Term life insurance is usually the simplest and cheapest policy you can buy. That's because it's only in force for a set period — generally between 10 and 30 years — and it doesn't have a cash value component.
A term life policy can still protect your family if you die during your prime earning years, when your income is needed to pay the mortgage, send the kids to college or cover other major financial obligations.
CNBC Select has chosen the best term life insurance companies based on cost, coverage options, customer satisfaction and more. (Read our methodology to learn about how we made our picks.)
Best for affordability: Ladder
- No-exam term life with coverage up to $3 million
- Online application process
- Can adjust premiums and coverage for free as needs change
- No riders
- No permanent life insurance
- Enrollment age limit is 60 years old
Who's this for: Ladder boasts some of the most affordable premiums of any company we've reviewed.
Standout benefits: Unlike most insurers, Ladder lets term life policyholders adjust their death benefits up or down as their needs change.
Best for joint life insurance: Guardian
Guardian Life Insurance
Policies
Term, whole and universal
Policy highlights
Term life can be converted into whole or universal life policies. While dividends are not guaranteed, Guardian has paid dividends to eligible policyholders annually since 1868.
Age limits
75 for 10-year term policies, 55 for 30-year term policies, no upper age limit for whole life
Coverage limits
$5 million for term life
Availability
Guardian Life is available in all 50 U.S. states and Washington, D.C.
Online quote for term policy
Yes
Read CNBC Select's review of Guardian life insurance
Pros
- Has paid dividends since 1868
- Whole life insurance policies up to age 90
- No-medical-exam policies up to $3 million
- Available in all 50 states
Cons
- Can't get rate quotes or apply online
- Customer service not available 24/7
- Doesn't offer auto or home insurance
Who's this for? Guardian is one of a few insurers that offer joint life insurance, with the cash value of its EstateGuard plan increasing after the first person dies. Policyholders can add coverage in the policy's early years.
Standout benefits: You can convert a Guardian level-term life policy to permanent life at any point in the first five years without another medical exam.
Best for discounts: Amica
Amica Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Amica offers four straightforward life insurance options — a level term life insurance, and whole life insurance policies payable for 20 years or until ages 65 or 100. Both term and whole life insurance policies include a terminal illness rider for free, allowing for an advanced death benefit if the insured is diagnosed with a terminal illness.
Who's this for? Amica stands out for having numerous discounts, including 10% off for bundling life insurance and car insurance.
Standout benefits: All Amica plans include an accelerated death benefit rider, which allows you to access funds if you've been diagnosed with a terminal illness.
Best for dividends: Northwestern Mutual
- Highly rated for customer satisfaction
- Has paid dividends, though not guaranteed, annually since 1872
- Standalone long-term-care policy and rider available
- Can't buy policies online
- Customer service not available on weekends
Who's this for? Northwestern Mutual, while not guaranteed, has issued dividends annually since 1872 and announced an $8.2 billion payout for 2025, an industry record.
Standout benefits: Northwestern Mutual offers long-term care as both a rider and a standalone policy.
Best for customer satisfaction: State Farm
- Reasonable rates
- Top-rated for customer service
- Return of premium benefit available
- Term policies can be converted to permanent
- Policies must be purchased through a State Farm agent
- Doesn't sell policies in Rhode Island or Massachusetts
- Fewer riders than the competition
- Accelerated death benefit costs extra
Who's this for? State Farm earned the highest ratings for customer satisfaction in J.D. Power's 2024 life insurance survey and has far fewer complaints about life insurance than other insurers its size, according to the National Association of Insurance Commissioners.
Standout benefits: State Farm's term life policies can convert to a permanent policy without a medical exam.
Best for no-exam policies: Bestow
Bestow Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
No
Policy highlights
Bestow offers one term life insurance policy to those ages 18 to 60 with up to $1.5 million in coverage. Its policies are nearly instant — if approved, applicants don't need to undergo a medical exam.
Pros
- Simple online application and quotes
- Can pay for coverage with a credit card
Cons
- Not available in New York or Maine
- No riders available
Who's this for? Bestow is a great option if you don't want the hassle of taking a medical exam. Policies worth up to $1.5 million are available with just a few basic health questions.
Standout benefits: Bestow's online application and expedited underwriting process means you can get a decision about your eligibility in about five minutes.
More on our top term life insurance companies
Ladder
Founded in 2015, Ladder is a relative newcomer but its policies are underwritten by several large insurers, including Allianz, Amica and Fidelity Security Life Insurance Company.
Terms: 10, 15, 20, 25, or 30 years
Coverage limit: $100,000 to $3 million online or up to $8 million with an agent.
