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Best Term Life Insurance

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It’s hard to think about what would happen to your family if you passed away. Unfortunately, the truth is that an accident or sudden illness can strike at any moment and your family might need protection. A term life insurance policy can give you the peace of mind that comes with knowing that your family will be able to do things like stay in your home and pay for your funeral costs if you pass.

In this article, we’ll take a closer look at term life insurance and how it works. We’ll also introduce you to a few of our favorite term life insurance providers.

Best Term Life Insurance:

  • Best for Multiple Quotes at Once: Quotacy
  • Best for Simple Coverage: Bestow
  • Best for Families: Fabric
  • Best for Simple Application Process: Ladder
  • Best for Health and Lifestyle Assessments: Sproutt
  • Best for Life Insurance with Perks: Haven Life

How Does Term Life Insurance Typically Work?

Term life insurance is a type of protection that gives your beneficiary a payout if you die while your policy is active. In some circumstances, your life insurance may also offer a payout if you become permanently disabled and unable to work.

When you apply for a life insurance plan, you’ll choose an initial term for your policy. Your term is the length of time that your insurance policy is active. For example, if you choose a policy with a 20-year term, it means that your policy will be active for 20 years from the first month you pay for your insurance.

You’ll also name a beneficiary on your policy. Your beneficiary might be your children, your spouse, other members of your family, a business partner or even a favorite charity. You can also name more than 1 beneficiary on your policy. If you die while your policy is active, your beneficiary receives the death benefit laid out in your policy’s terms. Your beneficiary might receive your death benefit as a lump sum, or in a series of life insurance payouts

If you don’t die during your policy’s term, your insurance policy expires and you don’t receive any type of benefit.

Your beneficiaries can use your death benefit in any way they like. There are no restrictions on what they can spend it on. Most beneficiaries use the death benefit for living expenses, debt and funeral expenses. If you have more than 1 beneficiary, you should specify how you would like your death benefit divided in your will. 

Whole Life vs. Term Life

There are 2 major types of life insurance: whole life insurance and term life insurance. Let’s take a look at a few of the differences between these types. 

Whole Life Insurance

Whole life insurance guarantees a death benefit for your beneficiaries. Unlike a term life insurance policy, whole life policies don’t have a term. It doesn’t matter when you die, your beneficiaries will receive your benefit as long as the premium is paid.

In addition to a death benefit, whole life insurance policies also include a cash benefit portion. Every month, a small percentage of your premium goes into a cash value that builds interest over time. You can borrow against it or take it out as a low-interest loan. The cash benefit portion of your policy can help you recapture some of the money you spend on premiums. You can only access this benefit while you’re alive. If you die, your beneficiaries don’t receive your cash benefit account — only your death benefit.

The downside of these policies is that whole life insurance policies are much more expensive than term life policies. Many whole life policyholders default on their policies because they can’t keep up with the payments. 

Term Life Insurance

Term life insurance policies have a set term during which your policy is active. Unlike whole life insurance, your death benefit isn’t guaranteed with a term life insurance policy. Term policies also don’t have cash benefit portions. However, they are much more affordable and easier to get online. If you’re looking for cheap life insurance, term life insurance is a good place to start.

3 Reasons to Buy Term Life Insurance

Not sure if you need a life insurance policy? Let’s take a look at a few reasons to get a term life insurance policy

  • Term life insurance can give you peace of mind. If you died tomorrow, would your family be able to cover your funeral costs? Would your spouse be able to pay off your mortgage on a single-person income? Would your son or daughter be able to go to college? You won’t have to worry about these types of issues with term life insurance — your insurance company provides your family with a death benefit to help cover expenses. 
  • Term life insurance policies are affordable. Term life insurance policies are affordable enough for most people to afford. You can find term life insurance for as little as $20 per month from many companies. 
  • Term life insurance policies have no limit on death benefit usage. Unlike some types of insurance (like mortgage payment insurance) there are no limits on how your beneficiaries use your death benefit with a term policy. Your family members can use your benefits for everything from paying off credit card debt to investing for the future. 

5 Best Term Life Insurance Companies

Now that you understand how term life insurance works, let’s take a look at a few of our top picks that offer term policies. 

Age Requirements
18 – 80
Coverage Amounts
$50,000 to $25,000,000

Best for Multiple Quotes: Quotacy

Quotacy believes buying life insurance is a gift to your family members. Quotacy lets you shop anonymously until you’re ready to buy. All life insurance companies on Quotacy’s lists are best-in-class, financially secure and highly rated by independent consumer protection agencies. Take these steps to get the best term life insurance match from Quotacy for your needs:

Step 1: Apply for coverage. Check for life insurance quotes, compare policies and apply online.

Step 2: Quotacy reviews your application. Quotacy ensures you’re matched with the best life insurance carrier for your health and lifestyle. The company reaches out if there is a carrier that’s more suitable.

Step 3: Quotacy conducts the underwriting process to determine whether you’ll be approved, keeps track of your paperwork and reaches out with any issues.

Step 4: You review and approve. Your agency then shares the final offer from the insurance company. You can accept the life insurance coverage or walk away altogether.

The amount of money that you wish to provide your family or business upon your death is up to you. Use Quotacy’s free online life insurance calculator to estimate how much you need.

Age Requirements
21-55
Coverage Amounts
$50,000 – $1,000,000
Starting Rate
$8/month

Best for Simple Coverage: Bestow 

If you’re looking to get term life insurance coverage without pages of legal jargon, consider a policy offered by Bestow. Bestow is a new online life insurance agency focused on simplifying and streamlining the insurance application. You can enroll in a term life insurance policy if approved in Bestow’s simple online application — no invasive medical exam required.

