Term life is the workhorse for families: big coverage, low cost, clean rules. The right policy can replace your income, clear the mortgage, fund childcare and college, and keep your partner on track—without locking you into expensive permanent insurance.
This 2025 guide ranks the top term life options for parents, explains how much to buy (with simple formulas), which riders matter for kids, and gives you real-world scenarios so you can choose with confidence.
Scope & disclaimers: U.S.-focused. Rates vary by age, health, state, and underwriting class. This is education, not personalized advice—speak with a licensed agent/fee-only planner for recommendations tailored to you.
How we picked (family-first criteria)
- Coverage per dollar: competitive pricing across common terms (20–30 years).
- Children & family riders: child term riders, waiver of premium, living benefits.
- Convertibility: ability to move to permanent coverage later without new medicals.
- Underwriting speed: instant/accelerated options for busy parents.
- Financial strength & service: stable carriers, strong claims support.
- Term breadth: long terms (30–40 years) to cover youngest child through college.
We cross-checked product specs and consumer guidance from carrier pages and reputable industry resources, and we use widely accepted needs methods (10× income + college, DIME, etc.). WAEPA+3NAIC+3NAIC+3
The 5 best term life policies for families in 2025
1) Banner Life (Legal & General America) – OPTerm
Best long-term value + conversion flexibility
Why it’s great for parents
OPTerm offers 10–40-year terms (yes, 35 & 40), renewable/convertible, which is perfect if you’ve got a toddler and want coverage to stretch into their adulthood. Solid reputation for aggressive rates and straightforward conversion options. L&G America+1
Family features
- Term lengths: 10, 15, 20, 25, 30, 35, 40 years. L&G America
- Convertibility: convert to Legal & General’s LifeStep UL (no new medicals). Handy if a health issue appears or you want lifelong coverage later. L&G America
- Typical living benefit (ADB) features vary by state/policy form (see your illustration).
Mini case study
A couple (ages 34/32) with a 3-year-old and newborn ladders $1.5M (20-yr) + $500k (35-yr) on the primary earner. The 20-year layer covers peak mortgage/childcare years; the 35-year layer protects the youngest through college and gives optional convertibility if health changes.
Good to know
- Pros: long terms, competitive pricing, convertibility.
- Cons: fewer built-in bells/whistles than some “suite” platforms; work with a broker to optimize riders.
2) Protective – Classic Choice Term
Best budget pricing + useful riders
Why it’s great for parents
Protective is famous for sharp pricing and strong conversion flexibility. Their materials highlight conversion options and income-style payout riders that can help survivors receive predictable monthly income (useful when raising kids). FinPro+2Allstate Protective+2
Family features
- Flexible conversion to a permanent policy if needs change. FinPro
- Living benefits: many policies include Accelerated Death Benefit at no extra cost (state/policy form dependent). Quotacy+1
- Term options: typically 10–30 years (some distributors list 35–40). Verify availability in your state. Quotacy
Mini case study
One earner (age 39) with two kids buys $1M/30-yr Classic Choice Term. If a terminal diagnosis occurs, ADB can advance part of the benefit for family expenses; if life changes later, convert a slice to permanent. Policygenius
Good to know
- Pros: value pricing, solid conversion & living benefit inclusion.
- Cons: ultra-long terms (35/40) are distributor/state-dependent—confirm before you plan around them.
3) Ladder – Instant, no-exam term (online)
Best for busy parents who want speed + high limits
Why it’s great for parents
Fully digital application, instant decisions, and no medical exam up to $3M (health-qualified). Terms 10–30 years. You can “ladder” coverage up/down as life changes—raises, new baby, new mortgage. Ladder Life+2Ladder Life+2
Family features
- Apply in ~5 minutes, decision in minutes for many applicants. Coverage up to $3M no exam; up to $8M with an exam. Bankrate
- Terms: 10/15/20/25/30 years. Bankrate
Mini case study
Two working parents (30 & 31) need coverage before a weekend trip. Each buys $750k/20-yr online at lunch; approved instantly with no exam (health-qualified). They add a second layer when baby #2 arrives. Bankrate
Good to know
- Pros: speed, high limits without exam, easy upsizing/downsizing.
- Cons: fewer traditional riders (e.g., child rider) than agent-sold policies—decide whether speed or riders matter most.
