Updated: November 20, 2024
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Term life insurance provides financial security for a specific period. MoneyGeek analyzed the top term life insurance companies and determined the best options. Nationwide ranks first overall, receiving a MoneyGeek score of 97.
Allstate is the best cheap term life insurance company, while GEICO received the highest score for seniors and customer satisfaction. State Farm is the best choice for no-medical-exam term life insurance.
Best TermLife InsuranceCompaniesBest Term Life Insurance Companies
Why Trust MoneyGeek? We analyzed 1,488 life insurance quotes alongside customer satisfaction, financial stability reports, product offerings and more to determine the best life insurance companies for young adults.
Coverage costs and company information for life insurance providers were updated in 2024.
Nationwide earned a MoneyGeek score of 97 out of 100 for term life insurance, making it the best-rated term life insurance company. On average, it charges a $16 monthly premium for a $250,000 10-year term policy.
How was this MoneyGeek score calculated?
To evaluate and rank the best term life insurance companies, MoneyGeek applied these weightings:
Premiums are from quotes for a 10-year term policy with a $250,000 coverage amount. The sample profile used for obtaining these quotes includes:
| Nationwide | 97 | $16 |
| GEICO | 96 | $13 |
| Mutual of Omaha | 95 | $17 |
| State Farm | 95 | $22 |
| Protective | 95 | $13 |
| Transamerica | 94 | $12 |
| Allstate | 94 | $12 |
| Prudential | 93 | $17 |
| AAA | 93 | $17 |
| Haven | 91 | $22 |
| Progressive | 90 | $31 |
| Bestow | 89 | $27 |
| Fidelity | 88 | $20 |
Extensive product offerings to suit various life stages
Exceptional customer service with 24/7 online chat
A+ AM Best rating indicates strong financial stability
Premiums may not be budget-friendly for all
Limited to 30-year maximum term length
Nationwide excels in the term life insurance market with a MoneyGeek score of 97 out of 100. The company brings 97 years of expertise to the table, offering term coverage amounts from $250,000 up to $1.5 million and term lengths of 10, 15, 20 or 30 years. While the $16 monthly premium for a $250,000 10-year term policy might not fit everyone's budget, Nationwide compensates with a strong financial stability rating and excellent customer service. Features like 24/7 online chat support and various payment options add convenience. The company's comprehensive product line, including no-exam policies, makes Nationwide a solid choice for term life insurance.
Allstate holds a MoneyGeek score of 97 in this category, making it the top choice for affordable term life insurance. The company offers a $12 monthly premium for a $250,000 10-year term policy.
How was this MoneyGeek score calculated?
MoneyGeek determined the best cheap term life insurance company using the following weightings:
Affordable monthly premiums
Extensive coverage amounts ranging from $100,000 to $50 million
Various term lengths available, ranging from 10 to 40 years
Higher-than-average rate of customer complaints
Does not issue its own life insurance policies
Allstate is the best option for budget-conscious consumers seeking term life insurance. With a MoneyGeek score of 97, the company offers a highly competitive $12 monthly premium for a $250,000 10-year term policy. Despite a higher rate of customer complaints, Allstate's strong financial stability, evidenced by an A+ AM Best rating, adds a layer of reliability. The company also offers a wide range of term lengths, from 10 to 40 years and coverage amounts from $100,000 to $50 million. While Allstate doesn't issue its own policies, its diverse product offerings and affordability make it a strong contender in the term life insurance market.
With a MoneyGeek score of 97, GEICO stands out as the best company for term life insurance tailored to seniors. The company offers policies at an average monthly rate of $176 for seniors, making it a budget-friendly option for older policyholders.
GEICO also excels in customer satisfaction, sharing the highest score with Progressive. However, its superior overall MoneyGeek score establishes it as the best in customer satisfaction.
How was this MoneyGeek score calculated?
To determine the best life insurance providers for seniors, MoneyGeek applied the following weightings:
These scores are based on quotes for a 10-year term policy with $250,000 in coverage, using a sample profile of a 70-year-old male, non-smoker, in excellent health.
