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List Of The Best Cheap Term Life Insurance Providers In The U.S.

List Of The Best Cheap Term Life Insurance Providers In The U.S.

When your family depends on your income, term life insurance is meant to offer protection. Terms typically last between 10 and 30 years. Your beneficiaries won't get a death benefit if you pass away outside the term and haven't renewed or converted the policy. Term life insurance can be an efficient way to address your life insurance needs. It can be used to supplement a permanent policy during peak earning years because it is significantly more affordable than permanent life insurance. We took pricing, the availability of online tools, and the application process into account when assessing term life insurance providers. Additionally, we only endorsed businesses with solid financial standing and no significant customer service issues. Our top picks for term life insurance providers are listed below.

Top Term Life Insurance Providers:

  • Protective is best overall.
  • Nationwide is the best for customer satisfaction.
  • Mutual of Omaha offers the best living benefits.
  • Banner is best for low-cost term insurance.
  • Haven Life offers the best same-day coverage.
  • MassMutual is the most stable financial option.

MOST OPTIMAL

Protective

Cons and Benefits

Pros

  • Offers some of the most affordable prices in the sector.
  • provides term protection for up to 40 years
  • Application available online
  • Credit cards are among the payment options.

Cons

  • J.D.'s Power ranking is poor.

Why We Selected It

In the market, Protective offers some of the most affordable rates for term insurance. It had rates that were tied for the lowest among the 32 term companies for which we obtained quotes. Additionally, Protective offers 40 years of coverage with the option to convert to a permanent policy without a medical exam, whereas most companies only offer a 30-year maximum term. Since not all applications call for a medical exam, you can request a quote and apply online. You might even receive a decision the same day. Your beneficiaries can also submit online claims. Protective has outstanding financial strength ratings, earning the second-highest grade from AM Best, an A+ (Superior). 1 Additionally, even though Protective's J.D. Power ranking is below average, the company received fewer NAIC complaints over the past three years than was predicted, given its market share.

CUSTOMER SATISFACTION BEST

Nationwide

Cons and Benefits

Pros

  • Ranked second by J.D. Power for customer satisfaction
  • Almost no complaints
  • Applications are accessible online
  • Accepts credit cards
  • $5 million in coverage without a medical exam

Cons

  • Term policies at a fair price
Why We Selected It Nationwide receives very high marks for customer satisfaction even though it may not be the cheapest life insurance, provider. The J.D. Power 2021 U.S. Individual Life Insurance Study ranks Nationwide second. Additionally, the business has received many complaints over the past three years. Even Nationwide's mobile app has positive reviews. Additionally, AM has rated Nationwide with an A+ (Superior). Best for the stability of the budget. If you're relatively healthy and 50 years of age or younger, you can apply online for coverage of up to $5 million without having to undergo a medical exam. Terms can be as long as 30 years, and living benefit riders are free to add. Once the term is up, you can either renew your coverage or convert it to a permanent one. Most transactions, including paying your bill with a credit card, can be completed using the online tools provided by Nationwide. Apart from the fact that Nationwide's term insurance prices are above average and higher than some competitors, we have no complaints about the company. Nationwide is our top choice for the best life insurance provider overall.

FOR LIVING BENEFITS, THE BEST

Converse of Omaha

Cons and Benefits

Pros

  • Included were three no-cost living benefit riders.
  • One of the few insurance companies that provide a disability income rider
  • Live chat customer service is offered.
  • Provides term life insurance with a return of premium.

Cons

  • To apply, you must speak with an agent.
  • More grievances than leading competitors
Why We Selected It Term insurance policies are convertible and have a maximum term of 30 years. While the cost of Mutual of Omaha term policies is about average, the company's Term Life Express policies come with three living benefit riders—terminal illness, chronic illness, and critical illness accelerated benefit riders—free of charge. The policy also includes a standard carrier death benefit provision, which raises the death benefit if you pass away while a fare-paying passenger on a common carrier, and a waiver of premium for unemployment riders. Even if your primary residence is damaged, you can pause premium payments thanks to a special rider. Additionally, more options are available for an additional fee, such as a rare provision known as a disability income rider. In the J.D. Power 2021 U.S. Individual Life Insurance Study, Mutual of Omaha was ranked fifth, indicating that customers are generally satisfied with the company. It also has an A+ (Superior) financial strength rating from AM Best. But it's important to remember that, on average, the insurer received about the expected number of complaints over the previous three years. To apply, you'll also need to speak with an agent.

