Picture a 35-year-old parent with two kids and a mortgage. She meant to buy life insurance for years. If she waits until 45, the same $500,000 policy costs about $69 a month instead of $37. Over 20 years, that delay costs her about $7,700.
Term life insurance pays your family a set amount if you die during the policy's term, often 20 or 30 years. It is cheaper than most people think. The hard part is knowing where to shop.
The short answer: compare at least three quotes. Use a marketplace like Policygenius plus two direct sellers, such as Ladder, Ethos or Protective. Pick the lowest price from an insurer rated A- or better.
Which term life insurance companies should you compare?
Term life is nearly the same product everywhere. The payout is the same no matter which company issued it. So the real differences are price, the insurer's strength, and how easy it is to apply. We checked each company's own site on October 8, 2026.
- What it is
- Marketplace with licensed agents
- No-exam limit
- Depends on the insurer
- Best for
- Seeing several quotes at once
- What it is
- Sells its own policies online
- No-exam limit
- Up to $3M
- Best for
- Lowering coverage later
- What it is
- Sells its own policies online
- No-exam limit
- Up to $3M
- Best for
- A fast online application
- What it is
- Traditional insurer
- No-exam limit
- Exam may be needed
- Best for
- Terms up to 40 years, up to $5M
Policygenius is not an insurer. It shows quotes from several insurers in one place, and licensed agents can answer questions.
Ladder offers coverage up to $3 million with a few health questions and no medical exam. You can lower your coverage later, for example as you pay down your mortgage. Its policies are issued by Amica Life, Fidelity Security Life or S.USA Life, depending on your state.
Ethos sells term life online with health questions and no medical exam, with coverage up to $3 million.
Protective sells its Classic Choice Term policy in terms of 10, 15, 20, 25, 30, 35 and 40 years. Coverage runs from $100,000 to $5 million. An add-on lets you switch it to lifelong coverage later.
Before you buy anywhere, look up the AM Best rating of the company that issues the policy, not the website that sells it. AM Best grades how likely an insurer is to pay claims decades from now. A- or higher is a good sign.
Two names you may still see in older reviews: Haven Life stopped taking new applications in January 2024, and MassMutual now services its existing policies. Bestow sold its insurance company to Sammons Financial Group in 2024 and no longer sells policies to consumers.
How much does term life insurance cost?
Price depends on your age, sex, health and the amount you buy. The table shows average monthly prices for $500,000 of 20-year term for nonsmokers in average health. The figures come from MoneyGeek's 2026 rate survey, updated September 22, 2026.
- Women
- ~$31/mo
- Men
- ~$38/mo
- Women
- ~$37/mo
- Men
- ~$47/mo
- Women
- ~$47/mo
- Men
- ~$59/mo
- Women
- ~$69/mo
- Men
- ~$90/mo
People in excellent health can pay less than these averages. Smokers and people with long-term health problems pay much more.
Waiting costs real money. Moving from age 35 to 45 adds about $32 a month for women and $43 for men. Over a 20-year policy, that is about $7,700 and $10,300.
Doubling your coverage usually does not double your price. So price the amount you actually need before you decide to buy less.
How much coverage do you need?
A common shortcut is 10 to 12 times your yearly income. A more careful method is called DIME. Add up four numbers:
- Debt: credit cards, student loans and car loans
- Income: your yearly pay times the years your family needs it
- Mortgage: what you still owe on your home
- Education: future college costs for your children
Here is an example household. One parent earns $95,000 a year and the other stays home with two young children.
- Debt: $40,000
- Income: $95,000 a year for 20 years, or $1,900,000
- Mortgage: $425,000
- Education: two children at $160,000 each, or $320,000
Total: about $2,685,000. That number looks large. Get real quotes at that amount before you settle for less. Our life insurance need calculator runs this math with your own numbers.
If you want a quicker rule:
- Young family with a mortgage: $1M to $2M of 20- or 30-year term
- Two incomes, no children: $250K to $500K each, enough to clear shared debt
- Stay-at-home parent: at least $500K on that parent too, since childcare and housework cost money to replace
- No one depends on your income: you may not need life insurance at all
How long should your term be?
Match the term to your longest money promise.
