When shopping for term life insurance, the premium is often the deciding factor. After all, term life is the most affordable type of coverage, and the difference between a good rate and a great one can mean hundreds or thousands of dollars saved over the life of the policy. Finding the best low-cost term life insurance requires looking beyond the headline numbers to consider how companies underwrite risk, their conversion options, and the total value they provide.
Based on analyses of 19 leading term life insurers by WSJ, Forbes Advisor, and other expert sources , here are the companies that consistently deliver the most affordable term life rates.
Key Takeaways on Affordable Term Life Insurance
Banner Life and Symetra consistently lead on price, with some of the lowest average monthly rates for term policies .
Principal offers low rates with a strong focus on business owners, featuring unique riders tailored for professionals .
Penn Mutual is the most budget-friendly option for seniors, offering the lowest term rates for 70-year-old buyers .
The cheapest rate isn't always the best deal—consider no-exam options and how a policy can convert to permanent coverage .
The Best Companies for Low Term Life Rates
Symetra – Best Overall for Low Rates
AM Best Rating: A (Excellent)
When the goal is simply the lowest monthly premium, Symetra is the name that repeatedly tops the list. It was named the best for low rates by WSJ's analysis of term life companies, with average monthly costs of $8.58 for a female and $9.76 for a male for a standard policy .
Why Symetra excels for low-term rates:
Very low average rates across a wide range of coverage amounts, with its SwiftTerm Select policy (available through SelectQuote) offering some of the most competitive pricing .
Competitive rates for various health profiles, including those with obesity, anxiety, high blood pressure, and asthma .
Flexible application process that routes you through the least invasive underwriting method possible, with express, accelerated, or full underwriting based on your health profile .
No-exam options up to $3 million** for ages 18-50 and **$2 million for ages 51-60 .
Considerations:
The maximum age to buy even a 10-year term policy is 60, making it unsuitable for older applicants .
Conversion rules are restrictive—you typically have only the first 10 years or until age 70 to convert to permanent coverage .
Who it's best for: Healthy adults under 60 who want the absolute lowest term life premium and don't need flexibility to convert later.
Banner Life – Best for Value and Long Terms
AM Best Rating: A+ (Superior)
Banner Life is a consistent powerhouse for term life insurance, balancing rock-bottom rates with exceptional features. It was named the best overall term life insurance company in WSJ's 2026 analysis, with average monthly costs of $8.57 for a female and $9.75 for a male .
Why Banner Life is a top choice:
Exceptionally low rates that consistently rank among the most competitive .
Unusually long level term options, including hard-to-find 35- and 40-year policies .
High no-exam coverage limits up to $4 million for qualified buyers ages 20-60 .
Smart underwriting perk: Banner Life adds one inch to your height when calculating BMI, which can move borderline applicants from Standard to Preferred status, saving money .
Favorable conversion rules that give you the entire level term period to convert, up to age 70 .
Considerations:
Primarily a term-focused carrier; not the best choice if you're looking for whole life or indexed universal life .
Rates for applicants with complex health issues may not be as favorable as Prudential's .
Who it's best for: Health-conscious buyers of any age who want a low rate with the flexibility to extend coverage long-term and the option to convert later.
Principal – Best for Business Owners and Low Rates
AM Best Rating: A+ (Superior)
Principal offers some of the most competitive term rates, especially for older buyers. It was recognized as a top overall insurer by WSJ, with average monthly costs of $9.25 for a female and $10.32 for a male .
What makes Principal stand out:
Term life rates lower than average for buyers at ages 30, 40, 50, and particularly good for buyers age 60 .
High maximum issue age of 80 to buy a 10-year term policy, making it an excellent choice for seniors .
Unique business-focused riders, including a Salary Increase Rider and Business Value Increase Rider that allow coverage to grow without extra underwriting .
Extremely low complaint levels, the lowest among insurers in WSJ's analysis .
Cost of Living Increase Rider allowing coverage increases every three years until age 55 .
Considerations:
Conversion windows without an extra rider are more restrictive—you have until age 70 or a specified period, whichever comes first . A Conversion Extension Rider is available for additional cost.
Cash value growth tends to be slow on permanent policies, though this is less relevant for term buyers .
As of April 2025, the minimum face amount for issue ages 66+ is now $1 million .
Who it's best for: Business owners and professionals, as well as seniors up to age 80 who need affordable term coverage with specialized riders.
Penn Mutual – Best Budget Option for Seniors
AM Best Rating: A+ (Superior)
While Penn Mutual's rates are competitive across the board, it truly shines for older buyers. Forbes Advisor named it the best for budget-conscious seniors, offering the lowest average term rates for 70-year-old males and females in its analysis .
Why Penn Mutual stands out for low rates:
Generous conversion features, including conversion credits when moving from term to permanent coverage .
No-exam underwriting up to $10 million for buyers up to age 65 .
Conversion to any permanent policy being sold at the time of conversion .
Considerations:
Maximum issue age for term policies is 70, which is lower than some competitors (e.g., Principal allows age 80) .
Minimum face amount of $250,000 is higher than some competitors .
Who it's best for: Seniors in their 60s who want the lowest possible term rates with strong conversion options.
Quick Comparison Table: Low-Cost Term Life Companies
What to Look for in a Low-Cost Term Policy
Choosing the cheapest option on paper isn't always the wisest choice. Consider these factors when comparing term life rates:
Premium Stability
The monthly cost is important, but understand what you're getting. Level term policies lock in your premium for the entire term period, whereas annual renewable term premiums increase each year.
Conversion Options
If there's any chance you might want permanent life insurance later, conversion flexibility is crucial. Some companies like Penn Mutual and Banner Life offer generous conversion windows . Symetra's conversion rules are more restrictive .
No-Exam Availability
Many of these low-cost carriers offer accelerated underwriting. If you're healthy, you may qualify for coverage without a medical exam, saving time and hassle .
Company Stability and Complaints
Check AM Best ratings and NAIC complaint indexes. Principal, for example, has exceptionally low complaint levels .
Final Thoughts
The best low-cost term life insurance isn't just about the lowest premium—it's about balancing price with the features that matter most to you. Symetra and Banner Life consistently lead on price for general buyers . Principal offers competitive rates with specialized business features . And for seniors looking for budget-friendly options, Penn Mutual is the standout choice .
