Term life insurance is the simplest and cheapest way to protect the people who depend on your income. You pick an amount of coverage and a number of years. If you die during that time, the policy pays your beneficiaries. If you outlive the term, the coverage ends. Because there is no savings component, a healthy adult can often buy a large amount of coverage for the price of a few coffees a month.
There is no single best term life company for everyone. Price depends on your age, health, tobacco use, term length and coverage amount, and each insurer weighs those factors differently. This guide lists the companies that appear most often in 2026 rankings, shows what term life costs, and explains how much coverage and which term length to choose, so you can request quotes with a clear plan.
Freshness note: Life insurance prices and company rankings change often, and sources use different sample applicants, so their numbers do not match. Figures below were checked around October 2, 2026. Your own quote will differ. Confirm details on each insurer’s site, such as Banner Life, Ladder, Pacific Life, State Farm, Protective and Ethos.
The key facts at a glance
| Item | What to know |
| What it is | Life insurance for a fixed period, commonly 10, 15, 20, 25 or 30 years. No cash value. |
| Typical cost | A healthy 30-year-old can often get $500,000 of 20-year coverage for roughly $18 to $29 per month. A healthy 40-year-old may pay about $26 to $46 per month, depending on the study. |
| Biggest price factors | Age, health, tobacco use, term length and coverage amount. |
| Companies to quote first | Banner Life, Ladder, Pacific Life, State Farm, Protective and Ethos, plus Transamerica and Nationwide. |
| Best term length | Most people pick a term that lasts until the mortgage is paid and children are independent, often 20 to 30 years. |
| Medical exam | Not always required. Many companies offer no-exam options up to set limits, usually at a higher price. |
What term life insurance costs
Studies use different sample applicants, so the same policy can appear at different prices. The table shows the range reported in 2026 for a healthy non-smoker buying a 20-year, $500,000 policy.
| Applicant | Reported monthly cost | Notes |
| Healthy 30-year-old | About $18 to $29 | Several 2026 rankings, depending on the company and gender |
| Healthy 35-year-old | About $25 to $30 | One ranking puts the cheapest options near the low end of this range |
| Healthy 40-year-old | About $26 to $46 | One average is near $26. Another study reports $37 for women and $46 for men at the cheapest major company. |
Treat these as ballparks. Smokers can pay several times as much. Waiting a few years also costs more, because a 30-year policy bought at 30 usually costs less per year than the same coverage bought at 40 or 50.
Best term life insurance companies
The table lists companies that appear most often in 2026 rankings and what each is known for. These are not guaranteed best prices. Rankings come from third parties with different methods, and some life insurance guides are written by companies with a commercial interest.
| Company | Best for | Term lengths | What to know |
| Banner Life (Legal & General America) | Low rates | 10 to 40 years | Often the cheapest in rate comparisons and offers long 35 and 40-year terms. Sells term and universal life, not whole life. |
| Ladder | Adjustable coverage | 10 to 30 years | Lets you raise or lower coverage as your needs change. Sells term only. Some larger or longer policies need a medical exam. |
| Pacific Life | Conversion options and strong financials | 10 to 30 years | Often priced below average. Allows conversion to permanent coverage. |
| State Farm | Working with an agent | 10, 20 and 30 years | Sold through a local agent. Offers a wide range of coverage amounts for ages 20 to 69. |
| Protective | Long terms and discounts | Up to 40 years | Competitive rates, a 40-year term and Costco member pricing. |
| Ethos | Fast online approval | Varies by product | Digital process, often no exam. Check price against fully underwritten options. |
| Transamerica and Nationwide | Another set of quotes | Varies | Appear near the top of one 2026 analysis of 25 carriers. |
| USAA | Military families | Varies | Only for eligible military members, veterans and their families. |
Check each company’s AM Best financial strength rating and complaint record before you buy. Financial strength shows how likely the insurer is to pay claims decades from now. Check the NAIC complaint data on the NAIC consumer information source and ratings at AM Best.
For a wider view that includes permanent coverage, see our list of the best life insurance companies.
How much coverage do you need?
Many people buy too little. In one 2026 analysis, nearly half of buyers aged 30 to 45 chose $500,000 or less even though their calculated need was above $1 million. Two simple methods can help you estimate it.
| Method | How it works |
| Income multiple | A common rule of thumb is 10 to 15 times your annual income. It is quick but ignores your debts. |
| DIME method | Add Debt, Income (years your family needs it), Mortgage and Education costs, then subtract savings and any existing coverage. |
Example: debts of $30,000 plus 10 years of $60,000 income ($600,000) plus a $300,000 mortgage plus $100,000 for education equals $1,030,000. Subtract $80,000 of savings and the amount to insure is about $950,000. This is an illustration, not a recommendation.