FOR CHEAP TERM INSURANCE, THE BEST

Banner

Cons and Benefits

Pros

  • provides the least expensive term life insurance available in the market, tied with Protective
  • Can you use term riders to ladder your coverage?
  • The NAIC receives very few consumer complaints.
  • terms up to forty years

Cons

  • Not able to be paid with credit cards
Why We Selected It The two companies for which we gathered quotes on term rates were Protective and Banner Life, both of which are a part of Legal & General America. Additionally, Banner provides flexibility with various term lengths and available term riders. Seven different term options are available, and you can purchase term insurance for up to 40 years. To temporarily increase coverage, you can add a 10, 15, or 20-year term rider to your base policy. This lowers your overall cost than purchasing the most coverage you require for the entire term. Banner term policies can be changed into permanent policies and are also renewable. The AM Best rating for Banner Life is A+ (Superior), and over the past three years, the company has received significantly fewer complaints than anticipated. 23 Banner term policies are also simple to apply for; you can get a quote online, and the online application process can lead to a same-day decision for applicants who don't need a medical exam. The fact that Banner Life doesn't accept credit card payments is a disadvantage. A different insurer, like Mutual of Omaha, should be considered if you're looking for a broad selection of riders.

SAME-DAY COVERAGE IS BEST

Harbor Life

Cons and Benefits

Pros

  • Online application and quote process that is the quick and easy
  • live chat
  • Some policies come with discounts and free subscriptions.
  • Almost no complaints

Cons

  • The age limit for this issue is 64.
  • $500,000 maximum for no-medical-exam coverage
  • Policies cannot be changed.
Why We Selected It Haven provides one of the best user experiences in online life insurance if you don't need convertible term coverage or high coverage limits. The entire process—from quote to application to approval—is quick and straightforward, and you won't need to speak with an agent. You can also get online chat support. Your no-medical-exam coverage of up to $500,000 can begin immediately if you apply for the Haven Simple product. Both of Haven's products include the accelerated death benefit for terminal illness. The Haven Life Plus rider, which offers free subscriptions and discounts, is also included with Haven Term policies. Haven offers policies at better than average prices. MassMutual, which has the highest financial strength rating of A++ (Superior) available from AM Best, underwrites Haven Life policies. One of the lowest of our top-reviewed companies, MassMutual, also has a very low incidence of customer complaints. 2 However, applicants must be 64 years of age or younger to qualify. Unlike the other carriers on this list, policies cannot be converted to permanent coverage.

FINANCIAL STABILITY: BEST

MassMutual

Cons and Benefits

Pros

  • AM Best's highest financial strength rating
  • The NAIC receives very few consumer complaints.
  • There are numerous ways to change your term policy.
  • Specific candidates might be eligible for no-medical-exam coverage.

Cons

  • Not accepting credit card payments
  • Compared to some other providers, it includes fewer living benefits.
Why We Selected It MassMutual is one of only nine of the 91 life insurance companies we reviewed to receive the highest possible grade from the credit rating agency, which has been around since 1851 and has an A++ (Superior) financial strength rating from AM Best. Given the size of the business, the company also received significantly fewer complaints than anticipated. You can apply for up to $3 million in immediate coverage online with MassMutual's Direct Term product. Temporary coverage will start immediately, but for most applicants, continued coverage will require a medical exam within 90 days. Some healthy people might be eligible to skip the test. Term insurance policies can only be converted two to ten years after issuance, but an extended conversion period rider is available. While a few additional riders are optional and a terminal illness rider is included without charge, the selection is limited compared to insurers like Nationwide and Mutual of Omaha. As compared to our two cheapest picks, pricing will also be higher.

