Skip to content

Best Term Life Insurance Companies of 2022

Protective provides cheap coverage and long terms

We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.

Term life insurance is designed to provide protection during a specific period of time, such as when your family relies on your income. Terms typically last between 10 and 30 years, and if you die outside of the term and haven’t renewed or converted the policy, your beneficiaries won’t receive a death benefit. Since term life insurance is much more affordable than permanent life insurance, it can be an effective way to address your life insurance needs and can be used to supplement a permanent policy during peak earning years. 

When evaluating term life insurance companies, we considered factors like the application process, available online tools, and pricing. We also made sure to only recommend companies that are financially strong and don’t have any serious customer satisfaction issues. Below are our top picks for term life insurance companies.

Best Term Life Insurance Companies of 2022

Best Overall : Protective


Protective Life

Protective Life

  • AM Best Rating: A+
  • Accepts Credit Cards: Yes
Pros and Cons
Pros
  • Provides some of the cheapest rates in the industry

  • Offers term coverage up to 40 years

  • Online application available

  • Methods of payment include credit cards

Cons
  • Poor J.D. Power ranking

Why We Chose It

Protective offers some of the cheapest rates for term coverage in the industry. Of the 32 term companies we collected quotes for, it had the most affordable rates, tied with one other company. Furthermore, while most companies offer a 30-year maximum term, you can get 40 years of coverage from Protective with the option to convert to a permanent policy without a medical exam. 

You can get a quote and apply online. Your beneficiaries will be able to file a claim online as well. Protective has superior financial strength ratings, with an A+ (Superior) rating from AM Best, the second highest grade. And while the company’s J.D. Power ranking is below average, Protective had fewer complaints with the NAIC over the last three years than were expected given the company’s market share.

Best for Customer Satisfaction : Nationwide


Nationwide

Nationwide

  • AM Best Rating: A+
  • Accepts Credit Cards: Yes
Pros and Cons
Pros
  • Ranked second for customer satisfaction by J.D. Power in 2021

  • Very few complaints

  • Online applications available

  • Can pay by credit card

  • Some applicants may not need an exam for term life

Cons
  • Average-priced term policies

Why We Chose It

Nationwide may not be the cheapest life insurance provider, but the company gets very high marks for customer satisfaction. Nationwide is ranked second in the J.D. Power 2021 U.S. Individual Life Insurance Study. Furthermore, the company received very complaints over the last three years. Even the Nationwide mobile app is well-rated. Nationwide also has an A+ (Superior) rating from AM Best for financial strength.

Some applicants will be able to get term coverage without taking the medical exam. Terms go up to 30 years and living benefit riders are included at no additional cost. You can also convert your coverage to a permanent policy or renew it once the term expires. Nationwide offers online tools you can use to complete most transactions, including paying your bill with a credit card. We have nothing bad to say about Nationwide, except that pricing for term policies is about average, exceeding the cost at some competitors. In fact, Nationwide is our top pick for the best overall life insurance company. 

For more information, read our Nationwide Insurance Review.

Best for Living Benefits : Mutual of Omaha


Mutual_of_Omaha

Mutual_of_Omaha

  • AM Best Rating: A+
  • Accepts Credit Cards: Yes
Pros and Cons
Pros
  • Three no-cost living benefit riders included

  • One of a few insurers to offer a disability income rider

  • Customer support available via live chat

  • Offers a partial return of premium option

Cons
  • Must speak to an agent to apply

Why We Chose It

While the cost of Mutual of Omaha term policies is about average, three living benefit riders are included at no cost on the company’s Term Life Express policies—terminal illness, chronic illness, and critical illness accelerated benefit riders. The policy also includes a waiver of premium for unemployment rider and a common carrier death benefit provision, which increases the death benefit if you die while being a fare-paying passenger on a common carrier. There’s even a unique rider included that lets you pause premiums if your primary residence is damaged. And there are more options available for an additional premium, such as a disability income rider, which is an uncommon offering. The maximum term is 30 years, and term policies are renewable and convertible. 