Include your spouse’s income and a stay-at-home parent’s work, which would cost money to replace. If you are self-employed and your income is not covered by a group plan, term life matters even more. See our guide to the best health insurance for self-employed workers for the other half of that planning.
How long should your term be?
| Situation | Typical term |
| Young children and a 30-year mortgage | 25 to 30 years |
| Children in school and a 20-year mortgage | 20 years |
| Replacing income for a short period or covering a business loan | 10 to 15 years |
| Early 40s with long-term obligations | 20 to 30 years |
| You are unsure | Choose a longer term. Some policies allow you to reduce coverage later. |
A longer term costs more per month, but the price is locked in. Also ask about the conversion option, which lets you turn the policy into permanent insurance later without a new medical exam. Not sure whether you need permanent coverage? Read term vs whole life insurance.
No-exam or fully underwritten?
| Type | Pros | Cons |
| Fully underwritten (medical exam) | Often the lowest price for healthy applicants and higher limits | Takes longer. An exam or health records are required. |
| Simplified issue or no-exam | Fast, often online, little or no paperwork | Often costs more and may have lower coverage limits |
Healthy people usually get the best price from a fully underwritten policy. If you have a health condition that makes the exam slow, a no-exam policy may be worth the higher price. Always compare the two.
Riders and options worth knowing
- Conversion option: switch to permanent coverage without a new exam.
- Waiver of premium: stops premiums if you become disabled.
- Accelerated death benefit: lets you access part of the benefit if you have a terminal illness. Many policies include it.
- Child rider: adds small coverage for children.
- Return of premium: refunds premiums if you outlive the term, but costs much more than standard term.
How to buy term life insurance in six steps
- Estimate how much coverage you need with the DIME method or an income multiple.
- Choose a term length that covers your mortgage and your children’s dependent years.
- Get quotes from at least three companies, including one that is fully underwritten.
- Compare price, financial strength and complaint record, not only the monthly premium.
- Answer the application honestly. Mistakes can delay or reduce a claim. The Insurance Information Institute has a plain-language guide to how life insurance works.
- Name beneficiaries, tell your family where the policy is and review it after major life events. If you buy a home, see our guide to the best homeowners insurance companies too.
Common mistakes
- Buying too little coverage because the price looks cheap.
- Choosing a term that ends before the mortgage or the children’s dependence.
- Using only no-exam options without comparing a fully underwritten price.
- Hiding smoking or health information on the application.
- Focusing on price only and ignoring financial strength.
- Never updating beneficiaries.
Frequently asked questions
What is the best term life insurance company?
It depends on your age, health and needs. Banner Life, Ladder, Pacific Life, State Farm and Protective appear often in 2026 rankings. Compare at least three quotes.
How much does term life insurance cost?
A healthy 30-year-old can often find $500,000 of 20-year coverage for roughly $18 to $29 per month. Prices rise with age, tobacco use and health problems.
What term length should I choose?
Most families choose 20 to 30 years to cover the mortgage and the years children depend on them.
Can I get term life insurance without a medical exam?
Yes. Many insurers offer no-exam options up to certain limits. They often cost more than fully underwritten policies.
What happens when the term ends?
Coverage ends. You may be able to renew at a much higher price or convert to permanent coverage if your policy allows it.
Is term life better than whole life?
Term is cheaper and fits temporary needs such as a mortgage or raising children. Whole life lasts for life and builds cash value but costs far more. Our comparison article explains the difference.
Disclosure: [Adapt to your site] Some links may be affiliate links; we may earn a commission at no extra cost to you. This article is general information, not insurance, financial or legal advice. Prices and availability vary by state and by person. Confirm details with each insurer and a licensed agent.
PRE-PUBLISH CHECKLIST (delete before publishing)
- [ ] The cost figures come from third-party studies that disagree with each other. Re-check them, add the source and date for each, and consider replacing them with your own sample quotes.
- [ ] Request real quotes for three sample applicants (for example a 30-year-old, a 40-year-old and a 40-year-old smoker) from at least three of the companies named, and add a simple table.
- [ ] Confirm term lengths, age limits and coverage limits on each insurer’s own site, especially Ladder, Ethos and Transamerica.
- [ ] Confirm current AM Best ratings for each company.
- [ ] Open every external link and confirm it works.
- [ ] Update the four internal links when articles 6, 9, 1 and 7 are live.
- [ ] Have a licensed insurance agent review the article, and add their name and credentials.