10 Best Term Life Insurance Companies in 2025
Get affordable term life insurance for $12 a month. State Farm, MassMutual, and Nationwide are the best term life insurance companies, with discounts of up to 15% for professional associations, 20% for non-smokers, and 10% off for policyholders with healthy lifestyles, regular exercise, and balanced nutrition.
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Managing Editor
Daniel S. Young began his professional career as chief editor of The Chanticleer, a Jacksonville State University newspaper. He also contributed to The Anniston Star, a local newspaper in Alabama. Daniel holds a BA in Communication and is pursuing an MA in Journalism & Media Studies at the University of Alabama. With a strong desire to help others protect their investments, Daniel has writt...
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Meggan McCain, Head of Content, has been a professional writer and editor for over a decade. She leads the in-house content team at Quote.com. With three years dedicated to the insurance industry, Meggan combines her editorial expertise and passion for writing to help readers better understand complex insurance topics. As a content team manager, Meggan sets the tone for excellence by guiding c...
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Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Michelle Robbins
Updated October 2025
The best term life insurance companies are State Farm, MassMutual, and Nationwide. State Farm stands out as the overall top pick thanks to its 699/1,000 claims satisfaction score.
- Lock in cheap term life insurance rates starting at $12 per month
- State Farm leads as the top pick with strong claims satisfaction
- Non-smokers save more with discounts up to 15%
MassMutual is a leader in financial stability, earning an A++ rating while offering professional discounts of up to 15%.
Nationwide is ideal for families seeking affordable coverage. It offers notable savings of up to 12% for non-smokers and flexible bundling options.
Top 10 Companies: Best Term Life Insurance| Company | Rank | Claims Satisfaction | A.M. Best | Best for |
|---|---|---|---|---|
 | #1 | 699 / 1,000 | A++ | Local Access |
 | #2 | 673 / 1,000 | A++ | Financial Stability |
 | #3 | 666 / 1,000 | A+ | Bundling Option |
 | #4 | 657 / 1,000 | A+ | Family Needs |
 | #5 | 652 / 1,000 | A+ | Conversion Options |
 | #6 | 650 / 1,000 | A+ | Seniors Focus |
 | #7 | 644 / 1,000 | A+ | Simplified Process |
 | #8 | 639 / 1,000 | A++ | Quick Approval |
 | #9 | 626 / 1,000 | A+ | High Coverage |
 | #10 | 615 / 1,000 | A+ | Budget Friendly |
Transamerica has the cheapest quotes but the lowest claims satisfaction rating in our term life insurance company ranking.
If you’re looking to protect your family’s future at a low cost, enter your ZIP code to buy affordable term life insurance prices with our free quote comparison tool.
Comparing the Best Term Life Insurance Rates
The cost of a 20-year term life policy depends a lot on how much coverage you choose. Smaller policies with around $100,000 in coverage are very affordable.
Transamerica offers the lowest prices at nearly every level, starting at $12 per month for $100,000 policies and only $62 per month for $1 million policies. Mutual of Omaha is also very affordable.
20-Year Term Life Insurance Monthly Rates by Policy Amount| Company | $100K | $250K | $500K | $1M |
|---|---|---|---|---|
| $16 | $23 | $39 | $72 |
| $15 | $22 | $35 | $66 |
| $14 | $21 | $37 | $68 |
| $13 | $20 | $36 | $64 |
| $18 | $25 | $38 | $70 |
| $19 | $26 | $41 | $75 |
| $17 | $24 | $40 | $73 |
| $20 | $27 | $42 | $78 |
| $21 | $28 | $43 | $80 |
| $12 | $19 | $34 | $62 |
For many families, the sweet spot is between $250,000 and $500,000 in coverage since it balances protection for big expenses like a mortgage or college tuition without stretching the monthly budget.
Choosing the right company and coverage amount can save you thousands over the life of the policy (Read More: Cheapest Million-Dollar Life Insurance).
Cheapest Term Life Insurance Rates by Policy Length
Twenty years is the most popular term life insurance policy length, but buyers seeking longer coverage should consider 30- or 40-year policies.
On average, 30-year policies cost $10-$35 more per month than 20-year policies, with costs rising as death benefits increase.
Premiums for 30-year policies rise across the board. For example, Lincoln Financial charges $52 monthly and State Farm charges $57 a month.
