Who are the best term life insurance carriers?
There are literally hundreds of life insurance carriers offering term life insurance in the United States. When shopping for the best term life insurance carriers, you typically will find the same insurance carriers names showing up over and over again.
No matter if the need is for a business loan or simply to cover replacement income, it is important to know who you are dealing with.
The best term life insurance carriers offer the lowest rates, the best conversion options, the best underwriting and are financially strong. Some carriers offer more favorable underwriting of medical risks such as diabetes, heart disease, lupus, Barrett’s esophagus, etc.
Some carriers excel in underwriting individuals who participate in things like auto racing, rock climbing or deep sea diving.
Below you will find the list of what we think are the best term life insurance carriers in the industry. You will also see a little bit of information on their history as a company, the financial ratings and what area of strength they excel.
First let’s recap the financial ratings scale that judges the strength and financial outlook of each insurance company: (Tip- if you wish to skip the recap, just scroll down to the best term life insurance carriers)
A.M. BEST – a U.S.-based rating agency headquartered in Oldwick, New Jersey, that focuses on the insurance industry.
Rating categories:
Superior- A+ or A++ is assigned to insurance companies that have, in our opinion, a superior ability to meet their ongoing insurance obligations.
Excellent- A or A- is assigned to insurance companies that have, in our opinion, an excellent ability to meet their ongoing insurance obligations.
Good- B+ or B++ is assigned to insurance companies that have, in our opinion, a good ability to meet their ongoing insurance obligations.
Fair- B or B- is assigned to insurance companies that have, in our opinion, a fair ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions.
Marginal- C+ or C++ is assigned to insurance companies that have, in our opinion a marginal ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions.
Weak- C or C- is assigned to insurance companies that have, in our opinion, a weak ability to meet their ongoing insurance obligations. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions.
Poor- D or unrated is assigned to insurance companies that have, in our opinion a poor ability to meet their ongoing insurance obligations. Financial strength is extremely vulnerable to adverse changes in underwriting and economic conditions.
STANDARD AND POOR’S– is an American financial services company. It is a division of McGraw Hill Financial that publishes financial research and analysis on stocks and bonds.
AAA– an insurer rated AAA has extremely strong financial security characteristics. AAA is the highest insurer financial strength rating assinged by Standard and Poor’s.
AA– an insurer rated AA has very strong financial security characteristics, differing only slightly from those rated higher.
A– an insurer rated A has strong financial security characteristics, but is somewhat more likely to be affected by adverse business conditions than are insurers with higher ratings.
BBB– an insurer rated BBB has good financial security characteristics, but is more likely to be affected by adverse business conditions than are higher rated insurers.
BB– an insurer rated BB has marginal financial security characteristics. Positive attributes exits, but adverse business conditions could lead to insufficient ability to meet financial conditions.
B– an insurer rated B has weak financial security characteristics. Adverse business conditions will likely impair its ability to meet financial commitments.
CCC- an insurer rated CCC has very weak financial security characteristics and is dependent on favorable business conditions to meet financial commitments.
CC– an insurer rated CC has extremely weak financial security characteristics and is likely not to meet some of its financial commitments.
MOODY’S– Moody’s Investors Service is a leading provider of credit ratings, research, and risk analysis. The firm’s ratings and analysis track debt covering more than 120 sovereign nations, approximately 11,000 corporate issuers, 21,000 public finance issuers, and 72,000 structured finance obligations.
Global Long-Term Rating Scale:
Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.
Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.
A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.
Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as
such may possess certain speculative characteristics.
Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.
B Obligations rated B are considered speculative and are subject to high credit risk.
Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high
credit risk.
Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some
prospect of recovery of principal and interest.
C Obligations rated C are the lowest rated and are typically in default, with little prospect for
recovery of principal or interest.
