10 Best Term Life Insurance Companies for 2020

Ty Stewart - Founder - SimpleLifeInsure.com Written by Ty Stewart - Last Updated May 18, 2020

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If you are looking for top-notch term life insurance, you have many reputable companies from which to choose.

In this article, we outline the 10 Best Term Life Insurance Companies as it stands now, today. 

This list is updated constantly. It is based on our findings that come from working directly with life insurance carriers and our clients, every day. 

Best Term Life Companies By Category

Value

  • 1
    Protective
  • 2
    American General

Financial Strength

  • 1
    Northwestern Mutual
  • 2
    New York Life

Pricing

  • 1
    Banner 
  • 2
    Protective

Riders

  • 1
    Mutual of Omaha
  • 2
    Protective

Underwriting

  • 1
    Prudential
  • 2
    Protective

No Exam

  • 1
    Sagicor
  • 2
    Foresters

How We Ranked Our Top 10

Just to preface how we went about ranking these companies in our top 10, we used a combination of a lot of factors.

Financial Ratings

First, we considered their financial rati​​ngs. These are represented by their ratings from some of the top independent financial rating services for life insurance companies: A.M. Best, Moody's, Standard and Poors, Fitch, as well as the composite Comdex score. These companies each have their own financial rating scales, that vary from A to F, based on the financial strength of a company.

Customer Satisfaction

From there, we also took into consideration their customer satisfaction ratings.  These are accounted for in their Better Business Bureau grades and J.D. Power ratings seen in the tables beneath their names.

Application and underwriting Process

How easy is it to submit an application?

How strict is the underwriting?

How long does the entire process take to get coverage in force?

These questions and more are things we are constantly evaluating as we help our clients obtain custom life insurance solutions for various situations and risk factors

Available Term Life Policies and Best Term Life Rates

Lastly, we took into consideration their available term life insurance policies, their term life insurance rates, and their overall ability to provide a wide range of people with affordable term life insurance coverage. 

#1 Protective

Protective life insurance
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Company

Rating

A.M. Best

A++

Standard and Poors

AA-

Fitch

A+

Moody's

A2

Comdex

92

J.D. Power

754

Better Business Bureau

A+

Protective has been featured in Fortune 1000 and on the Forbes Global 2000 list since 2012. Their company offers term life insurance policy length between 10 years and 30 years.

You can get quotes for coverage ranging between $100,000 and $50,000,000. For families with children, Protective is a great option because they offer a feature called Protect My Child for any child between 14 days old and 17 years old.

Accelerated Underwriting

Protective is known for its competitive life insurance rates and itsquick underwriting process.

For people ages 18-60 you may qualify for their TeleLife phone interview which can allow you to speak with an agent on the phone to quickly get life insurance quotes and apply for no exam term life policies

Of course, for those looking to save money on life insurance who are willing to take a short medical exam, this is probably the best route unless you have a condition that makes you uninsurable or a need for immediate life insurance coverage.

Protective Term Life Insurance 

Protective's term life insurance differs quite a bit from your typical term life insurance policy on the market.

Their term policies are available in 10, 15, 20, 25, and 30-year terms. These policies are offered as level premium term policies, meaning your premiums stay the same throughout the life of the policy.

When Protective's term life insurance policies expire, you can keep the policy in force, paying the same rates. As opposed to raising their premiums in this case as most life insurance companies do, they simply decrease your death benefit. This continues over time until it reaches a minimum death benefit of $10,000.

Available Policy Riders Include: 

  • Accelerated Death Benefit
  • Waiver of Premium Rider
  • Disability Income Rider
  • Additional Purchase Rider
  • Children's Term Rider

Learn more: Life Insurance Riders - The Ultimate Guide

#2 AIG (American General)

American General (AIG) life insurance company

Company

Rating

A.M. Best

A

Standard & Poors

A2

Fitch

A+

Moody's

A+

Comdex

83

J.D. Power

722

Better Business Bureau

A-

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AIG first arrived in the life insurance scene in 1919.  Since then, they have become one of the largest life insurance companies on the planet, managing billions of dollars in assets daily.

Their financial ratings speak for themselves, as do their customer service reviews, both of which label AIG as one of the best life insurance companies to choose for stability and customer satisfaction.

