Life Insurance: Nerdwallet's Guide To Term Policies

Life insurance is a contract between you and an insurance company. In exchange for regular payments, the insurer pays out money to your beneficiaries after you die. This money can be used to cover everyday expenses, long-term costs, debts, and more.

There are two main types of life insurance policies: term and permanent. Term life insurance covers you for a set period of time, such as 10 or 20 years, while permanent life insurance can last your entire life and typically includes a cash value component.

When choosing a life insurance company, it is important to consider the company's financial strength, complaint data, and the types of policies offered. NerdWallet's list of the best life insurance companies includes MassMutual, Guardian, Northwestern Mutual, Thrivent, and New York Life, among others. These companies were selected based on their low levels of customer complaints and strong financial ratings.

Is term life insurance worth it? Term life insurance is typically sufficient for most people as it is much cheaper than permanent life insurance. By the time the policy expires, you may no longer need life insurance. However, if you require lifelong coverage, permanent life insurance may be a better option.

Best for applicants with health conditions

NerdWallet's top choice for applicants with health conditions is Guardian Life. 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.

Guardian was founded in 1860 and has paid life insurance dividends to its eligible policyholders since 1868. The company is set to pay out $1.6 billion in dividends in 2025, the largest sum in the company’s history.

The insurer drew significantly fewer complaints to state regulators than expected for a company its size. Aside from life insurance, Guardian also sells a range of products including dental, vision, and cancer insurance.

Guardian Level Term policies are issued to applicants aged 18 to 75 years old, and coverage amounts start at $100,000. Policies are available in 10-, 15-, 20-, and 30-year terms.

Guardian also offers coverage for people living with pre-existing conditions, like HIV. To apply, you must be from 20 to 65 years old and meet certain eligibility requirements, such as being on active antiretroviral therapy.

Best for term length options

MassMutual is NerdWallet's top pick for term length options. The company offers a standard term life insurance policy and an annually renewable one, as well as free coverage for low-income parents under its LifeBridge program. 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 a 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.

Best for customer experience

Northwestern Mutual is considered the best life insurance company for customer experience. It is the biggest life insurer in the country and offers term and permanent life insurance. It has the lowest complaint ratios of the life insurers reviewed by NerdWallet. The company received significantly fewer complaints to state regulators than expected for a company of its size, making it a trustworthy choice for shoppers.

Northwestern Mutual's whole life insurance policy comes with various payment options. You can choose to pay premiums for 10, 15, 20 or 25 years, or until you reach the age of 65 or 100. Plus, you may have the option to blend term life with your policy to lower the premiums while maintaining permanent coverage.

The company is set to pay $8.2 billion in dividends to qualifying policyholders in 2025.

Best for social responsibility

Thrivent is a fraternal benefit organization that sells term and permanent life insurance to Christian consumers. It is NerdWallet's top pick for social responsibility.

Thrivent offers whole life policies with a range of payment options. For example, you can pay a level premium until you turn 70 or 95, or make higher payments over the first 10 years of the policy to build cash value more quickly. The organization also offers a joint life insurance policy that can cover two people, such as spouses or business partners.

As a fraternal benefit organization, Thrivent is owned by its members and may pay dividends to participating policyholders. In 2025, Thrivent will pay $564 million in dividends and policy benefits. Thrivent also provides resources to support volunteering and charitable giving by its members. To buy life insurance from Thrivent, you must be a Christian or the spouse of a Christian.

Thrivent's whole life insurance policy details:

• Policy options: Whole Life Insurance, Whole Life Plus Term Protection, Survivor Whole Life.
• Eligibility age range: Up to age 90 for most Whole Life Insurance policies. Ages 18 to 75 for Whole Life Plus Term Protection. Ages 18 to 90 for Survivor Whole Life.
• Minimum coverage amount: For Whole Life Insurance, $10,000 or $100,000, depending on your life insurance risk class. For Whole Life Plus Term Protection, $50,000 for the whole life coverage and $25,000 for the term coverage. For Survivor Whole Life, $100,000.
• Maximum coverage amount: Unlimited.
• State availability: All 50 states plus Washington, D.C.
• Potential to earn dividends: Yes.

Best for high coverage amounts

New York Life offers two term products, including a policy that can be renewed annually. The company offers high coverage amounts, with a minimum coverage amount of $250,000 for its yearly renewable term product. The Level Premium Term product offers coverage starting at $100,000 for terms of 10, 15, or 20 years.

New York Life has a low complaint volume for a company of its size and some policies are eligible for dividends. However, quotes are not available online.

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