How to Compare and Buy Term Life Insurance Online

Written by Matthew Gratt, licensed life insurance agent in 47 states and D.C. (NPN 21590619). Published November 6, 2026. Rates below are from the CoverSavvy Term Life Index (average of up to the 3 lowest quotes from the carriers we work with), as of October 24, 2026.

Jump to: Buying online · How much · How long · What it costs · Where to buy · Comparing quotes · No exam? · The application · After approval · FAQ

Can you buy term life completely online? What's the best way to buy it?

Yes, you can shop around and buy term life insurance completely online. You can buy it directly from a carrier, from a marketplace, or from an agent. For the same policy, health rating and coverage, the price should be the same everywhere: an insurer can't charge people in the same risk class different rates, and agents are generally restricted from rebating their commission to you.

The best way to buy a term policy is to shop around, whether you do it yourself, on a marketplace, or through an agent. Make sure you understand what you're buying, and look at a few different companies before you do an application. A good agent or marketplace should be able to tell you which carrier is likely to give you the best risk class, and which product has the features you're looking for.

1. How much coverage do you need?

You want enough coverage to meet your family's needs if they lost your income. Typically people use simple rules of thumb like "10 times your income," but it really depends on your job, your spouse's job, how big your family is, your kids' ages, your mortgage, your age and more.

10-20x your income is probably a good place to start, absent other ideas.

How much do I need?

It depends on your needs. You'll want to replace your income, and address:

• Your mortgage
• Any outstanding loans, like private student loans or business loans
• Your children's education and expenses
• Your spouse's income and expenses

Should I trust online calculators?

Online calculators vary widely in quality. We made an online calculator we think is pretty good and stand by. It simulates your needs. We can't speak for every online calculator.

What is the DIME method?

DIME is a decent rule of thumb, but worse than doing a capital needs analysis. DIME stands for:

• Debt: covering any outstanding debt you may have, like private student loans
• Income: usually 10x your income in this formula
• Mortgage: your mortgage balance
• Education: your children's college education (and perhaps high school education)

This is a reasonable method, but the trouble is that the most important question in life insurance is when. If your kids are 16 and 18 and you're 50, it's a different calculation than if your kids are 8 and 10.

It's worth noting that most of these different methods won't land you in a wildly different place from one another.

Seriously, just use this calculator we made:

2. How long should the term be?

Long enough to cover your family until your income isn't needed anymore.

A longer term costs more each month. A 35-year-old non-smoking man who qualifies for a carrier's best rate class can expect to pay about $17.74 a month for 10 years of $500,000 coverage, $25.12 for 20 years and $40.15 for 30 years (CoverSavvy Term Life Index: rates at age 35, October 2026 Texas composite estimate).

A longer term also makes it more likely the policy is still in force if something happens to you. But in actuality, life insurance only has a good ROI if you under-live your life expectancy, so we encourage everyone to get enough to be well-covered and then stop.

What happens if I outlive it?

Essentially, nothing. Your level premium period ends, and most people let the policy go.

Many policies can keep going after that, but it's rarely a good deal. Some renew year to year as annually renewable term (ART), with premiums that increase every year up to about age 95, and some also drop the death benefit to a much lower amount.

You shouldn't get a term policy to use the coverage after the term. Before your term ends, you should consult with an agent about your next steps: letting the policy lapse, converting the policy to a permanent policy, or getting a new term policy.

But generally, in answer to the question of "What happens at the end of 20 years to my 20-year term?", the answer is "Nothing." You don't get your premiums back (unless you bought a return-of-premium policy.)

What is convertible term?

Some term policies can be converted into permanent insurance.

Permanent insurance is designed to last your whole life rather than a fixed period of time, as long as the policy is kept in force. (That's why it's called "permanent.") You might have heard of "whole life," "ordinary life" or "universal life." Those are all permanent life insurance.

