Best Term Life Insurance Companies
Finding the best term life insurance policy for you is important – and there are quite a few options.
This means you’ll probably need to do a bit of research before you make up your mind, which is why we took it upon ourselves to help you out and narrow your search down.
Whether you are looking for a specific term, anywhere from 10 to 30 years, term life insurance is a great option for your life insurance needs.
Best Term Life Insurance Companies of 2021
Here are the top 10 providers of the best term life insurance policies:
- 🏆 Haven Life: Best Overall
- Bestow: Best For Young Applicants
- Banner: Best For Complex Health Situations
- AIG: Best Variety of Options
- SBLI: Best Underwriting Process
- Ladder Life: Best for Customizing Coverage
- Health IQ: Best For Healthy Applicants
- Fabric: Best For Higher Income Applicants
- State Farm: Best for Local Agents
- Brighthouse: Best for Short Term Length Options
Haven Life specializes in term life insurance. This online agency helps millennials and some Gen X applicants — those 45 or younger — get up to $3 million in term life coverage without taking a medical exam.
Unless you have a clear health record, you will need a medical exam, but even then, the rest of the application process unfolds seamlessly online — so it’s quick and easy.
Haven’s policies start around $14 and come from MassMutual, which is top-rated by A.M. Best, the independent agency which grades insurers on their health and stability.
Bestow also has the goal of simplifying term life insurance for younger applicants. Bestow has a streamlined online application. Those who qualify can get coverage within minutes.
But if you don’t qualify for this super-fast approval — either because of age or because online databases reveal something more complicated in your health history — you’re better off going with another insurer.
Bestow is at its best when you’re young and have a simple health history and has rates as low as $8 a month for these applicants.
If you do have a more complex health picture — diabetes, high blood pressure, or some other chronic condition — Banner Life could be your best bet.
Banner looks more favorably on these applications than many other insurers. You’d still pay more than someone in top-notch health, but Banner has more experience underwriting this kind of coverage.
Banner specializes in more than just term life, so make sure you’re getting a term policy if that’s the kind of coverage you’d like.
Banner Life isn’t strictly an online agency like Haven or Bestow, but the company still has a friendly online experience.
If you’re in New York State, you can’t buy a policy from Banner, but its sister company, William Penn, has similar underwriting policies.
AIG is a huge company offering a wide variety of policies. Its term options have competitive prices and some unique features.
For example, AIG can give you more flexibility for term lengths. Standard lengths are 10, 20, and 30 years. But if you’ve decided you don’t quite need 20 years, you could get an 18-year policy from AIG.
Even more unusual is AIG’s option for a 35-year term policy. If you’re young and healthy and want to stretch out your coverage as long as possible, check out this company.
Most AIG coverage gets sold through insurance agencies, but look for AIG Direct if you’d like to take more direct control of your shopping process.
SBLI simplified term life a few decades ago, speeding up the underwriting process and providing customers with clear and simple documents they could understand without hiring an attorney.
Now, compared with newer, InsureTech companies, SBLI seems a little outdated, but it’s catching back up. For example, now you can get up to $500,000 in coverage with no medical exam online.
Shoppers with a history of high blood pressure or high cholesterol can still get competitive rates with SBLI, but diabetics probably won’t. Banner may be a better choice.
SBLI does not sell policies to residents of New York State or Montana.
Ladder Life Insurance partners with Fidelity Life to create one of the most flexible ways to use term life coverage.
With a policy from Ladder, you could change your term length — or you could change your coverage amount — during the term itself. Both of these features are unusual. Traditionally you’d have to get a new policy to make these kinds of changes.
If you “Ladder Up” or “Ladder Down” your coverage during the term, your premiums would adjust to match your changes, of course.
If you can’t decide on a coverage amount and a term length — and we’ll explore these questions below — Ladder Life can take off some of the pressure.
People who know a lot about health tend to be more healthy. This makes sense, right? Health IQ has turned this reasonable assumption into a way to price term life insurance.
When you apply, you’ll be scored a Health IQ after taking a detailed questionnaire about health and wellness. Your term life premiums will be based, in part, on your IQ.
(By the way, this works because the whole point of underwriting life insurance is to assess your risk of dying and assign premiums to match.)
Health IQ can also save you money if you’re a runner. And, if you do have a chronic health condition such as diabetes, you can be rewarded with lower premiums by successfully managing your condition.
Health IQ also stands out because of its award-winning customer service.
Here’s another new kid on the block offering term life policies tailored for younger adults. In fact, Fabric won’t insure anyone older than 50.
Coverage amounts can swell to $5 million, which makes Fabric a great choice for high earners who need a bigger term life safety net. However, terms won’t exceed 15 years.
Like Haven and Bestow, Fabric makes applying and getting covered easy with its online-only application and policy management.
Fabric’s policies come through Vantis Life, which is part of the Penn Insurance group, a stable and healthy insurer.
More applicants will need a medical exam compared to other online-first insurers, but if you’re healthy and need a high-level term policy, Fabric can cover you quickly.
State Farm: It’s a household name with a huge marketing budget — yet it seems like an outlier on this InsureTech-laden list of providers.
Some people prefer the old school. If you’d rather walk into a neighborhood office and discuss coverage with an agent, State Farm has an office near you.
State Farm also has good policy options and a solid online interface. You can find 10, 20, or 30-year term policies at competitive rates.
Brighthouse is a subsidiary of MetLife with a focus on consumer life insurance products. This insurer specializes in term policies of $1 million or more. In fact, they won’t sell policies for less with less than $1 million in coverage.
I list Brighthouse here because it fast-tracks policies for millennials who happen to have a more complex health history. Also, if you need a 1-year policy as a stop-gap measure, Brighthouse offers this option.
But you’d have to work with a financial planner to buy a policy. Brighthouse doesn’t sell insurance directly to consumers.
Term Life Insurance May Be Cheaper Than You Think
What deters many people from getting insured is the imagined cost of life insurance.
While whole life insurance can be quite expensive – term life insurance is most likely cheaper than you think.
Haven Life, backed by MassMutual, offers some of the most affordable life insurance policies. If you’re a 25-year-old non-smoker, you could be paying less than $10 per month for $250,000 in life insurance coverage.
This price doesn’t increase much for a 30-year-old. Even a $500,000 policy can be purchased for less than $14 per month.
While the premiums become more expensive for older applicants, when you’re young, they really won’t make you go broke, contrary to what many people think.
Here are some sample quotes for varying amounts of coverage, from $250,000 to $2 million dollars:
Sample monthly premium rates from PolicyGenius above are based on a 20-year term life insurance policy for a non-smoking male.
How to Find the Best Term Life Policy for You
Sites like Policygenius are great for comparing term life insurance quotes in one place. You won’t even need to call anyone – all of it can be done online. Easy!
A few things to remember when looking for the best life insurance companies for you:
- Look for companies with “Excellent” ratings to guarantee the best experience; A.M. Best is the most well-known rating agency for insurers, so check out its ratings.
- Make sure the company you decide to go with is financially strong; this will reassure you that the insurer will be able to pay your beneficiaries. Again, A.M. Best will be a helpful resource.
- Make sure you know the insurer provides great customer service. You, or your beneficiaries, will have to deal with your insurer for a long time – so go for a company you know won’t give you problems.
- Be clear about the policy features you want. Don’t just go with something you’re unsure of – be certain your policy includes features necessary for you, like the right to convert to a whole life policy or any others.