11 Best Term Life Insurance

The best term life insurance policy suited to your needs might not be the same as the policy that is best suited to the needs of another person. 

When looking for life insurance, it is essential to investigate the coverage amounts, term durations, age restrictions, and the possibility of converting the policy into permanent coverage.

There is a possibility that you place various degrees of importance on each of these criteria. 

The term life insurance policies that are provided by the most highly regarded life insurance firms in the United States have been the focus of our attention.

This gives you the opportunity to evaluate your options and choose the coverage that is best suited for you and your family.

If you want to invest or get insured as an expat or high-net-worth individual, which is what i specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).

What is Term Life Insurance?

The beneficiaries of the term life insurance policyholder are eligible to receive a death benefit for a defined period of time provided by term life insurance.

The policyholder has the choice of either renewing the policy for another term, maybe converting the policy to permanent coverage, or allowing the term life insurance policy to lapse when the term in question has expired.

How Does Term Life Insurance Work?

During the process of acquiring a term life insurance policy, the insurance company determines the premium by taking into account the value of the policy, which is the amount that will be paid out, in addition to other factors such as your age, gender, and health characteristics.

The operational expenditures of the organization, the returns on investments, and the death rates that correspond to different age groups are additional factors that influence rates.

On rare occasions, a medical examination could be required.

In addition, the insurance company may inquire about your driving history, the medications you are now taking, your smoking habits, your work, your hobbies, the medical history of your family, and other relevant information.

Your designated beneficiaries will get a payout from the insurance company that is equivalent to the stated amount of the policy in the event that you pass away during the time period that is stipulated for the life of the policy.

Beneficiaries have the ability to use the cash benefit, which is not subject to taxation, to cover expenses related to healthcare and funerals, as well as consumer debt, mortgage debt, and other incidental costs.

 However, beneficiaries are not required to use the proceeds from the insurance policy in order to settle the debts of the deceased person under any circumstances.

In the case that the insurance policy reaches its expiration date prior to your passing or if you exceed the duration of the policy, there will be no payment made, regardless of the circumstances.

There is a possibility that a term policy can be renewed after it has reached its expiration date. On the other hand, it is essential to keep in mind that the premiums for the renewed policy will be recalculated based on your age at the time of renewal.

In the realm of priority and private banking, securing the best term life insurance becomes a paramount investment strategy, ensuring comprehensive financial protection for high-net-worth individuals and their families.

11 Best Term Life Insurance

Mutual of Omaha

Through the provision of a comprehensive range of financial services and insurance products, Mutual of Omaha is committed to aiding customers in accomplishing their goals and protecting their futures.

According to the findings of J.D. Power’s 2022 U.S. Individual Life Insurance StudySM, the business is the proud holder of a position that places it among the top three ranks for customer satisfaction among individual life insurance firms.

Mutual of Omaha provides term life insurance plans that have the ability to be converted into permanent policies that accumulate cash value.

These policies also ensure that payments are made on a constant basis. The incorporation of expedited death benefits into term policies, which, in certain instances, are offered as complimentary riders at no additional expense, is something that we are grateful for.

Fidelity Life

It is possible that persons who are of advanced age, who have major health conditions, or who have been denied insurance coverage in the past could be eligible for Fidelity Life.

When it comes to permanent coverage that does not require examinations, the organization offers a wide variety of options, including whole life, ultimate expenditure, and accidental death benefit insurance.

AM Best has awarded the company an A- rating, which indicates that the company has exceptional financial stability.

Fidelity Life, on the other hand, does not rank as the most robust supplier on this list if your primary focus is on providing excellent customer service.

When compared to other providers of comparable magnitude, it receives a higher number of complaints from state insurance departments than other suppliers.

Nationwide

More than ninety years have passed since Nationwide began its operations, with its headquarters located in Columbus, Ohio.

AM Best, a credit reporting service that evaluates an insurance company’s potential to complete claim payments and satisfy debt duties, has awarded the company an extraordinary financial strength grade of A+.

This was achieved by the company. A company that has a high rating demonstrates that it is financially capable of repaying claims that have been filed against it.

The procedure of comparing rates with Nationwide is a straightforward one. Users are able to evaluate the rates of various term life insurance plans through the use of a quote tool that is available on the website.

