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The Best Term Life Insurance Companies for 2019

Written by Rob Pinner

At Pinner Financial Services, LLC we are committed to researching and recommending the best life insurance companies and their products. In this article we will be reviewing the best term life insurance companies for 2019. We are basing our review on this criteria:

  • Price
  • Financial Ratings
  • Underwriting
  • Customer Service
  • Riders

What is Term Life Insurance?

Term life insurance is the most popular life insurance product sold today. It’s simplicity is what makes it so appealing. When you purchase a term life policy, you choose your death benefit and the number of years you want the coverage, usually 10-30 years.

Your premium is based the amount of death benefit you choose, your age, your health, and the number of years you want the coverage. The premium and death benefit are guaranteed for the entire term period.

These policies are not like permanent life insurance because they do not build up cash value and at some point the coverage will expire. The biggest reason why most consumers choose term is because of the pricing. Term life insurance premiums can be as much as 10X cheaper than a permanent life insurance policy.

The Best 4 Term Life Insurance Companies

american-general-lifeAIG-American General

AIG-American General have been selling life insurance products for over 150 years. American General Life was purchased by AIG in 2001, creating the largest insurance provider in America and one of the largest worldwide.

AIG-American General has very strong financial ratings with all 4 credit agencies, while ConsumerAffairs rates them a 4 out of 5 in customer service. Just take a look:

  • Standard & Poor: A+
  • A.M. Best: A
  • Fitch’s: A+
  • Moody’s: A2

AIG-American General term life policy is the Select-A-Term. The Select-A-Term is a level premium policy with a guaranteed death benefit. The Select-A- Term life policy is unique to any others offered because of the options you have when selecting the desired term period.

The Select-A-Term is offered for periods starting at 10 years, while allowing you to increase in increments of 1 year (for example 15, 16, 17, 18, etc). AIG term life is fully convertible to a permanent life policy at anytime during the term period up to age 75.

NOTE: American General term life insurance premium rates are routinely the least expensive among all life insurance companies.

AIG Select-A-Term also has the living benefits rider attached at no extra cost. This rider allows you to access the death benefit early if you were to become critically or chronically ill. This a great feature to have and best of all…..it’s free.

Other Riders Offered at an Extra Cost

  • Waiver of Premium
  • Spousal Term Rider
  • Return of Premium
  • Child Rider
  • Accidental Death Benefit
  • Disability Income

AIG-American General is known for its liberal underwriting for high risk life cases, such as a diabetic or cancer survivor.

American-National-LogoAmerican National Insurance Company (ANICO)

American National Insurance Company (ANICO) was started back in 1905 by W.L. Moody and 10 employees. Today they have over $100 billion of inforce life insurance policies. They were named the “Most Trustworthy Financial Companies” in 2017 by Forbes.

In order to receive such an honor by Forbes, you better have strong financial ratings, which ANICO does. Standard and Poor and A.M. Best both give ANICO an “A” rating which means they are in excellent financial shape.

American National’s term life policy is called Signature Term. The premium is level and the death benefit is guaranteed for the term period. Signature Term offers term coverage for 10-30 years depending on your age.

Anico also has a very unique underwriting process. All of their term life insurance policies require no-medical exam if the death benefit is under $250,000. This is a great feature for someone looking to bypass an exam.

Unlike most other non-med term life or sometimes called instant life insurance, American National is priced to compete with all of the top carriers even those who require a medical exam. American National’s term life is convertible to a permanent policy up to age 65.

Just like American General, Anico’s term life policies come with the living benefits rider. This rider allows you to access money from the death benefit for certain illness or health problems. Other riders offered are:

  • Waiver of Premium
  • Spousal Term Rider
  • Child Rider
  • Accidental Death Benefit

northamericancompanylifeNorth American Life and Health Company 

Since 1886, North American has been in the insurance industry in America. North American is part of the Sammons Financial Group, Inc. and was listed #77 on the “List of America’s Largest Private Companies” in 2015. To say they are a good company would be an understatement.

With over $525,000 life and annuity policies on the books and more than 16 billion in overall assets, North American is one of the strongest life insurance companies financially. They hold the top ratings from all 3 rating agencies. Take a look:

  • A.M. Best Rating: A+
  • S&P Rating: A+
  • Fitch Rating: A+

ADDvantage Term is the term product offered by North American. It’s a level premium, level death benefit term life policy. The ADDvantage Term offers coverage from 10-30 years. North American also allows you to convert your term policy to any permanent life insurance policy they offer, anytime during the coverage, up to age 65.

Just like the companies mentioned above, the ADDvantage Term comes with a living benefits rider at no extra charge. Other riders offered are:

  • Waiver of Premium
  • Spousal Term Rider
  • Child Rider

North American’s premium rates are very competitive, but their underwriting tends to lean more to the conservative side. If you have had health problems you will want to look at one of the other life insurance companies listed.

transamerica-lifeTransamerica Life

Transamerica has been protecting lives and helping consumers feel more comfortable about the future for over 100 years.

In 1999, the Aegon Group purchased Transamerica. This made the Aegon Group one of the top providers of life insurance world wide.

With over 26 million customers and counting, the Aegon Group is one of the top financial institutions worldwide. They boast top ratings from all four agencies:

  • A.M. Best Rating: A+
  • S&P Rating: AA-
  • Fitch Rating: A+
  • Moody’s: A1

Transamerica offers two term life products with very similar names. They are:

  1. Trendsetter Super
  2. Trendsetter LB

Both are level premium term life with a guaranteed death benefit for the entirety of the policy. Both require no-medical exam for policies with face amounts below $250,000.

The only difference between the two is the Trendsetter LB offers a living benefits rider. With that said, Transamerica has one of the best living benefits rider on the market. They have more qualifying illnesses than most life insurance companies.

Other riders offered are:

  • Waiver of Premium
  • Spousal Term Rider
  • Child Rider
  • Accidental Death Benefit

NOTE: You can add a disability income rider to the Trendsetter LB

Our Two Cents

To be honest, you can’t go wrong choosing any of the life insurance companies named above. All have great ratings, great customer service, and competitive pricing. They all come with the living benefits rider at no extra cost which is a great addition to your portfolio. It’s always recommended to work with an experience life insurance agent that has access to multiple carriers. This ensures you get the policy that best fits your unique situation. If you have any comments or questions please give us a call.

 

The Best Term Life Insurance Companies for 2019
aig The Best Term Life Insurance Companies for 2019

At Pinner Financial Services, LLC we are committed to researching and recommending the best life insurance companies and their products.

Editor's Rating:
4.75
Rob Pinner
Rob Pinner

My name is Rob Pinner and I own EasyQuotes4You. At EasyQuotes4You we aim to make your life insurance buying process a smooth and stress free transaction.  We are independent life insurance agents servicing all 50 states. I have over 15 years of experience and have focused solely on life insurance for the past 5 years. If you have any questions or comments please don’t hesitate to give us a call.

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