If you need longer terms for your life insurance policy, many of the best providers offer plans up to 40 years. Premiums will cost more, but these numbers will still be lower than the price of whole life insurance.
Cheapest Term Life Insurance Rates Compared to Whole Life
When you compare the cost of life insurance side by side, the price gap between term life and whole life insurance is easy to see.
Term life usually costs much less because it only covers you for a set number of years, while whole life lasts a lifetime and builds cash value, which makes it more expensive.
Life Insurance Monthly Rates by Policy Type| Insurance Company | 20-Year Term | Whole Life |
|---|---|---|
| $39 | $435 |
| $35 | $420 |
| $37 | $425 |
| $36 | $415 |
| $38 | $425 |
| $41 | $445 |
| $40 | $430 |
| $42 | $435 |
| $43 | $440 |
| $34 | $410 |
Term life coverage is consistently cheaper. For example, a Transamerica term life policy averages just $34 per month, while its whole life option jumps to $410 monthly.
Even top carriers like State Farm show a similar trend, with $43 per month for term life compared to $440 a month for whole life.
That difference is why many shoppers start with term policies. Premiums are manageable, and coverage amounts are large enough to handle major expenses like mortgages, education, and replacing lost income.
By comparison, whole life policies appeal to those who want lifelong coverage and the ability to build cash value, but the cost is often several times higher.
Cheapest Term Life Insurance Companies by Age
Life insurance premiums increase steadily with age, so locking in a term life policy earlier can save you thousands of dollars over time.
A 20-year-old pays nearly half the price of a 50-year-old for the same coverage, which shows why buying young is such an advantage.
20-Year Term Life Insurance Monthly Rates by Age| Company | Age: 30 | Age: 40 | Age: 50 | Age: 60 |
|---|---|---|---|---|
| $31 | $39 | $51 | $72 |
| $27 | $35 | $46 | $68 |
| $29 | $37 | $48 | $70 |
| $28 | $36 | $47 | $69 |
| $30 | $38 | $49 | $67 |
| $34 | $41 | $52 | $74 |
| $33 | $40 | $50 | $71 |
| $35 | $42 | $53 | $73 |
| $36 | $43 | $54 | $74 |
| $26 | $34 | $45 | $66 |
Transamerica is the cheapest option for nearly every age, starting at just $21 per month for 20-year-olds and $66 monthly for 60-year-olds.
Transamerica also offers the cheapest life insurance for seniors in their 70s, at $120 a month, the lowest among all companies.
Choose from the best term life insurance companies in your 20s or 30s to lock in the lowest rates for decades.
Kristen Gryglik Licensed Insurance Agent
State Farm and New York Life reach $130 a month or more at age 70, showing how rates can diverge widely for older applicants.
For shoppers looking for the best term life insurance companies for over 50, Nationwide is also a strong pick for older adults, with monthly premiums of $67 at age 60 and $125 at age 70.
Cheapest Term Life Insurance Companies for Non-Smokers
Non-smokers consistently get some of the lowest term life insurance rates across all major companies. Even a small percentage discount for healthy lifestyles can make a big difference over 30 years.
It’s recommended to compare premiums by term length before choosing the best term life insurance policy.
Term Life Insurance Monthly Rates by Term Length| Company | 10-Year | 15-Year | 20-Year | 30-Year |
|---|---|---|---|---|
| $25 | $32 | $39 | $55 |
| $24 | $30 | $35 | $52 |
| $23 | $29 | $37 | $50 |
| $26 | $31 | $36 | $51 |
| $27 | $33 | $38 | $53 |
| $28 | $34 | $41 | $54 |
| $22 | $28 | $40 | $49 |
| $29 | $35 | $42 | $56 |
| $30 | $36 | $43 | $57 |
| $21 | $27 | $34 | $48 |
Transamerica stands out as the cheapest option for non-smokers, with $21 per month for 10-year coverage and just $34 for a 20-year term, making it the most budget-friendly choice for long-term protection.
Non-smokers who lock in these longer terms can secure decades of protection at affordable rates, which is why they’re among the most popular policies for families planning ahead.
Cheapest Term Life Insurance Rates by State
Term life insurance costs can change a lot depending on where you live. Every state has different rules, health risks, and pricing factors that affect what the best term life insurance companies charge for coverage.
States like Texas, Florida, and Arizona tend to fall on the lower end of the scale, making them some of the more affordable places to buy term life insurance (Learn More: How Much Life Insurance You Need).
