Bottom line: For term life insurance, the rate difference between top companies on the same policy is often 5–20%, meaningful over a 20-year policy. Price matters, but so does financial strength (AM Best A- or better) and the underwriting process. Healthy applicants under 60 should compare at least three carriers before applying. Online-first companies offer the fastest approval (24–72 hours); traditional carriers offer more coverage options and competitive rates on large policies.
Term life insurance is a commodity: coverage pays the same death benefit regardless of which company issued it. The differences that matter are price, financial strength (the company needs to be around to pay claims 20–30 years from now), and the application experience. The NAIC's guide to life insurance covers how state regulators oversee insurer solvency and claims-paying practices.
What to Look for in a Term Life Company
Financial strength rating (AM Best): A measure of the insurer's ability to pay claims. Look for A- (Excellent) or better. Most major carriers are A+ or A++.
Price: Rates vary by 10–20% for the same coverage on the same applicant across carriers. Always compare at least three quotes.
Underwriting process: Some companies require a full medical exam (scheduled at your home or office, free). Others use accelerated underwriting, approving most healthy applicants in 24 to 72 hours using prescription history, MIB database, and credit data instead of an exam. Our no-exam life insurance guide covers this tradeoff in more detail.
Policy features: Look for: conversion option (ability to convert to permanent insurance without new underwriting), renewal option (extend term at end without medical review), and no-lapse guarantee.
Coverage amounts available: Some online-first carriers cap policies at $1M or $3M. For higher coverage needs, traditional carriers are necessary.
Top Term Life Companies
Haven Life (issued by MassMutual): Online-first, accelerated underwriting up to $3M for healthy applicants under 59. MassMutual is A++ rated. Competitive pricing, fast approval. Best for healthy buyers who want coverage quickly.
Protective Life: Consistent top-tier pricing, especially for long terms (30-year, 40-year policies available). A+ AM Best. Full underwriting required; slower approval. Best for buyers wanting the longest terms or large face amounts.
Pacific Life: Strong pricing on larger face amounts ($1M+), A+ AM Best, flexible conversion options. Best for higher-coverage needs and those wanting policy flexibility.
Transamerica: Competitive rates, especially for tobacco users (separate rate classes for marijuana use). A AM Best. Good for non-standard health profiles.
Ladder Life: Online-first, flexible coverage that can be reduced over time as needs change (you pay less as you reduce). A- rated. Best for buyers who want to ladder down coverage as mortgage balance drops.
Bestow (issued by North American): No-exam policies up to $1.5M, 10- and 20-year terms, entirely online. Fast approval. Best for buyers who want simplicity and speed.
- Use an independent marketplace (Policygenius, SelectQuote) for initial comparison. They pull quotes from multiple carriers simultaneously without obligation. Then apply directly with your top choice. The marketplace earns a commission either way, so there is no cost to using them for comparison.
- Smokers and tobacco users pay 2–4x more for life insurance than non-smokers. Most insurers define 'smoker' as any tobacco or nicotine use in the past 12 months (some carriers use 3 years). If you have quit, waiting until you qualify as a non-smoker for the insurer's purposes can save hundreds per year in premiums.
- Apply at the same time from multiple companies if you are in good health. Each application triggers a soft pull on prescription databases (no credit impact) during accelerated underwriting. Being declined or rated up by one carrier does not affect your application at another. You can choose the best offer after seeing all results.
Sample Rates: $500,000 / 20-Year Term (Non-Smoker)
- Male (approx.)
- $22–28/month
- Female (approx.)
- $18–23/month
- Male (approx.)
- $27–35/month
- Female (approx.)
- $22–28/month
- Male (approx.)
- $42–55/month
- Female (approx.)
- $33–42/month
- Male (approx.)
- $70–90/month
- Female (approx.)
- $52–68/month
- Male (approx.)
- $115–150/month
- Female (approx.)
- $85–110/month
Rates are approximate for Preferred health class. Actual rates depend on specific health history, state, and carrier.
How to Get the Best Rate
Apply at your healthiest. Blood pressure, cholesterol, BMI, and family history all affect your rate class. If you have been working on your health, consider waiting until metrics improve before applying for a large policy.
Choose the right term. A 20-year term costs less per year than a 30-year term. If your youngest child will be independent in 18 years and your mortgage has 22 years left, a 25-year term may be the right length, not necessarily the round numbers. Run your own numbers with our life insurance guide and term life insurance explainer before choosing a term length.
Pay annually. Most insurers offer a 5–8% discount for paying annually rather than monthly. On a $600/year premium, that saves $30–48/year.
Life insurance rates change frequently and vary based on individual health history. Get quotes directly from insurers or through a licensed broker.
Frequently Asked Questions
What is the best term life insurance company?
How much term life insurance do I need?
What is the difference between term and whole life insurance?
Do I need a medical exam to buy term life insurance?
Can I get term life insurance with a pre-existing health condition?
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