Having term life insurance from a young age might be a smart decision, but it’s not always easy finding the best provider. To help you shop for life insurance, we put together our picks for the best term life insurance companies. These companies were reviewed and scored based on five main criteria—customer experience based on J.D. Power scores, financial strength based on AM Best rankings, policy offerings, riders and website accessibility.
The 7 Best Term Life Insurance Companies of 2022
- 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
| Rank | Company | AM Best Financial Strength | J.D. Power Customer Satisfaction* | Can convert term to whole? |
| 1 | Northwestern Mutual | A++ | 807/1,000 | ✓ |
| 2 | State Farm | A++ | 822/1,000 | ✓ |
| 3 | Nationwide | A+ | 813/1,000 | ✓ |
| 4 | Mutual of Omaha | A+ | 795/1,000 | ✓ |
| 5 | New York Life | A++ | 777/1,000 | ✓ |
| 6 | Principal Financial | A+ | 776/1,000 | ✓ |
| 7 | Liberty Mutual | A | NR | ✓ |
Information accurate as of January 7, 2022.* Based on J.D. Power’s 2021 U.S. Life Insurance Study on a 1,000-point scale with an average customer satisfaction rating of 776.
Northwestern Mutual
Best Overall
Northwestern Mutual is our top pick for the best life insurance company overall. The company has impressive financial strength, as indicated by its top rating from AM Best, a high J.D. Power customer satisfaction rating and a lower-than-average complaint index, according to the National Association of Insurance Commissioners (NAIC). To learn more about this provider, check out our full review of Northwestern Mutual.
✓ Best For: Financial strength and reputation
✗ Not For: Flexible term lengths
AM Best: A++
J.D. Power: 807/1,000
NAIC: 0.05 (below average complaints)
Pros
- Term conversion option with guaranteed acceptance.
- Renewal policies available until age 80.
- No-exam policies for people in good health.
Cons
- Term lengths are limited to 10 or 20 years.
- Website lacks information about what term policies include.
State Farm
Best for Young Families
If you’re shopping for life insurance for your family, State Farm’s Instant Answer Term Insurance® could offer fast and affordable coverage. The company also offers Family Life insurance with specific riders that protect parents and kids. To learn more about this provider, check out our full review of State Farm life insurance.
✓ Best For: Young families
✗ Not For: Flexible term lengths
AM Best: A++
J.D. Power: 822/1,000
NAIC: 0.19 (below average complaints)
Pros
- Two policies specifically designed for young families.
- No-exam policies available.
- Great financial strength rating with AM Best.
- Online quote tool.
Cons
- Term limits are only available in 10-, 20- and 30-year limits.
- No accidental death benefit rider.
- No guaranteed premium for term life insurance policies.
Nationwide
Best for Online Tools and Resources
Nationwide offers a number of helpful online tools and resources, which could make it a great choice for people who are buying life insurance for the first time. You can use the life insurance calculator to determine how much coverage you need, and check out the resource section for FAQs, articles and brochures. To learn more about this provider, check out our full review of Nationwide life insurance.
✓ Best For: Online tools and digital resources
✗ Not For: Customer service
AM Best: A+
J.D. Power: 813/1,000
NAIC: 0.10 (below average complaints)
Pros
- Great online tools and resources.
- Term lengths offered in 10-, 15-, 20- and 30-year limits.
- Term policies are renewable annually until age 95.
Cons
- Most policies require a medical exam.
Mutual of Omaha
Best for Customer Service
Mutual of Omaha stands out for its exceptional customer service reputation, which can be difficult to find in the insurance industry. When you apply for a policy with Mutual of Omaha, you’re assigned a local agent who can answer questions and help you find the right policy for your needs. To learn more about this provider, check out our full review of Mutual of Omaha.
✓ Best For: Customer service
✗ Not For: Customizable policies
AM Best: A+
J.D. Power: 795/1,000
NAIC: 1.21 (above average complaints)
Pros
- Strong financial ratings with AM Best.
- Flexible policy terms with 10-, 15-, 20- and 30-year limits.
- Option to convert your policy to permanent at any point.
Cons
- Fewer riders and add-on policies compared to other companies.
- Not available nationwide.
New York Life
Best for Customizable Coverage
New York Life could be a great choice for anyone who is looking for customizable life insurance coverage. The company offers several riders and add-on policies that can give you extra protection for the things that matter most. To learn more about this provider, check out our full review of New York Life.
✓ Best For: Customizable policies and riders
✗ Not For: Flexible term lengths
AM Best: A++
J.D. Power: 777/1,000
NAIC: 0.03 (below average complaints)
Pros
- Yearly convertible and level premium convertible policies available.
- 12,000 agents located around the country.
- Excellent financial strength rating with AM Best.
Cons
- No online quote tool.
- Term limits only available in 10 or 20 year increments.
- Not many online resources or support options.
