Finding the best term life insurance policy can be overwhelming, especially with so many options available. To help you make an informed decision, Insurascape has evaluated the top term life insurance companies based on policy offerings, financial strength, customer satisfaction, and complaint history. Whether you’re looking for coverage for a specific health condition, flexible term lengths, or a seamless customer experience, this guide has you covered.
Table of Contents
Key Takeaways
- Guardian Life: Best for applicants with health conditions, including HIV.
- MassMutual: Best for term length options and free coverage for low-income parents.
- Northwestern Mutual: Best for customer experience and low complaint ratios.
- Thrivent: Best for social responsibility and Christian-affiliated consumers.
- New York Life: Best for high coverage amounts and annual renewable policies.
- Pacific Life: Best for conversion flexibility and cash credits.
- Penn Mutual: Best for term versatility and rider options.
- AARP: Best for older applicants with no medical exam requirements.
Best for Applicants with Health Conditions
Guardian Life
Guardian Life stands out for its inclusive policies, particularly for applicants living with HIV. This makes it a top choice for those who may struggle to find coverage elsewhere.
Overview:
- Financial Strength Rating: Exceptional
- Online Purchase: No
- NAIC Complaints: Far fewer than expected
- Policies Offered: Term & permanent
Pros:
- Very few customer complaints.
- Offers unique coverage options, such as policies for HIV-positive applicants.
Cons:
- Minimal policy details on the website.
- Cannot buy a policy online.
Guardian Level Term:
- Eligibility: Ages 18 to 75.
- Coverage Amounts: Start at $100,000.
- Term Lengths: 1, 10, 15, 20, or 30 years.
Guardian also offers coverage for people living with pre-existing conditions, like HIV. To apply, you must be between 20 and 65 years old and meet certain eligibility requirements, such as being on active antiretroviral therapy.
Best for Term Length Options
MassMutual
MassMutual offers a wide range of term lengths and an annual renewable policy, making it a versatile choice for many policyholders.
Overview:
- Financial Strength Rating: Exceptional
- Online Purchase: Yes
- NAIC Complaints: Far fewer than expected
- Policies Offered: Term & permanent
Pros:
- Wide range of term and permanent life insurance policies.
- Supports online claims.
- Low number of complaints.
Cons:
- Most policies require a medical exam.
MassMutual Term:
- Eligibility: Ages up to 75.
- Coverage Amounts: Start at $100,000.
- Term Lengths: 10, 15, 20, 25, or 30 years.
MassMutual’s LifeBridge Program:
- Provides a free 10-year, $50,000 policy for low-income parents or guardians of children under 18.
Best for Customer Experience
Northwestern Mutual
Northwestern Mutual is renowned for its exceptional customer service and low complaint ratios, making it a reliable choice for policyholders.
Overview:
- Financial Strength Rating: Exceptional
- Online Purchase: No
- NAIC Complaints: Far fewer than expected
- Policies Offered: Term & permanent
Pros:
- Lower complaint ratio than expected for a company of its size.
- Highly rated for customer satisfaction in J.D. Power study.
- Consistently pays dividends to eligible customers.
Cons:
- Limited policy details on the website.
- Limited riders available.
Annual Renewable Term Life:
- Premiums increase as you age.
- Coverage automatically renews each year.
Level Premium Term Life:
- Coverage lasts 10 or 20 years.
- Steady premiums for the first decade.
Best for Social Responsibility
Thrivent
Thrivent is a fraternal benefit organization that sells term and permanent life insurance to Christian consumers, emphasizing social responsibility.
Overview:
- Financial Strength Rating: Exceptional
- Online Purchase: No
- NAIC Complaints: Far fewer than expected
- Policies Offered: Term & permanent
Pros:
- Received far fewer complaints than expected.
- May pay dividends to select policyholders.
- Offers disability and long-term care insurance.
Cons:
- Limited policy details on the website.
- Life insurance is available only to those with a Christian affiliation.
