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Last updated on Jun 15, 2020

The Best Term Life Insurance Companies 2020

Our top picks for best term life insurance with robust coverage and strong financial backing ​
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How We Found the Best Term Life Insurance Companies

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50 hours of research

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19 companies considered

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3 top providers

Term life insurance provides coverage for a length of time, for example, 10, 20, or 30 years. If the insured client dies during the term, specific monetary benefits are paid to their beneficiaries. When the term is up, policyholders typically have three options: renew for another term, convert to whole life coverage, or allow the policy to expire. The length of the term determines the cost —as longer terms have more expensive coverage, and you can expect rates to increase when you renew your coverage. While term life insurance is cheaper than whole life or “permanent” coverage, it has no savings or investment component—its only value is the agreed-on death benefit.

Thanks to flexibility in cost and coverage length, term life insurance plans remain popular, with thousands of companies nationwide offering policies for peace of mind. We’ve collected and compared key data including financial strength, customer service, key offerings, and standout features to select the five best term life insurance providers in 2020.

The 5 Best Term Life Insurance Companies in 2020

  • State Farm: Best for Customer Service
  • New York Life: Best for Flexible Policies
  • Transamerica: Best for Cost-Effective Plans
  • Pacific Life: Best for Straightforward Coverage
  • Northwestern Mutual: Best for Easy Policy Adjustments


State Farm
New York LifeTransamericaPacific LifeNorthwestern Mutual

Our reviewOur reviewOur reviewOur ReviewOur Review
The bestCustomer serviceFor flexible termsFor Cost-Effective PlansFor Straightforward CoverageFor Easy Policy Adjustments
States served4950505050
S&P Global financial strength ratingAAAAAA-AA-AA+
AM Best financial strength ratingA++A++AA+A++
Moody’s financial strength ratingAa1Aa1A1A1Aaa
30-year term?

J.D. Power 2019 U.S. Life Insurance Study score5/54/52/53/55/5

*Data as of 05/20/2020.

State Farm

Best For
Customer Service
State Farm
State Farm


State Farm makes it onto the list of top term life insurance companies thanks to its superior customer service scores. With an A+ rating from the Better Business Bureau (BBB) along with 5 out of 5 Power Circles on the J.D. Power 2019 Life Insurance Study, State Farm is all about making sure clients are satisfied with their policies. And with 19,000 agents across the country, it’s easy to connect with an insurance professional to find the best fitting term life solution. 

Check out our full State Farm review to learn more about its term life offerings, pricing, and coverage options.

Best For ✗ Not For
Great customer service Term customization

New York Life

Best For
Flexible Policies
New York Life
New York Life


New York Life makes it easy to customize your policy to match your coverage needs. The company’s “Level Premium Convertible” option lets you select a term length between 10 and 20 years with premiums that are guaranteed to remain the same for the length of your policy. You can also choose a “Yearly Convertible” policy that renews annually (and for a higher price) but lets you cancel coverage anytime. 

Learn more about New York Life’s customizable coverage options in our full overview.

✓ Best For ✗ Not For
Flexible policy options Long-term policies

Transamerica

Best For
Cost-Effective Plans
Transamerica
Transamerica


Transamerica earns a spot among our top five best term life insurance companies with its cost-effective policy options. Clients can choose from multiple term lengths with death benefits starting at just $25,000. This makes it easy to purchase a small-scale, extremely affordable policy that still offers substantial term coverage. In addition, Transamerica offers riders such as disability waiver of premium, accelerated death benefit, accidental death insurance, and long-term care insurance to ensure that even the most cost-effective policy meets your needs. 

Get the complete coverage picture with our full Transamerica review

✓ Best For ✗ Not For
Cost-effective policies op-tier customer service

Pacific Life

Best For
Straightforward Coverage
Pacific Life
Pacific Life


Pacific Life offers simple and straightforward term insurance policies with solid rider options. Clients can choose from 10, 15, 20, 25, or 30-year terms and easily add riders such as living needs, accidental death, or even child coverage so they don’t need to purchase a separate policy for younger family members. While Pacific Life has high financial strength ratings, it’s worth noting that the company doesn’t offer online quotes.

Get all the term life particulars in our full Pacific Life review.

✓ Best For ✗ Not For
Straightforward term life
coverage
Online applications

Northwestern Mutual

Best For
Easy Policy Adjustments
Northwestern Mutual
Northwestern Mutual


Northwestern Mutual makes it easy for clients to adjust their policies to meet emerging needs. For example, you can alter term lengths if your insurance requirements suddenly change, or leverage the company’s term-to-permanent conversion option if extending your coverage is a top priority. Accidental death, disability income, and critical illness riders help further increase plan flexibility. 

Discover more about Northwestern Mutual in our in-depth insurance review.

✓ Best For ✗ Not For
Easy term
life adjustments
Online policy support

Further Reading:

Term Life Insurance FAQ

Our Other Life Insurance Reviews

We’ve been digging into all kinds of life insurance policies and have published additional reviews for specific needs. Check them out below:

Editor’s Note (Oct. 25, 2019): TIAA Life, our previous top pick for Easily Convertible Policies, recently announced it is no longer accepting new life insurance applications. While it continues to service existing policies and pending applications, we’ve removed TIAA from our list of recommendations.

About the Authors

Doug Bonderud is an award-winning freelance writer with the unique ability to translate complex financial concepts into approachable, actionable content that both captures reader interest and delivers key brand messaging.