Note: Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The
modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a
mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. Additionally, a
“(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance companies, and securities
firms.*
BEST TERM LIFE INSURANCE CARRIERS:
Banner Life-
Owned by The Legal & General Group, the 7th largest insurance company in the world measured by assets under management
Strengths: A company that historically offers some of the lowest rates, excellent underwriting of medical risks. One of the top writers of term
Ratings: A.M. Best- A+
Standard & Poor’s- AA-
Moody’s- N/A
Lincoln National Life-
Founded in 1905 and part of the Lincoln Financial Group
Strengths: Excellent rates, good underwriting on special risks associated with pre-existing medical conditions.
Ratings: A.M. Best- A+
Standard & Poor’s- AA
Moody’s- A1
Protective Life-
Founded in 1907 is headquartered in Birmingham, Ala. Now owned by the Dai-ichi-LIfe Insurance Company of Japan founded in 1902.
Strengths: Excellent rates, good choice of policies to choose from, good underwriting for special risks.
Ratings: A. M. Best- A+
Standard & Poor’s- AA
Moody’s- A2
Prudential- (Pruco)
Well known company that has been in business since 1875.
Strengths: Excellent rates, good underwriting for special risks, offers non-tobacco rates for cigar and pipe users.
Ratings: A.M. Best- A+
Standard & Poor’s- AA
Moody’s – A1
Met Life-
One of the largest life insurance companies in the United States. Been in business for 140 years.
Strengths: Good rates, good underwriting for special risks
Ratings: A.M. Best- A+
Standard & Poor’s – A+
Moody’s – Aa3
North American Company for Life and Health-
Founded in 1886 and part of The Sammons Financial Group.
Strengths: Excellent rates, excellent product portfolio, good underwriting for special risks
Ratings: A.M. Best- A+
Standard & Poor’s- A+
Moody’s- N/A
Principal National Life-
Part of the Principal Financial Group. Over $500 Billion in assets under management. Over 20 million customers.
Strengths: Excellent rates, strong financial company, good underwriting for special risks. Can underwrite high amounts with no exam
Ratings: A.M. Best- A+
Standard & Poor’s- A+
Moody’s- A1
Transamerica Life-
Been in business since 1904. Known for its pyramid building in San Francisco
Strengths: Excellent rates and product selection. Good conversion options.
Ratings: A.M. Best- A+
Standard & Poor’s- AA-
Moody’s- A1
Savings Bank Life-
Founded in 1907. Over $20 billion of life insurance coverage in force
Strengths: Low cost rates
Ratings: A.M. Best- A+
Standard & Poor’s- A-
Moody’s- N/A
Cincinnati Life-
Part of the Cincinnati Financial Corporation. More known as an excellent property & casualty company. Ranked in 2015 as one of the top 50 most trustworthy companies.
Strengths: Quietly has excellent rates, good conversion options, non-tobacco rates available for other than cigarette users.
Ratings: A.M. Best- A
Standard & Poor’s- A+
Moody’s- N/A
Minnesota Life-
Part of the Securian Financial Group. Been in business since 1880
Strengths: Excellent rates and product selection. Good underwriting of special risks.
Ratings: A.M. Best- A+
Standard & Poor’s- Aa3
Moody’s- A+
John Hancock-
Founded in 1862 and one of the most recognized names in the insurance industry.
Strengths: Financial strength, well known, good rates and product selection
Ratings: A.M. Best- A+
Standard & Poor’s- AA
Moody’s- A1
United of Omaha-
Owned by the more familiar name of Mutual of Omaha. Established in 1909 and made familiar by sponsoring of the tv show Wild Kingdom.
Strengths: Excellent rates, product selection and underwriting of special risks.
Ratings: A.M. Best- A+
Standard & Poor’s- A+
Moody’s- Aa3
Ohio National Life-
Founded in 1909 in Cincinnati, Ohio. Strong financially sound company.
Strengths: Financial stability, excellent low rates, excellent conversion options.
Ratings- A.M. Best- A+
Standard & Poor’s- AA-
Moody’s- A1
So, there you have what we consider to be the best term life insurance carriers in the industry. If you are looking for the best term life insurance carriers, and want to check out their rates, click here or contact us at 1-888-393-9003 or mike@specialriskterm.com
