Easy Article Navigation

 

But, it’s also important to point out that an abundance of companies with multiple types of term life insurance plans can create an abundance of confusion for consumers trying to sift through all the available plans.

For this reason, this article is available to help insurance shoppers make an informed decision regarding the best term life insurance companies.

 

The 7 Best Term Life Insurance Companies

Consumers can have comfort knowing that all life insurance companies are heavily regulated and annually rated by various national rating services like A.M. Best.

As with any industry, however, some carriers excel in particular categories, and it’s helpful to know which categories a company being considered does best in.

For example, Company A may have the lowest rates for a particular policy type but drag their feet when paying a claim. Or, Company B might deliver outstanding customer service but skimps on the optional riders they offer.

Here are our best term life insurance companies and where we believe they excel:

 

Best Overall: Protective Life Insurance

Protective Life Insurance

With over a century’s worth of experience, Protective has found how to succeed in virtually every category. The company delivers a comprehensive product selection, ultra-competitive rates, and outstanding customer service.

Similar to many of the large and well-established national insurance companies, Protective employs five subsidiary companies to make certain that its products are effectively distributed throughout the country.

Each of Protective’s subsidiary companies also stands on its own when it comes to financial stability and a positive outlook going forward. Since a life insurance contract is a promise to pay in exchange for a premium, it’s important for consumers to know that their selected carrier can keep that promise for decades.

Company A.M. Best S&P Global Fitch Moody’s
Protective Life A+ AA- A+ A1
West Coast Life A+ AA- A+ A1
MONY Life A+ A+ A+ A1
Protective Life & Annuity A+ AA- A+
Protective P&C A

Pros:

  • Competitive pricing for substandard health classes
  • Term policies can be converted to permanent policies
  • Offer 35 and 40-year level term policies
  • Policies are renewable up to age 90

Cons

  • Limited non-medical underwriting options
  • Much higher rates for smokers and smokeless tobacco users
  • Slower than many companies for application approval

 Key features of Protective’s Term Life Insurance Policies:

  • Super-Competitive Rates
  • Coverage amounts up to $50 million
  • Living benefits via Terminal Illness rider

 

Banner life insurance

Rated AA or better by the national rating services, Banner Life is a top performer for its holding company, Legal & General America. Currently licensed in DC and all other states but New York, Banner’s management has invested a lot of time and effort in Customer Service and Claims Services to become our overall favorite in the category.

Banner also falls constantly in the top five carriers when it comes to the lowest rates for term life insurance. They offer policy terms of 10, 15, 20, 25, 30, 35, and 40 years. And, unlike many companies, Banner will offer a term policy up to age 75, and all policies are convertible to permanent life insurance.

While an accelerated death benefit rider is offered by most national insurers, Banner includes this valuable living benefit in its term policy at no additional charge.

For insurance shoppers who pay special attention to a company’s financial ratings, Banner comes in with an A+ rating from A.M. Best and an AA- from Standard & Poor’s. And when it comes to our customer satisfaction category, Banner Life drew fewer complaints than many of the other insurers their size.

Simply put, we, as an independent agency representing many of the highest-rated life insurance companies, put Banner LIfe at the top when it comes to customer satisfaction.

Pros:

  • 35 and 40-year term policies available
  • Consistently listed in the top 5 for lowest rates
  • Outstanding customer and claims service
  • Offers temporary coverage for qualified applicants
  • Offers no medical exam life insurance option

Cons:

  • A maximum face amount of $1,000,000
  • Accelerated Death Benefit not included 
  • Does not offer Whole Life insurance

Key features of Banner Life’s Term Life Insurance Policies:

  • Super-Competitive Rates
  • Accelerated underwriting for quick policy issue
  • Unique laddering of coverage rider

 

Best Product Selection: Lincoln National Life

Lincoln National Life

Founded more than a century ago, Lincoln National Life is the cornerstone company for the Lincoln Financial Group of companies.