Location alone can make a big difference. Families in lower-cost states may save close to $100 per year compared to those living in higher-cost regions, even when buying the same policy amount.
States such as Montana, Maine, and Minnesota show higher averages, often adding hundreds of dollars in extra annual costs compared to cheaper regions. Enter your ZIP code to see how much term life insurance costs in your state.
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Easy Ways to Lower the Cost of Term Life Insurance Coverage
Picking a 20-year term instead of a 30-year term can save hundreds over time, and non-smokers often get 15–20% lower premiums compared to tobacco users.
Here are the simple choices that can lower your monthly premiums and add up to big long-term savings.
- Quit Smoking: Non-smokers can save 15–20% on term life rates.
- Bundle Policies: Combine life with auto or home for up to 10% off.
- Pick Shorter Terms: Choosing 20 years over 30 can save hundreds.
- Pay Annually: Avoid monthly fees and cut costs by 5–10% each year.
- Shop Around: Comparing quotes every few years can save $15+ monthly.
Discounts can make a bigger difference on term life insurance rates than most people realize. Even a small percentage off can add up to hundreds in yearly savings.
MassMutual stands out with the most well-rounded savings, offering up to 10% off for bundling, 15% for professionals, and 15% for non-smokers. That combination makes it one of the strongest options for people who qualify across multiple categories.
Top Discounts for Term Life Insurance| Company | Bundling | Family History | Healthy Lifestyle | Non- Smoker |
|---|---|---|---|---|
| 7% | 5% | 7% | 10% |
| 6% | 12% | 7% | 15% |
| 10% | 6% | 7% | 15% |
| 5% | 7% | 10% | 10% |
| 8% | 5% | 7% | 12% |
| 3% | 10% | 7% | 10% |
| 6% | 10% | 8% | 10% |
| 7% | 20% | 7% | 20% |
| 6% | 15% | 10% | 8% |
| 8% | 10% | 8% | 11% |
Lincoln Financial gives families a break with 12% off for a strong family health history, while John Hancock rewards professionals with the highest discount in the group at 15%.
The best term life insurance companies go beyond discounts, too. Check out our complete guide to health insurance to learn more.
Top 10 Best Term Life Insurance Companies
Some of the biggest names in the industry hold the largest share of the term life insurance market, showing which companies families trust most for reliable coverage.
According to the chart, Prudential leads with 22% of the U.S. market, followed closely by Mutual of Omaha and Pacific Life at 20% each. State Farm and Lincoln Financial each hold 19%, rounding out the top five.
When millions of policyholders choose the same providers, it’s usually because those insurers deliver the right balance of affordable rates, dependable service, and policy features that fit real-world needs.
For shoppers comparing the top 10 term life insurance companies, it’s important to weigh the advantages and disadvantages to find the safest bet for long-term protection.
Read More: One Quote That Convinced Me to Get Life Insurance
#1 – State Farm: Top Overall Pick
Pros
- Local Agent Access: State Farm term life insurance is supported by one of the largest local agent networks in the U.S., ensuring local in-person help.
- Competitive Starting Rates: Minimum term life coverage starts at $21 per month for $100,000, with a $43 average monthly rate at $500,000.
- Financial Strength: With an A++ rating and a 699/1,000 claims satisfaction score, State Farm term life is among the strongest for financial stability and service.
Cons
- Higher Large Policy Premiums: State Farm term life insurance costs $80 per month for $1M coverage, one of the highest among the top 10 providers.
- Weaker Discounts: The non-smoker discount is only 8%, compared to competitors like Prudential, which offer up to 20%. Explore more in our State Farm insurance review.
#2 – MassMutual: Best for Financial Stability
Pros
- Strong Financial Ratings: Term life insurance company ratings give MassMutual an A++ from A.M. Best, placing it among the most financially stable insurers.
- Affordable Coverage Options: Term life rates start at $14 per month for $100,000 in coverage, with $37 at $500,000, making it one of the cheapest for mid-range policies.
- High Professional Discounts: MassMutual term life customers can save up to 15% for professional occupations, one of the highest in the market.
Cons
- Lower Family Discounts: Family history discounts for term life policies are only 6%, lower than John Hancock or Prudential.
- Expensive Whole Life Conversions: Converting to whole life averages $425 monthly, higher than Transamerica. See more quotes in our MassMutual insurance review.
