Term life insurance is a cornerstone of a solid financial plan, offering affordable protection for temporary needs. At I&E, we often recommend term insurance—especially convertible term insurance—to blend with whole life policies for a balanced strategy. In this 2025 guide, we explore term life essentials, highlight market trends, and reveal our top 10 picks for the best term life insurance companies, chosen for their conversion options, affordability, and unique features.
Table of Contents
- Market Trends: Term Life Insurance in 2024–2025
- Why Term Life Insurance Matters
- Top 10 Best Term Life Insurance Companies
- Key Term Life Policy Features
- Finding the Best Term Life Policy
- Conclusion
Market Trends: Term Life Insurance in 2024–2025
In 2024, term life insurance held a 19% market share of U.S. life insurance sales ($3.0 billion), with 1–5% growth projected for 2025, driven by digital platforms and competitive pricing, according to LIMRA (limra.com). Companies like Banner Life and Protective Life lead with affordable, long-term policies, while digital tools and accelerated underwriting options enhance accessibility.
| Metric | Term Life Insurance |
|---|---|
| Market Share (2024) | 19% |
| Total New Premium | $3.0 billion |
| Growth Trend | 1–5% YoY |
| Average Cost ($1M, 20-year, age 35) | $47/month (male), $38/month (female) |
Key Trends
- Digital Innovation: Insurers like Guardian Life and MassMutual offer online quote tools, streamlining applications.
- Convertible Policies: Banner Life, Pacific Life, and New York Life emphasize conversion to permanent coverage without medical exams.
- No-Exam Options: Brighthouse Financial and Banner Life provide policies without medical exams, speeding up approvals.
- High Coverage Limits: Banner Life and Protective Life offer up to $50M, catering to high-net-worth clients.
Why Term Life Insurance Matters
Term life insurance is a cost-effective way to protect your family’s financial future during critical periods, such as paying off a mortgage or raising children. At I&E, we don’t accept the false contrast of term life vs whole life. Instead, we view term life as a strategic tool, often blended with whole life insurance to balance affordability and long-term wealth-building. Our focus on convertible term insurance ensures flexibility, allowing you to transition to permanent coverage as your needs evolve.
Top 10 Best Term Life Insurance Companies
Our 2025 picks for the best term life insurance companies prioritize convertible policies, affordability, and unique features like no-exam underwriting and living benefits. Below, we detail each company, including updated financial ratings from AM Best and other agencies. Our list diverges from mainstream rankings by emphasizing conversion options, aligning with I&E’s holistic approach.
Banner Life (Legal & General America)
- AM Best: A+ (Superior)
- S&P: AA-
- Moody’s: N/A
- Fitch: AA-
Product: OPTerm offers terms of 10–40 years, one of the longest available. Convertible to permanent coverage through age 70, with a conversion credit.
Highlights: Affordable rates, up to $4M without a medical exam via Lab Lift, and a healthy credits program that may improve your risk class. High coverage limits (up to $50M) make it ideal for high-net-worth clients.
Learn more in our Banner Life review.
Protective Life
- AM Best: A+ (Superior)
- S&P: AA-
- Moody’s: A1
- Fitch: A+
Product: Classic Choice Term offers 10–40 years, with coverage up to $50M.
Highlights: Competitive pricing (e.g., $47/month for a $1M, 20-year policy for men), no-exam options up to $1M (ages 18–45), and an Income Provider Option for periodic death benefit payouts. Convertible to permanent coverage.
Learn more in our Protective Life review.
Pacific Life
- AM Best: A+ (Superior)
- S&P: AA-
- Moody’s: Aa3
- Fitch: AA-
Product: Pacific Term offers 10–40 years, with a cash credit for conversion to permanent coverage.
Highlights: High customer satisfaction, no-exam options, and flexible conversion make it ideal for blending with whole life. Strong financial ratings ensure reliability.
Learn more in our Pacific Life review.
Guardian Life
- AM Best: A++ (Superior)
- S&P: AA+
- Moody’s: Aa2
- Fitch: AA+
Product: Level Term offers 1, 10, 15, 20, or 30 years, convertible to permanent coverage.
Highlights: Excels for applicants with health conditions (e.g., HIV-positive), low complaint rates, and robust digital tools. Ideal for those needing specialized underwriting.
Learn more in our Guardian Life review.
MassMutual
- AM Best: A++ (Superior)
- S&P: AA+
- Moody’s: Aa3
- Fitch: AA+
Product: Vantage Term and Direct Term offer ART, 10, 15, 20, 25, or 30 years, renewable to age 90.
