Compare the best term life policies based on coverage amounts, riders and more.
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.
When analyzing life insurance providers, we weigh the insurer’s product lineup, riders and rates along with their underwriting standards. And to determine industry reputation, our editorial team assesses the company’s financial strength ratings, accreditations and customer reviews.
What are the best term life insurance companies?
These life insurance companies provide comprehensive coverage and a good selection of riders, plus a few unique options.
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.
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.
Pros
Long list of riders to customize policies
Cons
Term lengths capped at 20 years instead ot the standard 30 years
No online quotes
only agents can finalize your application
Free Quote
Phone, Online
Insurance Products
Term, Whole, Universal, Variable
Issue Age
18 to 90
Coverage Amount
$100,000 to $25,000,000
Term Lengths
Any term length between 10 years and 20 years
Medical Exam Required
Yes
Ways To File A Claim
Online, Phone, Mail
Ratings, Accreditation and Memberships
A.M. Best: A++ Fitch: AAA Standard & Poor's AA+ Moody's: AA
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.
Pros
High policy limits
No-exam policies
Lenient underwriting
Financial strength
Cons
No online claims form
Many customer complaints
Free Quote
Online, Phone
Insurance Products
Term, Whole, Universal, Index universal, Final expense
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.
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.
Pros
Simplified whole life policy
Free online quote
Possible dividends
Financial strength
Cons
Few online services
Limited rider options
Lacks coverage variety
Free Quote
Yes
Insurance Products
Level term, annual renewable term, whole life and simplified whole life
Issue Age
15 to 75
Coverage Amount
$5,000 to $1,000,000
Term Lengths
10, 15, 20, 25 and 30-year
Medical Exam Required
Yes
Ways To File A Claim
Ways To File A Claim
Ratings, Accreditation and Memberships
AM Best: A+
Customer Service Options
Phone
Policy Riders Offered
Accelerated death benefit rider,Accidental death benefit rider,Child rider,Cost-of-living rider,Critical illness benefit rider,Waiver-of-premium rider
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.
What are the financial ratings of the best life insurance companies?
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.
Agency
Prudential
New York Life
Transamerica
Lincoln Financial
Amica Life
MassMutual
A.M. Best
A+
A++
A
A+
A+
A++
Moody’s
Aa3
Aaa
A1
A1
N/A
Aa3
Standard & Poor’s
AA-
AA+
AA-
AA-
N/A
AA+
Fitch
AA-
AAA
A+
A+
N/A
AA+
J.D. Power
3 out of 5
4 out of 5
2 out of 5
3 out of 5
N/A
3 out of 5
Best life insurance companies 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 earn the highest possible rating with the BBB, while Transamerica, Lincoln Financial and MassMutual could improve when it comes to customer engagement.
Meanwhile, Prudential’s rating dropped to B- 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.
Provider
BBB rating
Customer reviews
Prudential
B-
1 out of 5 stars
New York Life
A+
2 out of 5 stars
Transamerica
A-
1.5 out of 5 stars
Lincoln Financial
A-
None
Amica Life
A+
2 out of 5 stars
MassMutual
B-
1 out of 5 stars
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.
Compare quotes from top life insurance companies and more
Life insurance ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Our experts analyze life insurance companies to help you to find the strongest possible policy and premium for your family’s needs. We assess their financial strength, customer satisfaction, policy features and riders. We then give each insurer a score between one and five stars that reflects their offering and reputation in the industry.
Katia Iervasi is a staff writer who hails from Australia and now calls New York home. Her writing and analysis has been featured on sites like Forbes, Best Company and Financial Advisor around the world. Armed with a BA in Communication and a journalistic eye for detail, she navigates insurance and finance topics for Finder, so you can splash your cash smartly (and be a pro when the subject pops up at dinner parties).
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