When looking for term life insurance coverage, it’s essential to compare different insurance companies to find the one that suits your needs best. Our team of insurance experts conducted a thorough review of over 20 life insurance companies. The goal was to identify the top providers offering the best term life insurance policy. Several key factors, including rates, complaints, and the option to convert the policy to permanent life insurance, were considered during the evaluation.
Compare the best term life insurance companies of 2023
| INSURER AND POLICY | AVAILABLE TERMS (YEARS) | COVERAGE AMOUNTS | CONVERTIBLE (Y/N) | RATING |
|---|---|---|---|---|
| Symetra – Symetra SwiftTerm | 10, 15, 20 or 30 | $100,000 to $3 million | Y | 5.0 stars |
| Pacific Life – PL Promise Term | 10, 15, 20, 25 or 30 | $50,000 minimum | Y | 5.0 stars |
| Protective – Classic Choice Term | 10, 15, 20, 25, 30, 35 or 40 | $100,000 minimum | Y | 4.5 stars |
| Haven Life – Haven Term 2.0 | 10,15,20,25, or 30 | $100,000 to $3 million | N | 4.5 stars |
| Penn Mutual – Non-convertible Term | 10, 15, 20 or 30 | $250,000 minimum | N | 4.5 stars |
| Banner/Legal & General – OP Term | 10, 15, 20, 25, 30, 35 or 40 | $100,000 to $65 million | Y | 4.0 stars |
| Corebridge Financial – Select-a-Term | 10 to 35 | $100,000 to $41 million | Y | 4.0 stars |
| Transamerica – Trendsetter Super | 10, 15, 20, 25 or 30 | $25,000 minimum | Y | 4.0 stars |
| Midland National – Premier | 10, 15, 20 or 30 | $100,000 minimum | Y | 4.0 stars |
Cost comparison: Best term life insurance companies of 2023
When it comes to comparing the best term life insurance companies in terms of cost, it’s essential to look at the average annual rate. For instance, consider a 30-year-old individual seeking a $250,000 20-year term life insurance policy. By examining this data, you can gain valuable insights into how different companies stack up against each other in terms of affordability.
| INSURER AND POLICY | WOMAN | MAN | RATING |
|---|---|---|---|
| Haven Life – Haven Term 2.0 | $125 | $144 | 4.5 stars |
| Protective – Classic Choice Term | $129 | $146 | 4.5 stars |
| Banner/Legal & General – OP Term | $129 | $146 | 4.0 stars |
| Pacific Life – PL Promise Term | $130 | $147 | 5.0 stars |
| Symetra – Symetra SwiftTerm | $130 | $147 | 5.0 stars |
| Corebridge Financial – Select-a-Term | $130 | $147 | 4.0 stars |
| Transamerica – Trendsetter Super | $130 | $148 | 4.0 stars |
| Penn Mutual – Non-convertible Term | $131 | $148 | 4.5 stars |
| Midland National – Premier | $140 | $155 | 4.0 stars |
What is term life insurance?
Term life insurance offers a specific coverage period, typically ranging from 10 to 30 years, during which your premium rates remain locked. After this term expires, you have the option to renew the policy or purchase a new one, but the rates may increase.
If death occurs within the policy term, the beneficiary receives a death benefit based on the chosen coverage amount. However, if death happens after the policy expires, the beneficiary does not receive any death benefit.
When selecting beneficiaries, you can choose from various options, including a spouse, partner, child, or grandchild.
According to Alison Salka, Ph.D., a senior vice president at LIMRA Research, term life insurance is an ideal choice for individuals who only require coverage for a limited period. For example, it can be beneficial while paying off a mortgage or raising children. Term life insurance is also more affordable and easier to understand compared to permanent life insurance, which tends to be more complex.
Pros and cons of term life insurance
| PROS | CONS |
|---|---|
| Typically more affordable than permanent coverage | Coverage lasts for a specific period, not lifelong |
| Multiple coverage terms (10 to 30+ years) to fit your needs | Renewing or purchasing a new policy at the end of a term can be costly |
| Level premiums so you know what to expect | Does not include a cash value component, like most permanent policies |
How much does term life insurance cost?