Although Lincoln is always in the top 10 for outstanding life insurance products, it also has a stellar reputation in providing products for retirement planning and wealth accumulation and protection.

With its stellar reputation, Lincoln National Life lives up to its namesake, Abraham Lincoln, the 16th President of the United States of America.

Moreover, Lincoln Financial’s success in the financial industry allows the company to provide considerable grants for more than 300 nonprofits annually.

Consumers who are considering Lincoln National products will be please to know that the insurance company earns very high ratings from each of the national rating services year over year.

The company’s current ratings demonstrate that the company will keep its promises to policyholders whenever a claim for benefits is filed:

Lincoln National Life Insurance financial ratings

Lincoln National offers two formidable term products that are competitively priced and backed by a century-old financial powerhouse.

Lincoln TermAccel Level Term – This product is considered a simple issue product and has super-competitive rates for individuals under 50-years old that require face amounts of $1,000,000 or less. The company uses a simple phone interview application and provides fast processing that can deliver approvals in just a few days if no testing is required.

Lincoln LifeElements Level Term – Lincoln’s LifeElements product is targeted at individuals 30-years old and older who require a death benefit of $1,000,000 and above. This product also uses a telephone interview rather than the standard paper application, so the applicant can be processed and approved as quickly as possible.

Additionally, both term products can be customized for the applicant using the most popular optional riders:

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

Both TermAccel and LifeElements can be converted to permanent policies without a medical underwriting requirement.

Pros:

  • Large selection of Term and permanent cash-value products
  • Streamlined underwriting process that delivers rapid policy decisions
  • Online applications  with an average approval time of fewer than 21 days
  • Liberal and competitive underwriting guidelines for applicants with various health conditions
  • No medical exam policies available for healthy non-smokers

Cons:

  • Lincoln National does not offer whole life insurance.
  • Although claims can be filed online, typical service requests cannot be made online.
  • Although a children’s term rider is available, you cannot buy a stand-alone policy for a child.

Key Features of Lincoln National Term Life Insurance Policies

  • Available death benefits of $1 million +
  • Simple phone interview application
  • Super competitive rates for 55+ applicants

 

Best for Applicant Underwriting: Prudential

Prudential life

Ask someone to name three life insurance companies, and it’s likely that Prudential will be one of them. Since being founded in 1875, Prudential has become a behemoth insurance company servicing policyholders around the world.

Prudential’s offers a comprehensive product portfolio with financial products like:

  • Term Life insurance products
  • Permanent cash-value Life Insurance products
  • Indexed and Variable Universal Life Products
  • Mutual Funds
  • Fixed, Indexed, and Variable Annuities
  • Real Estate Brokerage Franchises
  • And a large family relocation services division

Without fail, Prudential is one of those companies that demonstrates rock-solid financial stability year after year.

Rating Service Company Raating
A.M. Best A+
S&P Global AA-
Moody’s Investors Service Aa3
Fitch Ratings AA-

Prudential Term Life Insurance Products

Term Essential – Prudential’s Term Essential product is traditional term insurance with available policy terms of 10, 15, 20, and 30-years.The premiums remain the same during the life of the policy, and the policy can be easily converted to a permanent product in Prudential’s portfolio. This conversion does not require medical underwriting, so the policyholder will receive the same rate class as the term policy.

As with most term policies in the marketplace, Prudential offers a variety of riders that allow the applicant to broaden the policy’s coverage and get additional living benefits.

Term Elite – Like Term Essential, this policy can last for 10, 15, 20, or 30 years and be customized with valuable riders like the Living Needs Benefit, which will pay out a large portion of the death benefit if a policyholder is diagnosed with a terminal illness. One difference: If you convert a Term Elite policy to permanent coverage within the first five years, you get a one-year premium credit against the cost of the new policy.

PruTerm One – PruTerm One is an annually renewable term product that is commonly purchased to cover short-term financial risks like auto loans, personal loans, or equipment loans for business owners.