Principal Financial
Best for Flexible Term Limits
Principal Financial stands out for its flexible term limits. The company offers term life insurance policies in 10-, 15-, 20- and 30-year term lengths, as well as a unique one-year term for short-term coverage needs. To learn more about this provider, check out our full review of Principal Financial.
✓ Best For: Flexible term lengths
✗ Not For: Customizable policies
AM Best: A+
J.D. Power: 776/1,000
NAIC: 0.33 (below average complaints)
Pros
- Quick online application.
- Convertible policy options available.
- Offers survivorship insurance.
Cons
- Fewer-than-average riders and add-on policies available.
- No accidental death benefit coverage.
- No option for online support.
Liberty Mutual
Best No-Exam Policies
If you’re a healthy individual and lead a relatively low-risk lifestyle, you could qualify for a no-exam policy with Liberty Mutual. Policyholders may convert their term policy into permanent coverage before it ends, regardless of their health status.
✓ Best For: No-exam term policies
✗ Not For: Customer service
AM Best: A
J.D. Power: Not Rated
NAIC: 2.20 (above average complaints)
Pros
- Offers no-exam coverage to healthy individuals.
- Policy terms available in 10-, 15-, 20- and 30-year limits.
- Guaranteed rate over the course of your policy term.
Cons
- Few online tools and resources.
- Above-average customer complaints.
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
Reviews.com scores products, services and companies using five quantifiable criteria to help readers choose the best one for them. For life insurance companies, our editorial team compared financial strength, number of riders offered, coverage options, customer satisfaction scores and website functionality from each company. The picks we made based on our research are meant to serve as a helpful tool to simplify the process of choosing which life insurance company is best for you. Since life insurance rates vary widely among different profiles, we encourage you to continue researching options that best fit your specific needs.
How We Chose The Best Term Life Insurance Companies
We evaluated the best term life insurance companies based on financial strength, number of riders offered, coverage options, customer satisfaction scores, and website functionality. We also considered the following:
- Confidence: It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength ratings from AM Best are currently able to meet their financial obligations, which could give consumers some peace of mind.
- Coverage and riders: As there isn’t one life insurance policy to fit everyone’s needs, we evaluated companies based on the number of coverage options and riders available.
- Customer Satisfaction: Customer ratings are an indication of satisfaction with the claim filing process. We measured this factor using the J.D. Power Life Insurance Customer Satisfaction Index.
- Online resources: In our evaluation process, we weighed the availability, functionality and ease of use of each company’s digital services.
How Much Does Term Life Insurance Cost?
There are several factors that affect the cost of term life insurance, including your age, weight, overall health, and the amount of coverage that you’re shopping for. The younger and healthier you are, the lower your premiums will be.
Your occupation and recreational activities can also play a role here, as working in a hazardous occupation, such as construction or law enforcement, will sometimes raise your premiums. Using any form of tobacco or recreational drugs may also result in a higher premium.
Term insurance will generally cost less than permanent coverage with the same death benefit. Even guaranteed renewable term policies with accelerated benefit riders will usually be cheaper than the cheapest form of permanent coverage. Consider speaking with a licensed insurance agent to find out how much a specific type of life insurance policy will cost for you.
How To Find the Best Term Life Insurance Policy
When you shop for term life insurance, make sure to look at the company’s financial strength rating provided by agencies such as AM Best and Standard & Poor’s. It’s also a good idea to go to your state insurance commissioner’s website to see how many complaints each company received in the past. When you’ve narrowed down the list of companies you want to get quotes from, explore each company’s website to learn more about its qualifications for life insurance and what riders they have available. Other things to consider include:
- Financial Strength Rating: In most cases, you’ll want to buy your policy from a carrier with at least an A- rating from ratings agencies such as AM Best. AM Best looks at each company’s history of financial soundness when determining their rating. The highest-rated companies are the ones that have historically always been able to pay out on claims with no difficulties. While that does not guarantee the company’s future ability to pay claims, a strong financial history could give you some peace of mind.
- Customer Complaints: Your state insurance commissioner’s website allows you to look up any insurer that does business in your state and find out how many complaints the insurer has had over the past year. A high number of complaints should raise a red flag, so proceed with caution if this is the case.
- Variety of Offerings: Some term insurers offer better products than others for the same price. Be sure to take a look at additional features that can be added to basic term protection, such as guaranteed renewability, return of premium riders, and accelerated benefit riders.
- Coverage: Decide how much coverage you want before you start shopping so that you can get an accurate quote. A larger amount of coverage will translate into a higher premium, so only shop for how much you need.
FAQs
About the Authors
Mary Van Keuren has been covering auto and home insurance for Reviews.com for nearly five years, and has published numerous reviews of state-specific insurance trends and how to find the best insurance deals for your money. She earned B.S. and M.A. degrees from Nazareth College in Rochester, N.Y. and has been writing professionally, both in print and online, for 30+ years.
