Best Term Life Insurance in 2024

Term life insurance is a straightforward, affordable way to ensure that your loved ones are financially protected if something happens to you.

It offers coverage for a specific period (usually 10, 20, or 30 years) and pays a death benefit if you pass away during that term.

Unlike whole life insurance, term life doesn’t accumulate cash value, making it cheaper and simpler to understand.

When you’re searching for the best term life insurance, there are key factors to consider: affordability, flexibility, financial stability of the insurer, and customer service.

Below is a detailed look into what makes a great term life insurance policy and which companies stand out in the industry.

What to Look for in the Best Term Life Insurance

Affordable Premiums: Since term life insurance is generally more affordable than permanent life insurance, the cost is a big factor.

Look for a company that offers competitive pricing, especially if you’re healthy or fall into low-risk categories like being a non-smoker.

Length of Coverage: You want to pick a term that matches your financial obligations. For example, if you’re looking to cover the period until your kids finish college or until your mortgage is paid off, choose a policy length that aligns with those timeframes.

Conversion Options: Some term life policies allow you to convert to a whole life policy before the end of the term without requiring a medical exam.

This can be valuable if your circumstances change and you decide you need lifelong coverage.

Payout Reliability: A life insurance policy is only as good as the company’s ability to pay out when needed. Look for insurers with strong financial ratings from agencies like A.M. Best, Moody’s, or Standard & Poor’s.

Riders and Add-Ons: Some policies offer useful add-ons like accelerated death benefits (where you can access part of the death benefit if diagnosed with a terminal illness) or waiver of premium if you become disabled.

Top Term Life Insurance Companies

1. Haven Life

Haven Life is an innovative term life insurance provider that makes the application process easy and fast.

Backed by MassMutual, Haven Life allows you to apply online and often get approved without a medical exam (depending on your health and age).

Their policies are affordable and come with options like accelerated death benefits.

• Pros: Quick, online application; no medical exam for some; competitive rates.
• Cons: Limited coverage options for people over 65.

2. Banner Life

Banner Life offers some of the most affordable term life insurance policies, especially for people with specific health conditions like high blood pressure.

Their coverage terms are flexible, ranging from 10 to 40 years, and they provide the option to convert to a permanent policy.

• Pros: Low rates, excellent for people with medical conditions, flexible term lengths.
• Cons: No online quotes for conversion policies.

3. Protective

Protective is a standout for its competitive pricing and reputation for financial stability. They offer a term life product called Custom Choice UL that allows you to convert a term policy to permanent insurance without a medical exam.

Protective also provides term lengths ranging from 10 to 40 years, which is longer than many competitors.

• Pros: Excellent pricing, long-term options, conversion to permanent policy available.
• Cons: Limited online tools compared to other companies.

4. Bestow

Bestow is known for its streamlined, 100% online experience. They specialize in term life insurance with no medical exams required for approval.

Bestow partners with North American Company for Life and Health Insurance, which has a solid financial reputation.

Coverage options range from 10 to 30 years, and you can get approved quickly, often within minutes.

• Pros: No medical exam, fast online approval, user-friendly.
• Cons: No conversion option to permanent insurance, limited term options (only up to 30 years).

5. AIG

AIG (American International Group) is a big name in the insurance world and offers term life policies with flexible terms and affordable premiums.

AIG’s Select-a-Term option allows you to customize your term length, so you can match your coverage exactly to your financial needs.

They also offer a range of riders, including chronic illness riders, and their conversion options are strong.

• Pros: Customizable term lengths, good options for riders, strong conversion features.
• Cons: Customer service reviews can be mixed, and online tools aren’t as user-friendly.

6. Lincoln Financial Group

Lincoln Financial Group stands out for offering customizable policies and a variety of term lengths, with optional riders that allow you to add features like long-term care or disability benefits.

They also provide an option for policyholders to extend their term life policy for one year at a time without having to requalify for coverage.

• Pros: Customizable, strong conversion options, term extensions available.
• Cons: Pricing can be higher, especially if you want a lot of add-ons.

7. Principal

Principal offers excellent term life insurance for healthy individuals, with some of the best rates in the market. They also provide policies for people up to 80 years old, making them a good option for older applicants.

Also, Principal is known for its fast underwriting process, with many applicants qualifying without a medical exam.

• Pros: Fast application process, no medical exam for many, competitive pricing.
• Cons: Limited availability of term lengths, fewer riders than competitors.

How to Choose the Best Term Life Insurance for You

When choosing a term life policy, it’s essential to consider your personal circumstances, including:

• Your Financial Dependents: If you have young children, a spouse, or family members who rely on your income, make sure your policy’s death benefit is enough to cover their financial needs. A common rule of thumb is to get a policy worth 10 to 15 times your annual income.

• Your Current Health: If you’re in excellent health, you can qualify for the best rates, but even if you have pre-existing conditions, some companies like Banner Life or AIG may offer competitive policies.

• Duration of Coverage: Choose a term length that matches your life goals—such as covering the years until your children are independent or until your mortgage is paid off.

• Your Budget: Term life insurance is generally affordable, but premiums will vary based on your age, health, and the length of the policy. Compare quotes from multiple companies to find the best deal without sacrificing coverage quality.

Conclusion

The best term life insurance company for you will depend on your health, financial situation, and what you want from a policy. Haven Life is great if you want a fast, easy online process.

Banner Life is ideal for those with health issues looking for affordable rates. Protective and Lincoln Financial offer excellent options for policy conversion and flexibility.

Remember, the key to finding the best term life insurance is to shop around and get quotes from different companies. It’s important to find a balance between affordable premiums and reliable coverage, so your loved ones are taken care of no matter what.