Term life insurance provides a straightforward and generally affordable way to protect your family financially. It offers coverage for a specified period, often 10 to 30 years, without the added complexity of a cash value component. This type of policy is designed to provide financial security during your peak earning years, ensuring that essential expenses like mortgage payments, college tuition, and other obligations are covered if you were to pass away.
CNBC Select has evaluated several term life insurance companies based on factors such as cost, available coverage options, customer satisfaction, and other key elements. Our methodology is available to help you understand how we made our selections.
Best Term Life Insurance Companies
Here’s a breakdown of the top choices:
- Best for Affordability: Ladder
- Best for Flexibility: Guardian
- Best for Discounts: Amica
- Best for Dividends: Northwestern Mutual
- Best for Customer Satisfaction: State Farm
- Best for No-Exam Policy: Bestow
Best for Affordability: Ladder
Ladder Life Insurance Learn More
- Cost: The best way to estimate your costs is to request a quote.
- Online quote for term policy: Yes
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Policy highlights: Ladder offers no-exam term life insurance with up to $3 million in coverage. Policyholders can adjust coverage and premiums for free as needs change.
- Pros: No-exam term life with coverage up to $3 million, Online application process, Can adjust premiums and coverage for free as needs change
- Cons: No riders, No permanent life insurance, Enrollment age limit is 60 years old
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Who’s this for: Ladder boasts some of the most affordable premiums of any company we’ve reviewed.
Standout benefits: Unlike most insurers, Ladder lets term life policyholders adjust their death benefits up or down as their needs change.
Best for Flexibility: Guardian
Guardian Life Insurance Learn More
- Cost: The best way to estimate your costs is to request a quote.
- App available: Yes
- Policy highlights: Guardian offers a variety of policies, including term, whole and universal. Term life insurance can be converted into whole or universal life policies.
- Pros: Has paid dividends since 1868, Whole life insurance policies up to age 90, Available in all 50 states
- Cons: Can’t get rate quotes or apply online, Customer service not available 24/7, Doesn’t offer auto or home insurance
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Who’s this for? Guardian is one of a few insurers that offer joint life insurance, with the cash value of its EstateGuard plan increasing after the first person dies. Policyholders can add coverage in the policy’s early years.
Standout benefits: You can convert a Guardian level-term life policy to permanent life at any point in the first five years without another medical exam.
Best for Discounts: Amica
Amica Life Insurance Learn More
- Cost: The best way to estimate your costs is to request a quote.
- App available: Yes
- 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 stands out for having numerous discounts, including 10% off for bundling life insurance and car insurance.
Standout benefits: All Amica plans include an accelerated death benefit rider, which allows you to access funds if you’ve been diagnosed with a terminal illness.
Best for Dividends: Northwest Mutual
Northwestern Mutual Life Insurance Learn More
- Cost: The best way to estimate your costs is to request a quote.
- Online quote for term policy: No
- Policy highlights: Northwestern Mutual offers five term, whole life and universal life policies. Dividends have been paid to eligible policyholders annually since 1872.
Read our review of Northwest Mutual Life Insurance.
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Who’s this for? Northwestern Mutual has issued dividends annually since 1872 and announced an $8.2 billion payout for 2025, an industry record.
Standout benefits: Northwestern Mutual offers long-term care as both a rider and a standalone policy.
Best for Customer Satisfaction: State Farm
State Farm Life Insurance Learn More
- Cost: The best way to estimate your costs is to request a quote.
- Online quote for term policy: Yes
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Policy highlights: State Farm offers nearly a dozen term, whole, and universal life insurance products, including survivorship and no-medical exam plans.
- Pros: Reasonable rates, Top-rated for customer service, Return of premium benefit available, Term policies can be converted to permanent
- Cons: Policies must be purchased through a State Farm agent, Doesn’t sell policies in Rhode Island or Massachusetts, Fewer riders than the competition, Accelerated death benefit costs extra
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Who’s this for? State Farm earned the highest ratings for customer satisfaction in J.D. Power’s 2024 life insurance survey and has far fewer complaints about life insurance than other insurers its size, according to the National Association of Insurance Commissioners.
Standout benefits: State Farm’s term life policies can convert to a permanent policy without a medical exam.
Best for No-Exam Policies: Bestow
Bestow Life Insurance Learn More
- Cost: The best way to estimate your costs is to request a quote.
