Life insurance isn’t something most people like to think about. But, it can be an important way to protect your family if you’re not there to provide for them anymore.
Term life is the simplest (and often cheapest) form of life insurance policy, and there are no investments or cash value to manage. A term life insurance policy covers you for a set number of years, generally between 10 and 30 years. If you die within that period, your family will receive a death benefit — a set amount chosen when you buy the policy. If you live beyond that period, your policy lapses and has no value.
While a term life insurance policy won’t help you build an inheritance for children or leave a financial legacy, it can help you protect those you love from the sudden loss of your income during the years they need you most. For example, this can be when you have young children or are working towards big goals like paying for college tuition or paying off a mortgage.
A term life insurance policy can be an easy and affordable way to make sure those you love are covered financially in case of the unexpected. And, we’ve made it easy to choose a term policy that fits your needs. CNBC Select has rated the best term life insurance companies based on customer satisfaction, market share, and financial strength. (Read more about our methodology below.)
Best for flexibility
Guardian Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
Guardian offers a variety of policies, including term, whole and universal. Guardian offers term policies that can be converted into whole or universal life policies.
Pros
- A++ AM Best financial strength rating
Cons
- Ranks slightly below other top picks for customer satisfaction
- Policies must be purchased through a financial professional
Who’s this for? Guardian shines for its top-notch financial strength and flexible policies.
Standout benefits: Guardian offers an option to convert a level-term life insurance policy at any point in the first five years to a permanent life insurance policy without a new medical exam if your circumstances change. An additional rider allows you to convert a level-term policy to a permanent life insurance policy at any point while the policy is in force.
Best for discounts
Amica Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
Amica offers four straightforward life insurance options — a level term life insurance, and whole life insurance policies payable for 20 years or until ages 65 or 100. Both term and whole life insurance policies include a terminal illness rider for free, allowing for an advanced death benefit if the insured is diagnosed with a terminal illness.
Who’s this for? Amica offers fewer types of coverage than competitors, only offering term and whole life insurance. However, it stands out for having numerous discounts available. For those who know they want term life insurance, the company’s online quotes and applications can simplify the process.
Standout benefits: Some people in better rate classes can skip the medical exam to simplify the process. All of Amica’s life insurance plans include a terminal illness rider, which can help you receive your death benefit early to help pay for care or other expenses. And, you can save 10% on your car insurance when you bundle.
Best large insurer
Northwestern Mutual Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
As the largest life insurer by market share in the U.S., Northwestern Mutual is an established choice with a proven record. And, it offers a number of types of policies across the country.
Pros
- Variety of life insurance products available
- Highly rated for customer satisfaction
Cons
- Policies must be purchased through a financial professional
Who’s this for? Northwestern Mutual could be a good choice for someone who wants the financial backing of a longstanding insurer. It has strong ratings for financial strength and customer satisfaction, though its term life insurance policies are only available through financial advisors.
Standout benefits: This policy offers a waiver of premium rider to help cover the cost of your policy if you’re facing a disability.
Best for customer satisfaction
State Farm Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
State Farm offers a variety of term, whole, and universal life insurance products to choose from, alongside other types of insurance. It’s rated highly for both financial stability and customer service.
Pros
- A++ AM Best financial strength rating
- Highest rated for customer satisfaction
- No medical exam option available
Cons
- Low coverage limit for no medical exam option
Who’s this for? While State Farm is well-known for its homeowners and auto insurance, the company also has strong offerings for those searching for life insurance. Its life insurance earned top marks for customer satisfaction in J.D. Power’s life insurance customer satisfaction survey for four years straight.
Standout benefits: Some of State Farm’s term life insurance policies offer savings on auto insurance. And, keeping all of your insurance policies in one place could make managing them easier.
Best for no-exam policies
Bestow Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
Bestow offers one term life insurance policy to those ages 18 to 60 with up to $1.5 million in coverage. Its policies are nearly instant — if approved, applicants don’t need to undergo a medical exam.
Pros
- Simple online application and quotes
- Can pay for coverage with a credit card
Cons
- Not available in New York or Maine
- No riders available
Who’s this for? Bestow could be a good fit for those who want to get term life insurance without the hassle of taking a medical exam. However, its term policy maxes out at $1.5 million, so it’s a better fit for people looking for smaller amounts of coverage.
Standout benefits: Bestow’s policies are offered entirely online, and can be applied for in minutes. It accepts applications for people aged 18 to 60 years old.
Best for affordability
Ladder Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
Ladder is a digital-first life insurance company offering up to $3 million in coverage without an exam. It only offers a single term life insurance policy without riders, but Ladder’s policies offer the option to increase or decrease coverage as your needs change.