4) State Farm – Select Term
Best for local-agent support + family add-ons
Why it’s great for parents
Some families want a human in the loop. State Farm Select Term offers 10/20/30-year coverage online with the backing of a large agent network; they also offer Return-of-Premium alternatives and coordination with other policies (auto/home). State Farm+2State Farm+2
Family features
- Term choices: 10, 20, or 30 years; renewable options after term (cost increases). State Farm+1
- Local agents for coverage reviews and beneficiary changes. State Farm
- Return-of-Premium term variant (20 or 30 years) if you value premium recovery and potential cash value—useful for disciplined savers. State Farm
Mini case study
A single parent (age 36) juggling two kids and a full-time job sits with an agent, chooses $1M/20-yr term + a small ROP layer for forced savings. Agent also ensures beneficiaries and guardianship paperwork are correct. State Farm
Good to know
- Pros: human advice, wide presence, optional ROP.
- Cons: may not be the very cheapest quote; underwriting speed can be slower than instant-decision online carriers.
5) Mutual of Omaha – Term Life Express (simplified issue)
Best simplified-issue (fast approval) for modest coverage
Why it’s great for parents
If you prefer no medical exam with fast approvals and you don’t need multi-million coverage, Term Life Express is a strong simplified-issue option with 10/15/20/30-year terms and straightforward features. Mutual of Omaha Producer
Family features
- Simplified underwriting (no exam), quick decisions; face amounts typically $25,000–$300,000. Mutual of Omaha Producer
- Convertibility language and educational resources on term-to-perm concepts. Mutual of Omaha
Mini case study
A stay-at-home parent wants coverage to fund childcare if they pass away. They choose $250k/20-yr TLE—enough to bridge childcare costs until the youngest reaches high school. Decision returns quickly without lab work. Mutual of Omaha Producer
Good to know
- Pros: speed and simplicity; good for complementing a spouse’s larger policy.
- Cons: lower maximum face amounts than fully underwritten term; per-dollar cost is usually higher than exam-based term.
Quick comparison (what parents care about most)
| Carrier / Policy | Term lengths | No-exam option | Conversion to permanent | Helpful family riders / notes |
|---|---|---|---|---|
| Banner OPTerm | 10–40 yrs | Case-by-case (accelerated underwriting via distribution) | Yes → LifeStep UL | Long terms fit “youngest-to-college” coverage; good for laddering. L&G America+1 |
| Protective Classic Choice | 10–30 yrs (some distributors list up to 40) | Often accelerated | Yes (flexible) | ADB commonly included; check Income Provider-style payout riders. FinPro+2Insurance News | InsuranceNewsNet+2 |
| Ladder (online) | 10/15/20/25/30 | Yes up to $3M (instantly), up to $8M with exam | Limited | Fastest path for busy parents; adjust coverage as life changes. Bankrate |
| State Farm Select Term | 10/20/30 | Accelerated in some cases | Renewable; conversion options vary by form/state | Local agent, plus Return-of-Premium term option. State Farm+1 |
| Mutual of Omaha TLE | 10/15/20/30 | Yes (simplified issue) | Often available | Quick modest coverage ($25k–$300k); great secondary policy. Mutual of Omaha Producer |
The “parent math”: how much term life should you buy?
Here are three simple methods used by consumer orgs, carriers, and advisors. Use them as a starting point, then fine-tune:
- 10× income (+ college per child)
Multiply your income by ~10 and add $100k–$150k per child for college (adjust by state/school goals). Great fast rule of thumb for families. Guardian Life - DIME method
Add Debt (non-mortgage) + Income replacement (years needed) + Mortgage balance + Education (per child). More nuanced than a flat multiple. USAA - Use a calculator
Grab a non-profit calculator to reflect your specific debts, savings, and benefits. Life Happens offers a widely used one. Life Happens
Pro move: choose a term length that outlives your youngest child’s dependency (often 20–30 years). New parents sometimes like 30–40 years to keep conversion optionality open. L&G America
Riders that matter for families (and how they work)
- Child Term Rider – Adds small term coverage for all current/future children under one rider, often from ~15 days old up to age 18–25 (varies by insurer). Many allow conversion to a permanent policy later without new medicals—handy for a child with future health issues. Progressive+1
- Accelerated Death Benefit (ADB) / Living Benefits – Lets you access part of the death benefit if you’re terminally ill (and sometimes for chronic/critical illness, product-dependent). Often included at no extra cost, but reduces the final payout. Policygenius+1
- Waiver of Premium – If you’re disabled (per policy definition), the insurer pays your premiums to keep the policy active. Useful for single-earner households. Investopedia
- Guaranteed Insurability Option – Lets you increase coverage later without medicals—valuable if you expect higher income/responsibilities or worry about future insurability. Investopedia
Sample family setups (so you can sanity-check)
A) New baby + mortgage (dual earners, 20s/30s)
- Each partner: 10–12× income coverage.
