9 Best Term Life Insurance Companies in the U.S. – April 2024
last updated on March 15, 2024Below is a list of 9 best term life insurance companies in the U.S. in 2024. These insurers offer the lowest term life prices in the country, are highly rated and have the most favorable underwriting and best policy options. These are the trusted term life insurance companies we place our clients with.
Best Term Life Insurance Companies U.S. 2024
Pacific Life Insurance Company
Pacific Life Insurance Company (PacLife) is one of the best term and universal life insurance companies in America. They often have the best rates with favorable underwriting including their height & weight chart. Pacific Life and has A+ superior financial rating.
Banner Life Insurance Company
Banner Life (subsidiary of Legal & General) continues to be one of the best term life insurance companies in America. Banner often has the lowest term life insurance rates coupled with favorable underwriting in many areas including diabetes. Banner Life A + superior financial rated. Banner Life offers a 35 and 40 year level term policy.
Protective Life Insurance Company
Protective Life Insurance Company may not be a household name but they are one of the best term life insurance companies in the country. Along with the other names on our list Protective Life often has the lowest term life insurance rates in the nation. They have favorable underwriting and are superior rated. Protective Life also offers a 35 and 40 year level term policy.
Lincoln National Life Insurance Company
Lincoln National Life Insurance Company (subsidiary of Lincoln Financial Group) is an A Excellent rated company that has has some of the best term life insurance rates in the country today. Lincoln Life offers has one the best accelerated underwriting programs in the country. Lincoln also has favorable underwriting including a non-tobacco rate for smokeless tobacco and marijuana users.
Transamerica Life Insurance Company
Transamerica has great term life insurance rates and policies for all ages, especially for seniors. Transamerica even offers applicants in their early 60's up to a 25 year level term policy. Transamerica is excellent rated and has been in business for nearly a century.
American General Life Insurance Company (Now Corebridge Financial)
American General Life Insurance Company (subsidiary of AIG) has some of the best term life insurance rates in the nation.
AIG has great underwriting and an excellent financial rating. AIG is one of the largest insurance companies in the world.
Savings Bank Life Insurance Company (SBLI)
Savings Bank Life Insurance Company (SBLI) has one of the best no-medical exam life insurance policies in the country. SBLI has been in business for over 110 years, is excellent rated and has never failed to pay out a legitimate claim.
Prudential Life Insurance Company
Prudential Life Insurance Company (Pruco) is one of the largest and most recognized name in life insurance. Prudential has favorable underwriting in many key areas key such as build and smokeless tobacco. Prudential is A+ superior rated and has been in business since 1875.
Symetra Life Insurance Company
Symetra Life Insurance Company has some of the best term life insurance rates in the country including a great term life insurance no medical exam accelerated underwriting policy for those 20-60 years old that goes up to $3 million. Symetra has been in business for more than 65 years and is Excellent rated by A.M. Best.
Best Term Life Insurance Rates 2024
Below are the best term life insurance rates in the country by coverage amount and term for a 40-year old male in excellent health. These rates are from the companies above on our list of the best term life insurance companies 2024.
10-year term rates
Coverage Amount | Term | Age | Premium |
|---|---|---|---|
$100,000 | 10 year level | 40 year old | $8.49 month |
$250,000 | 10 year level | 40 year old | $11.97 month |
$500,000 | 10 year level | 40 year old | $17.84 month |
$1,000,000 | 10 year level | 40 year old | $27.19 month |
15-year term rates
Coverage Amount | Term | Age | Premium |
|---|---|---|---|
$100,000 | 15 year level | 40 year old | $9.30 month |
$250,000 | 15 year level | 40 year old | $13.07 month |
$500,000 | 15 year level | 40 year old | $19.98 month |
$1,000,000 | 15 year level | 40 year old | $34.00 month |
20-year term rates
Coverage Amount | Term | Age | Premium |
|---|---|---|---|
$100,000 | 20 year level | 40 year old | $10.60 month |
$250,000 | 20 year level | 40 year old | $17.68 month |
$500,000 | 20 year level | 40 year old | $28.90 month |
$1,000,000 | 20 year level | 40 year old | $49.08 month |
25-year term rates
Coverage Amount | Term | Age | Premium |
|---|---|---|---|
$100,000 | 25 year level | 40 year old | $14.96 month |
$250,000 | 25 year level | 40 year old | $24.40 month |
$500,000 | 25 year level | 40 year old | $42.42 month |
$1,000,000 | 25 year level | 40 year old | $77.34 month |
30-year term rates
Coverage Amount | Term | Age | Premium |
|---|---|---|---|
$100,000 | 30 year level | 40 year old | $17.23 month |
$250,000 | 30 year level | 40 year old | $28.44 month |
$500,000 | 30 year level | 40 year old | $50.49 month |
$1,000,000 | 30 year level | 40 year old | $93.74 month |
35-year term rates
Coverage Amount | Term | Age | Premium |
|---|---|---|---|
$100,000 | 35 year level | 40 year old | $21.81 month |
$250,000 | 35 year level | 40 year old | $34.22 month |
$500,000 | 35 year level | 40 year old | $61.78 month |
$1,000,000 | 35 year level | 40 year old | $115.82 month |
Wrap Up
By comparing rates and choosing one of the insurers on our list of the top nine best term life insurance companies 2024, you will be receiving the lowest rate in the country. Equally important, you will have peace of mind knowing that if anything were to happen to you, the policy will pay out.
Frequently Asked Questions
What is Level Term Life Insurance?
Level term life insurance means the coverage amount and premiums are fixed for the term selected. Most life insurance companies offer 10, 15, 20, 25 and 30 year term lengths. There are even a few top companies that offer a 35-year and 40-year term.
When the term ends, most policies allow you to keep the coverage on an annual renewable basis until the age of 90, however the premium increases significantly. Most people will cancel when the term expires since the new cost is much higher than can be purchased with a new policy.
How Do You Choose The Right Company?
Most people will choose the company with the lowest price. However, the A.M. Best financial rating is an important factor to look at. The general rule of thumb is to choose a life insurer with an “A” rating or better from A.M. Best.
Also, it’s good to see if the term policy comes with a conversion option and an accelerated death benefit rider- at no cost.
Is There A Cash Value?
There is no cash value with term life insurance. Term life insurance typically costs about 5x to 15x less per month than whole life insurance. This is why many top financial experts such as Suze Orman, Dave Ramsey and Clark Howard recommend to buy term insurance instead of whole life insurance and invest the difference yourself.
This allows you to have the life insurance coverage at a much lower premium. Many people will use this savings to pay off their home faster, max out their 401k, IRA or 529 plan.
Are There Any Exclusions?
Most term life insurance policies have the same two exclusions. 1. Two-year incontestability clause. This means if you were dishonest on the application and pass away in the first two years the insurance has the right to contest it and not pay the claim. 2. Most term life insurance policies have a two-year suicide clause. This means the policy will not pay out if death was the result of a suicide in the first two years.
Can You Cancel Anytime?
Yes, term life insurance policies do not have a prepayment penalty. This means you can cancel at anytime without a penalty.