Highlights: Convertible to MassMutual’s top-tier permanent policies, with LifeBridge providing free coverage for low-income parents. Accelerated death benefit and waiver of premium riders included.
Learn more in our MassMutual review.
Penn Mutual
- AM Best: A+ (Superior)
- S&P: A+
- Moody’s: Aa3
- Fitch: N/A
Product: Guaranteed Convertible Term offers 10, 15, 20, or 30 years.
Highlights: Conversion includes a credit equal to the term policy’s annual premium, enhancing value. ACE accelerated underwriting supports up to $5M for ages 20–65.
Learn more in our Penn Mutual review.
Prudential
- AM Best: A+ (Superior)
- S&P: AA-
- Moody’s: Aa3
- Fitch: AA-
Product: Term Elite and Term Essential offer 10, 15, 20, or 30 years.
Highlights: PruFast Track no-exam underwriting for up to $1M (ages 18–60) and flexible underwriting for seniors make it a top choice for older applicants.
Learn more in our Prudential review.
Lincoln Financial
- AM Best: A (Excellent)
- S&P: A-
- Moody’s: A2
- Fitch: A+
Product: LifeElements and TermAccel offer 10, 15, 20, or 30 years.
Highlights: LincXpress no-exam underwriting for up to $1M (ages 18–60) and strong conversion options to permanent coverage.
Learn more in our Lincoln Financial review.
John Hancock
- AM Best: A+ (Superior)
- S&P: AA-
- Moody’s: A1
- Fitch: AA-
Product: Protection Term and Vitality Term offer 10, 15, 20, or 30 years.
Highlights: Vitality Program rewards healthy habits (e.g., exercise, screenings) with premium savings and discounts. Express Track no-exam underwriting for ages 18–60. Aspire supports clients with diabetes.
Learn more in our John Hancock review.
Principal Financial
- AM Best: A+ (Superior)
- S&P: A+
- Moody’s: A1
- Fitch: AA-
Product: Term Life offers 10, 15, 20, 25, or 30 years.
Highlights: Accelerated underwriting for up to $2.5M (ages 18–60), with conversion options to permanent coverage. Strong financial stability ensures reliability.
Learn more in our Principal Financial review.
Ready to Find the Best Term Life Policy?
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Key Term Life Policy Features
Definition: Term life insurance is a contract between the policyholder and insurer, guaranteeing a death benefit if the insured dies within a specified term (e.g., 10–40 years), in exchange for regular premiums.
Term Length
Terms range from 1 year (annual renewable) to 40 years, with 10, 15, 20, and 30 years most common. Longer terms (e.g., Banner, Protective) cost more but offer greater value for extended needs.
Coverage Amount
Death benefits vary, with companies like Banner offering up to $50M. Higher coverage increases premiums but ensures adequate protection (term life rates by age).
Conversion Options
Convertible term policies (e.g., Pacific Life, MassMutual) allow switching to permanent coverage without a new medical exam, securing lifelong protection and cash value growth (whole life vs. universal life).
Living Benefits
Riders like chronic illness or terminal illness allow early access to death benefits, adding value by increasing payout potential.
Finding the Best Term Life Policy
The “best” term life policy depends on your unique needs—age, health, budget, and long-term goals. At I&E, we prioritize convertible policies to blend with whole life, ensuring both immediate protection and future wealth-building. Consider these factors:
- Conversion Options: Choose insurers like Pacific Life or MassMutual for robust conversion to permanent coverage.
- Affordability: Banner Life and Protective offer low rates (e.g., $38–$47/month for $1M, 20-year term).
- Underwriting Flexibility: Guardian Life excels for health conditions, while Brighthouse offers no-exam options.
- Riders: Look for living benefits (e.g., Prudential’s terminal illness rider) to maximize value.
Price matters, but value is king. An experienced I&E advisor can help you balance cost, coverage, and conversion potential to find the perfect policy.
Conclusion
Term life insurance is a vital tool for financial protection, and at I&E, we see it as a strategic complement to whole life, especially with convertible policies. Our 2025 top picks—Banner Life, Protective Life, Pacific Life, and others—offer affordability, flexibility, and conversion options to secure your future. Ready to find the best term life policy? Contact our Pro Client Guides for a free consultation tailored to your needs.
Find the Perfect Term Life Insurance Policy
Discover how convertible term life can protect your family now and build wealth later with whole life. Our I&E advisors will craft a personalized plan.
- ✓ Compare top term life insurers like Banner, Protective, and MassMutual
- ✓ Explore conversion options for lifelong coverage
- ✓ Find affordable policies with living benefits
- ✓ Get expert guidance tailored to your financial goals
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