Minimal customer complaints
Quick approval with no-exam options
Robust financial stability through partners
Policies are not directly issued by GEICO
Limited product offerings
Multiple payment options may not be available
GEICO is MoneyGeek's choice for the top term life insurance provider for seniors and those prioritizing customer service. With a MoneyGeek score of 97, GEICO offers term life policies at an average monthly rate of $176 for seniors. Although GEICO doesn't issue its own policies, it collaborates with partners like Ladder, which boasts an A++ AM Best rating and low customer complaint rates. While GEICO's product range is primarily focused on term life and no-exam policies, the coverage is substantial, extending from $100,000 to $8 million. With 87 years of industry experience and a convenient mobile app, GEICO remains a reliable option for a variety of insurance needs.
State Farm leads the pack in no-exam term life insurance with a MoneyGeek score of 99. The company offers term life coverage starting at $100,000 with various term lengths.
How was this MoneyGeek score calculated?
MoneyGeek used the following weightings to calculate scores and rank the top term life insurance companies for no-medical-exam policies:
We did not weigh affordability as we did not collect no-medical-exam life insurance quotes. The company below has the highest score among life insurance providers that offer no-exam policies.
A++ AM Best rating reflects top-notch financial stability
Offers no-exam term and final expense policies
Extensive product diversity including term, whole and universal life
No 24/7 online chat support available
Term lengths capped at 30 years
State Farm excels in offering no-exam term life insurance policies, making it a convenient choice for those who prefer to skip the medical exam. It earned a MoneyGeek score of 99, and an A++ AM Best rating backs the company's financial stability. State Farm has been in business for 101 years, offering a range of products, including term, whole and universal life insurance, as well as final expense policies. While the buying process and customer support could improve, the company's strong financial standing and product diversity make it a reliable choice for no-exam policies.
Term life insurance is a type of life insurance policy that provides coverage for a specified period or "term." Typically, the policyholder pays a fixed premium throughout the term, and if they pass away during that period, the insurance company pays out a death benefit to their beneficiaries.
Term life insurance policies can be purchased for terms typically ranging from one to thirty years, depending on the individual's needs. Once the term expires, the policy can be renewed, but the premiums may increase as the policyholder ages. Alternatively, the policyholder may choose to convert the policy to a permanent life insurance policy, which provides coverage for the policyholder's entire lifetime.
Choosing the right policy involves considering various factors, including the offerings from the best term life insurance companies, to ensure comprehensive coverage. Whether seeking the best online term life insurance for convenience or the best term life insurance with living benefits for added security, the market offers solutions to meet diverse preferences and needs.
Our quote tables provide pricing information from the top companies in the industry so that you can make an informed decision as you start shopping for term life insurance.
The first table displays the average monthly cost of a 10-year term policy broken down by age and coverage amount. For 20 years of coverage, you can use the second table to compare average monthly prices for the same ages and coverage amounts. The last two tables show actual rates we obtained from multiple companies for both 10- and 20-year term policies.
| 30-Year-Old | $16 | $20 | $35 |
| 40-Year-Old | $23 | $29 | $53 |
| 50-Year-Old | $45 | $65 | $117 |
| 60-Year-Old | $91 | $141 | $271 |
| 70-Year-Old | $243 | $410 | $719 |
| 30-Year-Old | $20 | $28 | $50 |
| 40-Year-Old | $29 | $44 | $83 |
| 50-Year-Old | $64 | $106 | $203 |
| 60-Year-Old | $164 | $286 | $556 |
| 70-Year-Old | $752 | $1,481 | $2,988 |
| Allstate | $12 | $18 | $29 |
| Transamerica | $12 | $17 | $26 |
| GEICO | $13 | $19 | $26 |
| Protective | $13 | $20 | $31 |
| Nationwide | $16 | $22 | $33 |
| Mutual of Omaha | $17 | $26 | $46 |
| Prudential | $17 | $32 | $63 |
| AAA | $17 | $25 | $42 |
| Fidelity | $20 | $32 | $93 |
| Haven | $22 | $38 | $70 |
| State Farm | $22 | $31 | $48 |
| Bestow | $27 | $48 | $88 |
| Progressive | $31 | $52 | $93 |
| Gerber | $76 | N/A | N/A |
| Allstate | $17 | $28 | $49 |
| Transamerica | $18 | $28 | $49 |
| GEICO | $19 | $31 | $49 |
| Protective | $19 | $31 | $54 |
| Nationwide | $23 | $36 | $63 |
| Mutual of Omaha | $23 | $37 | $69 |
| Prudential | $24 | $46 | $90 |
| AAA | $25 | $40 | $70 |
| State Farm | $25 | $40 | $69 |
| Haven | $26 | $45 | $83 |
| Fidelity | $30 | $51 | $149 |
| American Family Insurance | $32 | $58 | $107 |
| Bestow | $34 | $61 | $115 |
| Progressive | $44 | $77 | $149 |
| Gerber | $80 | N/A | N/A |
Navigating the process to select the best term life insurance policy requires careful consideration and informed decision-making. Below are steps to guide you in securing the coverage that aligns with your needs and budget:
These will be different for everyone — it’s important that you take time to consider the coverage needs that are best for you and your family before purchasing a policy.