Pros:

  • A comprehensive selection of Term and Permanent insurance products
  • Favorable rates for applicants who are overweight applicants
  • Very competitive rates for applicants who are managing diabetes
  • Liberal underwriting for applicants who smoke cigars or a pipe or use smokeless tobacco
  • A or better ratings from all the rating companies year after year

Cons:

  • Minimal selections for no exam life insurance policies
  • Prudential does not offer whole life or final expense insurance.

Key Features of Prudential Term Life Insurance Policies

  • Conversion privilege available for both term products
  • Very competitive rates for applicants dealing with certain health and lifestyle issues
  • Offers a short-term annually renewable product for individuals and business owners

 

Best for Optional Riders: American National Life Insurance 

American National Life Insurance

After being established over a century ago, American National Life Insurance Company (ANICO) has evolved into a fierce competitor in the term life insurance marketplace.

Along with term life insurance, ANICO offers a broad selection of life insurance products, annuities, accident and health insurance plans, business pension plans, credit insurance products, and property and casualty products for families and businesses.

ANICO relies on career agents, independent marketing organizations, and multiple line exclusive agents as well as direct distribution channels to bring their products to the marketplace.

American National has more than 3,000 employees in offices in Galveston and League City, Texas; Springfield, Missouri; and Glenmont, New York. American National’s network of agents stretches across all 50 states and Puerto Rico and provides service to more than 5 million policyholders.

Like the other best seven companies we’re listing, American National remains an A-rated insurance company, which demonstrates its commitment to making good on its promise to pay now and decades in the future.

American Nation Term Products

American National offers two term products that are designed to meet the needs of applicants with different circumstances and needs.

ANICO Signature Term

The Signature Term product is a traditional term product and fully underwritten. This allows the company to offer super-low rates to healthy non-smoker applicants.

The policy is available in 10, 15, 20, and 30-year policy periods, and the applicant has the opportunity to purchase various raiders to customize his or her policy to meet their needs and circumstances.

In addition to the conversion privilege that is part of the core policy, applicants can add optional riders to customize their coverage and have living benefits.

The most popular riders that applicants take advantage of are:

  • The accelerated benefit insurance rider
  • The disability waiver of premium rider
  • The children’s term rider

Freedom Term Life Insurance

For consumers who prefer not to have a medical exam and would rather have a policy issued very quickly, ANICO’s FreedomTerm Life Insurance is a solid solution. There is no medical exam required for policy coverage up to $250,000, and the company can generally offer a decision in about 15 minutes.

Certainly, this no medical exam term life insurance will serve the consumers who need a policy issued quickly for events like an SBA loan or to satisfy a Judge’s divorce decree. The terms available for Freedom Term LIfe insurance is 10, 20, or 30-years.

Pros:

  • ANICO is one of the few insurance companies that will consider below-average health
  • Some excellent riders included with no additional premium.
  • Very competitive rates 
  • Products available in all 50 states and Puerto Rico

Cons:

  • ANICO is not BBB accredited and therefore not rated by the BBB
  • Must accept lower death benefit if buying no medical exam coverage
  • Although you cannot quote online on the company website, you can on a broker’s site.

Key features of American National Term life insurance policies:

  • Ulta-competitive rates for term life insurance
  • ANICO offers solid solutions for applicants who are interested in retirement planning
  • Rated A or higher with all of the national rating services

 

Best for Financial Stability: Principal Financial

Established over 142 years ago, Principal Financial has evolved into a Fortune 500 global leader in retirement planning, insurance, and asset management, with an operating income of over $1 billion.

Principal is one of the largest employers in Iowa and one of Fortune’s 100 Best Companies to Work for, with over 17,600 employees.

Like other global leaders, Principal Financial offers its clients and prospective clients a diverse and comprehensive portfolio of financial and insurance products. The company is a leader in disability income insurance and various group plans such as dental, vision, and critical illness insurance.