AIG's term life insurance policies offer affordable rates, great coverage, riders and conversion options for people who are interested in turning their term life insurance coverage into permanent coverage in the long term.

AIG "Select-A-Term"

With this policy, you can enjoy level premiums, but you get to pick which year you want from 10 to 30.

This means you can pick 17 years if you have 17 years left on your mortgage instead of paying for years of coverage you don’t need. At the end of the policy, you can convert some or all your coverage to a permanent plan without having to undergo another medical exam that would expose that health condition

Similarly, if you needed $400,000 in coverage to support a mortgage, but at the end of that term you no longer have those debts, you could convert it to a permanent policy with lower coverage. This policy is convertible to permanent life insurance.

“ROP Select-A-Term”

This term life insurance policy offered by AIG allows you to recoup all of your premiums if you outlive the term. These do cost more in premiums compared to regular term policies but, the money returned is considered a refund rather than income, so it is not taxable.

Available policy riders include:

  • Accelerated Death Benefit Rider
  • Accidental Death Benefit Rider
  • Child Term Rider
  • Disability Income Rider
  • Waiver of Premium Rider

#3 Prudential

Prudential term life insurance company
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Company

Rating

A.M. Best

A+

Standard & Poors

AA-

Fitch

A+

Moody's

A1

Comdex

91

J.D. Power

754

Better Business Bureau

A

Prudential has been in the life insurance industry since 1875. Prudential now manages a larger than $1 Trillion asset portfolio and has some of the highest financial ratings you can have.

On top of that, they also are considered to be one of the best life insurance companies for customer satisfaction.

While much has changed since they started out, one thing that has remained stable is Prudential's ability to provide superior life insurance rates to people in lower health rating classes by using their underwriting processes to give them the best ratings possible for their situation.

For smokers, diabetics, and people with other health conditions that may cause them to have higher life insurance rates, Prudential is a great way to find affordable term life insurance.

Prudential offers six types of term policies.

Term Essential

Term Essential is the most basic type of term life insurance coverage offered by Prudential. This policy offers terms in 10, 15, 20, and 30 years. This policy is renewable to age 95 and is also convertible into permanent life insurance until age 95. Conversion of this policy to a permanent life insurance policy requires no medical examination.

Term Elite

Term Elite gives you more options like adding life insurance for any minors. If you want to change to permanent coverage within the first five years of having the policy, you can.

MyTerm

This is Prudential's no exam term life insurance policy. MyTerm offers up to $250,000 of coverage in terms of 10, 15, 20, and 30 years. MyTerm is NOT convertible, so keep this in mind when looking at your term life options.

Also, this MyTerm policy includes a terminal illness rider that allows you to receive part of your death benefit early if you are diagnosed with a terminal illness and have less than 6 months to live.

PruTerm WorkLife 

This term policy is available for those who are up to 65 years of age. If you become disabled, then this policy will waive the premium you pay. Prudential will also waive your premium for one year if you find yourself unemployed and can prove it.

This policy is best for people who are in their working years and have adequate retirement planning in place for when they reach age 65.

PruLife Return of Premiums

This policy offers the ability for policyholders to receive the entirety of their premiums paid into the policy upon it reaching the end of its life. This is provided that you paid all the way through your policy, outlived the policy, and did not otherwise breach the terms of the policy. 

PruTerm One

This is a term life insurance policy that is made for small business owners with coverage for one-year increments. These policies are primarily used to pay off loan debt and provide interim coverage for business owners who need quick and affordable term life insurance.

Prudential Term Life Insurance Rates 

For young and healthy people with no issues, Prudential will usually have higher rates than the competition.

But for many different health concerns as well as other high risks such as a criminal record or past DUI's, Prudential is typically able to offer some of the best rates and approvals around.

#4 Banner Life

Banner Life Insurance Company's 40 year term policy

Company

Rating

A.M. Best

A++

Standard & Poors

AA-

Fitch

AA-

Moody's

N/A

Comdex

94

J.D. Power

N/A

Better Business Bureau

A+

Banner Life sells term life insurance set up in increments of 10 years, 20 years, or 30 years. They give better coverage to those with good driving records and low blood pressure. 

Banner Life gives the best term life insurance rates for non-smokers with average readings for their blood pressure over the last 2 years no higher than 136/86.

Additionally, anyone with a clean record for the last 5 years will receive a preferred category policy with preferred rates.