Conversion normally doesn't require a new medical exam or health questions, and the new policy keeps your health rating, depending on the carrier. You'd pay the premium for the permanent policy, which will be much larger than your term premium and is based on your age when you convert.

This is useful if your health deteriorates during the term and you wouldn't be eligible for another term life policy. Additionally, some permanent policies have long-term care riders, so it can be a way to plan for long-term care, disability, and critical illness.

Conversion windows are limited. In the carrier guides we reviewed, they often end at the end of the level premium period or by about age 65 to 70, and some are shorter. Check the exact deadline before you buy.

We have many convertible options on our marketplace. Some cost more than non-convertible policies, but if you're worried about being able to keep your coverage forever, they can be worth the additional few dollars.

3. What will it cost?

What are rates by age?

For a non-smoker, a $500,000, 20-year term policy runs from about $18 a month for a healthy 25-year-old woman to about $358 a month for a 60-year-old man at average health. See rates for your exact age.

$500,000 of 20-year term life insurance by age (non-smoker, monthly)

Monthly estimates from the CoverSavvy Term Life Index (average of up to the 3 lowest quotes from distinct carriers we work with, as of October 24, 2026). Preferred is a carrier's best health class; standard is average health. Rates are a composite of quotes from multiple insurers and reflect Texas market rates; not all policies on which these figures are based are available in all states. The lowest-rated insurer in these figures is rated A (Excellent) by AM Best. Your actual price depends on underwriting.

Smoking is the biggest price lever. A 40-year-old man paying $54.56 at average health as a non-smoker would pay about $181.92 as a smoker.

What do $250K, $500K, $750K and $1M policies cost per month?

A 40-year-old non-smoker in the best rate class pays about $18 to $21 a month for $250,000, and about $51 to $62 a month for $1,000,000 over 20 years.

20-year term by coverage amount (preferred-class non-smoker, monthly)

Monthly estimates from the CoverSavvy Term Life Index (average of up to the 3 lowest quotes from distinct carriers we work with, as of October 24, 2026), for non-smokers who qualify for a carrier's best (preferred) class on a 20-year term. Rates are a composite of quotes from multiple insurers and reflect Texas market rates; not all policies on which these figures are based are available in all states. The lowest-rated insurer in these figures is rated A (Excellent) by AM Best. Your actual price depends on underwriting.

Can you get good coverage for under $50 a month?

It depends on your age and health. If you're under 45, in good health, and looking for $500,000 or less of coverage, you certainly can. If you're young and healthy, there are definitely good options for you under $50 a month.

At 40 in the best rate class, $50 a month buys about $750,000 of 20-year coverage for a man or a woman. At average health, it's about $250,000 for a man and $500,000 for a woman.

Once you've crossed into your 50s or have an advanced health history, life insurance rates increase, and it will be harder to get a great offer for $50. At 50 in the best class, $50 buys about $250,000 of 20-year coverage. A shorter term helps: a 50-year-old man in that class pays about $50 a month for $500,000 over 10 years.

But if someone depends on your income, even a smaller policy can help, so try our marketplace and see what you could get.

4. Where to buy: direct, marketplace, or broker

Which should I use?

We started a marketplace that combines the best of a marketplace and a broker, so we generally think you should use a marketplace and broker together, like you can with CoverSavvy.

Direct

Pros:

• There are some products that are only available directly, so if you want one, you have to go direct.
• Some carriers have their own systems and can give a better user experience where you only have to fill out one form.

Cons:

• You get one offer from one carrier. You don't get independent advice or multiple offers.
• If you have a conflict with the insurance carrier, you don't have an independent agent in your corner. You can still go to your state insurance department.
• There are more than 700 life insurance companies in the US today, and it may be difficult to select which one will be the best for you.

For the same policy, buying direct generally won't lower your price, unlike most other products.

