Cheapest Term Life Insurance Companies (2026)

Banner Life and Transamerica are the cheapest term life insurance companies in MoneyGeek's analysis, each averaging $37 per month for women and $46 per month for men on a 20-year, $500,000 policy. Penn Mutual follows closely behind at $38 for women and $47 for men. 

While rates are similar among the top providers, pricing differences between genders are more pronounced with some insurers. For example, Pacific Life charges women an average of $38 per month compared with $54 for men. Across the 10 cheapest insurers, women pay between $37 and $49 per month on average, while men pay between $46 and $60.

Rates are estimates from MoneyGeek's analysis of major insurers based on a 20-year, $500,000 term policy for nonsmoking 40-year-olds in average health. Your actual premiums will depend on your health, age, lifestyle, term length, coverage amount and chosen insurer.

Term life insurance is much more affordable for younger buyers. Among the 30 insurers in our analysis, the cheapest rates for a 20-year, $500,000 policy start at $29 per month for both women and men. Fidelity has the lowest rate for women, while Cincinnati Life is cheapest for men. At age 20, the gender pricing gap is minimal, with rates ranging from $29 to $35 per month for both men and women across the 10 cheapest providers.

* Rates based on 20-year-old nonsmokers with average health on a 20-year, $500,000 policy.

Term life insurance costs more for seniors than for younger buyers, and the gender gap widens considerably at this age. Penn Mutual is the cheapest option for both women and men at $72 and $110 per month respectively, a $38 difference on the same policy. Women pay $72 to $98 per month across the top 10 most affordable companies, while men pay $110 to $136, a gap of 35% to 40% more for equivalent coverage. 

These rates reflect a shorter 10-year term and half the coverage amount ($250,000) compared to our 40-year-old benchmark, yet still cost nearly twice as much. Seniors who need coverage should compare quotes closely, as the $26 spread between Penn Mutual and Mutual of Omaha represents over $300 per year.

* Rates based on 65-year-old nonsmokers with average health on a 10-year, $250,000 policy.

Smoking more than triples term life insurance costs compared to nonsmokers of the same age. Banner Life and Penn Mutual are the cheapest options for women who smoke at $121 per month, while Penn Mutual leads for men at $163. The gender pricing gap is the widest of any profile we reviewed. Women pay $121 to $148 per month while men pay $163 to $195, so male smokers pay 30% to 35% more than female smokers for identical coverage.

* Rates based on 40-year-old smokers with otherwise average health on a 20-year, $500,000 policy.

People in poor health pay higher life insurance premiums, but the increase is smaller than many buyers expect. In our analysis, Banner Life, Protective, Pacific Life and Transamerica have the lowest term life rates for applicants in poor health, averaging $42 per month for women and $54 per month for men on a 20-year, $500,000 policy. By comparison, the lowest rates for healthy applicants range from $37 to $38 per month for women and $46 to $54 per month for men, meaning poor health can increase premiums by as little as $5 to $8 per month. While rates remain relatively competitive across insurers, comparison shopping is especially important for men, whose premiums vary more widely than women's.

* Rates based on 40-year-old nonsmokers with poor health on a 20-year, $500,000 policy.

Penn Mutual has the lowest rates at most coverage levels in our analysis, making it a strong option for buyers seeking large amounts of protection at competitive prices. For women, the lowest monthly premiums range from $9 for $100,000 in coverage to $295 for $5 million, while men pay between $11 and $411 across the same coverage levels.

The pricing difference between men and women becomes more pronounced as coverage increases. At the $100,000 level, premiums differ by just $2 per month, but that gap grows to $116 per month at the $5 million level.

Premiums also become more cost-efficient at higher coverage amounts. For example, a woman pays $69 per month for $1 million in coverage but only $126 for $2 million, so the cost per dollar of coverage decreases as you take on higher coverage.

* Rates based on 40-year-old nonsmokers with average health on a 20-year term policy.

Average term life rates run considerably higher in our analysis than the cheapest available options, underscoring how much comparison shopping matters. Women pay an average of $47 per month for $500,000 in coverage compared to Banner Life's low of $37, a $120 annual difference. For men, the average of $59 per month versus Banner Life's $46 represents $156 in extra annual costs. 

The pricing gap between the cheapest and average rates compounds at higher coverage levels. Women pay an average of $168 per month for $2 million coverage while the cheapest company, Penn Mutual, charges $126, saving $504 per year. Men see even larger spreads, paying an average of $216 versus Penn Mutual's $169 at the $2 million tier. Across all coverage levels, shopping for the cheapest provider saves women $7 to $42 per month and men $8 to $66 per month.

* Rates based on 40-year-old nonsmokers with average health on a 20-year term policy.

Banner Life, Transamerica and Penn Mutual have the most affordable term life insurance for the average buyers, but your specific rate depends on your age, health and coverage needs. Comparing quotes from multiple insurers is the best way to get the lowest rates.

Buy coverage early to lock in cheap term life insurance rates before aging or health changes increase your premiums. Match your term length to your financial obligations and avoid unnecessary riders that inflate costs without adding meaningful protection.

We answer common questions about cheap term life insurance:

MoneyGeek collected thousands of quotes from 30 major term life insurance providers to build the rate data on this page. Our baseline profile is a 40-year-old nonsmoker with an average BMI for their sex and an average health rating. We quoted coverage across 10, 15, 20, 25 and 30-year terms at a $500,000 baseline coverage amount.

To show how rates shift with different needs, we also quoted eight coverage levels: $100,000, $250,000, $500,000, $750,000, $1 million, $2 million, $3 million and $5 million. Beyond the baseline, we adjusted for age, smoking status and health status to show how each variable affects what you'll pay.