Banner is also good for those who have issues like high cholesterol.

They are best known for their outstanding customer service, as well as their ability to beat almost any term life insurance rates on the market for many situations. For people in the preferred health class, looking for affordable term life insurance coverage, Banner Life is an amazing choice.

On top of that, their high financial ratings have established them as a reliable and stable company with a rich history of properly managing their assets. In some places, you may see them referred to as Legal and General America, the parent company.

APPcelerate 

This is Banner Life's no exam term life policy. These policies offer Preferred Plus (the best) ratings to people between the ages of 20-50 who apply. The underwriting process is quick, only requiring a few health-related questions to apply. 

This policy offers up to $500,000 in coverage and is available in 10, 15, 20, and 30-year terms. The minimum coverage offered under this policy is $100,000.

OPTerm Life Insurance

This is renewable and convertible term life insurance that Banner Life offers to people up to age 95. For renewable term life insurance, Banner Life is consistently one of the cheapest life insurance providers available.

Available Policy Riders:

  • Accelerated Death Benefit
  • Children's Term Insurance Rider

Banner Life Term Life Insurance Rates

The table below compares many of the companies on this list to show the superior prices Banner Life is able to offer for applicants who are Preferred.

For a male applicant from Oregon who is 45 years old, 5’ 7”, 160 pounds. This applicant does not use tobacco, has a clean driving record with no familial health issues. The term life policy is for 30 years for $500,000 in coverage.

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Company

Premium Payment

Banner ​

$95.61 per month

Protective

$95.62 per month

SBLI

$99.88 per month

Pacific Life

$102.42 per month

AIG

$102.48 per month

Prudential

$115.50 per month

Must qualify through underwriting at carriers. Rates subject to change at any time.

#5 Sagicor

Sagicor term life insurance
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Company

Rating

A.M. Best

A-

Standard & Poors

N/A

Fitch

N/A

Moody's

N/A

Comdex

N/A

J.D. Power

N/A

Better Business Bureau

A+

Sagicor has been around since 1840.  Needless to say, they are a very stable and successful life insurance company that has seen a thing or two throughout their long history of offering life insurance coverage.

Sagicor is one of the best no exam life insurance companies on a consistent basis, offering affordable no exam term life insurance rates to their applicants. Their premier no exam life insurance product is their Sage Term Line.

Sage Term Products 

  • 10, 15, or 20 Year Level Premium Term Life Insurance Coverage
  • NO MEDICAL EXAM
  • Guaranteed Level Death Benefit up to Age 95
  • Convertible to Permanent Products
  • Available to Ages 18 – 65
  • From $50,000 up to $500,000 in Coverage

Policy Riders Available 

  • Accelerated Benefit Insurance Rider
  • Accidental Death Benefit Rider
  • Children’s Term Rider
  • Waiver of Premium Rider

Sagicor Term Life Insurance Rates

Term life insurance rates below are for applicants in the Preferred  health rating, who are looking for 20-year term coverage.

Age and Gender

$100,000

$250,000

$500,000

$1,000,000

30 - Female

$10.05

$15.34

$24.38

$42.45

30 - Male

$11.41

$18.12

$29.94

$53.58

35 - Female

$10.50

$16.27

$26.23

$46.16

35 - Male

$11.67

$18.35

$30.40

$54.50

40 - Female

$12.18

$20.88

$35.46

$64.62

40 - Male

$14.26

$25.80

$45.29

$84.28

45 - Female

$16.61

$32.06

$57.82

$109.33

45 - Male

$21.22

$41.78

$77.26

$148.21

#6 Lincoln Financial

Lincoln Financial term life insurance carrier

Company

Rating

A.M. Best

A++

Standard & Poors

AA-

Fitch

A+

Moody's

A1

Comdex

91

J.D. Power

750

Better Business Bureau

A+

Lincoln Financial has a rich history of being both reliable financially and in terms of customer service. Since 1905, they have been providing superior life insurance policies in the United States.

Today, they manage more than $700 Billion in assets and are considered to be very financially stable. Lincoln Financial has been given an A++ Superior rating from A.M. Best, and an A+ from the Better Business Bureau. Moody's has given them an A1 class rank while S&P has ranked them AA-.

For years, Lincoln Financial has been considered one of the best term life insurance companies for smokers. This is because smokers have specialized policies through this company which makes it great for those who smoke marijuana or occasional cigars.