Marketplace

Pros:

• Lots of different options and rates available.
• Most marketplaces carry most of the available products. Some more unique marketplaces may only carry a few products, but most of them will have the 10+ or so large competitive term carriers you may want.
• A marketplace can probably find a good rate for you.

Cons:

• If you don't know what you want, marketplaces can be hard to use.
• The experience can be worse, because you may have to fill out forms twice, and there will be some back-and-forth between the marketplace and the carrier.
• Some carriers only accept applications through paper or DocuSign, and don't appear as often on marketplaces.
• Some marketplaces aren't independently owned. Ask who owns the marketplace and whether it has a financial tie to any carrier it shows you.

Broker

Pros:

• Good if you don't know what you want.
• Some brokers offer a wide range of insurance policies and products and can help you with other things, like car insurance.
• Good brokers understand complex underwriting issues, rated cases, 1035 exchanges and other complex life insurance issues.

Cons:

• You'll usually need to do a call, often during business hours.
• Commissions can differ by product, at brokers and at marketplaces like CoverSavvy, so it's fair to ask how anyone is paid and why they're recommending a specific policy.
• Some brokers only represent a few companies (like 3 or 4). Ask how many carriers they work with.

We built CoverSavvy to bring together the best of a self-serve marketplace with a licensed agent available for more complex cases or when you need help.

What are the best term life insurance comparison sites?

We think CoverSavvy is the best comparison site for term life insurance, because we built it.

Some of the things CoverSavvy does particularly well include:

• We are independently owned. We have no carrier, conglomerate or private equity owner, and we want to get you the best policy for you.
• We are transparent, and you can shop multiple prices and options on your own.
• If you have a complex case, a knowledgeable agent can shop your case the old-fashioned way.
• You can get quotes without calling someone, and you can even do your application online without talking to anyone.

Some areas for improvement are:

• We are new. We do not have years of operating experience as CoverSavvy. (Our licensed agent has more than five years of life insurance experience, just not at this marketplace.)
• Policies are offered through licensed agent Matthew Gratt (NPN 21590619), who is licensed in 47 states and DC but not New York, Alaska or Hawaii, so unfortunately we cannot help our friends there today.
• We do not feature every carrier. We have found that most of our consumers select the same 5 or so carriers, and we don't think we'd get more value out of adding a lot more carriers at this point.

Other comparison sites include Policygenius and lifeinsure.com.

How do they make money, and do I pay more?

Insurance comparison sites make money in a couple of different ways:

• Some sell your contact information to insurance agents.
• Some sell your clicks to insurance companies and agencies. (When you click on an ad for an insurer, the site that showed it may get paid.)
• Some actually sell insurance, function as insurance agents, and get paid a commission when you buy and keep a life insurance policy. That's how CoverSavvy makes most of its money.

You shouldn't pay more for buying the same policy in any particular way. A carrier's rates for a given policy, age and health class are generally the same no matter who sells it to you.

Can I get a quote without giving personal information?

I mean, you can, but the quote won't be worth much. You can look up sample prices on our rates index without giving us anything.

A useful quote will require your state, gender, age, height, weight, tobacco use, and any major medical conditions. Then you'll get an estimate.

Only a life insurance carrier can make you an offer of coverage, after you've submitted an application.

Can I get a quote without getting phone calls?

Yes. You can get quotes at CoverSavvy without phone calls, either through our online quote tool or our rates index.

Other websites may have materials like this available, but some require a phone call, so check first.

5. How to compare quotes

What's the best way to compare?

Life insurance policies are complicated and not entirely fungible. One policy at the same face amount and term is not necessarily the same as another one.

You can use a marketplace to start your comparison, but it can be good to talk to an agent as well. If you have a complicated medical situation, you'll get more value out of comparing with an agent.

What should I compare besides price?