Why we like Principal Financial’s Financial Stability:

Company Rating Description
A.M. Best A+ Superior 2nd highest of 13 rating levels
S&P Global A+ Strong 5th highest of 20 rating levels
Fitch Ratings AA- Very Strong 4th highest of 19 rating levels
Moody’s Investors Service A1 Good 5th highest of 21 rating levels

Principal Term Life Insurance 

Principal offers a traditional term insurance policy with term periods of 10, 15, 20, and 30-years. There is also an annually renewable policy for those who have short-term needs.

All of the traditional term policies come with a conversion option that allows the policyholder to convert his or her term policy to a permanent, cash value policy with the same death benefit but without the need for additional medical underwriting.

Additionally, applicants can add optional riders to broaden the policy coverage and provide living benefits:

  • Accelerated Death Benefit
  • Disability Income Rider
  • Child Protection Rider
  • Waiver of Premium

Pros:

  • Term coverage available up to age 80 and renewals to age 95
  • Conversions with no fee or medical exam
  • Customer portal for customer service and document processing
  • Typically in the top 5 for lowest term rates
  • Coverage amounts up to $50 million
  • Rated above average for customer service by J.D. Power

Cons:

  • No whole life products offered
  • Minimum death benefit is $200,000

Key Features of Principal Financial Term Life Insurance

  • Term policy renewals up to 95 years of age
  • Consistently in the top 5 for lowest rates
  • Multiple permanent policy types available for conversion

 

Best for Accelerated Underwriting: Savings Bank Life Insurance

SBLI

Founded by Louis Brandeis in 1907, who later became the country’s Chief Justice, Savings Bank Life Insurance of Massachusetts (SBLI) was established as a savings bank for hard-working individuals and families. 

Brandeis believed that these families were being underserved by financial institutions for obtaining affordable life insurance and established his mission to remedy and rehabilitate the working class’ image of the banking industry.

Over the next century, Savings Bank Life Insurance of Massachusetts endeavored to offer life insurance products that were affordable to the working class with underwriting guidelines that would allow those applicants in less than perfect health to purchase coverage to protect their families.

Even today, the company’s mission is to “put you first, not just when it’s convenient, but always.” Moreover, SBLI is a mutual insurance company, and as such, the management answers to its policyholders rather than faceless shareholders.

With consistently very high insurance ratings, SBLI continually demonstrates the financial stability needed to make certain that claims can be paid when surviving loved ones will need it the most.

Accelerated Underwriting

Although not every life insurance company deploys it, accelerated underwriting (express issue) makes use of available technology so that healthy individuals can obtain an insurance policy without the need for a medical exam.

Using this popular underwriting method, qualified applicants can expect to have up to $1 million in coverage in a matter of days, rather than weeks or months.

Independent insurance agents consistently rely on companies like SBLI to help them get policies issued quickly for qualified applicants without the need for medical exams, urine or blood tests, and physician reports, which can drastically slow down the underwriting process.

SBLI Term Insurance

SBLI’s Term Life Insurance product can be purchased in policy terms of 10, 15, 20, 25, and 30 years. All of SBLI’s term products can be converted to permanent life insurance without proof of insurability.

The premiums for SBLI term life insurance policies are guaranteed to remain level for the term of the policy, and every policy is renewable on a yearly basis until the age of 85.

Applicants who are age 18 to 60-years old are eligible for accelerated underwriting for policies with a death benefit of $500,000 or lower, but fully underwritten policies can be purchased with a death benefit of $100,00 up to $50 million.

Pros:

  • Accelerated underwriting for qualified applicants
  • Several riders available to enhance coverage 
  • Participating whole life insurance available
  • Guaranteed level premiums on all term policies
  • Low premiums for no medical exam policies

Cons:

  • Maximum issue age of 60-years old for accelerated underwriting
  • No universal life coverage offered

Key features of SBLI Term Life Insurance

  • No exam rates equal to fully underwritten rates up to $500,000
  • Accelerated death benefit offered at no additional charge
  • Consistently ranks in the top 5 for no-exam term life insurance

Leave a Reply

Your email address will not be published. Required fields are marked *