7 Best Term Life Insurance Companies in 2024

Why We Picked Banner Life 

Banner Life scored points in our review for offering seven options for its term life policies, more than competitors we reviewed, including a 40-year term. The company also stands out because all of its term plans feature the option to convert to permanent coverage, and its no-exam plans offer up to $1 million in coverage.

Banner Life also excels in customer service and trustworthiness based on scores from the National Association of Insurance Commissioners (NAIC) and AM Best. The company’s 0.10 NAIC complaint index score indicates 90% fewer complaints than expected for a company its size. AM Best gives the provider an A+ financial strength rating, indicating a “superior” ability to meet its financial obligations such as death benefit payouts.

Customer service and cost were the two most important factors for Banner Life policyholders who responded to our survey in February 2024.

In the table below, you’ll find a breakdown of how Banner Life performed in our 2024 life insurance study. We’ve also included average scores from all providers in our study as points of comparison.

Banner Life offers the following types of life insurance policies:

• Term life insurance
• Universal life insurance

Cost

After researching Banner Life’s rates, we estimated monthly premium costs for a 20-year term policy for a tobacco-free applicant who qualifies for the preferred health rate class.

• 35-year-old man: $16
• 35-year-old woman: $14
• 45-year-old man: $30
• 45-year-old woman: $24

Why We Picked MassMutual

Although MassMutual is typically our pick for permanent life insurance, the company also offers six different term life plans. Each term plan offers the option to convert all or a portion of your coverage to a permanent policy. The window in which you can convert depends on your age and which term product you buy. The company also has a robust selection of add-on options and even makes an accelerated death benefit and waiver of premium rider available at no extra cost for term policies.

Founded more than 170 years ago, MassMutual can offer financial peace of mind to policyholders with an A++ rating, the highest financial strength score possible, from AM Best. Research by the NAIC indicates the company is one of the top five life insurance providers nationwide by market share. MassMutual also rates well in customer service — the company secured the third-place ranking on J.D. Power’s 2023 customer satisfaction study, scoring 809 out of 1,000 points. However, MassMutual requires consumers to get quotes for some plans over the phone.

See a more in-depth look at how MassMutual scored in our 2024 life insurance industry study. To make it easy to compare, we also included average scores from all providers in our most recent study.

MassMutual offers the following types of life insurance policies:

• Term life insurance
• Whole life insurance
• Universal life insurance
• Variable universal life insurance
• No-exam final expense life insurance

Cost

To give you an idea of what MassMutual policyholders might pay for term coverage, we based the rates below on a 20-year policy for a tobacco-free applicant considered in good health.

• 35-year-old man: $19
• 35-year-old woman: $17
• 45-year-old man: $37
• 45-year-old woman: $29

Why We Picked Guardian Life

Guardian Life ranked highly in our review for its financial strength, diverse policy offerings and optional riders that allow policyholders to customize coverage. Those who prefer in-person contact and individualized coverage plans may benefit from choosing the company. You must work with an agent to apply for a policy, and the company’s website offers little specific information on coverage options.

Guardian Life ranks well in some third-party industry rating methodologies and sits just outside the top 10 providers in total market share, having issued more than $4.8 million in premiums in 2023. The provider holds the highest possible A++ financial strength score from AM Best and a low 0.09 NAIC complaint index.

You can get a quick preliminary quote for term life insurance from the Guardian Life website by filling out your age, gender, annual income, and whether or not you smoke. Since plan costs and coverage are unique based on factors such as financial need and health, you can adjust the term length and coverage amount to suit your goals.

The table below offers a more detailed look at how Guardian Life fared in our 2024 life insurance study. In addition, you’ll find average scores for each category from all 34 providers in our study.

Guardian Life offers the following types of life insurance policies:

• Term life insurance
• Whole life insurance
• Universal life insurance
• Variable universal life insurance

Cost

To estimate rates for a Guardian Life term life policy, we based the rates below on 20-year coverage for a healthy, tobacco-free applicant who qualifies for the preferred underwriting class.

• 35-year-old man: $21
• 35-year-old woman: $19
• 45-year-old man: $45
• 45-year-old woman: $35

Why We Picked State Farm

State Farm has established a reputation for financial stability and customer satisfaction over more than a century of providing insurance. The company has earned the No. 1 ranking on J.D. Power’s annual customer satisfaction survey for four straight years, scoring 843 out of 1,000 points in 2023.

Its financial stability is supported by the best possible A++ rating from AM Best, supporting its ability to pay death benefits. When we conducted a Pollfish survey of 1,000 life insurance policyholders in February 2024, 13% of respondents chose State Farm as their provider, which was more than any other company included in the survey.

