Term life insurance provides a safety net for your loved ones, offering financial protection during the years when you may have significant financial obligations. Selecting the right provider can be critical. Here’s a look at some of the top term life insurance companies, based on their strengths:
- Guardian Life: Best for applicants with health conditions.
- MassMutual: Best for term length options.
- Northwestern Mutual: Best for customer experience.
- Thrivent: Best for social responsibility.
- New York Life: Best for high coverage amounts.
- Pacific Life: Best for conversion flexibility.
- Penn Mutual: Best for term life versatility.
- AARP: Best for older applicants.
Key Factors to Consider
Choosing a life insurance policy involves considering various factors. These include the amount of coverage you require, the length of the term, any age restrictions, and whether you can convert the policy to permanent coverage. NerdWallet’s editorial team has assessed term life policies from leading insurance providers in the United States to help you find the right fit.
What to Look For
These companies maintain high standards, scoring at least 4.5 out of five stars in NerdWallet’s evaluation. NerdWallet’s life insurance content, including ratings and recommendations, is meticulously overseen by a team of writers and editors specializing in life insurance. Strict editorial guidelines ensure content accuracy, enabling you to make confident financial decisions and select the most suitable products.
Guardian Life: Best for Applicants with Health Conditions
Guardian Life stands out by offering term life policies across a spectrum of term lengths. Significantly, it extends coverage to applicants living with HIV, which can sometimes complicate the process of securing life insurance. This approach underscores Guardian’s commitment to inclusivity. For these reasons, Guardian is an excellent choice if you have pre-existing health conditions.
- NerdWallet Rating: 5.0
- Pros: Unique coverage options, such as for HIV-positive applicants; low consumer complaint volume.
- Cons: Minimal policy details on its website.
- Noteworthy Details: Policies are open to applicants between 18 and 75 years old, with coverage beginning at $100,000. Options include 1-, 10-, 15-, 20-, and 30-year terms.
MassMutual: Best for Term Length Options
MassMutual provides a broad array of options, including standard term life insurance, an annual renewable policy, and even free coverage through its LifeBridge program for low-income parents. This flexibility allows you to tailor your policy to specific needs.
- NerdWallet Rating: 5.0
- Pros: A wide array of term and permanent life insurance policies, online claims support, and a low complaint rate.
- Cons: Most policies require a medical exam.
- Policy Highlights: Term life policies are available in 10-, 15-, 20-, 25-, and 30-year increments. MassMutual also offers an annual renewable term life policy. Coverage starts at $100,000, with a maximum issue age of 75.
Northwestern Mutual: Best for Customer Experience
Northwestern Mutual excels in customer experience, earning recognition for low complaint ratios. Its commitment to customer satisfaction makes it a solid choice for a smooth insurance experience.
- NerdWallet Rating: 5.0
- Pros: Low complaint ratio, high customer satisfaction ratings, and a history of dividend payments to eligible customers.
- Cons: The website lacks specific details about coverage amounts or riders.
- Offers: Annual Renewable Term Life and Level Premium Term Life options.
Thrivent: Best for Social Responsibility
As a fraternal benefit organization, Thrivent caters to the needs of Christian consumers by providing both term and permanent life insurance products and supporting their members’ volunteer activities and charitable giving.
- NerdWallet Rating: 5.0
- Pros: Low complaint volume, offers dividends, and offers disability and long-term care insurance.
- Cons: Limited information on coverage amounts or riders is available on the website; available only to those with a Christian affiliation.
- Product Details: Term policies start at $100,000 of coverage, available for applicants aged 18 to 75 in most states. An accelerated death benefit rider is included.
New York Life: Best for High Coverage Amounts
New York Life offers two distinct term life products, including an annually renewable policy, catering to different needs and preferences.
- NerdWallet Rating: 4.5
- Pros: Low complaint volume, with some policies eligible for dividends.
- Cons: Quotes are unavailable online.
- Products: Offers a Yearly Renewable Term and Level Premium Term for coverage of 10, 15, or 20 years, with a minimum coverage amount of $100,000.
Pacific Life: Best for Conversion Flexibility
Pacific Life’s term life insurance provides conversion options, including a cash credit for policyholders who choose to transition to permanent coverage. This feature bolsters long-term financial planning.
- NerdWallet Rating: 5.0
- Pros: Good reputation among its customers, and a variety of term and permanent policies.
- Cons: Some policies are not available in New York, and online quotes are unavailable.
- Policies: Offers PL Promise Term with coverage from 10 to 30 years and Pacific Elite Term, which can be converted to permanent coverage within the first 10 years.
Penn Mutual: Best for Term Versatility
With high customer satisfaction and diverse offerings, Penn Mutual adapts to a range of policyholder requirements.
- NerdWallet Rating: 4.5
- Pros: Term lengths up to 30 years, an extensive universal life insurance lineup, and a low volume of complaints.
- Cons: No online quotes and limited policy information on its website.
- Offers: Guaranteed Convertible Term and Protection Non-Convertible Term.
AARP: Best for Older Applicants
Designed with older individuals in mind, AARP provides access to life insurance policies requiring no medical exams, making it easier to acquire coverage. However, you must be an AARP member.
- NerdWallet Rating: 4.5
- Pros: No medical exams are required, and access through AARP membership is available to anyone 50 and up.
- Cons: Term life insurance premiums increase every five years.
- Product: AARP Level Benefit Term Life Insurance, offering coverage until age 80, which can convert to permanent life insurance before age 80.
How We Rank Top Life Insurers
NerdWallet’s evaluation process takes both consumer experience and the insurer’s financial standing into account, focusing on:
- Policies Offered: Reviewing a broad range of policy types.
- Financial Strength: Checking financial stability.
- Complaints: Evaluating complaint data from state regulators.
- Buy Online: Considering the ease of online application.
Tips for Finding the Best Term Life Insurance
- Calculate Your Coverage Needs: Determine your current and future expenses and subtract any assets to identify the coverage gap.
- Consider Additional Riders: Explore customizable riders for extra coverage.
- Obtain Prices from Multiple Companies: Compare quotes from several insurance companies to discover the best rates.
By following these guidelines, you can choose the term life insurance policy that provides the most appropriate coverage, aligning with your specific requirements and financial objectives.
