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8 Best Term Life Insurance Companies in February 2023
Haven Life, Guardian and MassMutual top our list of the best term life insurance companies in 2023.
Georgia Rose Lead Writer | Science, technology, insurance
Georgia Rose is a lead writer at NerdWallet and oversees content on life insurance. Throughout her career, Georgia has written on a variety of subjects, including personal finance, government policy, science and technology. She enjoys researching complex topics and distilling the information for her readers.
Lisa Green Assigning Editor | Insurance, data journalism
Lisa Green was an insurance writer at NerdWallet before being promoted to editor. Previously, she spent more than 20 years as an editor at The Tennessean in Nashville, where she was part of a 2011 Pulitzer Prize finalist team. Her work has won awards from the Society of American Business Editors and Writers, Investigative Reporters and Editors, and the Society of Professional Journalists.
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The best term life insurance policy for you may not be the best one for someone else. Coverage amounts, term lengths, age restrictions and whether you can convert the policy to permanent coverage are all important factors to consider when shopping for life insurance, and some of these things may be more significant to you than others.
We’ve highlighted term life policies sold by some of the best life insurance companies in the United States, so you can weigh your options and find the right coverage for you and your family.
Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure the content on our site is accurate and fair, so you can make financial decisions with confidence and choose the products that work best for you. Here is a list of our partners and here’s how we make money.
The best term life insurance companies in February 2023
The following term life insurance companies hold up under scrutiny. They have solid financial strength ratings, received high marks for consumer experience and had fewer complaints to state regulators than expected for companies of their size. Since you won’t be around to fight for your rights when your policy pays out, you need to be able to trust that your insurer will treat your life insurance beneficiaries right.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, financial strength ratings and complaint data.
NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.
These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews.
How we review life insurance companies
In our life insurance reviews, our editorial team considers the customer and the insurer. These are some of the factors we take into account:
Policies offered. There are many types of life insurance on the market, and they fall into three key categories:
Term life insurance offers temporary coverage and a guaranteed payout if the policyholder dies during the term.
Permanent life insurance typically lasts a lifetime and builds cash value that can be borrowed against in the future.
No-exam life insurance issues coverage without the need for a medical exam.
Financial strength. We use AM Best ratings to confirm an insurer’s long-term financial stability and ability to pay claims. For life insurance, NerdWallet typically recommends considering insurers with ratings of A- or higher. Here’s the breakdown:
Exceptional: A+, A++.
Strong: A-, A.
Moderate: B, B+.
Complaints. These ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. The best life insurance companies have fewer than the expected number of complaints.
Buy online. This indicates whether an insurer allows you to apply for and buy a policy completely online.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
Yes
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Far fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term & no-exam
Pros
Backed by longstanding insurance company, MassMutual.
Sleek online application.
Additional financial services available in most states at no charge.
Cons
Term life insurance can't be converted to permanent coverage.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: Haven Life offers quick online coverage with high coverage amounts and a detailed, user-friendly website.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
Yes
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Far fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term & no-exam
Pros
Backed by longstanding insurance company, MassMutual.
Sleek online application.
Additional financial services available in most states at no charge.
Cons
Term life insurance can't be converted to permanent coverage.
Low coverage limit for no-exam policy.
Haven Simple: Haven offers a simplified issue term life policy, which means a life insurance medical exam is never required. You must be from 20 to 55 years old to apply. Coverage is available in 5-, 10-, 15- and 20-year terms, and the insurer offers a built-in accelerated death benefit rider. Policy amounts range from $25,000 to $1 million. You can apply online and, if approved, coverage may start immediately.
Haven Term Life: Haven’s term life application can be completed online and approved within minutes, though you might need to take a medical exam to qualify for coverage. Policies are available to applicants ages 64 and younger, with coverage amounts reaching as high as $3 million. Policies are available in 10-, 15-, 20-, 25- or 30-year terms and come with a built-in accelerated death benefit rider.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: Guardian offers term life policies in a range of term lengths, and opens its coverage to applicants living with HIV — a condition that can make it hard to find life insurance.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Far fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term & permanent
Pros
Drew significantly fewer complaints to state regulators than expected for a company its size.
Offers unique coverage options, such as survivorship insurance and policies for HIV-positive applicants.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: Guardian offers term life policies in a range of term lengths, and opens its coverage to applicants living with HIV — a condition that can make it hard to find life insurance.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Far fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term & permanent
Pros
Drew significantly fewer complaints to state regulators than expected for a company its size.
Offers unique coverage options, such as survivorship insurance and policies for HIV-positive applicants.
Cons
Minimal policy details on the site.
Guardian Level Term: Policies are issued to applicants 18 to 75 years old, and coverage amounts start at $250,000. Policies are available in 1-, 10-, 15-, 20- and 30-year terms.