You should include in your comparison:

• Price. This is the most important factor. Most policies are largely the same, but prices and underwriting classifications can vary a lot from one carrier to the next.
• AM Best rating. AM Best evaluates insurance company financials. If a life insurance company doesn't exist in 30 years, it will have trouble paying your claim. All things being equal, it will be much easier to deal with the solvent company that sold you your policy.
• Underwriting process. If the company cannot turn you a competitive offer in a process that's easy to complete, it almost doesn't matter what else is going on.
• Riders and waivers. This is where policies are significantly different. With an accelerated death benefit, some policies can be used before you've passed, while others cannot. A waiver of premium rider lets you stop paying if you develop a covered illness or disability. You can ask your agent about these.
• Convertibility. Some policies are convertible. You'll probably want to get one that's convertible, and check how long the conversion window lasts, especially if you're older.

What does an AM Best rating mean?

An AM Best rating is an independent opinion of an insurer's financial strength and its ability to meet its obligations to policyholders. It isn't a guarantee, and it isn't a recommendation to buy a specific policy.

AM Best financial strength rating scale

On this scale, A and A− make up the second-highest category. Every insurer in the CoverSavvy Term Life Index is rated A (Excellent) or better by AM Best. Source: AM Best's guide to its ratings.

6. Medical exam or no exam?

Can I skip the exam?

Often, yes, but it depends. It's a case-by-case decision by the carrier, and the older you are, the more likely you are to need an exam.

If you're under 50, are healthy and routinely go to the doctor and have up-to-date blood work available, it's more likely you'll be able to skip the exam.

No exam does not mean no underwriting. No-exam life insurance policies still have underwriting questions, and they gather data like prescription history, driving records and MIB reports in place of a medical exam.

Whether you can skip an exam depends on:

• Your age. If you're over 50, you should expect an exam.
• The face amount you're looking for. Limits are typically $1 million to $3 million through about age 50, often around $1 million from 51 to 60, and they drop sharply or disappear after that.
• Whether you've had a blood panel or lab recently that has what the insurance company needs to do underwriting.
• Your health situation. If you have a more complicated health history, you should expect an exam or a request for medical records.
• Whether you've seen the doctor recently and have medical records available.

Fitting those limits doesn't guarantee you'll skip the exam. Carriers can still send you through traditional underwriting if the available data doesn't help them underwrite the risk.

What is accelerated underwriting? How is it different from simplified and guaranteed issue?

These three get mixed up all the time, and they aren't the same thing.

Accelerated, simplified and guaranteed issue compared

Accelerated underwriting is what most healthy people mean by "no-exam term." It's generally the same policy and rates, with outside data standing in for the exam, though the class you're offered can differ. Guaranteed issue is a final-expense product, and it isn't what we're talking about in this guide.

Can I get approved instantly?

You may be able to, but most people don't. That isn't anything against you. Unless you have a very clean health record and readily available medical data, you probably won't receive an instant approval. Less than 10% of our clients receive instant approvals.

Any sort of complexity in your medical situation can keep you from getting instantly approved. Many common conditions, like diabetes and bipolar disorder, will likely get kicked out of the instant process but can still get coverage on a fully underwritten product.

Your instant approval (or lack thereof) isn't necessarily good or bad for your pricing. I recommend you be comfortable waiting a few weeks to get a better price. After all, you're going to keep this policy for a long time.

The application itself usually takes about 15 to 20 minutes. The "instant" part is the decision, not the form.

7. The application

What will they ask?

Life insurance companies ask a lot of questions to underwrite you for coverage.

Term life, in particular, has stringent underwriting criteria. In that regard, it is sort of like your mortgage:

• Your mortgage has lots of underwriting, and it's a pretty good deal.
• Other loans with no underwriting have much higher interest rates.
• So the underwriting associated with term life insurance is the same thing that's driving the great value of coverage.

Some of the questions they will ask include:

• Your job, and how you make money
• Your height, weight and date of birth
• Your health and health history
• Your beneficiaries and their relationship to you
• Any other life insurance you own
• If you have dangerous hobbies or fly planes
• If you smoke or drink
• And more

What disqualifies you?