Average annual costs for term life insurance vary based on several factors, including age and gender. For example, a healthy 30-year-old female can expect to pay around $153 per year for a $250,000, 20-year term life policy. On the other hand, a male of the same age and health will have an average premium of $176 for the same coverage.
If the death benefit is increased to $1 million, the annual premiums for a 20-year term policy will also increase. For the female, the average cost would be around $325, while a male would pay approximately $408 annually.
Multiple factors contribute to determining term life insurance rates. Some of these include smoking status, marijuana use, medical history, family medical history, height, weight, prescription history, risky occupations or hobbies, alcohol or substance abuse history, criminal record, credit history, and driving record (including any DUIs).
Remember, each individual’s circumstances are unique, so it’s essential to shop around and compare quotes from different insurance providers to find the best coverage and rate that suits your needs.
Average annual cost of 10-year term life policy for female
| COVERAGE AMOUNT | 30-YEAR-OLD | 40-YEAR-OLD | 50-YEAR-OLD | 60-YEAR-OLD |
|---|---|---|---|---|
| $250,000 | $118 | $150 | $262 | $553 |
| $500,000 | $153 | $212 | $427 | $938 |
| $1,000,000 | $225 | $337 | $757 | $1,743 |
| $2,000,000 | $383 | $606 | $1,441 | $3,443 |
Average annual cost of 10-year term life policy for male
| COVERAGE AMOUNT | 30-YEAR-OLD | 40-YEAR-OLD | 50-YEAR-OLD | 60-YEAR-OLD |
|---|---|---|---|---|
| $250,000 | $128 | $164 | $309 | $759 |
| $500,000 | $175 | $244 | $509 | $1,353 |
| $1,000,000 | $270 | $377 | $922 | $2,571 |
| $2,000,000 | $482 | $692 | $1,791 | $5,096 |
How to find the best term life insurance policy
Choosing the right term life insurance policy requires a thoughtful approach. Here are three essential steps to help you make the best decision:
Step 1: Determine your coverage needs
Before diving into the available options, assess how much life insurance coverage you actually need. Consider factors such as replacing your income for your beneficiaries, covering outstanding debts like mortgage payments, car loans, and personal loans. Additionally, think about providing for your child’s education expenses and whether you have any existing life insurance policies or assets that can support your family after your passing.
Step 2: Decide on the policy length
Term life insurance policies typically come in various lengths, such as 10, 15, 25, or 30 years. Some companies even offer terms up to 40 years. It’s crucial to choose a policy length that aligns with your financial goals and the specific expenses you want the death benefit to cover. While some policies can be renewed, keep in mind that renewal rates increase over time, so it’s generally wiser to select a term that fulfills your needs without relying on renewals. If you think you might consider permanent life insurance in the future, look for a term policy with a conversion option.
Step 3: Compare quotes from different insurers
Not all term life insurance policies are equal, and comparing quotes from multiple insurers is essential to find the best coverage and rate. You can obtain quotes directly from insurance companies, work with independent brokers, or use online marketplaces for comparisons. Besides comparing prices, take into account additional factors like available riders (optional policy features) and the option to convert the term policy into a permanent one. To make an informed decision, check company reviews by insurance experts and assess their financial stability through independent review agencies like AM Best or Standard & Poor’s (S&P).
By following these steps, you can confidently choose the term life insurance policy that best suits your unique needs and provides financial security for your loved ones in the future.
Speak to a financial advisor
When it comes to term life insurance, it’s essential to recognize that it’s a significant commitment. Your family’s financial security may depend on it, so making the right decision is crucial. Seeking advice from a financial advisor, as suggested by Salka, can be highly beneficial. Over time, life insurance policies and their features can change, so having an expert who can navigate these changes and tailor the policy to your specific needs is invaluable.
Understanding the nuances of life insurance policies is no easy task, and that’s where a financial advisor can play a crucial role. With their expertise, they can help you analyze various options available and align them with your long-term goals. Since life insurance policies and their features can evolve, having a knowledgeable advisor by your side ensures that you’re always making informed decisions to protect your family’s future. Don’t hesitate to seek professional guidance and secure a policy that suits your unique needs.
