Top Term Life Insurance Companies Compared

Who's the best term life insurance provider? Unfortunately, there's no universal answer. The right provider for you is the one that delivers appropriate coverage affordably and without hassle. 

To help you find that perfect match, let's compare nine popular providers on coverage, costs, and convenience. 

Term life insurance 101 

To ensure we're on the same page, here's a quick rundown of term life insurance. Term life insurance covers you for defined period. That period -- the term -- is usually 10 to 30 years. If you die during the term, your beneficiaries receive a tax-free payment. 

Once the policy reaches the end of the term, you should have the option to renew it annually. At that point, your premiums will be higher. This makes sense, since you'll be older. An older applicant is riskier for the provider, and added risk always translates to higher premiums. 

You may have the option to convert your term life insurance into a non-expiring, permanent life policy for an extra fee. Note that some providers specify when that conversion is available. This could be, say, in the first 10 years of a 20-year policy. If you think you might want to convert, check the policy rules and note when you'll have to decide.

Term life insurance providers 

There are many term life providers, ranging from century-old brands to young startups. Our comparison below includes a mix of both:  

1. Bestow, launched in 2016¹

2. Guardian Life, established in 1860²

3. Haven Life insurance, launched in 2014³

4. Nationwide, founded in 1925⁴

5. Northwestern Mutual, founded in 1857⁵

6. Pacific Life, dates to 1868⁶

7. Protective, founded in 1907⁷

8. State Farm, founded in 1922⁸

9. Symetra, established in 1957⁹

Coverages available 

The table below outlines the term lengths and coverage amounts available with each of our providers. You'll also see whether the provider offers living benefits and the option to convert the term insurance into a permanent policy. 

A living benefit, also called an accelerated death benefit, is a portion of your death benefit that's available before you die. Generally, you must be terminally ill to collect on your policy while you are living. The intent is to provide access to funding for medical care if you need it. Several providers include this feature in your policy at no extra cost. 

Table data source: Provider websites.

Term life costs by provider 

The table below shows monthly life insurance premiums for a $1 million, 20-year policy. Note that your rates could be quite different -- the "applicant" in this case is a 40-year-old, nonsmoking female in excellent health, living in New Mexico. 

You'll see two of our providers do not offer online quotes. Northwestern Mutual pushes you to a financial advisor for quotes. And Symetra refers you to your insurance agency. 

You could get a Symetra quote through rate comparison tool SelectQuote, but proceed with caution. SelectQuote's privacy policy indicates they will share your personal information "with insurers who provide products in your area in which you may be interested." That sounds like you may get some unwanted pitches. SelectQuote's quoting tool requires your name, email, and street address.

Table data source: Provider websites. 

Application process 

The standard term life insurance application process involves completing a questionnaire and submitting to a medical exam. The exam, while inconvenient, works in your favor if you are in good health. It confirms you're not a high-risk applicant, so you'll see lower premiums as a result. 

No-exam coverage 

If you don't want to deal with the medical exam, you don't have to. In that case, you'd seek out no-exam term life insurance. 

Several of the providers on our list offer no-exam coverage as an alternative to cheaper, standard coverage. These no-exam offerings are more restrictive, however:

• Nationwide's no-exam insurance has a maximum term of 20 years and coverage up to $1.5 million. By comparison, Nationwide's standard term life product allows for 30-year terms and death benefits of up to $5 million. 

• State Farm's no-exam coverage is only available for applicants aged 50 and under. The maximum coverage amount is $50,000 and the maximum term is 10 years. 

• Haven Life's no-exam option is available to applicants aged 20 to 55. Terms range from 5 years to 20 years and the coverage cap is $1 million. 

Bestow exclusively provides no-exam coverage. You can see how that affects Bestow's monthly premium -- which is far and away the highest in our group. 

Term life riders 

Riders, also called policy endorsements, are additions or extensions of coverage. Riders can be included in your policy at no charge, but many are paid upgrades. 

An example of a commonly free rider is the accelerated death benefit feature explained above. Another free term life rider is Guardian Life's charitable benefit feature. This rider adds 1% to your death benefit and pays it to the charity of your choice after you pass. 

Paid riders that may be available on term life include children's term, waiver of premium, and return of premium. 

Children's term 

A children's term rider extends your policy to include a smaller death benefit for your children. State Farm's children's rider, for example, provides up to $20,000 in coverage for each eligible child.

Providers will define the eligibility standards for the kids. Often, they need to be under age 25 and/or living at home.  

Many life insurance providers offer a children's term rider -- but Bestow and Haven Life do not. 

Waiver of premium rider  

The waiver of premium rider covers your insurance premiums if you suffer a disabling injury or illness. With this rider in force, your life insurance won't lapse due to a disability that prevents you from going to work. 

Term life providers that offer waiver of premium riders for an extra fee include: 

• Guardian ¹⁸

• Haven Life 

• Nationwide 

• Pacific Life ¹⁹

• Protective 

• State Farm 

• Symetra

The cost of the waiver of premium rider can be significant. As an example, State Farm raises your monthly premium by $39.20 for this feature. That's 72% of the base premium of $53.99 for our 40-year-old female applicant. 

Return of premium rider  

A return of premium rider reimburses you for premiums paid if you outlive your policy term. That sounds like a good deal, but there are downsides. One, your premiums will be substantially higher with this rider. And two, the future repayment amount will have less value due to inflation. 

You may be better off saving or investing the extra premium so it's earning for you.

Some insurers offer this feature as a rider, while others build it into a separate policy type. State Farm does the latter, and calls it return-of-premium insurance. 

The best term life insurance providers 

Now that you're familiar with the term life landscape, it's time to define what you need from your provider. That'll help you narrow your choices so you can begin gathering relevant quotes. 

If you want affordable but flexible term life insurance, Protective and Pacific Life should make your shortlist. For no-exam coverage, look into Bestow or Haven Life's Simple program. And for high coverage caps, check out Guardian Life, Haven Life, and Protective.

Whatever direction you go, remember to read the fine print. Your family's livelihood is at stake here, and you don't want any surprises.