Mutual of Omaha has an A+ (Superior) financial strength rating from AM Best and was ranked 5th in the J.D. Power 2021 U.S. Individual Life Insurance Study, which indicates that customers are satisfied with the company. The company also received fewer complaints than expected for its size in 2021. And you’ll need to speak to an agent to apply. 

For more details, read our full Mutual of Omaha Life Insurance Review.

Best for Cheap Term Insurance : Banner


Legal & General America

 Legal & General America

  • AM Best Rating: A+
  • Accepts Credit Cards: Through digital wallets
Pros and Cons
Pros
  • Offers the cheapest term life insurance in the industry, tied with Protective, according to our research

  • Can ladder your coverage with term riders

  • Very few consumer complaints with the NAIC

  • Term lengths up to 40 years

Cons
  • No chronic illness rider offered with term life

Why We Chose It

Banner Life, part of Legal & General America, tied with Protective for the cheapest term rates of the companies we collected quotes for. Banner also offers the flexibility of a wide range of term lengths and available term riders. You can buy term coverage for up to 40 years, with seven term options to choose from. You can also add a 10, 15, or 20 year term rider to your base policy to temporarily increase coverage. This reduces your overall cost relative to buying the maximum amount of coverage you need for the duration of the term. Banner term policies are also renewable and can be converted to a permanent policy. 

Banner Life has an A+ (Superior) rating from AM Best and received far fewer complaints than expected over the last three years. You can get a quote for Banner term life policies online. The company also accepts digital wallet payments which is a unique feature. Additionally, if you’re looking for a wide selection of riders, you’ll want to consider another insurer, such as Mutual of Omaha.

Best for Same-Day Coverage : Haven Life


Haven Life

Haven Life

  • AM Best Rating: A++
  • Accepts Credit Cards: No
Pros and Cons
Pros
  • Seamless online quote and application process

  • Live chat

  • Free subscriptions and discounts included with some policies

  • Very few complaints

Cons
  • Maximum issue age is 64 years old

  • No-medical-exam coverage capped at $500,000

  • Policies are not convertible

Why We Chose It

If you don’t need convertible term coverage and don’t need high coverage limits, Haven offers one of the best user experiences in online life insurance. You won’t have to speak to an agent, you can get online chat support, and the entire process—from quote to application to approval—is quick and easy. If you apply for the Haven Simple product, which provides up to $500,000 in no-medical-exam coverage, your coverage can start immediately. Both of Haven’s products include an accelerated death benefit for terminal illness, and Haven Term policies also come with the Haven Life Plus rider, a package of free subscriptions and discounts. Pricing for Haven’s policies is better than average. 

Haven Life policies are underwritten by MassMutual, which has an A++ (Superior) financial strength rating, the highest available grade from AM Best. MassMutual also has a very low incidence of consumer complaints—one of the lowest of our top-reviewed companies. However, policies are only available to applicants 64 years old or younger, and unlike with all other carriers on this list, they can’t be converted to permanent coverage.

Best for Financial Stability : MassMutual


MassMutual

 MassMutual

  • AM Best Rating: A++
  • Accepts Credit Cards: No
Pros and Cons
Pros
  • Highest financial strength rating from AM Best

  • Very few consumer complaints with the NAIC

  • Many options for converting your term policy

  • Some applicants may qualify for no-medical-exam coverage

Cons
  • Credit card payments not accepted

  • Includes fewer living benefits than some other providers

Why We Chose It

MassMutual has been around since 1851 and has an A++ (Superior) financial strength rating from AM Best, making it one of only nine of the 91 life insurance companies we reviewed to receive the highest possible grade from the credit ratings agency. The company also received far fewer complaints than expected, given the company’s size.

With MassMutual’s Direct Term product, you can apply for up to $3 million in instant coverage online. Temporary coverage will start right away, but most applicants will need to take a medical exam for coverage to continue. Some healthy individuals may qualify to forego the exam. Term policies are convertible to permanent coverage within a specific time period. While a terminal illness rider is included at no cost and a few other riders are optional, the selection is limited compared to companies like Nationwide and Mutual of Omaha. Pricing will also be higher than our two cheapest picks.