- Term: 25–30 yrs (youngest-to-college).
- Riders: Child rider; waiver of premium on the larger policy. Guardian Life
B) One earner + two kids in elementary school
- Earner: 15× income + mortgage balance + college.
- Non-earner: $300k–$500k to fund childcare, household labor replacement.
- Consider a monthly income payout rider to smooth cash flow for the surviving parent. Guardian Life
C) High earner with RSUs/variable comp
- Core term: $1–3M (fully underwritten for best pricing).
- Add $250–500k simplified-issue as a bridge while underwriting completes (e.g., Term Life Express). Mutual of Omaha Producer
Fast vs. cheapest: underwriting trade-offs (what parents should expect)
- Fully underwritten term – Often the lowest premiums, but may require an exam and take days/weeks. Best for large face amounts and healthy applicants.
- Accelerated/instant decision – No exam for many applicants (data checks instead), decisions in minutes/hours; pricing is usually close to underwritten for average-to-excellent risk. Bankrate+1
- Simplified issue – No exam, fewer questions, faster, but lower max coverage and higher premiums per dollar—works great as a smaller add-on or for time-sensitive needs. Mutual of Omaha Producer+1
Common mistakes to avoid
- Buying too short a term. If your youngest is 2, a 15-year term ends before college—stretch to 25–30 (or consider 35–40 with carriers that offer it). L&G America
- Ignoring convertibility. If health changes, conversion can be a lifeline to permanent coverage without new medicals. Confirm conversion windows and eligible products. L&G America
- Skipping the child rider when you want it—carriers often require adding it early (before a child reaches a set age). Policygenius
- Forgetting living benefits—ADB can ease expenses during a terminal illness. Check if it’s included or an optional rider. Policygenius
- Naming minors directly as beneficiaries—consider a trust or custodian structure; talk to an attorney/agent.
Quick buyer checklist (copy/paste this)
- Coverage target: ____ × income + mortgage balance + $_____ per child for college. Guardian Life
- Term that outlives youngest child’s dependency: __ years.
- Must-have riders: Child rider, Waiver of Premium, ADB (confirm included). Progressive+2Investopedia+2
- Convertibility window & eligible products documented. L&G America
- Beneficiaries & contingent beneficiaries set (consider a trust).
- Rate class assumptions verified (non-smoker, build, blood pressure, family history, DMV).
Bottom line (who should pick what)
- You want longest coverage & flexibility: Banner OPTerm (up to 40 years + clean conversion). L&G America+1
- You want sharp pricing + practical riders: Protective Classic Choice. FinPro
- You need coverage today with minimal hassle: Ladder (instant, no exam up to $3M). Bankrate
- You want a local advisor and ROP option: State Farm Select Term. State Farm+1
- You need fast, modest coverage without labs: Mutual of Omaha Term Life Express. Mutual of Omaha Producer
FAQ
Is term life really the best for families with kids?
For income replacement over specific years (mortgage + childhood + college), yes—it’s the most coverage per dollar. The NAIC explains that term is lower-cost, designed for a period, and can include riders; convertibility can bridge to permanent later. NAIC
How much should we buy if we both work?
Start with 10× income each + college per child, then refine with DIME/needs calculators to reflect debts, childcare, and existing savings. Guardian Life+2USAA+2
Do we need policies on a stay-at-home parent?
Usually yes: to fund childcare and household labor replacement if they die. Use a needs calculator to quantify. Life Happens
What’s a child term rider and should we add it?
One rider covers all current/future children (often from ~2 weeks old to age 18–25). Some riders allow conversion to a permanent policy for the child without new medicals—useful if health issues emerge. Progressive+1
Are living benefit riders worth it?
ADB/living benefits can access part of the death benefit during terminal illness—often included at no extra cost (policy/state dependent). Just know it reduces the final payout. Policygenius