

State Farm

State Farm’s agent network and simple term options (including Instant Answer Term Insurance®) support quick coverage decisions for families. Accelerated and no‑exam paths reflect the broader 2025 shift to data-driven underwriting and faster cycle times cited by Deloitte. See our full review of State Farm life insurance.

✓ Best For: Young families wanting agent guidance with streamlined qualification

✗ Not For: Those prioritizing wide term-length customization beyond common 10/20/30-year options

AM Best: A++ (confirm current rating/outlook in AM Best)

J.D. Power: Check the latest U.S. Individual Life Insurance Study for current scores and ranking

NAIC: See current NAIC index (1.00 indicates expected level)

Pros

• Agent support with online quotes and rapid-issue term for eligible applicants.
• Common family riders available (children’s term, waiver of premium); living benefits increasingly standard across term and permanent lines (see NAIC rider overview).
• Top-tier financial strength per AM Best categories (verify in Rating Center).

Cons

• Term choices focus on staple durations; niche terms (e.g., 25 or 35 years) may require other carriers.
• Accelerated underwriting availability depends on age/face amount and risk profile; exams may still be required.

Nationwide

Nationwide pairs approachable online education and calculators with advisor access, making it friendly for first-time buyers. Many programs now use accelerated or instant-decision underwriting to reduce exams and issue coverage faster, consistent with industry-wide adoption of EHR/Rx data and AI‑assisted triage noted by Deloitte. Read our full review of Nationwide life insurance.

✓ Best For: Digital tools and hybrid human+online buying

✗ Not For: Shoppers who want fully DIY end‑to‑end purchase without agent touchpoints

AM Best: A+ (confirm specifics in AM Best)

J.D. Power: Consult the latest U.S. Individual Life Insurance Study on jdpower.com

NAIC: See current NAIC index (1.00 = baseline)

Pros

• Robust online tools with advisor support when needed.
• Term lengths commonly available in 10, 15, 20, and 30 years; many term forms are renewable and convertible.
• Adoption of accelerated underwriting for eligible ages/amounts can shorten cycle times.

Cons

• Medical exams may still be required at higher face amounts or for non‑preferred risk classes.

Mutual of Omaha

Mutual of Omaha’s agent support and customer‑first service reputation, plus broad term availability, make it a strong all‑rounder. Many policies include accelerated death benefits and conversion options; chronic/critical illness accelerations continue to expand across carriers (see distinctions in NAIC consumer guidance). For underwriting, expect increased use of third‑party data and faster decisions, consistent with market trends noted by Life Happens/LIMRA.

✓ Best For: Hands-on support with living-benefit options

✗ Not For: Rider maximalists seeking the widest menu of niche add‑ons

AM Best: A+ (confirm current status in AM Best)

J.D. Power: See latest life insurance study on jdpower.com for current scores 

NAIC: See current NAIC index (use 1.00 as the benchmark)

Pros

• Strong financial foundation per AM Best categories (check Rating Center).
• Term choices typically span 10, 15, 20, and 30 years; conversions help preserve insurability.
• Living-benefit accelerations increasingly available on term and permanent forms (terminal and chronic illness).

Cons

• Rider menus may be leaner than some competitors’ most customizable offerings.
• Availability and underwriting programs vary by state and face amount.

New York Life

New York Life offers extensive rider and conversion options for buyers who want to start with term and later transition to permanent coverage. This “term‑then‑convert” approach aligns with consumer interest in flexibility and living benefits (accelerated death benefits for terminal/chronic illness; see NAIC rider guidance). For ratings context and definitions, use AM Best’s full review of New York Life as a starting point and verify current FSRs in AM Best.

✓ Best For: Customizable riders and long-run conversion flexibility

✗ Not For: Buyers who insist on a fully self-directed online purchase journey

AM Best: A++ (verify current rating/outlook in AM Best)

J.D. Power: Refer to the latest study release for current customer satisfaction results

NAIC: See current NAIC index (lower than 1.00 = fewer complaints relative to market share)

Pros

• Convertible term options designed to support long-range planning without new evidence of insurability.
• Large national agency footprint for advice.
• Top-tier AM Best category; definitions of A++/A+ available in AM Best’s FSR guide.

Cons

• No fully self-service quote-to-bind flow; advisor interaction is common.
• Term length options may cluster in standard durations depending on product series and state filings.
• Online resource depth varies by product/rider and can require advisor assistance for details.

Principal Financial

Principal Financial is known for flexible term options, including a unique one‑year term alongside 10, 15, 20, and 30‑year durations. Principal has invested in streamlined e‑applications and accelerated underwriting for qualifying risks, mirroring 2025 market trends toward instant‑decision experiences supported by third‑party data and EHR connectivity (Deloitte). See our full review of Principal Financial. 

✓ Best For: Buyers who want term length flexibility and fast, digital applications

✗ Not For: Those seeking the broadest set of niche riders

AM Best: A+ (verify current rating/outlook in AM Best)

J.D. Power: See most recent U.S. Individual Life Insurance Study for updated satisfaction context

NAIC: See current NAIC index (compare to 1.00 baseline)

Pros

• Streamlined digital application with accelerated decisions for eligible risks.
• Convertible term options for future permanent needs.
• Offers survivorship and advanced planning options beyond basic term.

Cons

• Fewer specialized riders than some competitors focused on customization.
• At higher face amounts or complex risks, exams and longer underwriting may apply.
• Online support depth can vary by product and state.

Liberty Mutual

If you’re healthy and meet preferred criteria, you may qualify for no‑exam, fast‑decision term—an approach that has become mainstream across carriers as underwriting digitizes. Liberty Mutual’s term offerings generally include convertibility to permanent coverage, which can be valuable if health changes later.

