Investopedia’s recent assessment has awarded Banner Life, a part of Legal & General, the title of the best term life insurance company. This recognition stems from Banner Life’s attractive features, including substantial coverage limits, extended policy durations, and appealing premium rates, making them a top choice for individuals seeking to safeguard their loved ones.
Term life insurance offers an economical approach to providing financial protection. This type of policy guarantees coverage for a predetermined period, often spanning 10 to 30 years. In the event of the policyholder’s death during the covered term, the designated beneficiaries receive a death benefit. This financial support can be utilized to cover final expenses, settle debts, or replace the policyholder’s income.
Investopedia’s research team conducted a comprehensive review of 45 insurance providers, evaluating them across 70 key criteria. The factors considered encompassed cost, customer satisfaction, available coverage options, and the ease of the application process. Here are some of the top picks from their February 2025 report:
- Best Overall, Best for No-Medical Exam Life Insurance, Best for Convertible Term Life Insurance: Banner Life
- Best for Cheap Life Insurance: SBLI
- Best for Financial Stability: State Farm
- Best for Children: Protective
- Best Return-of-Premium Life Insurance: AAA
- Best for Living Benefits: Nationwide
Banner Life: Detailed Review
Investopedia’s research highlights Banner Life as the premier choice, particularly excelling in cost efficiency, extensive coverage options, and flexible policy terms, which can extend up to 40 years. Moreover, Banner Life streamlines the application process through accelerated underwriting, potentially providing up to $4 million in coverage without requiring a medical examination. The company’s convertible term policies also stand out. These policies offer the option to transition to permanent universal life insurance with benefits like adaptable premiums, a guaranteed interest rate, and an accelerated death benefit rider, offering long-term flexibility. Conversions are available up to age 70.
Pros & Cons:
Pros:
- No maximum term coverage limits
- Terms up to 40 years
- No-med-exam coverage up to $4 million
- Competitive term premiums
- Includes conversion rider
Cons:
- No return-of-premium option
- No spousal term rider
- No live chat for service.
Banner Life, a prominent contender in the term life insurance sector, distinguishes itself by offering policies that can last up to 40 years. This duration surpasses the typical 30-year cap imposed by most insurers. Notably, Protective Life is the only other company reviewed by Investopedia to match this lengthy term. Furthermore, Banner Life imposes no upper limit on coverage amounts, accommodating the diverse protection needs of its clients. The company’s Lab Lift program enhances accessibility by enabling coverage of up to $4 million without a medical evaluation. Additionally, the term policies feature affordable premiums and include complimentary benefits such as annual renewals, with the option to convert to permanent universal life insurance without undergoing health assessments.
Established in 1949, Banner Life is a subsidiary of Legal & General and is headquartered in Frederick, Maryland.
Additional Insights from Investopedia’s Research:
- SBLI: Recognized for offering the most competitive average premiums across various age groups, making it ideal for budget-conscious consumers. SBLI allows up to $1 million in coverage without a medical exam.
- State Farm: Achieves the highest financial strength rating from AM Best and provides return-of-premium term policies.
- Protective: Best suited for insurance needs of children, offering coverage for children and extending to adulthood.
- AAA: Provides return-of-premium term life policies, reimbursing premiums paid if the policyholder outlives the term.
- Nationwide: Offers term life insurance policies that incorporate living benefits at no extra cost, which enables access to funds during the policyholder’s lifetime upon qualifying illnesses.
The average term costs in the report depend on the company. The following costs are based on a 30-year term, $250,000 policy for individuals in excellent health, and are averages from different zip codes:
- Banner: $14.36 (30-year-old female); $17.03 (30-year-old male); $22.67 (40-year-old female); $27.96 (40-year-old male); $90.52 (55-year-old female); $117.74 (55-year-old male).
- SBLI: $14.34 (30-year-old female); $16.99 (30-year-old male); $22.68 (40-year-old female); $27.97 (40-year-old male); $68.30 (55-year-old female); $98.30 (55-year-old male).
- State Farm: $20.12 (30-year-old female); $23.92 (30-year-old male); $33.29 (40-year-old female); $37.64 (40-year-old male); $51.34 (55-year-old female); $71.34 (55-year-old male).
- Protective: $14.37 (30-year-old female); $17.04 (30-year-old male); $22.68 (40-year-old female); $27.97 (40-year-old male); $90.53 (55-year-old female); $117.45 (55-year-old male).
- AAA: $23.10 (30-year-old female); $27.94 (30-year-old male); $29.48 (40-year-old female); $36.08 (40-year-old male); $104.29 (55-year-old female); $152.46 (55-year-old male).
- Nationwide: $18.81 (30-year-old female); $22.97 (30-year-old male); $26.25 (40-year-old female); $31.50 (40-year-old male); $99.97 (55-year-old female).
*Average Term Cost is based on quotes collected from Term4Sale, Quotacy, and individual company websites for a 30-year $250,000 term policy for non-smokers born in 1984 with excellent health. They are the average monthly costs across two ZIP codes, one in Houston and the other in Los Angeles, and for men and women.
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