In this article, we will look into the 15 best term life insurance companies heading into 2024.
Term Life Insurance Industry: A Market Analysis
According to a report by Grand View Research, the global term life insurance market was worth $988.42 billion in 2022. The market is expected to grow at a CAGR of 8.7% over the forecasted period and reach $1.89 trillion in 2030. The growth is driven by multiple factors including the cost-effectiveness of term life plans, raising awareness, and availability of tailored and flexible term life insurance solutions. Moreover, varying demographics, growing insurance market trends, and a focus on financial security are key factors contributing to the market growth.
The market is growing rapidly, fueled by the growing trend of digital technology integration. Recent studies showed that consumers prefer to interact with insurers virtually, using online platforms. InsureTech is another trend in the market that provides a compelling opportunity for growth. InsureTech utilizes I0T, AI, and big data analytics to streamline operations, reduce costs, and promote competitive pricing for insurance products.
Segment-wise, the term life insurance market is dominated by individual-level term life insurance, accounting for over 75% share in 2022. Individual-level term life insurance is tailored according to the individual’s needs, providing cost-effective policies. The major driver of growth of the segment is the growing demand for tailored financial protection. Group-level term insurance is projected to grow substantially over the forecasted period. Within the distribution network, tied agents and branches held the largest share of over 52% in 2022, driven by their deep knowledge, customized service, and an established client relationship. Over the forecasted period, the brokers segment is poised to grow at a significant rate, driven by their transparency and comprehensive coverage.
Key Players in the Market
Some of the key players in the term life insurance market include Manulife Financial Corporation (NYSE:MFC), Aflac Incorporated (NYSE:AFL), and AXA SA (OTC:AXAHY).
Manulife Financial Corporation is one of the major life insurance companies in the US, providing both whole and term life insurance. On December 11, Manulife Financial Corporation announced that it had partnered with Global Atlantic for a reinsurance deal. The company has transferred $13 billion of reserves to Global Atlantic. This strategic move will free up $1.2 billion for share buybacks, which will have a positive impact on the group’s earnings.
Aflac Incorporated is one of the top insurance companies in the US. On December 14, the company along with its partner in pet insurance, Trupanion had decided to withdraw from the Japanese market and focus on the North American market instead. Both companies have launched a comprehensive range of pet medical insurance solutions that are available in the United States. Aflac Incorporated invested $200 million in Trupanion and its distribution alliance to provide pet insurance products and services to its customers in the US.
AXA SA is a leading French multinational insurance company. On December 20, AXA SA announced that it had made a strategic reinsurance deal. The French subsidiary of the company, AXA France Vie has entered into an agreement with AXA Réassurance Vie France, the reinsurance subsidiary. The agreement will proceed with AXA Réassurance Vie France covering €12 billion of savings reserves.
15 Best Term Life Insurance Companies Heading into 2024
Methodology
To compile our list of the best term life insurance companies heading into 2024, we sifted through multiple reports including Grand View Research, The Business Research Insights, and Verified Market Research. We identified public and private companies from these reports and ranked them in ascending order of their market cap as of December 22, 2023. For private companies, we used their annual revenue to rank them.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
15 Best Term Life Insurance Companies Heading into 2024
15. Manulife Financial Corporation (NYSE:MFC)
Market Cap as of December 22: $39.56 billion
Manulife Financial Corporation is one of the top insurance companies, offering a diverse range of insurance products and services including term life insurance, permanent life insurance, CoverMe life insurance, Term Life Vitality Plus, and Synergy life insurance. The company’s CoverMe term life insurance provides coverage of $100,000 to $1 million for a 10-year term. As of December 22, it boasts a market cap of $39.56 billion.
14. The Travelers Companies, Inc. (NYSE:TRV)
Market Cap as of December 22: $42.44 billion
The Travelers Companies, Inc. (NYSE:TRV) is a leading insurance company, headquartered in New York. The company offers a wide range of insurance services including P&C insurance, life insurance, auto insurance, and business insurance among others. As of December 22, The Travelers Companies, Inc. reports a market cap of $42.44 billion.
13. American International Group, Inc. (NYSE:AIG)
Market Cap as of December 22: $47.35 billion
American International Group, Inc. (NYSE:AIG) is ranked 13th on our list of the best term life insurance companies heading into 2024. The company offers travel insurance, life insurance, and retirement insurance solutions among others. The company offers a wide range of term life insurance solutions at affordable rates via AIG Direct. As of December 22, American International Group, Inc. boasts a market cap of $47.35 billion.
12. Aflac Incorporated (NYSE:AFL)
Market Cap as of December 22: $47.59 billion
Aflac Incorporated ranks 12th on our list. Headquartered in Georgia. The company specializes in employee benefits, broker relationships, PEO, life insurance, small business, and individual policies. Within its life insurance portfolio, the company offers both term and whole life insurance solutions customized as per the client’s needs. Its term life insurance plans include increasing term, decreasing term, fixed term, and annual renewable life insurance. The company boasts a clientele of over 50 million people and has a market cap of $47.59 billion.
11. Tokio Marine Holdings, Inc. (OTC:TKOMF)
Market Cap as of December 22: $48.54 billion
Tokio Marine Holdings, Inc. (OTC:TKOMY) is a leading Japanese insurance company that provides a comprehensive suite of insurance products and services. TM Term Assure (II) is a major term life insurance plan of the company that provides coverage against death, total and permanent disability, and terminal ailment. Tokio Marine Holdings, Inc. is ranked 11th on our list and is valued at $48.54 billion, as of December 22.
