The Best Term Life Insurance Companies

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.

We went through the quote process with many of the insurance companies we ranked as the top, finding three to be supreme.

Features

Quick Facts

Features

Quick Facts

Features

Quick Facts

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 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 insurance, disability income, and estate-protection riders. New York Life falls slightly behind the others because it doesn’t offer disability income or long-term care riders, so if you are interested in these, Transamerica or Northwestern Mutual is a better fit.

A life insurance company’s financial strength is as important as the coverage it offers. 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 it. All the companies on this list have strong financial outlooks, with New York Life and Northwestern Mutual earning A.M. Best’s highest rating.

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 its policies are generally affordable.

Transamerica is our top pick for the best term life insurance, but all 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.