Be sure to purchase enough coverage to cover the cost of current and future liabilities, like future childcare, college funds and salary replacement.
Be sure to compare life insurance quotes for the same coverage limits and terms.
The better a company’s third-party customer service scores, the better your experience with it will likely be. A company’s financial score will show how easily it can pay out life insurance claims, which are higher per claim than auto and home insurance. Consider companies with an excellent or better financial score to ensure they can meet their financial obligations and pay your benefit if you die during your term coverage.
A commonly used rule of thumb when it comes to purchasing life insurance is to multiply your annual income by 10, which gives you a rough estimate of the coverage amount you may require. However, this number may not be sufficient for families with children, as college expenses can add up quickly. To account for this, adding $100,000 per child to your coverage is recommended.
Here are some examples of how much coverage the following profiles may need:
College Student
As a 19-year-old college student with no dependents and a $20,000 private student loan debt, it may be tempting to forego life insurance. However, a small term life insurance policy with $10,000 to $25,000 in coverage can help cover your final expenses and debts (private student loans may not be forgiven upon your passing the way federal loans are). As you progress in your career and start a family, you can review and adjust your coverage accordingly.
Single Adult
Suppose you're a 35-year-old professional making $60,000 annually without any immediate dependents or mortgage. You have a debt of $25,000, comprising $15,000 in private student loans and $10,000 in credit card debt, and savings of $20,000. To help loved ones pay for your final expenses in the event of your passing, you may consider a term life insurance policy for 15 years with a small coverage amount of approximately $25,000. But remember that your life circumstances can change, so you'll need to reassess and modify your policy if you get married or have children.
Married Without Children
Let's say you're married without children, and both you and your spouse are 35 years old and earning a combined annual income of $100,000. You have no significant debt and can comfortably cover your monthly living expenses. It's still important to consider the impact of an unexpected death on the surviving spouse.
We recommend that the spouse making more purchase a term life insurance policy with coverage that is 10 to 12 times their annual income. This will ensure that the surviving spouse can cover final expenses and maintain their lifestyle. If you both make about the same income, weigh whether it makes sense for you each to get a policy, depending on your savings and the financial impact on the surviving spouse. As your family and financial circumstances change over time, it's important to review and adjust your coverage as necessary.
Single Parent
Suppose you're a 40-year-old single parent with two young children and an annual income of $60,000. You have a mortgage of $200,000 and outstanding debt of $20,000, and you estimate that it will cost approximately $150,000 to cover your children's education expenses. To provide financial security to your family in case of your passing, we recommend purchasing a term life insurance policy with coverage that is at least 10-12 times your annual income.
In this case, a policy with coverage of $600,000 to $720,000 would be appropriate. This will help ensure that your children's living expenses, education and outstanding debts are covered. When your children become financially independent, you can re-evaluate your life insurance needs and adjust your coverage.
Married With Children
Let's say you are a married couple with two children, ages 5 and 8. You both work full-time and have a combined annual income of $120,000. You have a mortgage of $300,000 and other debts totaling $50,000. You estimate it will cost approximately $300,000 to cover your children's college expenses. In the event of either of you passing unexpectedly, your family could face financial challenges, which is why life insurance is essential.