#3 – Nationwide: Best for Bundling Options
Pros
- Bundling Strength: Nationwide term life insurance offers 8% bundling discounts when combined with auto or home insurance.
- Affordable Base Pricing: Rates start at $18 per month for $100,000 coverage, with a $38 average at 20 years for mid-level policies.
- Stable Ratings: Nationwide term life carries an A+ rating from A.M. Best and a 666/1,000 claims score, confirming strong dependability.
Cons
- Average Non-Smoker Discount: Nationwide’s 12% non-smoker discount is good, but still lower than Prudential’s discount.
- Slower Claim Service: The claims satisfaction score of 666/1,000 lags behind leaders like State Farm. Read more in our Nationwide insurance review.
#4 – Pacific Life: Best for Families
Pros
- Family Protection: Pacific Life term life insurance is best for families, offering versatile policies. Explore options in our Pacific Life insurance review.
- Competitive Rates: Coverage begins at $17 per month for $100,000, with a $40 monthly average at 20 years, keeping family protection affordable.
- Financial Strength: Rated A+ by A.M. Best, Pacific Life term life is trusted for long-term payouts and dependability.
Cons
- Higher Premiums at Larger Coverage: Pacific Life term life costs $73 per month for $1M, above Transamerica.
- Limited Discount Options: Discounts are capped at 10%, lower than Prudential’s 20% non-smoker benefit.
#5 – Lincoln Financial: Best for Conversion Options
Pros
- Easy Conversion: Lincoln Financial offers the best term life insurance with no medical exam options, letting policyholders convert to whole life without extra tests.
- Lowest Base Rate: Minimum coverage starts at $15 per month for $100,000, making it one of the most affordable entry options.
- Strong Non-Smoker Discounts: Lincoln Financial term life offers up to 15% savings for non-smokers, tied with MassMutual for the highest.
Cons
- Average Claims Performance: Claims satisfaction is 652/1,000, below State Farm and MassMutual. See why instant life insurance is a smart choice.
- High Senior Premiums: Term life premiums rise sharply with age, costing $126 at age 70, above Transamerica.
#6 – Mutual of Omaha: Best for Seniors
Pros
- Senior Focus: Mutual of Omaha has the best term life insurance for seniors with simplified applications. See more ratings in our Mutual of Omaha Insurance review.
- Low Entry Rates: Coverage starts at just $13 per month for $100,000, the second-lowest among major carriers.
- Healthy Lifestyle Savings: Mutual of Omaha term life offers up to 10% savings for healthy lifestyles, making it attractive for active seniors.
Cons
- Weak Bundling Discounts: Bundling savings are capped at 5%, the lowest among the top 10 companies.
- Higher Top-Tier Premiums: At $64 per month for $1M, term life coverage costs more than Transamerica.
#7 – John Hancock: Best for Simplified Applications
Pros
- Simplified Application: John Hancock term life offers streamlined underwriting, making it faster for approvals compared to competitors.
- Reasonable Base Pricing: Term life rates begin at $16 per month for $100,000, with $39 a month for 20-year coverage.
- High Professional Discounts: Up to 15% off for professional occupations, equal to MassMutual. Learn about types of life insurance in our review and how they work.
Cons
- Higher Whole Life Conversions: Whole life conversions cost $435 monthly, among the highest.
- Lower Claims Score: John Hancock term life insurance scores 644/1,000 in claims satisfaction, behind State Farm.
#8 – New York Life: Best for Quick Approval
Pros
- Fast Underwriting: NYL term life policies are known for quick approvals, often faster than Prudential or Lincoln.
- Financial Strength: Rated A++, New York Life term life offers long-term security for policyholders. Learn why this matters in our life insurance guide.
- Accessible Coverage: Entry-level term life coverage starts at $19 per month for $100,000, competitive for top-rated carriers.
Cons
- Higher Premiums: NYL term life costs $75 monthly for $1 million in coverage, higher than Transamerica.
- Small Bundling Discount: New York Life offers the lowest industry-wide bundling savings of only 3%.
#9 – Prudential: Best for High Coverage Limits
Pros
- High Coverage Limits: Prudential term life excels for large policies, offering coverage amounts over $1 million. See more in our Prudential insurance review.
- Best Non-Smoker Discounts: Savings reach 20% for non-smokers, the highest of all term life providers.