You may be eligible for a rate reduction of up to twenty percent if you combine your life insurance policy with your auto and homeowner’s insurance policies.

USAA

There is no requirement for individuals to have a military affiliation in order to purchase life insurance offered by USAA.

Nevertheless, measures of this kind are specifically intended to adapt to the demands and requirements of persons who are employed in the military workforce.

Term lengths can range anywhere from ten to thirty years in length. All individuals between the ages of 18 and 70 are eligible to purchase the coverage options, which range from $100,000 to $10 million.

If you purchase this insurance when you are between the ages of 18 and 35, you may be eligible to gain an additional $100,000 of coverage in the event that you experience significant life events such as getting married or having a child.

It is not necessary to have a medical examination in order to renew the Essential Term Life policy, which requires renewal on a yearly basis.

Applicants must be between the ages of 21 and 35 to be considered. When the policyholder reaches the age of 39, the coverage sum is reduced to $100,000, and the insurance ultimately expires.

The state of Arizona and the state of New York do not cover this coverage. 

United Services Automobile Association (USAA) life insurance provides coverage for military members during times of armed conflict and offers financial help in the event that they experience severe injuries while on active duty.

In addition to this, it gives you the opportunity to replace the group coverage that you have lost as a result of retirement or leaving the military.

When delving into investment funds, it’s crucial to consider the significance of the best term life insurance to safeguard one’s financial legacy and provide a reliable safety net for loved ones.

Bestow Life Insurance

Bestow is a modern insurance company that offers term life insurance through a totally streamlined digital application procedure.

The application process normally takes only a few minutes, and it gives prompt decisions in the majority of circumstances.

The method is both illuminating and intuitive, making it possible for you to easily notice how factors such as the length of coverage and the amount of coverage affect the cost of insurance.

In the event that you go through any difficulties, you can get in touch with the customer care staff by live chat or telephone.

According to our observations, they made a significant effort to pay attention and offered assistance that was of great value.

A high grade was given to the provider since they provide term life insurance with a minimum of four different term options and policies that allow for the absence of a medical examination.

On the other hand, if you are looking for a policy that can be converted or coverage that is permanent, this provider is not ideal for your requirements.

State Farm

According to a survey conducted by J.D. Power in 2022, State Farm, a company that has been in business for a century, has attained the highest level of customer satisfaction among individual life insurance businesses.

The thorough design of the company’s website demonstrates the company’s commitment to providing a positive experience for its customers.

The aforementioned website offers a simple and all-encompassing overview of the many options for life insurance, as well as the scope of coverage that is available.

In order to initiate quotations, you have the option of beginning the process online. Alternatively, you can get in touch with a State Farm agent to engage in a conversation about the various options that are available to you.

There are more than 19,000 agents available to you through the organization’s nationwide network of representatives.

Exploring key personal life insurance options is essential for individuals seeking tailored coverage that aligns with their specific needs, offering a personalized approach to financial protection.

Transamerica

In addition to retirement solutions, annuities, and insurance, Transamerica is a well-known corporation that provides these services.

In addition to having 12.9 million current policies, it provides services to a massive customer base of 11.8 million.

Individuals who purchase term life insurance plans have the opportunity to customize their coverage by selecting from a variety of term lengths and additional features.

In addition, the fact that it is possible to avail oneself of substantial coverage limits makes it an appealing option for persons who are looking for comprehensive coverage.

Within the limits of the Trendsetter L.B. life insurance plan, claims can be processed quickly for amounts up to $25,000.

Customers provide feedback to the company that is below average. As a result of the annual survey conducted by J.D. Power in 2022, the firm earns a rating that is below average in terms of customer satisfaction.

For the purpose of this study, feedback was compiled from a sample of three thousand consumers regarding their experience with an insurance provider.

Particular attention was paid to elements such as communication, interaction, and pricing.

MassMutual

In addition to offering traditional term life insurance and an annual renewable policy, MassMutual now offers comprehensive coverage at no cost to low-income parents through its LifeBridge program.

There are a variety of term life insurance policies available from MassMutual, with terms ranging from ten to thirty years.

One of the services offered by the company is a term life insurance policy that is renewable on an annual basis and must be renewed annually.

