Best Car Insurance Company That Offers Five-Year Terms (2024)

Five-year term life insurance is mainly unheard of in the industry. The most common term life insurance policies are 10 or 20 years. If you’re looking for life insurance companies that offer five-year terms, then expect to pay more for your coverage.

This doesn’t mean affordable term life insurance is out of reach. You can find low term life insurance rates by shopping around with multiple life insurance companies that offer five-year terms and comparing quotes.

Keep reading to learn why five-year term life insurance is so rare and which companies are still offering short-term life insurance. Then, enter your ZIP code above to start comparing life insurance quotes from local companies for free.

What are the best life insurance companies that pay out on five-year terms?

Although five-year term life insurance is exceedingly rare, you can still find short-term coverage with certain companies. Below you’ll find a table of the top three life insurance companies that offer five-year terms:

Life Insurance Companies That Offer Five-Year Terms

Out of these three companies, only New York Life is available in all 50 states.

Let’s take a closer look at these life insurance companies that offer five-year terms and see how they compare:

EMC National Term Life Insurance

The Easy Choice Term life insurance policy from EMC National Life provides five years of coverage that can be renewed for another five years or converted into whole life at the end of the term.

According to EMC, the five-year term is meant to cover short-term debts.

For example, if you just bought a new car or home and are worried that your family would inherit this debt should you die unexpectedly, this term life insurance policy would pay off that debt for you. The policy also comes with additional accelerated death benefits at no extra cost.

Haven Simple Term Life Insurance

Haven Simple term life insurance is available in five, 10, 15, and 20-year terms. It is available with no medical exam, and rates start as low as $15.75/mo for $250,000 in coverage. It includes accelerated death benefits, and beneficiaries will receive their payout in one tax-free lump sum.

Haven Simple is not available in California, Delaware, South Dakota, North Dakota, or New York. Read our Haven Life insurance review to learn more.

New York Term Life Insurance

New York Life doesn’t offer a specific five-year term life insurance policy, but the provider does offer Yearly Convertible term life insurance that policyholders can renew every year.

New York Life offers the cheapest rates for shorter terms if you need short-term coverage for five years or less. Life insurance rates start low with the Yearly Convertible plan but will increase every year until you convert the policy into a permanent one.

How much does term life insurance cost?

On average, term life insurance quotes are determined by the age, gender, and health of the policyholder and the length of the term.

Younger, healthier individuals often pay less than $20 per month for term life insurance. Smokers, however, can pay over $50 per month for the same policy.

Take a look at the table below for the average term life insurance rates based on age and gender:

Average $100,000 Term Life Insurance Policy Rates for a Non-Smoker by Age, Gender, and Term

Read more: Best Car Insurance for Women

These rates apply to a $100,000 death benefit, and your rates will increase should you choose a higher level of coverage.

For example, you have the option of choosing up to $500,000 in coverage from some of the life insurance companies that offer five-year terms, which would increase your rates.

Are there affordable alternatives to five-year term life insurance?

The short answer is yes.

If you are looking for short-term life insurance coverage but cannot find affordable life insurance companies that offer five-year terms, consider looking at annual renewable term life insurance (like New York Life’s Yearly Convertible plan) or universal life insurance.

The benefit of a renewable term life insurance plan is that it typically comes in five-year increments or less, giving you the ability to renew the term length or convert the policy into a whole or universal life insurance policy later based on your individual needs.

If you’re looking to save money on life insurance, term life insurance rates will be the cheapest. However, you can also save money with a universal life insurance policy.

Universal life insurance coverage is adjustable, giving you the chance to change your death benefit and premium amounts over time. For example, decreasing your death benefits as you age will lower your monthly life insurance rates.

Why is it hard to find five-year term life insurance?

Insurance companies don’t like to underwrite life insurance policies that are less than 10 years. But, on the other hand, life insurance companies that don’t offer five-year terms see it as pointless to write a policy for such a short amount of time.

Life insurance companies that offer five-year terms will often charge you higher rates to make up for the risk. However, five-year term life insurance rates can start as low as $15 per month with certain companies.

Although this is just an average, it can give you a base to compare life insurance quotes from other companies to see which is the most competitive in your area.

Start comparing companies based on term length and coverage level before you buy life insurance so you can lock in the best rates. For example, you may find a local life insurance company that offers five-year terms at cheaper rates than some of these national companies. (For more information, read our “How to Buy Term Life Insurance“).

Enter your ZIP code below to start comparing local life insurance companies for free.

Case Studies: Life Insurance Companies That Offer Five-Year Terms

Case Study 1: Short-Term Debt Coverage

John is a 40-year-old individual who recently purchased a new car and wants to ensure that his family would not be burdened with debt in the event of his unexpected demise. He considers a short-term life insurance policy to cover this specific debt. After conducting research, he discovers that certain insurance companies offer five-year term life insurance policies.

He compares quotes and finds an affordable option that provides coverage for five years and can be renewed for another five years or converted into a whole-life policy at the end of the term.

Case Study 2: Flexible Coverage With No Medical Exam

Linda is a 35-year-old individual who needs short-term life insurance coverage for various reasons. She prefers a policy that does not require a medical exam and offers flexible terms. After exploring her options, she finds a life insurance company that offers five-year term life insurance policies. She decides to purchase a policy with no medical exam required.

The policy provides coverage for five years and includes accelerated death benefits. In the event of her death, her beneficiaries would receive the payout in one tax-free lump sum.

Case Study 3: Renewable Coverage for Changing Needs

Robert is a 50-year-old individual who needs short-term coverage but prefers the flexibility of a renewable-term life insurance policy. He discovers that certain insurance providers offer annual renewable term life insurance plans, which typically come in five-year increments or less. This allows him to renew the term length each year based on his changing needs.

He decides to choose a provider that offers this option and starts with a five-year term. He knows that he can adjust the coverage or convert the policy into a whole or universal life insurance policy later, depending on his individual circumstances.