- 10 years: a short bridge, for people close to having enough saved
- 20 years: fits most families, covering children through school
- 30 years: fits a newborn plus a new 30-year mortgage
A term that ends too soon is a common mistake. If it runs out at 45 while your kids are still young, a new policy will cost much more. If you just bought a home, our first-time homebuyer guide explains how the two choices fit together.
Is term life better than whole life?
For most families, yes. Whole life lasts your whole life and builds a savings value, but it costs far more.
- 20-year term
- ~$47
- Whole life
- ~$540
- 20-year term
- None
- Whole life
- Grows slowly
- 20-year term
- Yes
- Whole life
- Surrender charges may apply
Averages from MoneyGeek, updated September 2026, for a nonsmoking 40-year-old woman.
The gap is $493 a month. Invested for 20 years at an assumed 7% yearly return, it would grow to about $257,000. That is $118,320 you put in plus growth. Stock returns are not guaranteed, but this is usually more than whole life builds in the same time.
Whole life can make sense in a few cases. Examples are estate-tax planning for very wealthy families, funding a deal between business partners, or a health problem that will make new coverage impossible later. Our term vs. whole life guide goes deeper.
Should you skip the medical exam?
No-exam term life is convenient. Ladder and Ethos both offer it up to $3 million for healthy applicants. The tradeoff is that it can cost more than a policy with a full exam. If you are healthy and willing to do a short exam, compare both prices. Our no-exam life insurance guide compares the options.
Be careful with "guaranteed issue" ads that promise "everyone approved." These are small whole life policies, often $25,000 to $30,000. If you die from illness in the first two years, they usually refund premiums instead of paying the full benefit. They are a last resort for people who cannot get other coverage.
How do you get the best price?
- Apply while you are healthy. Blood pressure, weight and family history all affect your price.
- Ask about nonsmoker prices if you have quit. Smokers pay far more. Each insurer sets how long you must be nicotine-free, so ask before you apply.
- Compare three quotes for the same policy. Same amount, same term, same health answers.
- Ask about paying once a year. Some insurers charge less for yearly payments than for monthly ones.
Which company fits your situation?
- Where to start
- Policygenius
- Why
- Quotes from several insurers in one place
- Where to start
- Ladder
- Why
- You can reduce coverage later
- Where to start
- Ethos or Ladder
- Why
- No medical exam up to $3M for healthy applicants
- Where to start
- Protective
- Why
- Terms up to 40 years, coverage to $5M
- Where to start
- See our seniors guide
- Why
- Different products and prices apply
For older buyers, our best life insurance for seniors guide covers the options. Life insurance also works best next to a funded emergency fund.
How we chose these companies
We looked at price, ease of applying, policy length and size, and whether the company still sells to consumers. We checked each company's own site. Prices come from MoneyGeek's survey of quotes, not from SwitchWize. SwitchWize does not sell life insurance and is not paid for these picks. See our methodology.
This is educational information, not personal financial advice. For advice on your situation, talk with a fee-only financial advisor or a licensed insurance broker.
Sources
- MoneyGeek, 20-Year Term Life Insurance Rates (2026): average monthly prices for $500,000, nonsmokers in average health, updated September 22, 2026 (retrieved October 8, 2026).
- MoneyGeek, Whole Life Insurance Rates by Age (2026): $540 a month for a 40-year-old woman, $500,000, updated September 30, 2026 (retrieved October 8, 2026).
- Protective, Classic Choice Term: term lengths, coverage range and conversion rider (retrieved October 8, 2026).
- Ladder, ladderlife.com: no-exam coverage up to $3M, adjustable coverage and issuing insurers (retrieved October 8, 2026).
- Ethos, ethos.com: no medical exam, coverage up to $3M (retrieved October 8, 2026).
- Policygenius, Life insurance: quotes from multiple insurers and licensed agents (retrieved October 8, 2026). Haven Life's closure to new applications is reported in Policygenius's Haven Life review; havenlife.com now redirects to MassMutual.
- Bestow, bestow.com: states it sold its carrier to Sammons Financial Group in 2024 (retrieved October 8, 2026).
- NAIC, Life insurance consumer guide: how state regulators oversee insurers.
- SwitchWize arithmetic for the waiting cost, the DIME example and the invested premium gap is reproduced in
src/tests/unit/term-life-companies-numbers.unit.test.ts.
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Frequently Asked Questions
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