On the other hand, it is essential to keep in mind that selecting this alternative can lead to higher premiums in the future.

This means that the maximum age at which a person can get a term life insurance policy from MassMutual is 75 years old.

The policy can give coverage beginning at a minimum of one hundred thousand dollars. You have the option to change to permanent life insurance prior to the time that is specified in the documentation of your policy.

Provided that the family’s yearly income falls between the range of $10,000 to $40,000, the LifeBridge program offered by MassMutual provides a free insurance policy to the parent or legal guardian of a child who is under the age of 18.

The purpose of the policy, which has a value of $50,000 and a period of ten years, is to offer financial aid for the child’s education in the event that the parent or guardian passes away due to an unexpected condition.

Do high-net-worth-individuals need life insurance? Addressing the question of whether high-net-worth individuals need life insurance underscores the importance of comprehensive financial planning, with the best term life insurance serving as a fundamental component to ensure long-term security and wealth preservation.

Haven Life

Haven Life is a one-of-a-kind mix of an insurance agency and a technology company, and MassMutual is the owner of this unique firm.

It offers term life insurance policies that are offered by MassMutual and C.M. Life, which is a subsidiary of MassMutual life insurance.

AM Best has awarded MassMutual with an A++ grade, which indicates that the company possesses the highest level of financial health and stability.

The only companies that are eligible to receive this coveted rating are those that have extremely strong financial situations.

Haven Life is an organization that is focused on digital technology and works toward the goal of providing simplified life insurance policies that are quicker and simpler to apply for.

In most cases, Haven Life does not need applicants to undergo medical examinations in order to obtain insurance.

Additional benefits, like access to internet services for the creation of a free will, are included in the Haven Life Plus coverage, which is also available.

Ethos Life

Ethos Life is a provider of life insurance that offers both term life and whole life coverage through the utilization of technology within the industry.

The application process for this company is taken care of totally online. When the company was founded in 2016, its primary purpose was to streamline the process of getting life insurance by employing technology to speed the underwriting process.

In certain areas, the cost of Ethos term life insurance is affordable, but in the majority of states, it might not be the most cost-effective option available.

Not only do qualifying Ethos life plans offer free estate planning resources, but they also provide a handy answer for individuals who are looking for confidence as they get older.

Ethos is a company that offers guaranteed-issue whole life insurance without the need for a medical examination; nevertheless, in order to be eligible for coverage, applicants must be between the ages of 66 and 88 years old.

Compared to the maximum death benefit offered by some of the firm’s competitors, which is $30,000, the maximum death benefit offered by the company for whole life insurance is somewhat lower.

Nevertheless, the process is streamlined, which makes it effective and delivers coverage in a matter of minutes.

New York Life

AM Best has awarded New York Life with an outstanding A++ rating, and the company offers term life insurance packages that may be customized with additional features.

An excellent added benefit is the paid-up insurance buy waiver for the spouse. This waiver enables your spouse to acquire their own policy by using your plan without having to go through a medical examination in the event that you pass away.

In addition to providing term life insurance, New York Life also offers a number of permanent life plans that, depending on your goals, can be changed into term life insurance at a later date.

The whole life plans offered by New York Life have a financial value that can be considered tangible, and they also have the ability to pay out an annual dividend.

The ability to change both the premium payments and the death benefits is one of the benefits that universal life insurance products offer.

Additionally, variable universal life insurance policies make it possible to invest the cash value that has been accumulated in the market for financial instruments.

Is Life Insurance Worth it?

The folks who are dependent on you should be considered while making the decision to get life insurance.

The purpose of this endeavor is to forestall the occurrence of a costly financial obligation. If you are not married, retired, and do not have any dependents.

Additionally, if you have paid off your mortgage in full, it is highly likely that you do not require life insurance.

If, on the other hand, you have financial obligations, such as a mortgage, and your family is at risk of experiencing financial troubles in the event that you lose your income, purchasing life insurance can be a wise decision for you to make.

Beneficiaries may receive assistance in covering funeral expenses and other essential living expenses through the payoff from their life insurance policy.

Furthermore, any money that is still available can be transferred to the children, which will provide them with a financial advantage when they reach the age of retirement.