- Flexible Terms: Entry-level coverage starts at $20 per month for $100,000, with multiple term lengths.
Cons
- Low Claims Satisfaction: Prudential term life scored 626/1,000, the second-lowest in the top 10.
- Expensive at Larger Coverage: $1M term life coverage costs $78 per month, above Nationwide.
#10 – Transamerica: Best for Budget-Friendly Rates
Pros
- Lowest Overall Rates: Transamerica term life policies start at just $12 per month for $100,000, the cheapest option available.
- Affordable High Coverage: Even at $1 million, term life coverage costs just $62 per month, undercutting all competitors. Compare it to the cheapest life insurance companies.
- Solid Non-Smoker Savings: Term life offers 11% off for non-smokers, making it attractive for health-conscious buyers.
Cons
- Lowest Claims Score: Transamerica term life scored 615/1,000, the weakest among the top providers.
- Lower Financial Rating: Transamerica is rated A+, below leaders like State Farm and MassMutual.
How to Choose the Best Term Life Insurance Company
According to term life insurance company reviews, State Farm, MassMutual, and Nationwide are the best term life insurance companies for most people, with low rates and high claims satisfaction among beneficiaries.
Finding the right term life insurance company starts with comparing rates at different coverage amounts, since prices can change a lot between $250,000 and $1 million policies.
You should also think about how long you need coverage. A 20-year term is popular because it’s typically enough to cover a mortgage or help raise kids, while a 30-year term offers longer protection for families who want extra security.
If you think you may want lifelong coverage in the future, choosing a company with easy whole or term life insurance conversion options gives you flexibility without having to requalify later.
Discounts play a big role, too. Non-smokers, people with healthy habits, or those who bundle life insurance with auto or home policies often save 10%–20% each year. Enter your ZIP code into our free comparison tool to explore affordable life insurance rates today.
Frequently Asked Questions
What are the best term life insurance companies?
The best term life insurance companies are State Farm, MassMutual, and Nationwide. State Farm is highly rated for customer satisfaction, MassMutual has top financial strength with an A++ rating, and Nationwide offers strong bundling discounts for families.
Read More: State Farm vs Farmers, Geico, Progressive, and Allstate Review
How much does term life insurance cost per month?
On average, the cost of term life insurance starts at just $12 per month for a $100,000 policy with Transamerica. A $1 million term life policy usually ranges between $62 and $80 monthly, depending on the company and your health profile.
Which company has the cheapest term life insurance rates?
Transamerica is the cheapest term life insurance company, offering policies as low as $12 per month for $100,000 in coverage. Mutual of Omaha is also affordable, with term policies starting at $13 per month. Use our free comparison tool to find the cheapest term life insurance companies near you.
Is term life insurance cheaper than whole life insurance?
Yes. Term life insurance is much cheaper than whole life because it covers you for a set number of years. Whole life is a type of cash value life insurance that provides lifelong protection, which makes it 5–10 times more expensive than term life for the same coverage amount.
How do term life insurance rates change with age?
Term life insurance rates increase as you get older. A 20-year-old may pay $21–$30 per month for $250,000 of coverage, while a 60-year-old typically pays $66–$74 per month for the same policy. Buying young locks at the lowest rates.
Do non-smokers get lower rates with the best term life insurance companies?
Yes. Non-smokers often save 15–20% compared to smokers. Companies like Prudential, MassMutual, and Lincoln Financial offer some of the best non-smoker discounts on term life insurance.
What are the downsides of term life insurance?
One of the biggest disadvantages of term life insurance is that coverage ends when the policy ends, and you do not receive any death benefits or return of premiums paid. The best term life insurance companies will offer return of premium or convertible term life when your policy ends.
How much coverage should I buy with term life insurance?
Most families choose between $250,000 and $500,000 of term life coverage to protect against debts, mortgages, and income loss. For maximum protection, $1 million term life policies remain affordable compared to whole life insurance.
Read More: What is a life insurance beneficiary?
What are the best term life insurance companies for seniors?
Mutual of Omaha is one of the best term life insurance companies for seniors because it offers flexible policies, competitive rates, and simple applications tailored for older adults.
How can I lower the cost of term life insurance?
You can save on term life insurance by quitting smoking, bundling policies, paying annually, or choosing a shorter term. Discounts from the best companies range from 5–20%, and comparing quotes every few years helps secure the lowest rates.
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