Lincoln TermAccel Level Term

This policy from Lincoln offers no exam term life insurance coverage to those who qualify. This is life insurance with fast approval.

The level term part of the policy means that your premiums will remain the same throughout the term of the policy. TermAccel is offered in 15, 20 and 30-year terms, with face amounts ranging from $100,000 to $500,000 in coverage.

People ages 18-50 qualify for coverage under this policy. This policy is convertible term life insurance, which must be converted before the end of your term or before age 70.

Policy Riders Available:

  • Accelerated Death Benefit
  • Waiver of Premium
  • Children's Term Riders

Lincoln Life Elements Level Term

This policy also offers level term premiums. This policy requires a medical examination, but as a result is available to people in a much wider age range, with coverage lasting up to age 95.

Policies are available in 10, 15, 20, or 30-year terms. After your term is expired, the policy becomes renewable on an annual basis through to age 95.

#7 Foresters

foresters life insurance logo

Company

Rating

A.M. Best

A

Standard & Poors

N/A

Fitch

N/A

Moody's

N/A

Comdex

N/A

J.D. Power

N/A

Better Business Bureau

A+

Foresters offers level term policies where premiums remain the same in three term lengths: 10 years, 20 years, or 30 years. For these policies, you have the option of converting the term coverage you have at its expiration into a permanent policy.

You can also take out another term policy with reduced coverage if necessary without having to undergo additional medical exams. Foresters is best known for their low-risk classification of otherwise high-risk clients, which enables them to secure affordable term life insurance rates for high-risk applicants.

Your Term Non-Medical

This is Foresters term life insurance policy. As you may have guessed, this is a no medical exam term life policy, meaning that it does not require applicants to take medical examinations before receiving coverage.

Under the Your Term Non-Medical policy, Foresters offers up to $400,000 of face amount coverage, with the option to convert the policy into whole life later down the road. Foresters offers this policy to people ages 18 through 80, and also offers a few policy riders that come with the policy.

Available Policy Riders:

  • Accelerated Death Benefit
  • Accidental Death Benefit
  • Waiver of Premium
  • Disability Income Rider (Accident Only)
  • Disability Income Rider (Accident & Sickness)
  • Accidental Death Rider
  • Children’s Term Life Insurance Rider

#8 Phoenix (Nassau Re)

Phoenix life insurance company

Company

Rating

A.M. Best

B+

Standard & Poors

N/A

Fitch

BB+

Moody's

N/A

Comdex

N/A

J.D. Power

N/A

Better Business Bureau

N/A

Phoenix Life has been around since 1851. In their long history, they have insured thousands of Americans, and have built a portfolio of assets that is one of the largest in the country.

They have a stable financial rating and are considered to be a safe company to invest in when it comes to your life insurance endeavors. Ultimately, Phoenix specializes in providing affordable permanent life insurance across a number of different policy types.

Despite this, they still have a great offering of affordable term life insurance policies. Phoenix has 3 term life insurance policies under its “Safe Harbor” program.

Phoenix Safe Harbor Term High Band

This policy offers level term life insurance policies between 10 years and 30 years. Term policies are available up to $1,000,000 in coverage for those who are no older than 70 and up to $500,000 in coverage between ages 71 and 80.

There is a simplified medical exam but no blood samples or urine samples. This policy is annually renewable once it expires, without taking another medical exam. As you get older, the prices will go up though but health does not change the coverage.

Phoenix Safe Harbor Term Low Band

This product is the same as the High Band one, but the difference is it has bands or levels for coverage amounts that correlate to age. This product offers level term policies so the premium you pay on a monthly basis will not change.

It is available between 10 and 30-year lengths. The caps on the coverage amounts you can get are as follows:

  • $400,000 for people between the ages of 18 and 50
  • $300,000 for people between the ages of 50 and 60
  • $200,000 for people between the ages of 61 and 70
  • $100,000 for people between the ages of 71 and 80

There is no medical exam required when you apply, and you can annually renew your coverage at the end of the term. There is no option to convert though. 

For renewals, there is no required medical exam, perfect for people whose health might have changed with age. 

Phoenix Safe Harbor Term Life Express

This policy offers no exam term life insurance to people who qualify. Applicants must be between the ages of 18 and 80 years old. Term policies are available in 10, 15, 20, and 30-year terms, in face amounts from $25,000 to $400,000 in face amount.