10. MetLife, Inc. (NYSE:MET)
Market Cap as of December 22: $48.75 billion
MetLife, Inc. (NYSE:MET) is a major life insurance company in the US. It offers services including insurance, annuities, employee benefits, and asset management. The company offers basic, supplement, and dependent term life insurance coverage plans. MetLife, Inc. is ranked among the best term life insurance companies heading into 2024 and is valued at $48.75 billion, as of December 22.
9. ING Groep N.V. (NYSE:ING)
Market Cap as of December 22: $50.56 billion
Rabnked 9th on our list, ING Groep N.V. (NYSE:ING) is a financial services company offering banking, asset management, and insurance services. The company offers a variety of life insurance products and services including term life, whole life, and variable universal life insurance at affordable rates. As of December 22, ING Groep N.V. has a market cap of $50.56 billion.
8. Munich Re (OTC:MURGF)
Market Cap as of December 22: $56.95 billion
Munich Re Group (OTC:MURGF) is ranked among the best term life insurance companies. it offers a wide range of products and services including life insurance, cyber insurance, reinsurance, primary insurance, health insurance, and property insurance among others. The company offers a variety of term life insurance products and services. One of its products, SwiftTerm Select is a joint venture of the company along with SelectQuote, and Symetra, that offers instant issue term life insurance. As of December 22, Munich Re Group has a market cap of $56.95 billion.
7. AXA SA (OTC:AXAHY)
Market Cap as of December 22: $73.46 billion
AXA SA ranks 7th on our list. It offers a variety of services including insurance, asset management, and banking. The group offers tailored term life insurance solutions that can also be combined with retirement provisions. Its affordable solutions position it as one of the best term life insurance companies in the market. As of December 22, AXA SA reports a market cap of $72.49 billion.
6. Zurich Insurance Group AG (OTC:ZURVY)
Market Cap as of December 22: $75.45 billion
Zurich Insurance Group AG (OTC:ZURVY) is ranked among the best term life insurance companies heading into 2024. The company is a market leader in life insurance, risk insurance, marine solutions, travel insurance, auto insurance, and investment management. The group’s term life insurance product, Zurich Term offers death protection benefits, available in 10, 15, and 20-year durations. As of December 22, Zurich Insurance Group AG boasts a market cap of $75.42 billion.
5. State Farm
Annual Revenue (2022): $89.30 billion
State Farm is ranked 5th among the best term life insurance companies heading into 2024. The company offers a diverse range of products and services including insurance, financial services, life insurance, health insurance, and auto insurance. It offers term, whole, and universal life insurance plans. Instant Answer Term Insurance is a term life insurance product of the company that provides $50,000 in benefits. State Farm reported an annual revenue of $89.30 billion in 2022.
4. Chubb Limited (NYSE:CB)
Market Cap as of December 22: $90.07 billion
Chubb Limited (NYSE:CB) is a top financial services company. The company offers a comprehensive suite of products covering accident and supplemental health insurance, travel insurance, reinsurance, and life insurance. Within its life insurance portfolio, the company offers Chubb Lifetime Elite, LifePlus, Chubb Life Shield, Chubb Critical Illness Shield, Chubb Health Shield, and Chubb Personal Accident Shield among others. The company’s term life insurance plans include WiseChoice Term Life Protector, Chubb Preferred Term Life Insurance Plan, and Multi-Select Term. As of December 22, the company has a market cap of $90.07 billion.
3. Ping An Insurance (Group) Company of China, Ltd. (OTC:PNGAY)
Market Cap as of December 22: $90.18 billion
Ping An Insurance (Group) Company of China, Ltd. (OTC:PNGAY) is a leading Chinese insurance company. It is ranked 3rd on our list of the best term life insurance companies heading into 2024. The company offers both term and whole life insurance solutions. As of December 22, the group reports a market cap of $90.18 billion.
2. AIA Group Limited (OTC:AAIGF)
Market Cap as of December 22: $97.53 billion
AIA Group Limited (OTC:AAIGF) is a multinational insurance company, headquartered in Hong Kong. The company offers life insurance, retirement planning, accident, health insurance, and wealth management solutions. It offers both individual and group term life insurance solutions. Group Employee Term Life and AD&D Insurance, Group Term Life Insurance, and Key Person Term Life Insurance are the major term life products of the company. As of December 22, the company boasts a market cap of $97.53 billion.
1. Allianz SE (OTC:ALIZF)
Market Cap as of December 22: $104.24 billion
Allianz SE (OTC:ALIZF) ranks 1st on our list of the best term life insurance companies heading into 2024. The company has business in over 70 countries and territories. It provides insurance and financial services to a clientele of more than 100 million people. It provides term life plans through General America and Term Life. Allianz Life Pro+ Advantage and Index Lock are the term life products of the company. As of December 22, the company reports a market cap of $104.24 billion.
You can also look at 20 Largest Air Forces in the World Heading into 2024 and 20 States that Drink the Most Wine.
Suggested articles:
- 15 Best Disability Insurance Companies Heading into 2024
- 20 Largest Air Forces in the World Heading into 2024
- 15 Best Property and Casualty Insurance Companies Heading into 2024
This article is originally published at Insider Monkey.
