Best Term Life Insurance

If you're looking for life insurance, you've seen both whole and term policies offered. So, what is term life insurance? And how does it differ from whole life? Term life insurance is a type of protection that has set term lengths and pays out to your beneficiary 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.

In the wake of the COVID-19 pandemic, we’re living in a world filled with strife that should give you pause. So, let’s take a closer look at term life coverage and how it works in 2024. Get to know some of the major players and compare quotes here so that you can protect your family, plan for the future, layer coverage, cover family members and much more.

Quick Look: The Best Term Life Insurance Companies

• Best for Those Under 50 Years Old: Wysh
• Best for Adjustable Coverage: Bestow
• Best for Those Under Age 64: Policygenius
• Best for Young Families: Ethos
• Best for People With Healthy Lifestyles: Ladder
• Best for Young Families: Fabric Life Insurance
• Best for Anybody on a Budget: Dayforward

Best Term Life Insurance Companies

When you’re searching for the best term life insurance for your family and/or budget

1. Best for Those Under 50 Years Old: Wysh

When you shop with Wysh, you’ll uncover flexible policy options with no medical exam. Answer a few health questions and work with the customer care team to learn what your options are so that you can protect yourself (and your family) as soon as possible.

Wysh’s policies make everything simpler for you, offering:

• Specialized customer service for all your life insurance questions
• Flexible benefits that can rise up to $2.5 million in value
• Terms can reach over 40 years
• Support for families after the policyholder passes
• A high-yield savings account for the present day
• Enrollment in less than 10 minutes

While there aren’t policies for those over 50 years of age, Wysh works well for first-time buyers, young policyholders or those who simply want to layer their existing coverage with more value. Some people purchase multiple term life policies that expire at different times, ensuring that there’s quite a bit of coverage without overspending. Parents can also look into Wysh to pick up a policy for their children that they can enhance or alter in the future.

2. Best for Adjustable Coverage: Bestow Life Insurance

Bestow only offers term life insurance and you can choose from a short or long-term policy depending on your needs. You are able to receive your coverage immediately if you’re approved for a policy. Bestow also offers low rates and flexible cancellation policy to help you with this important decision.

3. Best for Adjustable Coverage: Policygenius Life Insurance

While not an insurer itself, Policygenius is an insurance marketplace that allows you to compare and contrast a wide range of insurance products, including life insurance. Use their free tools to educate yourself on life insurance and calculate the amount of coverage you need. From there, easily compare and apply for your policy all in one place.

4. Best for Those Under Age 64: Ethos Life Insurance

Offering both term and whole life (which can include guaranteed issue)products, Ethos helps you find life insurance backed by top providers. You can complete the entire process alone and online, or get help from a licensed and salaried agent.

5. Best for People With Healthy Lifestyles: Ladder Life Insurance

Ladder offers term life insurance products issued by multiple highly rated insurers for people between the ages of 20 and 60. Its life insurance policies also offer a wide range of coverage options, ranging from $100,000 to $8 million.

6. Best for Young Families: Fabric Life Insurance

Term life insurance products often seem to be lacking, and larger insurance carriers advertise as if you need to buy more and spend more. With Fabric Life Insurance, you can create the policy you need online. Young families or singles can purchase 10, 15, 20, 25 or even 30 years of term coverage that can start as low as $100,000 and reach as high as $5 million.

With this sort of coverage backing you, your family is protected should something happen to you. Couples can purchase protection for each other, and children can even be insured to provide the family with peace of mind.

Most applicants aren’t subject to a medical exam, and you can even create a digital will to go along with your policy. Download the Fabric app to manage your policy and get some free resources for parents and get the whole thing done in a short period of time.

7. Best for Anyone on a Budget: Dayforward

Dayforward is one of the more unique insurance products on the market today. The plans designed by Dayforward offer life insurance that guarantees your monthly paycheck for long periods of time should you pass away unexpectedly. 

Available in over 35 states, Dayforward allows you to:

• Get coverage on a budget
• Speak to a licensed professional
• Set up payment plans that will last until your youngest child turns 18, 21 or even 26
• Buy coverage as soon as possible

Using Dayforward, you can set up a steady stream of income for your family when you die, or you and your partner can purchase comparable policies. Lump sums don’t work for everyone, and the surety of a monthly income is easy to uncover with Dayforward.

What is Term Life Insurance?

Term life insurance, by definition, is a type of insurance policy that guarantees an agreed-upon payout of a death benefit to named beneficiaries in the event that the policyholder passes away during the term of the life insurance policy.

Key Points

How Does Coverage Work?

When you apply for a term life 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 and term life. 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 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.

Who Needs 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. 

These types of policies may be more affordable. 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. 

Provider Reviews

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. 

Term life is often the first (and most budget friendly) choice for millions of Americans. In fact, most people buy term life policies because they are easy to manage and fit into their budget. 

Protect Your Family with Affordable Coverage

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