✓ Best For: Applicants targeting no‑exam or accelerated underwriting paths

✗ Not For: Shoppers prioritizing the broadest rider menus and deep online self-service

AM Best: A (confirm current rating/outlook in AM Best)

J.D. Power: See most recent life insurance study on jdpower.com for current satisfaction results

NAIC: See current NAIC index (interpret using NAIC’s index methodology)

Pros

• Accelerated/no‑exam paths for eligible applicants can shorten approval times substantially.
• Term durations commonly include 10, 15, 20, and 30 years with guaranteed level premiums.
• Convertibility allows a shift to permanent coverage if needs evolve.

Cons 

• Digital self-service may be limited compared to direct-to-consumer specialists.
• Complaint experience varies by line and state; always check the NAIC CIS and state DOI sources before purchase (NAIC Complaint Index).

Further Reading:

• How Much Life Insurance Do I Need?
• Guide to Approaching Life Insurance With Pre-Existing Conditions
• What to Know About Life Insurance Riders

Methodology

We evaluate term life carriers on financial strength, product depth, underwriting speed and access, customer experience signals, and digital usability. For financials, we confirm current category placement and outlook in AM Best’s Rating Center and interpret ratings using AM Best’s FSR guide and Best’s Credit Rating Methodology. Complaint context comes from the NAIC’s annually refreshed Complaint Index and state DOI studies where relevant. We incorporate 2025 market dynamics—including accelerated underwriting, instant decisions, embedded distribution, and AI governance expectations (NAIC AI bulletin; Deloitte 2025 outlook)—and rider/product shifts since 2022 (e.g., broader living benefits; updated IUL illustration rules via NAIC AG 49‑A revisions).

How We Chose The Best Term Life Insurance Companies

Our scoring weighs current financial strength context, breadth of term options and riders, underwriting modernization (accelerated/no‑exam thresholds, EHR connectivity), complaint and satisfaction indicators, and digital experience. We also considered these decision drivers:

• Confidence: AM Best categories (A and above) signal strong ability to meet ongoing obligations; confirm the latest FSR and outlook in the AM Best Rating Center and see category definitions in the FSR guide.
• Coverage and riders: Look for living-benefit riders (terminal/chronic/critical illness accelerations), waiver of premium, children’s riders, and robust term conversion windows. NAIC’s consumer rider resources explain differences, including 101(g) chronic-illness ADB vs 7702B LTC riders.
• Customer signals: Benchmark complaint levels with the latest NAIC Complaint Index and complement with relevant state DOI reports for local context.
• Online experience: In 2025, many carriers offer instant quotes, e‑apps, e‑sign, and accelerated decisions using third‑party data/EHRs; see digital adoption themes in Deloitte’s 2025 outlook and sustained online comfort in the Insurance Barometer Study.

How Much Does Term Life Insurance Cost?

Premiums depend on age, health/underwriting class, nicotine use, coverage amount and term length. Despite broader insurance price inflation in other lines, retail term pricing has been relatively steady into 2025. A representative 35‑year‑old non‑smoker can often obtain a $500,000, 20‑year term policy for roughly the low‑to‑mid $20s per month (Policygenius Life Insurance Price Index).

Your occupation and recreational activities can also affect pricing; hazardous work and risky hobbies may increase premiums. Many carriers now use accelerated/algorithmic underwriting—pulling Rx histories, motor vehicle records, and in some cases electronic health records—to issue decisions without an exam for qualifying risks, reducing cycle time and acquisition costs (see adoption trends in Deloitte’s 2025 outlook and consumer demand in the Insurance Barometer Study). Insurer investment yields have improved with higher rates, enabling competitive term pricing as noted in the 2025 life-insurer outlook (Fitch).

Term coverage generally costs less than permanent coverage for the same death benefit. Even with riders (e.g., accelerated benefits), term is usually the most affordable way to lock in protection for a defined period. Get multiple quotes and confirm whether you qualify for accelerated/no‑exam programs, which can materially speed approval.

How To Find the Best Term Life Insurance Policy

Start by checking financial strength and complaint patterns, then evaluate underwriting speed, conversion flexibility, and living benefits. For financials, confirm the current category and outlook in AM Best’s Rating Center and use the FSR guide to interpret A/A+/A++ tiers. For complaints, use the NAIC Complaint Index and supplement with your state DOI’s latest reports. In 2025, also consider the carrier’s AI and data practices: the NAIC issued a model bulletin in late 2024 outlining expectations for governance, testing, and transparency when insurers use AI in underwriting (NAIC AI bulletin).

• Financial Strength Rating: Prefer carriers in AM Best’s A range or higher; verify the latest rating and outlook in AM Best. The highest categories (A+/A++) indicate a superior assessment of ability to meet obligations.
• Customer Complaints: Check the NAIC’s standardized index to see whether a company’s confirmed complaints are above or below the expected level (1.00 baseline). Use state DOI studies for local nuance.
• Riders and flexibility: Look for accelerated death benefits (terminal/chronic/critical illness), waiver of premium, children’s riders, and strong term conversion windows. NAIC explains 101(g) chronic-illness ADB vs tax‑qualified 7702B LTC riders and why they differ in cost and value (NAIC consumer resources).
• Underwriting path and speed: Ask about accelerated/no‑exam eligibility and typical cycle times. Many programs can approve qualified applicants in minutes to days using third‑party data and EHRs (Deloitte).

FAQs 

Keep Reading

How Much Life Insurance Do I Need?

What to Know About Life Insurance Riders