Many things can disqualify you from term life insurance. This isn't an all-inclusive list, but things we've seen disqualify people include:

• Active drug or alcohol abuse
• Impending travel to a dangerous country
• Major criminal history, including a felony in the last few years, being on parole or probation, or having a pending criminal matter
• Significant health issues, especially undisclosed issues
• Terminal diagnoses
• Active cancer (a history of cancer is often OK)
• Dementia or Alzheimer's
• Being on a transplant waiting list
• Major coronary issues
• Not having income to justify the coverage, in many cases
• And many other major medical issues

If you want to know whether you'll be disqualified before you apply, ask an agent (or us at CoverSavvy; we're happy to give you our opinion). Agents can also run a "quick quote" for you about a specific issue.

Don't assume answering "yes" to a question on an application disqualifies you. Common issues like diabetes shouldn't necessarily disqualify you.

What is the MIB?

The MIB (formerly the Medical Information Bureau) is a shared database that life insurers use to catch mistakes and omissions on applications. It's a consumer reporting agency under the federal Fair Credit Reporting Act, so you have rights over your file.

When you apply with a member company, that company can report what it finds that matters for underwriting back to MIB, such as a health condition. MIB doesn't hold your full medical records, and insurers can't base a decision on your MIB file without further investigation.

You may not have a file at all if you haven't applied for individually underwritten life or health insurance in the last seven years. You can request your file for free once a year, and you can ask MIB to reinvestigate anything that looks wrong.

Can it be fully paperless?

Yes. We have paperless electronic applications available through CoverSavvy. Many other carriers, agencies and MGAs are paperless as well, including Ladder, Ethos and others.

Why does honesty matter?

The carrier will look at your prescription history and MIB file as part of underwriting, and it may pull your medical records as well. They will find out about medical issues. Many medical issues are treated more favorably if disclosed on the application versus discovered through underwriting.

8. After you're approved

When does coverage start?

If you don't have a temporary insurance agreement, coverage generally starts once the policy has been issued, you've accepted it, and your first premium has been paid. This is typically done thru a carrier portal or Docusign.

Some carriers also require a statement that your health hasn't changed. Your policy will spell out the exact requirements.

If you do have a temporary insurance agreement, your coverage follows the terms of that agreement until the policy is issued or declined.

Keep any existing coverage in force until your new policy has started.

What is the free-look period?

It's like a free trial period for a life insurance policy. You can review your policy after it's delivered and get your money back if you return it within the free-look window.

The length depends on your state and your policy. It's at least 10 days in states like South Carolina, 14 days in Florida, and some policies give you up to 30. Check your policy for the exact deadline.

Can I change beneficiaries later?

Yes. In most cases you can change beneficiaries as often as you'd like, unless you've named an irrevocable beneficiary. But you shouldn't have to change them frequently.

You should look at them once a year or so and make sure they're updated.

It is not an infrequent occurrence that someone's ex-spouse is unintentionally still their life insurance beneficiary. I am determined to make sure that doesn't happen to any of my clients, so I follow up occasionally.

How to compare and buy term life insurance online: FAQ

Sources

• NAIC: Life Insurance (term types, conversion, return of premium)
• NAIC: Accelerated Underwriting (data sources, simplified underwriting)
• NAIC: Life insurance consumer guide (riders, owners)
• ACLI Life Insurers Fact Book 2025 (711 US life insurers at year-end 2024)
• MIB: Facts about MIB and Request your record
• AM Best: Guide to Best's Credit Ratings (rating scale; October 2023 edition)
• South Carolina Department of Insurance: life insurance FAQ and Florida CFO: life insurance overview (free-look periods)
• Florida Statutes 626.9541 (unfair discrimination, as a state example)
• CoverSavvy Term Life Index (all premiums, as of October 24, 2026)
• Term life product guides from 14 carriers (no-exam limits, conversion windows, renewal terms)