Best term life insurance companies

These 6 insurers stand out for making a simple product more attractive to policyholders.

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Term life insurance is the most straightforward policy on offer. It lasts for a set period of time — the term — and pays your beneficiaries if you die during that time. It’s a popular product, and these insurers stand out for their appealing policy features.

The 6 best term life insurance companies

These life insurance companies provide comprehensive coverage and a good selection of riders. They also have these unique offerings.

Best overall pick: Prudential

Term life insurance is the simplest form of coverage, but Prudential caters to its customers’ unique needs by offering six different policies. Along with standard term life plans, it has a return of premium policy that reimburses you for any premiums paid if you outlive your term. It also sells annual renewable term life coverage, and a PruTerm WorkLife policy to help policyholders to prepare for retirement.

Best for flexible term lengths: New York Life

New York Life allows policyholders to customize their term length to suit specific needs. Along with offering standard terms, the insurer lets you choose any term length between 10 and 20 years. For example, you could take out a 12-year policy that lasts until your spouse reaches retirement and starts receiving Social Security benefits, or 17-year policy that carries your youngest kid through college.

Best for small coverage amounts: Transamerica

Most insurers require you to purchase a policy worth at least $100,000. But with Transamerica, you can buy as little as $25,000 in coverage. This lower entry point makes it one of the more affordable options for term life insurance.

Transamerica’s term life plans are convertible and available in terms of 10, 15, 20, 25 and 30 years. This is rare — many insurance companies cap their term life insurance policies at 20 years. Finally, Transamerica offers flexible death benefit options: Choose between a level, increasing or decreasing term.

Best for no medical exam policies: Lincoln Financial

If you need a larger policy but want to skip the medical exam, Lincoln Financial is one of the more generous insurers. It issues up to $1 million in term life insurance without a medical exam, and allows policyholder to convert their coverage to a permanent policy later down the track. The insurer offers coverage in 10-, 15-, 20- and 30-year term lengths.

Best for keeping up with inflation: Amica Life

Amica made waves in the term life insurance market with its Cost of Living Adjustment rider. Usually only available with permanent policies, the rider continually adjusts your policy’s death benefit to align with inflation.

While you pay the same premium each month or year, the face value of your policy rises. If you die during the term, your beneficiaries receive a payout that mirrors the current market conditions.

Best for convertibility: MassMutual

While all of the policies on this list come with a convertibility feature, you could potentially boost your earnings even more by choosing MassMutual. It’s a mutual company, and has paid out dividends to its permanent policyholders every year since the 1860s.

In 2019, it approved an estimated $1.72 billion payout — a record number. Since dividends aren’t guaranteed, this is an impressive achievement — and one you might benefit from in the future.

Must read: How we chose our top life insurance companies

Our writers and editors are committed to objectivity that empowers our readers to make a decision that’s free of bias.

When analyzing life insurance providers, we weigh the insurer’s product lineup, riders and rates along with their underwriting standards.

To determine industry reputation, our editorial team assesses the company’s financial strength ratings, accreditations and customer reviews.

Life insurance financial ratings

An insurer’s financial strength points to its ability to pay out claims. The companies on our list scored top-tier ratings with the major agencies, which means they have the resources to meet their financial obligations.

In J.D. Power’s latest study on customer satisfaction, New York Life earned the sixth spot of 23 insurers surveyed. Prudential ranked 8th, MassMutul ranked 10th, Lincoln Financial 11th and Transamerica rounded out the list in 18th place.

AgencyPrudentialNew York LifeTransamericaLincoln FinancialAmica LifeMassMutual
A.M. BestA+A++AA+A+A++
Moody’sAa3AaaA1A1N/AAa3
Standard & Poor’sAA-AA+AA-AA-N/AAA+
FitchAA-AAAA+A+N/AAA+
J.D. Power3 out of 54 out of 52 out of 53 out of 5N/A3 out of 5

Customer reviews and reputation

To learn how insurers treat their policyholders, refer to the Better Business Bureau (BBB). New York Life, Lincoln Financial and Amica Life earn the highest possible rating with the BBB, while Transamerica and MassMutual could improve when it comes to customer engagement.

Meanwhile, Prudential’s rating dropped as they failed to respond to complaints in a timely manner.

Keep in mind these ratings and reviews reflect each company as a whole, and not just their life insurance departments.

ProviderBBB ratingCustomer reviews
PrudentialC-1 out of 5 stars
New York LifeA+2 out of 5 stars
TransamericaA-1.5 out of 5 stars
Lincoln FinancialNRNone
Amica LifeA+2 out of 5 stars
MassMutualB-1 out of 5 stars

Compare life insurance companies

Name Product Issue Ages Minimum Coverage Maximum Coverage Medical Exam Required State Availability
LadderLife™ Life Insurance
20 - 60 years old
$100,000
$8,000,000
No
Not available in New York
Term life insurance with no policy fees and the freedom to cancel anytime. Simple application process that can get you approved for coverage instantly.
Fabric
25 - 60 years old
$100,000
$5,000,000
No
Available in all states except for Montana
Offers term life insurance with accelerated underwriting. No-exam coverage up to $1,000,000 for those who qualify.
Sproutt
18 - 100 years old
$50,000
$3,000,000
No
Nationwide
This life insurance broker combines technology and the human touch to match you with a policy tailored to your needs.
AIG
AIG
20 - 85 years old
$100,000
$2,000,000
Depends on policy.
Products and product features may not be available in all states.
This well-established life insurance provider could offer you $250,000 worth of coverage for as low as $14 per month.
Bestow
21 - 54 years old
$50,000
$1,000,000
No
Not available in New York
Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.

Compare up to 4 providers

Bottom line

Term life insurance is the simplest and cheapest policy, with predictable premiums and coverage that lasts for a set period of time. These insurers take it one step further by offering something that most of their competitors don’t, from flexible term lengths to smaller coverage amounts.

To see even more of the best life insurance companies, check out our overall top life insurance picks.

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