Final Verdict

Out of all the life insurance providers we reviewed, Protective Life stood out the most for term coverage because of its cheap rates, online tools, and available 40-year terms. Banner is another very affordable option that offers 40-year term policies and was a close second to Protective.

Those who don’t need a convertible policy may enjoy the easy application process that Haven offers, while applicants looking for a range of customization options will be best served by Mutual of Omaha or Nationwide. Nationwide is also our go-to choice for excellent customer service. And MassMutual, along with Haven, has the highest financial strength rating available.  

All the companies on this list are excellent options for term coverage—which is best will depend on your preferences and needs. So be sure to know which benefits are included, such as living benefits and convertibility, when comparing quotes.

Educational Information

How Does Term Life Insurance Work?

When you apply for a term life insurance policy, you’ll select your desired death benefit and how long you’d like the term to last, such as 10 or 30 years. Premiums typically stay level for the term, but you may have the option to renew coverage once the term expires at a higher rate based on your current age. Many policies also allow you to convert your term policy to a permanent one before the term expires. But if you don’t convert the policy or renew coverage, your term policy will expire and your coverage will cease. Some policies, known as return of premium policies, return some or all of the premiums you paid if you outlive the term, but these aren’t common and can be costly.

Term life insurance is much cheaper than permanent coverage. This is because coverage is designed to end before you enter old age, which is when life insurance costs skyrocket. Because of its affordability, term life insurance is usually an excellent way to address a non-permanent life insurance need, such as insuring your income for your growing family.

Term vs. Whole Life Insurance

Unlike term life insurance, whole life insurance is designed to last your lifetime. As a result, premiums are much more expensive. With whole life insurance, you pay level premiums for a number of years or life, and your beneficiaries receive a payout no matter when you die. Whole life insurance also builds cash value, which you may be able to borrow against or withdraw from. Some whole life insurance providers also pay dividends, which can be used to offset policy costs or even increase the death benefit and cash value.

Universal life insurance is another type of permanent policy that is similar to whole life insurance but has flexible premiums and a flexible death benefit.

What Is No-Medical Exam Life Insurance?

No-medical-exam life insurance is life insurance that does not require an in-person medical exam or any labwork for underwriting. Instead, these policies might use your answers to thorough medical and health questions, along with a review of your prescription history, motor vehicle record, and other records to determine how much to charge you for the policy. It might seem like an invasion of privacy, but the more thorough the application process is for no-medical-exam coverage, the more likely you are to qualify for a better rate. This is because unknown information adds to an insurance provider’s risk, which they compensate for by increasing your premium.

The most expensive no-exam policies are guaranteed issue policies, which do not require any health assessment. Simplified issue life insurance, on the other hand, uses a handful of health questions to assess insurability and is slightly less expensive. Accelerated underwriting is more comprehensive and sometimes includes a tele-interview, so pricing for these policies is closer to the cost of traditionally underwritten policies.

How We Chose the Best Life Insurance Companies

To determine the best life insurance companies for seniors, we started by considering what consumers want from life insurance companies by researching third-party consumer studies, including J.D. Power’s 2021 U.S. Life Insurance New Business Study and the 2021 Insurance Barometer Study, by Life Happens and LIMRA.3 

Based on those findings, we selected and collected more than 50 data points on 91 life insurance companies, including ratings for financial strength, customer satisfaction, and customer complaints, plus information about years in business, online tools, no-exam options, policy types and features, maximum issue age, and available riders.

We prioritized companies with a streamlined application process, affordable premiums, convertibility and renewability, and long coverage terms available. We preferred companies that offer online quoting and application tools, transparent pricing, and no-medical-exam policy options. Companies with live chat that allow credit card payments got ratings boosts. Each company was ranked according to the following categories and weights:

40%: Ease of application 

20%: Policy features 

20%: Cost

20%: Customer service features 

To finalize our list, we compared offerings between top companies by considering third-party ratings and product specifics, such as maximum coverage amounts without a medical exam, maximum issue ages for term policies, and included riders. We used this research to determine the best term life insurance companies.

Related Articles