Choosing among the Best Term Life Insurance Companies is the best decision one in search of a term life insurance would make. Term Life Insurance is the perfect place to start if you’re in search of affordable coverage for a given period of time.
There are multiple competitions on priced term life insurance options. We’ve evaluated costs and policy features from different companies to find the best term life insurance companies.
Moreover, in this article, we’ll be considering the list of the 10 best term life insurance companies that are top-ranked for 2023, their cost comparison, and all you need to know about term life insurance.
See the list of the 10 Best Term Life Insurance Companies in the following section. And feel free to drop a comment for the article in the comment section, and don’t forget to share.
Top 10 Best Term Life Insurance Companies You Ever Know
- Pacific Life – Best Cost For $1 Million Term Life
- Principal – Great For High Issue Age
- Protective – Great For Long Level Term Length
- Symetra– Best For Term Life Insurance Rates
- Transamerica – Best For Buyers In Their 50s
- AIG/American General – Great For Choices Of Term Lengths
- Banner Life/Legal & General America – Great for Long Level Term Lengths
- Haven Life – Great Rates For Buyers Under Age 45
- Midland National – Great for Living Benefits
- Penn Mutual – Great For Older Buyers of 30-Year Term Life
Cost Comparison of the Best Term Life Insurance Companies
The amount you pay for term life insurance is based on your age, health, and the coverage amount and length you choose. Here’s a pick at the rate from the best term life insurance companies according to our analysis:
The rates in the table above depend on buyers who are healthy and qualify for the best rates. Now see the following sections, and find out more about term life insurance.
What is Term Life Insurance: Pros & Cons
Term life insurance is a policy where you select the time period for locking your rates. Common options for term lengths are 5, 10, 15, 25, and 30 years.
Once the level period ends, you can fully renew the policy every year till you reach a certain age, even though you normally pay much higher life insurance rates at each renewal. This is why it’s best to carefully estimate the best term length once you buy a policy.
You’ll also select a coverage amount, which can fall under the many millions of dollars if needed. Once you buy a policy you have to name at least one life insurance beneficiary.
If you eventually pass away while the policy is on, your beneficiary receives a death benefit. And then, once the policy expires, and you’re still alive, there’s no refund, or else the policy specifically offers a feature such as “return of premium“.
Pros & Cons of Term Life Insurance
Here are the potential benefits or drawbacks of term life insurance.
Pros:
- Term life is much less expensive than other forms of life insurance, such as whole life insurance.
- You can choose a level term period that best matches the amount of time for which you need life insurance.
- Your premiums will stay the same for the duration of the level term, so there are no surprises to your budget. Your rates can’t change even if your health changes.
Cons:
- Here, there is no cash value in term life insurance so you can’t take money out of the policy through a loan or withdrawal like you can with cash value life insurance. This lack of cash value is one of the reasons term life insurance is much cheaper than other forms of life insurance.
- If renewal is an option with your policy, the high cost of renewing term life insurance after the level term period ends will come with a serious price tag.
- If you decide to buy a new life insurance policy when your level term period ends, you’ll also pay more. This is because you will be older and may have new health conditions.
Term Life insurance covers the death of all causes, excluding suicide within the first two years of the policy. Death that’s caused by illness, diseases, accidents, and simply old age all are covered by life insurance.
On the other hand, term life insurance does not cover some situations, which include the following:
- Suicide that occurs within the first two years of the life insurance policy
- Death due to a cause that was misrepresented on the life insurance application.
How Much Does a Term Life Insurance Cost?
The average yearly cost for a $500,000 term life insurance policy for a woman of age 40 is $264 for a 10-year term, $336 for a 20-year term, and $528 for a 30-year term.
A man the same age would pay $276 annually for a 10-year term, $408 for a 20-year term, and $684 for a 30-year term. See the following tables below, and see how rates compare for a $500,000 term life policy and a $1 million term life insurance policy when age and length are different.
October 2023 Average Monthly Term Life Insurance Cost for Women: $500,000 in Coverage
October 2023 Average Monthly Term Life Insurance Cost for Men: $500,000 in Coverage
October 2023 Average Monthly Term Life Insurance Cost for Women: $1 Million in Coverage
October 2023 Average Monthly Term Life Insurance Cost for Men: $1 Million in Coverage
Factors Affecting Term Life Insurance Rates
The coverage amount and length of the term you select will affect the amount you pay for term life insurance. Life insurance companies specifically look at the factors that contribute to the period you expect to live.
The evaluation based on mortality depends on a buyer’s life insurance quote. Term life insurance cost factors include the following:
- Age and gender
- Credit and past bankruptcies
- Criminal record
- Driving record (such as DUIs and reckless driving convictions)
- Health
- Health history of your parents and siblings
- Height and weight
- Nicotine or marijuana use
- Past and present prescriptions
- Plans for foreign travel to certain countries
- Results of medical exam (if required)
- Risky hobbies such as scuba diving or skydiving
- Risky occupation
- Substance or alcohol abuse history or treatment
How to Evaluate the Amount of Life Insurance You Need
“There are up to 60 million uninsured and underinsured American households that have an average coverage gap of $200,000”-According to the American Council of Life Insurers (ACLI).
In order to ensure that you purchase life insurance with enough coverage, feel free to use an online calculator, here are the following questions the life insurance calculator asks:
- How much annual income would your dependents need if you were to pass away?
- How long would your dependents need financial support?
- How much debt do you need to pay off?
- How much tuition would you like to cover?
- How much would you like to provide for burial expenses?
- How much savings do you have?
- How much life insurance coverage do you already have?
With these amounts, the calculator immediately analyzes the total amount of life insurance you need to cover your household debts and future expenses.
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