To protect your family if you or your spouse passes — since the family relies on both incomes — we recommend purchasing a joint term life insurance policy for 20 years with coverage at least 10-12 times your annual income. In this case, a policy with coverage of $1.2 million to $1.44 million would be appropriate. This amount will help ensure that your family's living expenses, mortgage, debts and education expenses are covered until your children are adults. As your family's financial situation changes, you may need to adjust your coverage accordingly.
Senior
Let's say you are a healthy senior in your 70 and are retired with no significant debts or financial dependents. At this stage in life, it's important to ensure adequate financial protection for your loved ones in the event of your passing. We recommend purchasing a policy with at least enough coverage to cover your final expenses, such as funeral costs and any remaining debts.
A policy with coverage of $10,000 to $25,000 can be affordable for a healthy senior and provide the necessary financial protection for your loved ones. If you have any outstanding expenses that you want to cover, you may want to consider purchasing a policy with a higher coverage amount.
If you live beyond your term period, the policy expires, and you no longer have coverage. Some companies offer the option to renew your term life insurance each year, but this is usually expensive as renewal rates are based on your current age, not the age you were when you took out the policy.
If you need life insurance beyond the term period, you may want to consider purchasing permanent life insurance for that amount of coverage. Converting some of your term life insurance death benefit to a whole life insurance policy before the term expires is also a good option.
When considering these options, research the best term life insurance companies known for their flexible policies and conversion options. These providers offer competitive rates and terms, making it easier to transition from term to permanent coverage. By comparing the best term life insurance quotes and policies, you can secure a plan that provides the best value term life insurance, tailored to your long-term needs and financial goals.
Understanding the answers to some common questions regarding term life insurance can help you find the best insurer and policy for your needs.
Term life insurance provides a specific amount of coverage for a set number of years. The premiums stay the same for the policy's duration, whether it’s for five years or 30 years. At the end of the term, the policy expires.
Term life insurance costs vary by age, health, lifestyle, hobbies, occupation, length of term and coverage needs. The younger and healthier you are, the cheaper term life insurance coverage can get.
Based on MoneyGeek's analysis, Nationwide is the top option for term life insurance. Allstate may be a great choice for those prioritizing affordability, while seniors and people who value customer service may want to consider GEICO. For no-medical-exam term policies, State Farm ranks first.
The best term life insurance companies offer competitive rates, various term lengths and broad coverage amounts while providing excellent customer service scores and financial strength ratings. To find the best company for you, compare quotes from different companies to get the best rate for your age, health and lifestyle.
The best term life insurance policy depends on your specific needs, including coverage amount, term length, and budget. Top-rated term life insurance companies offer competitive rates and flexible policies, such as the best level term life insurance or the best 30-year term life insurance, tailored to individual requirements.
No, term life insurance policies cannot be cashed out. Term life insurance is a type of life insurance that provides coverage for a specific period, usually 10, 20 or 30 years. If the policyholder dies during the term, the death benefit is paid out to the beneficiary. However, if the policyholder outlives the term, the coverage expires, and the policy has no cash value.
The premiums paid during the term are used to provide coverage and do not accumulate any cash value. If the policyholder wants a policy that builds cash value, they may want to consider purchasing a permanent life insurance policy, such as whole life or universal life insurance.
Yes, in many cases, term life insurance can be converted to whole life insurance. Converting your term life policy to whole life can be a good option if you want to continue your life insurance coverage beyond the term period or if you want the option to build cash value with your policy.
The specifics of the conversion process can vary depending on the insurance company and your policy. Sometimes, there may be a deadline by which you must convert your policy and restrictions on how much coverage you can convert. Check with your insurance company to understand the details of your specific policy and the conversion process.
In general, term life insurance proceeds are not taxable as income. This means that if you are the beneficiary of a term life insurance policy and receive a payout, you generally do not have to report the money as income on your tax return. However, there are some exceptions to this rule, such as if the policy was transferred for money or other valuable consideration, or if the proceeds are paid to your estate and subject to estate taxes. It's always a good idea to consult with a tax professional if you have questions about your specific situation.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