Final Conclusion

Because of its affordable rates, accessible 40-year terms, and online tools, Protective Life stood out among the life insurance companies we reviewed the most for term coverage. Protective was closely followed by Banner, another excellent value option that provides 40-year term insurance. Haven offers a simple application process for those who don't require a convertible policy. Still, Mutual of Omaha or Nationwide is better suited for those who want various customization options. Additionally, we always turn to Nationwide for top-notch customer support. MassMutual and Haven also have the best financial strength rating currently available. Which company is the best for you will depend on your preferences and needs, but they are all top-notch options for term insurance. When comparing quotes, make sure to take into account the benefits that are included, such as living benefits and convertibility.

Information on Education

The Procedure for Term Life Insurance

You can choose the death benefit you want and the term length, such as 10, 20, or 30 years when applying for term life insurance. The cost of the premiums usually remains constant throughout the term. Still, depending on your current age, you may have the option to continue your insurance after the term has ended. Additionally, many policies let you change your term policy to a permanent one before the term is up. However, your term policy will expire, and your coverage will end if you don't convert the policy or renew it. If you outlive the term of some policies, referred to as the return of premium policies, you may receive some or all of the premiums you paid back, but these are uncommon and can be expensive. Permanent insurance is comparatively more expensive than term insurance. This is so that coverage won't expire before you reach old age when life insurance premiums tend to skyrocket. Term life insurance is typically a great way to address a temporary life insurance need, such as protecting your income for your expanding family, due to its affordability.

Life Insurance: Term vs. Whole

Whole life insurance, as opposed to term life insurance, is intended to cover you forever. Premiums are significantly more expensive as a result. With whole life insurance, you pay a set premium for a certain number of years or your entire life, and regardless of when you pass away, will pay out your beneficiaries. Additionally, cash value, which you might be able to borrow against or withdraw from, is built up by whole life insurance. Some companies that offer whole life insurance also pay dividends, lowering policy costs or raising the cash value and death benefit. Like whole life insurance, which has adjustable premiums and an adjustable death benefit, universal life insurance is another kind of permanent insurance.

What Is Life Insurance Without a Medical Exam?

No-medical-exam Life insurance is life insurance that is underwritten without a physical examination or any laboratory testing. Instead, these policies may use your responses to in-depth medical and health-related questions, a review of your prescription history, driving history, and other records, as well as answers, to determine how much to charge you for the policy. It might seem like an invasion of privacy. Still, the more information you provide during the no-medical-exam coverage application process, the better your chances are of receiving a better rate. This is so that insurance companies can raise your premium to make up for the risk that unknowable information adds to their business. Guaranteed issue policies are the priciest no-exam policies, which don't call for a health checkup. Pricing for these policies is more comparable to the price of traditionally underwritten policies because accelerated underwriting is more thorough and occasionally includes a tele-interview. On the other hand, simplified issue life insurance is slightly more affordable and determines insurability using a limited number of health-related questions.

How We Selected the Top Life Insurance Providers

The 2021 Insurance Barometer Study by Life Happens and LIMRA, and the 2021 U.S. Life Insurance New Business Study, conducted by J.D. Power, were among the third-party consumer studies we looked into to determine the best life insurance companies for seniors. Based on those conclusions, we chose and gathered more than 50 data points on 91 life insurance companies, including ratings for financial strength, customer satisfaction, and customer complaints, as well as details about years in operation, online tools, no-exam options, policy types and features, maximum issue age, and available riders. Prioritized companies with easy application processes, low premiums, convertibility, renewability, and extended coverage terms. We gave preference to businesses that provided online quoting and application tools, transparent pricing, and choices for no-medical-exam policies. Businesses that offer live chat and accept credit card payments saw rating increases used the following categories and weights to rank each company:
  • 40 percent: Application simplicity
  • 20%: Features of the policy
  • A cost of 20%
  • 20%: Features that improve customer service
This study helped us identify the top term life insurance providers. We compared the products offered by top companies, taking into account third-party evaluations and product details like the maximum coverage amounts without a medical exam and the maximum issue age for term policies. We included riders to come up with our final list.

Alex

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