Pros
- Simple online application and quotes
- Coverage starts at $5 per month
Who’s this for: Ladder may be a good fit for those seeking an affordable term life insurance solution without the hassle of a medical exam. Its policies are issued by several large insurers including Fidelity Security Life Insurance Company, Allianz Life Insurance Company and Amica Life Insurance Company, among others.
Standout benefits: Ladder offers the ability to adjust your policy as you reach milestones that would require less coverage, such as paying off your mortgage or your kids finishing college. Conversely, you can also increase your coverage over time if needed.
More on our top term life insurance companies
Guardian
Guardian has been offering insurance for more than 160 years and received a top-tier A++ rating from A.M. Best for financial strength.
Coverage offered
Up to $5 million for term policies
Terms offered
10 years, 15 years, 20 years, 30 years
Age limits
Ages 18 to 75
Amica
Amica has been in business since 1907 and offers term and whole life insurance. It’s highly rated for financial strength with an A+ A.M. Best rating.
Coverage offered
Up to $1 million (or more in some cases)
Terms offered
10 years, 15 years, 20 years, 25 years, or 30 years
Age limits
18 to 75
Northwestern Mutual
As one of the larger U.S. life insurers, Northwestern Mutual has a strong track record for its ability to pay on its contracts. It’s been in business since 1857 and offers a variety of life insurance products.
Coverage offered
Not disclosed
Terms offered
Annual renewable terms offer coverage up to age 80. Level term 20 has 20 years of coverage, and level term 10 has 10 years of coverage without increasing premiums.
Age limits
Not disclosed
State Farm
State Farm blends customer service and satisfaction with a high financial strength rating. Additionally, it offers a variety of term life insurance policies to find the one that’s right for you.
Coverage offered
Starting at $100,000, maximum limit not disclosed
Terms offered
10 years, 20 years or 30 years for Select Term policies
Age limits
Ages 18 to 75 for Select Term 10, ages 18 to 65 for Select Term 20, ages 18 to 45 for Select Term 30
Bestow
Bestow allows people to skip the hassle when applying for life insurance and buy directly online. While it’s a newcomer to the space — it was founded in 2017 — it could be a good fit for people who want to try a different way to get a life insurance policy.
Coverage offered
$100,000 to $1.5 million
Terms offered
10, 15, 20, 25, and 30 years
Age limits
Ages 18 to 60
Ladder
Ladder is another relative newcomer to the life insurance space, founded in 2015. Its policies are backed by several large insurers, including Amica and Allianz among others.
Coverage offered
$100,000 to $3 million for online purchasing, up to $8 million available.
Terms offered
10, 15, 20, 25, or 30 years depending on age
Age limits
Ages 20 to 60
FAQs
What is a good amount of term life insurance?
There are a few ways to determine how much term life insurance you need. One common rule of thumb is to multiply your salary by 10. So, a person earning $65,000 per year would need about $650,000 worth of term life insurance.
What is the best age to buy term life insurance?
The younger you are, the more affordable your term life insurance will be. According to Guardian, the average rate for a 35-year-old male buying a 20-year, $500,000 term life insurance policy is $30.42 per month. The average cost for the same person at age 45 is $60.99 per month.
What are the disadvantages of term life insurance?
While term life insurance is affordable, it generally isn’t created to pass wealth to the next generation like a permanent life insurance policy. If you outlive the term, your term policy doesn’t have any value. With permanent life insurance, you can build wealth to pass on to heirs or leave a financial legacy. Another disadvantage is that term policies don’t build cash value that you can use while you’re alive.
What happens if I outlive my term life insurance?
If you outlive your term life insurance policy, the policy simply expires and no benefits will be paid out.
What is the cheapest type of life insurance?
Term life is generally the cheapest type of life insurance, costing less than permanent life insurance policies like whole life insurance and universal life insurance. Whole life insurance, for example, is between five and 15 times term life insurance’s cost.
Bottom line
The best term life insurance policy for you is one that fits your specific needs and lifestyle and covers you for the amount you need affordably. When shopping for term life insurance, pay attention to customer satisfaction ratings, financial strength ratings, underwriting requirements and whether or not you’ll need to submit to a medical exam to get coverage that works for you.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every life insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of life insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best term life insurance companies.
Our methodology
To determine the best life insurance companies, CNBC Select collected data points on dozens of U.S. life insurance companies that offer term life insurance policies to individuals.
To select the best term life insurance policies, we focused on companies that rated highly in J.D. Power’s life insurance customer satisfaction ratings and A.M. Best‘s financial strength ratings (which measure a company’s ability to pay on debts). We also considered market share data from the National Association of Insurance Commissioners, the availability of online quotes, and medical exam requirements.
After considering the features above, we sorted our recommendations based on the best term life insurance companies by best overall, best runner-up, best for customer satisfaction, and best for no-exam policies.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