Guardian also offers coverage for people living with HIV. To apply, you must be from 20 to 65 years old and meet certain eligibility requirements, such as being on active antiretroviral therapy.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: MassMutual offers standard term life insurance and an annual renewable policy, as well as free coverage for low-income parents under its LifeBridge program.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
Yes
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Far fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term, permanent & no-exam
Pros
Wide range of term and permanent life insurance policies.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: MassMutual offers standard term life insurance and an annual renewable policy, as well as free coverage for low-income parents under its LifeBridge program.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
Yes
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Far fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term, permanent & no-exam
Pros
Wide range of term and permanent life insurance policies.
Offers an instant life insurance policy.
Supports online claims.
Cons
Most policies require a medical exam.
MassMutual Term: MassMutual’s term life policies are available in 10-, 15-, 20-, 25- and 30-year increments. The company also offers an annually renewable term life policy that renews every year, though you can expect to pay higher premiums over time if you choose that option.
The maximum issue age for MassMutual term life policy is 75, with coverage starting at $100,000. You can convert to permanent life insurance before the deadline specified in your policy documents.
Through MassMutual's LifeBridge program, the parent or legal guardian of a child under 18 may qualify for a free policy if the family's total income is from $10,000 to $40,000 a year. The 10-year, $50,000 policy is designed to help pay for the child's education if the parent or guardian dies.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: Northwestern Mutual received fewer complaints relative to its size than any other insurer on our top companies list, making it a solid choice for customer experience.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Far fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term & permanent
Pros
Far fewer complaints to state regulators than expected for a company its size.
Highly rated for customer satisfaction in J.D. Power study.
Consistently pays a dividend to eligible customers, which is common among mutual life insurance companies.
Cons
Company website doesn’t give specifics about coverage amounts or riders.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: Northwestern Mutual received fewer complaints relative to its size than any other insurer on our top companies list, making it a solid choice for customer experience.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Far fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term & permanent
Pros
Far fewer complaints to state regulators than expected for a company its size.
Highly rated for customer satisfaction in J.D. Power study.
Consistently pays a dividend to eligible customers, which is common among mutual life insurance companies.
Cons
Company website doesn’t give specifics about coverage amounts or riders.
Only two riders for term life available.
Annual Renewable Term Life: Premiums are relatively low at first, compared to level term policies, but they increase as you get older. Coverage automatically renews each year.
Level Premium Term Life: Coverage is available in 10- or 20-year terms. Premiums stay level, which means they won’t go up over the term of the policy.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: New York Life offers a range of term products, including a policy with a minimum death benefit of $1 million for applicants looking for generous coverage amounts.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term & permanent
Pros
Ranks above average in J.D. Power’s 2022 customer satisfaction study for life insurance.
Drew fewer complaints to state regulators than typically expected for a company of its size.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: New York Life offers a range of term products, including a policy with a minimum death benefit of $1 million for applicants looking for generous coverage amounts.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term & permanent
Pros
Ranks above average in J.D. Power’s 2022 customer satisfaction study for life insurance.
Drew fewer complaints to state regulators than typically expected for a company of its size.
Cons
Quotes aren't available online.
Yearly Convertible Term: Applicants must be from 18 to 75 years old, and the minimum coverage amount is $100,000. You can renew this policy every year. If you want lifelong coverage, you can convert it to a permanent policy.
Level Premium Convertible Term: Coverage is available for terms lasting 10 to 20 years, with death benefits starting at $100,000. Policies are available to applicants from 18 to 75 years old. You can typically convert the policy to permanent coverage within the first 10 years after issuance.
Million Plus Level Term: With a minimum face value of $1 million, this policy is for people looking for a sizable death benefit. The only available term length is 10 years, and you must be from 18 to 69 years old to apply.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: Pacific Life offers term life insurance that can be converted to permanent coverage after 10 years, with a cash credit for policyholders who choose to do that.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Far fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term, permanent & no-exam
Pros
Drew significantly fewer complaints than expected to state regulators for a company of its size.
Ranked above average in J.D. Power’s customer satisfaction study for life insurance.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: Pacific Life offers term life insurance that can be converted to permanent coverage after 10 years, with a cash credit for policyholders who choose to do that.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Far fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term, permanent & no-exam
Pros
Drew significantly fewer complaints than expected to state regulators for a company of its size.
Ranked above average in J.D. Power’s customer satisfaction study for life insurance.
Cons
Select policies are not available in New York.
Quotes are not available online.
PL Promise Term: Policies are available in 10-, 15-, 20-, 25- and 30-year term lengths, with a minimum coverage amount of $50,000. You can choose to add life insurance riders at an extra cost, such as an accelerated death benefit, waiver of premium or child term rider.