Age limits: Ages 20 to 60
Guardian
In addition to term, whole and universal life insurance, Guardian offers disability insurance and critical illness policies. Guardian has paid dividends to eligible policyholders every year since 1868, with a record $1.4 billion payout in 2024.
Terms: 10, 15, 20 or 30 years
Coverage limits: Up to $5 million
Age limits: 18 to 75
Amica
Amica has been in business since 1907 and offers term and whole life insurance. It's highly rated for financial strength with an A+ A.M. Best rating.
Terms: 10, 15, 20, 25 or 30 years
Coverage limit: Up to $1 million in most cases
Age limits: 18 to 75
Northwestern Mutual
As one of the largest insurance companies in the U.S., Northwestern Mutual has a strong track record for its ability to pay on its contracts. It's been in business since 1857 and offers a variety of life insurance products.
Terms: 10 or 20 years
Coverage limits: Not disclosed
Age limits: 18 to 65 for a 10-year policy and 18 to 60 for a 20-year policy.
State Farm
Founded as an auto insurance company in 1922, State Farm is now one of the largest life insurance providers in the U.S., with $1.1 trillion in policies in force.
Terms: 10 years, 20 years or 30 years for Select Term
Coverage limit: Starting at $100,000
Age limits: 18 to 75 for a 10-year policy, 18 to 65 for 20-year policy and 18 to 45 for 30-year policy
Bestow
Dallas-based Bestow was founded in 2016 by Melbourne O'Banion and Jonathan Abelmann. A digital-first provider only offering term life insurance, it uses algorithms to offer a quick approval process without the need for medical exams.
Terms: 10, 15, 20, 25 or 30 years
Coverage limits: $100,000 to $1.5 million
Age limits: 18 to 60
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Amica offers a level term life insurance and whole life insurance policies payable for 20 years or until ages 65 or 100. Both include a terminal illness rider at no extra charge.
Terms Apply
Pacific Life offers term, permanent and no-exam life insurance, with an accelerated death benefit included at no charge.
Terms Apply
What is term life insurance?
As the name implies, term life insurance covers you for a set term, usually 10, 20 or 30 years. If you die before the term ends, your beneficiary receives the stated death benefit. If you outlive the term, however, there is no payout.
There are several types of term life insurance:
- Level-term policy: Your premiums and death benefit stay the same for the length of your term.
- Renewable term policy: Can be renewed at the end of each term, usually up to a certain age. Your rates may go up with every renewal, however.
- Return of premium policy: If you outlive your term, you can receive some or all of your premiums back. Typically there is an added cost for this benefit.
How much does term life insurance cost?
According to Policygenius, a 20-year term life policy with a $500,000 payout will cost a 30-year-old woman in good health an average of $23 per month.
A 30-year-old man would pay about $30 per month for the same policy.
The cost of any specific policy depends on a variety of factors, including age, gender, medical history and lifestyle, including hobbies, driving record and drinking and smoking habits.
Pros and cons of term life insurance
- Much cheaper than permanent life insurance
- Quick approval, often without a medical exam
- Some plans can convert to a permanent policy at the end of your term
- There's no payout if you outlive the term
- Doesn't build cash value.
- if your health status changes, an insurer can refuse to renew
Term life insurance FAQs
What is the difference between term and whole life insurance?
The biggest difference between term life and whole life insurance is that term life is that its only in force for a preset term, typically 10 to 30 years. Whole life will stay in force as long as you keep paying your premiums. That makes whole life more expensive, but it also allows policies to earn a cash value component you can access while you're alive.
What happens if I outlive my term life insurance?
If you outlive your term life insurance policy, typically no benefits are paid out. if you have a return of premium rider, however, you can receive some or all of your money back. Some providers also allow you to renew your policy after the initial term expires: The death benefit remains the same, but your premiums will likely go up because of age-related risks.
What is the cheapest type of life insurance?
Because it's only active for a set period and doesn't earn cash value, term life is generally the cheapest type of life insurance. A whole life insurance plan, for example, can cost more than ten times as much as a term life policy for the same amount of coverage.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every life insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of life insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best term life insurance companies.
Our methodology
To determine the best life insurance companies, CNBC Select collected data points on dozens of U.S. life insurance companies that offer term life insurance policies to individuals.
To select the best term life insurance policies, we focused on companies that rated highly in J.D. Power's life insurance customer satisfaction ratings and A.M. Best's financial strength ratings (which measure a company's ability to pay on debts). We also considered market share data from the National Association of Insurance Commissioners, the availability of online quotes, and medical exam requirements.
We sorted our recommendations based on the best term life insurance companies by best overall, best runner-up, best for customer satisfaction, and best for no-exam policies.
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