Term life insurance is a straightforward and cost-effective form of life insurance that is available to individuals.

This is the type of insurance that is recommended to seek if your major purpose is to offer financial coverage for particular posthumous expenses, such as the costs of burial or the cost of college tuition.

If, on the other hand, you have the financial means to pay higher premiums and want to accumulate assets over the course of your lifetime, thinking about purchasing a permanent life insurance policy might be something you should explore.

The potential to accrue financial value that can be accessed in the future through borrowing or withdrawal is made available by whole life, universal life, and variable universal life policies.

How Much Does Term Life Insurance Cost?

When compared to permanent life insurance, term life insurance is often the most cost-effective choice because it offers a death benefit for a predetermined amount of time but does not include the cash value element featured in permanent insurance.

According to the information provided by Insureon, a man who is sixty years old, does not smoke, and is in good health has the opportunity to purchase a thirty-year term life insurance policy with a death benefit of five hundred thousand dollars for an average monthly premium of thirty dollars as of February 2023.

When the policyholder reaches the age of fifty, the monthly premium will increase to a total of $138.

The vast majority of term life insurance policies expire without making a payment upon the policyholder’s passing off.

When compared to a permanent life insurance policy, this results in a reduction in the overall risk that the insurer is exposed to. Because there is less risk involved, insurance companies are able to provide lower premiums.

A number of factors, including interest rates, the financial health of the insurance company, and state regulations, can also have an impact on premiums.

In general, companies typically offer more favorable rates for coverage levels of $100,000, $250,000, $500,000, and $1,000,000, which are referred to as “breakpoint” amounts.

How to Find the Best Term Life Insurance?

Acquiring life insurance means that you are placing your trust in a company to offer financial assistance to your loved ones for an extended period of time. For this reason, it is of the utmost importance to choose a company that inspires confidence in you. 

You are looking for a company that is able to maintain its operations over the long term and has the financial resources to meet its claim payments for a considerable amount of time in the future.

There is a reliable approach for determining the likelihood of an insurer fulfilling the needed criteria, and that method is to evaluate the financial strength rating of a life insurance firm.

It is possible to seek the advice of a rating agency in order to evaluate the financial stability of any term life insurance business that you are contemplating purchasing.

Beginning with the moment you begin your shopping experience and continuing until the point at which you are required to file a claim, you need to find a company that provides outstanding customer service.

By consulting the complaint index of an insurance business, which is located on the National Association of Insurance Commissioners’ website, one can determine the degree to which customers are satisfied with the service they receive.

The number of complaints that have been filed against the insurance company with the state authorities is used to generate the score.

Additionally, the market share of the company, as demonstrated by the premiums that have been issued, is taken into consideration.

The company has gotten a bigger number of complaints than what would be expected based on its size if the average score is one.

Any score that is higher than one indicates that the company has received more complaints than this.

Following the process of narrowing down your choice, it is recommended that you analyze the life insurance quotes provided by a number of different firms.

You will be able to obtain the most beneficial pricing for the particular term life coverage that you seek if you take this course of action.

Final Thoughts

Life insurance is a type of financial instrument that, in the event that your principal source of income is lost, will give financial assistance to members of your family or other dependents.

Cost-effective life insurance plans are available in modest values ranging from $25,000 to $50,000, which may properly cover the expenses related to your end-of-life problems.

These policies are an excellent way to protect yourself financially. In addition, you have the option of purchasing larger amounts of insurance coverage in order to address more significant financial commitments; however, this may result in an increase in the costs associated with your life insurance policy.

If you are interested in purchasing life insurance, you are not required to schedule a face-to-face consultation with an insurance professional in order to explore the various options available to you.

At the moment, a great number of companies provide extensive information on their websites with the aim of evaluating the various coverage options.

In addition, there are forms that can be filled out online in order to acquire quotes for life insurance.

When you are looking for life insurance, it is important to thoroughly analyze the terms, coverage limits, and rider options that are provided by the various plans in order to choose which one is the most appropriate for your family.

It is strongly recommended that you conduct a comprehensive comparison of the estimated costs provided by a minimum of three different service providers before choosing a policy.

Pained by financial indecision? Want to invest with Adam?

Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.