Pacific Elite Term: A more conversion-friendly product, the Pacific Elite Term policy can be converted to a permanent policy within the first 10 years. A cash credit is also added to your new policy, which can help offset some of the initial premiums of your new permanent coverage.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: State Farm ranked first in J.D. Power’s 2022 U.S. Individual Life Insurance Study for customer satisfaction, making it a trustworthy choice.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term, permanent & no-exam
Pros
Drew fewer life insurance complaints to state regulators than expected for a company of its size.
Ranked first in J.D. Power’s 2022 customer satisfaction study for life insurance.
Broad range of term products, including instant answer life insurance.
Cons
Life insurance policies not available in Massachusetts.
Some restrictions for Android smartphones when accessing policy details through online portal.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: State Farm ranked first in J.D. Power’s 2022 U.S. Individual Life Insurance Study for customer satisfaction, making it a trustworthy choice.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term, permanent & no-exam
Pros
Drew fewer life insurance complaints to state regulators than expected for a company of its size.
Ranked first in J.D. Power’s 2022 customer satisfaction study for life insurance.
Broad range of term products, including instant answer life insurance.
Cons
Life insurance policies not available in Massachusetts.
Some restrictions for Android smartphones when accessing policy details through online portal.
Select Term Life Insurance: Coverage starts at $100,000 and is available to applicants from 18 to 75 years old. You have the option to add a child rider, term rider or waiver of premium rider at an additional cost. The term lengths available are 10, 20 and 30 years.
Return of Premium Life: Similar to the standard term life product, this policy offers coverage for a set number of years. But if you outlive the term, it returns the premiums you paid. You must be from 18 to 60 years old to apply, and coverage is available in 20- and 30-year terms. However, note that return-of-premium life insurance tends to be more expensive than standard term policies.
Instant Answer Term Life: You can apply in person with a State Farm agent and get coverage the same day. The policy lasts 10 years or until you reach 50, whichever is longer, and only $50,000 of coverage is available.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term, permanent & no-exam
Pros
Had fewer than the expected number of complaints compared to other companies.
Some policies include free perks for military personnel, such as a $25,000 severe injury payment.
Option to add $100,000 coverage to its term life policy after a major life event.
Cons
Some policies not available in New York or Montana.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer complaint and customer satisfaction data.
Bottom line: Although USAA’s coverage includes features specially designed for members of the military, its policies are available to anyone.
Financial strength ratingThese ratings indicate an insurer’s ability to pay future claims.
Exceptional
Online purchaseThis indicates whether the company offers a way to apply for and purchase policies entirely online.
No
NAIC complaintsRatings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC.
Fewer than expected
Policies offeredTerm policies last a set number of years, while permanent policies typically last a lifetime. No-exam policies don’t require a medical exam.
Term, permanent & no-exam
Pros
Had fewer than the expected number of complaints compared to other companies.
Some policies include free perks for military personnel, such as a $25,000 severe injury payment.
Option to add $100,000 coverage to its term life policy after a major life event.
Cons
Some policies not available in New York or Montana.
Level Term V: You don’t need a military connection to get USAA life insurance. But policies like this are designed with military personnel in mind. Term lengths range from 10 to 30 years. Coverage ranges from $100,000 to $10 million and is available to applicants from 18 to 70 years old. If you’re from 18 to 35 years old, you can purchase an additional $100,000 of coverage after qualifying life events like having a child or getting married.
Essential Term Life: This policy renews every year and does not require a medical exam. It is available to applicants from 21 to 35 years old. It offers $100,000 of coverage and expires when you turn 39 years old. This policy is not available in New York.
USAA life insurance covers military members during wartime and helps pay bills if you're severely injured in the line of duty. It also lets you replace your lost group coverage if you retire or leave the military.
When you buy life insurance, you’re counting on a company to be there for your family many years in the future. For that reason, it’s important to choose a company you can trust. Here are some ways to compare companies and find the one that’s best for you.
You want a company that will be around decades from now, with enough money to pay claims. The financial strength rating of a life insurance company is one way to gauge whether an insurer is likely to meet that mark. You can check the financial strength rating of each term life insurance company you’re considering through a rating firm such as AM Best.
NerdWallet typically recommends considering insurers with ratings of A- or higher. That said, any company with an AM Best rating of B+ or higher has a "good" ability to meet its obligations, according to AM Best’s website. Companies with ratings below that may not be quite as safe a bet and often have higher rates of complaints relative to their size.
Research the insurer’s reputation for customer service
You want a company that provides good customer service, from the day you start shopping until it’s time for a claim. To get an idea of whether other customers have been satisfied, you can look up an insurer’s complaint index on the National Association of Insurance Commissioners website. The score is based on the number of complaints filed against the insurance company with state regulators, adjusted for the company’s market share (based on premiums written). The average score is one, so anything higher than one means the company received more complaints than expected for its size.
Once you’ve narrowed down your list, it’s a good idea to compare life insurance quotes from more than one company. That way, you can get the best rate for the type of term life policy you're looking for.
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