Available Policy Riders:

  • Accelerated Death Benefit
  • Critical Illness
  • Terminal Illness
  • Unemployment Waiver of Premium
  • Conversion Rider

#9 American National

American National life insurance company

Company

Rating

A.M. Best

A

Standard & Poors

A

Fitch

N/A

Moody's

N/A

Comdex

78

J.D. Power

N/A

Better Business Bureau

N/A

American National Insurance Company, or ANICO, has been around since 1905. They offer life insurance policies of all varieties, including whole life and term life, as well as annuities and other financial products and services.

American National is best known for their Preferred ratings of applicants who are 61 and over, applicants with high BMI, and applicants who are only occasional smokers. For each of these health classifications, ANICO is able to offer superior life insurance rates because of their underwriting processes.

Xpress Plus

Xpress Plus is ANICO's signature accelerated underwriting program which provides automated underwriting for the company's life insurance products. To qualify, you must be younger than 51 years of age and require $1,000,000 in coverage or less.

For people between the ages of 51 and 60, $500,000 is available. This accelerated underwriting allows you to bypass the life insurance medical exam and receive coverage within an hour or less most of the time.

ANICO Signature Term

This is ANICO's fully underwritten level term life insurance offering. This product is available in 10, 15, 20 or 30-year terms. Coverage of up to $1,000,000 is available under this policy.

Freedom Term Life Insurance

These policies are no medical exam term life policies available in increments of 10 years, 15 years, 20 years, or 30 years. Face amounts are available up to $250,000, and approval can be as quick as 15 minutes or less!

#10 Mutual of Omaha

Mutual of Omaha insurance company logo

Company

Rating

A.M. Best

A+

Standard & Poors

A+

Fitch

N/A

Moody's

A1

Comdex

93

J.D. Power

795

Better Business Bureau

A+

Mutual of Omaha is consistently considered one of the best life insurance companies in the world. They have been around since 1909, and in this 100+ year time frame have demonstrated consistent financial strength and dependability, returning profits for their shareholders on a regular basis, even in times of economic despair.

 Best known for their permanent life insurance and their simplified issue policies, Mutual of Omaha truly has a myriad of life insurance products that are both affordable and offer superior coverage to many options on the market.

 Mutual of Omaha is also a great term life insurance company for seniors who are looking for affordable life insurance. Although they weigh in at #10 on our list of best term life insurance companies, this does not mean they are any worse of an option than the other companies on our list.

Term Life Answers

This is a level term life insurance policy that is offered for 10, 15, 20, and 30-year terms. A medical exam is required. This term policy can be converted into Universal Life insurance up to age 75. After the term is over, your policy becomes annually renewable through age 95.

Term Life Express

This policy is their simplified issue term life product. This means that you do not have to take a medical exam, but must answer a few health-related questions to get coverage.

 It is available in 10, 15, 20, and 30-year terms and offers from $25,000 to $400,000 in coverage. With this policy, Return of Premium is available, and when the term of your policy expires, it becomes annually renewable to age 100.

Available Policy Riders: 

  • Accelerated Death Benefit
  • Accidental Death
  • Dependent Children's Rider
  • Disability Waiver of Premium
  • Waiver of Premium for Unemployment

Finding the Best Term Life Insurance Company for You

You now have a solid understanding of some of the best term life insurance companies on the market and what types of term life insurance policies they offer.

 With this new-found knowledge, it is important to note that these may not always be the most affordable life insurance options for your specific situation.

The best way to make sure that you are comparing all the possible term life insurance coverage options for you is to speak with an independent life insurance agent.

Life insurance is what we do.

We help clients compare the best life insurance rates, policies and companies in order to help them find the best coverage for them and their families. We also protect you from the companies that may not be a good choice!

 Give us a call today to get started comparing the best options for you and your loved ones. Or, get started comparing term life rates with our online quote tool for quick and easy term life insurance quotes.

About Ty Stewart
Avatar for Ty Stewart
Ty Stewart is the founder of SimpleLifeInsure.com. He is an independent life insurance agent that works for his clients nationwide to secure affordable coverage while making the process simple. There is never any cost to use his services.

Posted in Life Insurance Company Reviews, Term Life Insurance