The company’s term life policies are renewable up to age 95. Though customers can get term life quotes online, you must work with an agent to get quotes for permanent life insurance plans.

We break down how State Farm earned the scores it did in our 2024 life insurance study in the table below. We’ve also listed average scores from all providers in our study to make it easy for you to compare.

State Farm offers the following types of life insurance policies:

• Term life insurance
• Whole life insurance
• Universal life insurance
• No-exam final expense life insurance

Cost

We were unable to obtain cost information for State Farm. You can contact the company for more details on pricing.

Why We Picked Transamerica

Transamerica has a maximum age issue of 80 years old for both types of term life plans, a higher limit than Banner Life or State Farm. The company also earned our pick for most affordable coverage based on average rates of $31 per month for healthy 25- to 45-year-olds seeking a 20-year term policy with $500,000 in coverage. According to our survey of 1,000 policyholders in 2024, cost was the most important factor for respondents when purchasing life insurance.

Founded nearly 120 years ago, Transamerica holds an A rating from AM Best, offering financial security to beneficiaries and policyholders. However, Transamerica does not rank as well as competitors such as State Farm and MassMutual with other independent rating companies. The company’s score of 757 out of 1,000 in J.D. Power’s 2023 customer satisfaction survey places it at No. 20 out of 22 providers profiled. Transamerica’s 3.20 NAIC complaint index is also more than three times higher than expected based on its share of the life insurance market.

The table below offers a more detailed picture of how Transamerica scored in our 2024 life insurance study. We’ve also listed average scores from our study side-by-side for easy comparison.

Transamerica offers the following types of life insurance policies:

• Term life insurance
• Whole life insurance
• Universal life insurance
• Indexed universal life insurance
• Indexed variable universal life insurance

Cost

To estimate costs for Transamerica policyholders, we received rates for a 20-year term policy based on a tobacco-free applicant considered in good health.

• 35-year-old man: $16
• 35-year-old woman: $14
• 45-year-old man: $31
• 45-year-old woman: $25

Why We Picked Pacific Life

We selected Pacific Life because it offers flexibility and customization with up to 13 available riders for its many policy options, which include term, whole life and universal life. While we typically recognize the company for its comprehensive universal life options, it also stands out for making its PL Promise Term policy available to applicants up to age 80, a higher limit than some providers we reviewed. Both the PL Promise Term and Pacific Elite Term products offer policy periods from 10 to 30 years and the option to receive cash value by converting to permanent coverage.

Over more than 150 years of operations, the company has also established a reputation for financial stability and customer satisfaction. Pacific Life ranked sixth of 22 providers in J.D. Power’s 2023 U.S. Individual Life Insurance Study with a score of 799 out of 1,000. The company also demonstrates a strong ability to meet its financial obligations, including claim payouts, with an A+ rating with AM Best. However, you cannot purchase policies online and must connect with an agent to apply.

You can see how Pacific Life scored in our 2024 life insurance study in more detail in the table below. To make it easy to compare, we’ve also included the average scores across all providers in our study.

Pacific Life offers the following coverage options:

• Term life insurance
• Whole life insurance
• Universal life insurance
• Variable universal life insurance

Cost

To estimate how much Pacific Life policyholders might pay, we based the below rates on a 20-year term policy for a tobacco-free applicant in good health who qualifies for the preferred rating class.

• 35-year-old man: $16
• 35-year-old woman: $14
• 45-year-old man: $30
• 45-year-old woman: $24

Why We Picked John Hancock

John Hancock stands out among the life insurance competitors we reviewed for its Aspire program, which offers up to 25% in savings on life insurance and other rewards to policyholders living with Type 1 or Type 2 diabetes. We selected the company for this review because it offers four term life insurance plans and coverage amounts as high as $65 million.

A household name in life insurance and financial services since its founding in 1862, John Hancock issued more than $4.8 billion in policies in 2023. John Hancock has an AM Best rating of A+, the credit rating agency’s second-highest possible score. However, John Hancock does not provide online quotes or offer a traditional whole life policy option.

You can see a more detailed breakdown of how John Hancock scored in our 2024 life insurance study in the table just below. You’ll also find the average scores for each category from all providers in the study to help you compare.

John Hancock offers the following types of life insurance policies:

• Term life insurance
• Universal life insurance
• Indexed universal life insurance
• Variable universal life insurance

Cost

To determine how much John Hancock policyholders might pay for life insurance, we based the rates below on a 20-year term policy for a tobacco-free applicant who qualifies for the preferred health rate class.

• 35-year-old man: $25
• 35-year-old woman: $22
• 45-year-old man: $45
• 45-year-old woman: $37