Term Life:
- Eligibility: Ages 18 to 75.
- Coverage Amounts: Start at $100,000.
- Term Lengths: 10, 15, 20, or 30 years.
Best for High Coverage Amounts
New York Life
New York Life offers two term products, including a policy that can be renewed annually, making it a great choice for those seeking high coverage amounts.
Overview:
- Financial Strength Rating: Exceptional
- Online Purchase: No
- NAIC Complaints: Fewer than expected
- Policies Offered: Term & permanent
Pros:
- Low complaint volume for a company of its size.
- Some policies are eligible for dividends.
Cons:
- Quotes aren’t available online.
Yearly Renewable Term:
- Eligibility: Ages 18 to 75.
- Coverage Amounts: Start at $250,000.
- Term Lengths: Renewable annually.
Level Premium Term:
- Term Lengths: 10, 15, or 20 years.
- Coverage Amounts: Start at $100,000.
Best for Conversion Flexibility
Pacific Life
Pacific Life offers term life insurance that can be converted to permanent coverage, with a cash credit for policyholders who choose to do so.
Overview:
- Financial Strength Rating: Exceptional
- Online Purchase: No
- NAIC Complaints: Far fewer than expected
- Policies Offered: Term & permanent
Pros:
- Good reputation among customers.
- Offers a variety of term and permanent policies.
Cons:
- Some policies are not available in New York.
- No online quotes.
PL Promise Term:
- Term Lengths: 10, 15, 20, 25, or 30 years.
- Coverage Amounts: Start at $50,000.
Pacific Elite Term:
- Can be converted to a permanent policy within the first 10 years.
- Includes a cash credit to offset initial premiums.
Best for Term Versatility
Penn Mutual
Penn Mutual offers a wide range of term lengths and rider options, making it a versatile choice for many policyholders.
Overview:
- Financial Strength Rating: Exceptional
- Online Purchase: No
- NAIC Complaints: Far fewer than expected
- Policies Offered: Term & permanent
Pros:
- Offers term lengths up to 30 years.
- Extensive universal life insurance lineup.
- Low volume of complaints.
Cons:
- No online quotes.
- Limited policy information on the website.
Guaranteed Convertible Term:
- Eligibility: Ages 20 to 69.
- Coverage Amounts: Start at $250,000.
- Term Lengths: 10, 15, 20, or 30 years.
Protection Non-Convertible Term:
- Eligibility: Ages 20 to 70.
- Coverage Amounts: Start at $250,000.
One Year Term:
- Eligibility: Ages 15 days to 100 years.
- Coverage Amounts: Start at $50,000.
Best for Older Applicants
AARP
AARP offers term life insurance with no medical exams required, making it an excellent choice for older applicants.
Overview:
- Financial Strength Rating: Exceptional
- Online Purchase: No
- NAIC Complaints: Fewer than expected
- Policies Offered: Term, permanent & no-exam
Pros:
- No medical exams required.
- Fewer than the expected number of complaints.
Cons:
- Term life insurance premiums rise every five years.
AARP Level Benefit Term Life Insurance:
- Eligibility: Ages 50 to 74.
- Coverage Amounts: 10,000to10,000to150,000.
- Term Lengths: Until age 80.
How to Find the Best Term Life Insurance Company
- Calculate How Much Coverage You Need:
Consider your financial obligations, such as mortgage payments, childcare, and future expenses like college tuition. - Consider Additional Riders:
Customize your policy with riders like accelerated death benefits or waiver of premium. - Get Quotes from Multiple Companies:
Compare life insurance quotes from several insurers to find the best rate.
What is Term Life Insurance?
Term life insurance provides temporary coverage for a set number of years, such as 10, 15, or 20. It’s ideal for covering financial obligations during your peak earning years.
Final Thoughts
Choosing the right term life insurance policy depends on your unique needs and financial situation. By comparing the top companies and understanding their offerings, you can find the best coverage to protect your loved ones. For more personalized recommendations, visit Insurascape.