You’ll be given a final price after completing the application which takes only minutes. With simple signups and policies available with up to $1 million worth of coverage, Bestow is an excellent choice for anyone looking to make getting term life insurance easier. 

Age Requirements
21 – 60
Coverage Amounts
$100,000 to $5,000,000
Starting Rate
$12/month
Application Length
10 minutes

Best for People with Children: Fabric

Fabric offers term life insurance for individuals between the ages of 21 and 60. The company believes that life insurance isn’t for you, it’s for your family. You can apply in as quick as 10 minutes and could be offered coverage on the spot. Policies are issued by Vantis Life, a Penn Mutual Company, so your policy is backed by a highly rated, financially stable provider.

Apply online or in Fabric’s mobile app. It offers a range of term lengths and coverage amounts to help you find a policy that works for you. Choose from 10, 15 or 20-year terms and coverage amounts from $100,000 up to $5,000,000.

Age Requirements
20 – 60
Coverage Amounts
$100,000 to $8 million
Starting Rate
$15/month
Application Length
5 minutes

Best for Simple Application Process: Ladder

Ladder provides the most simple, straightforward and affordable type of life insurance to customers: term life insurance. You can choose a 10, 15, 20, 25, or 30-year term.

Ladder doesn’t impose policy, cancellation or processing fees and you can cancel at any time. Take three steps to get Ladder insurance:

  1. You can apply for life insurance coverage with Ladder right now via the online application.
  2. Find out whether you’re instantly approved.
  3. Accept your offer — including affordable prices and no hidden fees.

Ladder partners with Fidelity Security Life Insurance Company to issue LadderLife policies. In New York, Ladder partners with Allianz Life Insurance Company of New York.

Age Requirements
25-55
Coverage Amounts
$50K to $4M
Starting Rate
$9 a month

Best for Health and Lifestyle Assessments: Sproutt

Imagine using technology to be able to save on your life insurance. Sproutt’s got that area covered. Sproutt’s Quality of Life Index assesses your lifestyle and provides a personalized set of suggestions, recommendations and references based on medical research.

This way, you lead a healthy lifestyle and get access to the best life insurance products at the best rates. Take 15 minutes and get a personalized score. Based on this assessment, Sproutt provides advice to help you improve this score and overall quality of life. In the meantime, you also save on your life insurance.

Sproutt insurance advisors can help you determine what kind of life insurance is best for you. Simply answer a few questions to get a low-cost plan for your lifestyle, needs and budget.

Age Requirements
18 – 64
Coverage Amounts
$50,000 – $3,000,000
Starting Rate
$14.99/month

Best for Insurance with Perks: Haven Life

Haven Life offers more than what meets the eye. Haven Life offers term life insurance coverage issued by MassMutual, one of the country’s oldest and most reliable life insurers. You get both: a modern life insurance agency and the backing of an industry leader with a long history of financial strength.

The steps are simple:

  1. Pick your coverage.
  2. Apply online.
  3. Take a medical exam, if needed.
  4. Enjoy peace of mind.
  5. Take advantage of added benefits.

What are the added benefits? Haven Life includes:

  • A digital solution for creating legal wills for you and your partner at no charge through Trust & Will (a $129 value). The service also includes a healthcare power of attorney and directives.
  • A secure online safe deposit box for storing, managing and sharing your family’s important documents at no cost through LifeSite (normally $80 per year).
  • A 15% discount voucher for family health services through CVS MinuteClinic.

Get an estimate today.

Insure Yourself Against the Future

Buying term life insurance doesn’t need to be complicated. The best way to ensure that you’re getting the protection that you need is to fully read your policy’s terms before you enroll. Don’t be afraid to ask your insurance representative any questions you have about your policy, your premium and what your beneficiaries will receive if you die. 

Frequently Asked Questions

1) Q: What are the advantages of term life insurance?

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1) Q: What are the advantages of term life insurance?
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A term life policy allows you to purchase coverage at a guaranteed premium for a limited amount of time. This structure makes term life an affordable choice to protect your family if you have a financial commitment that won’t last forever, like a mortgage or the cost of raising kids. A 20-year term life insurance policy is the most popular life insurance policy purchased to protect loved ones if the unexpected happens. Get a quote from top providers.

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2) Q: What are the advantages of whole life insurance?

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2) Q: What are the advantages of whole life insurance?
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Whole life insurance, along with universal life insurance and some other variants, is designed to provide coverage for your entire life. This differs from a term policy that offers guaranteed premiums for a limited time. Permanent life insurance has a savings or investment element that helps the policy to build cash value, making it an asset that can be borrowed against or even sold if you no longer need the policy.

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3) Q: How much life insurance do I need?

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3) Q: How much life insurance do I need?
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Many in the industry recommend that you carry 8-12 times your annual income in life insurance coverage. A more granular approach can be beneficial, however, and accounting for debt and ongoing financial commitments in more detail when choosing a coverage amount can better provide for your family than an arbitrary multiple of earnings. Get a customized quote for the best policy.

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Our Recommendation: Find your best fit with Policygenius

Finding the right company for your situation means considering all of your options and getting the right advice. Policygenius makes it easy to get personalized quotes from top insurers and apply for your best policy all in one place. Their combination of online tools and support from unbiased, licensed experts makes Policygenius the best site to help you get insurance right.