Best Term Life Insurance Companies January 2023

Term life insurance provides protection for a specified period, ranging from one to forty years depending on the carrier. This insurance is popular with young families and those who need affordable protection. Term life insurance can be sufficient for some people, but it can also be bought alongside permanent insurance to provide greater coverage and longer protection.

Term policies are generally not very expensive. When selecting a life insurance provider, ensure you have the financial means to afford the coverage that you require, but also take into consideration each company’s unique offerings. Protective and Banner are your best options for affordable coverage with great perks. If you need a policy that lasts 40 years, they are your best options. Both companies also offer an easy online application that requires no agent.

Haven Life is the best choice for a seamless and almost effortless application process. If you are under 59, you can get same-day coverage up to $1,000,000 without the need for an exam. MassMutual has 171 years of combined experience and AM Best’s highest-tier Superior rating for financial stability. MassMutual is a better choice than Haven if you are looking for agent experience, or if you are over 64 and require long-term coverage.

If you prefer a return of premium policy, then go to Mutual of Omaha. Three accelerated benefit riders are available on certain term policies. A life insurance disability income rider is also available.

What is Term Life Insurance?

Term life insurance provides protection for a set number of years. Term life insurance is often the cheapest type of life insurance.

Term life policies are typically sold by life insurance companies with terms ranging from 10 to 30 years. However, there are shorter and longer terms available, such as 40-year terms offered by Protective and Banner. Your beneficiary will receive the death benefit if you die during the term. This is tax-free money and can be used for whatever purpose.

Your coverage ends at the end of the term. However, you might be able to retain it depending on which policy you have. Insurance companies often allow you to renew your coverage annually, but with a higher premium depending on your age. You can also convert your term coverage to a permanent policy by some insurance companies without undergoing a medical exam. Permanent coverage is meant to last your entire lifetime. You will need to apply for another policy if your insurer does not offer convertible insurance like Haven Life.

While term life insurance and full life insurance may be similar in certain ways, there are many differences. Whole life insurance, a type of permanent insurance, provides coverage starting at the time your policy is in effect and ending when you die. As long as premiums have been paid. A whole life policy is not like a term policy. You cannot cancel your coverage.

Whole life insurance policies also have cash value. Term life policies don’t. Cash value works in the same way as a savings account. A portion of your premium is paid to the cash value. You might be able to withdraw some of the money or borrow some. You lose your death benefit if you don’t repay the loan amount.

Cost is another major difference between whole and term life policies. Whole life insurance is more expensive because it offers longer coverage and has a cash value.

What is the maximum age for term life insurance?

The insurance company determines the maximum age that term life insurance can be purchased. Guardian and John Hancock offer term life insurance to applicants over 75. Haven, however, limits coverage to those aged 64 and younger. The term length that you are eligible for will also vary. For example, if you are 55 years old, you might be eligible for a 30-year policy with one company but not a 20-year policy at another.

Are You at Risk of Losing Money with Term Life Insurance

You’re buying protection when you purchase insurance. Even if you do not use it, the protection will still be there for your loved ones in case you die. You can also get term-of-life insurance or ROP term insurance. This will refund your premiums if the term is not used.

What is No-Medical Examination Life Insurance?

No medical exam life insurance does not provide a specific type of coverage. It’s any type of life insurance policy that does not require you to undergo a medical exam to be approved. There are two main forms of no-medical-exam life insurance for term policies–accelerated issue and simplified issue. While more affordable, simplified-issue policies may be more expensive and require more detailed health questions.

Accelerated Issue: The accelerated life insurance application begins with a complete health questionnaire and a phone interview. If you are healthy, the underwriter will skip the medical exam. This “accelerates” your application.

Simplified Issue: These policies usually only require basic questions about your health and do not require an interview. Simplified issue policies may provide an instant decision. This means you can know right away whether you have been approved or denied based on your answers. This coverage is typically more costly than policies that require exams or rely on accelerated sub writing.

How we chose the best term life insurance companies

To compile our list, we created a comprehensive insurance methodology. To find out what life insurance consumers want, we started by looking at third-party consumer studies like J.D. Power’s 2021 U.S. Life Insurance New Business Study.

We compiled more than 50 data points about 91 life insurance companies to help us make these findings. These include ratings for financial strength, customer satisfaction, and customer complaints.

Companies with easy-to-use applications, affordable premiums, and valuable term features were favored in our review. We valued online quoting, application tools, transparency, pricing options, and no-medical exam policy options. If customer service was available via live chat, companies received higher ratings. Each company was ranked according to the following weights and categories.

  • 40%: Easy application (such as online quotations, online applications, and same-day coverage)
  • 20%: Policy features such as renewal options, conversion ability and terms available
  • 20% Discount on All Orders
  • 20%: Customer service features such as live chat or credit card payments

We compared the individual offerings of top companies to finalize our list by taking into account third-party ratings. Additionally, we looked deeper into product details, such as maximum coverage amounts without a physical exam, maximum issue ages, and included riders. This research was used to identify the top-term life insurance companies.

Updated: December 25, 2022 — 9:44 am

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