- App available: No
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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
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Who’s this for? Bestow is a great option if you don’t want the hassle of taking a medical exam. Policies worth up to $1.5 million are available with just a few basic health questions.
Standout benefits: Bestow’s online application and expedited underwriting process means you can get a decision about your eligibility in about five minutes.
More on Our Top Term Life Insurance Companies
Ladder
Founded in 2015, Ladder is a relatively new player, but its policies are underwritten by several large insurers, including Allianz, Amica and Fidelity Security Life Insurance Company.
- Terms: 10, 15, 20, 25, or 30 years
- Coverage limit: $100,000 to $3 million online or up to $8 million with an agent.
- Age limits: Ages 20 to 60
Guardian
In addition to term, whole and universal life insurance, Guardian offers disability insurance and critical illness policies. Guardian has paid dividends to eligible policyholders every year since 1868, with a record $1.4 billion payout in 2024.
- Terms: 10, 15, 20 or 30 years
- Coverage limits: Up to $5 million
- Age limits: 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.
- Terms: 10, 15, 20, 25 or 30 years
- Coverage limit: Up to $1 million in most cases
- Age limits: 18 to 75
Northwestern Mutual
As one of the largest insurance companies in the U.S., 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.
- Terms: 10 or 20 years
- Coverage limits: Not disclosed
- Age limits: 18 to 65 for a 10-year policy and 18 to 60 for a 20-year policy.
State Farm
Founded as an auto insurance company in 1922, State Farm is now one of the largest life insurance providers in the U.S., with $1.1 trillion in policies in force.
- Terms: 10 years, 20 years or 30 years for Select Term
- Coverage limit: Starting at $100,000
- Age limits: 18 to 75 for a 10-year policy, 18 to 65 for 20-year policy and 18 to 45 for 30-year policy
Bestow
Dallas-based Bestow was founded in 2016 by Melbourne O’Banion and Jonathan Abelmann. A digital-first provider only offering term life insurance, it uses algorithms to offer a quick approval process without the need for medical exams.
- Terms: 10, 15, 20, 25 or 30 years
- Coverage limits: $100,000 to $1.5 million
- Age limits: 18 to 60
What is Term Life Insurance?
Term life insurance, as the name indicates, offers coverage for a set timeframe, typically spanning 10, 20, or 30 years. If the policyholder passes away within this term, the designated beneficiary receives the specified death benefit. However, if the policyholder outlives the term, no payout is made.
There are several types of term life insurance:
- Level-term policy: Both the premiums and death benefit remain constant throughout the policy’s term.
- Renewable term policy: Can be renewed at the end of each term, usually up to a certain age. However, renewal rates may increase.
- Return of premium policy: If the policyholder outlives the term, some or all of the premiums may be returned. This benefit typically comes with an added cost.
How Much Does Term Life Insurance Cost?
According to Policygenius, a 20-year term life policy with a $500,000 payout will cost a healthy 30-year-old woman an average of $23 per month. A 30-year-old man would pay about $30 per month for the same policy.
The cost of a term life policy is influenced by factors such as age, gender, health, and lifestyle, including hobbies, driving record, and smoking habits.
Pros and Cons of Term Life Insurance
Pros
- Much cheaper than permanent life insurance
- Quick approval, often without a medical exam
- Some plans can convert to a permanent policy at the end of your term
Cons
- There’s no payout if you outlive the term
- Doesn’t build cash value
- If your health status changes, an insurer can refuse to renew
Term Life Insurance FAQs
What is the difference between term and whole life insurance? The main difference between term life and whole life is that term life covers a specified period, typically 10 to 30 years. Whole life remains in effect as long as premiums are paid. While this makes whole life more expensive, it also allows policies to accumulate a cash value component that can be accessed during the policyholder’s lifetime.
What happens if I outlive my term life insurance? Typically, no benefits are paid out if you outlive your term life insurance policy. However, if you have a return of premium rider, you may receive some or all of your money back. Some providers also allow the policy to be renewed after the initial term expires, though premiums will likely increase due to age-related risks.
What is the cheapest type of life insurance? Term life is generally the most affordable type of life insurance because it is active for a set period and does not accrue cash value. Conversely, a whole life insurance plan can cost significantly more than a term life policy for the same amount of coverage.
