Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Oct 22, 2021

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Facts You Should Know

  • Banner Life is one of the few life insurance companies that sell decreasing term life insurance
  • Farmers and State Farm offer alternative shorter-term life insurance policies that work like decreasing term policies without losing death benefits
  • Depending on your financial needs, purchasing a level term policy can be cheaper than decreasing term life insurance rates

When it comes to finding the best term life insurance policy for you and your family, a decreasing term policy could be the perfect fit.

Depending on where you are in your life, decreasing term life insurance can provide peace of mind and a cushion of cash to cover a mortgage or college tuition loans if the unthinkable happens.

What decreases in decreasing term life insurance? The term length, not the premium payments. For example, many policyholders choose decreasing term policies that last as long as a mortgage or car loan. This way, your family isn’t responsible for debts should you pass before the loan is paid.

Unfortunately, decreasing term life plans aren’t very popular and many companies don’t offer them anymore. That’s why we compiled this list of the top life insurance companies that sell decreasing term life insurance policies at competitive rates to make your search easier.

Comparing life insurance companies is key to finding the cheapest decreasing term life insurance rates.

Compare free life insurance quotes with us to find the most affordable decreasing term life insurance companies near you. Enter your ZIP code above to get started.

What are the best life insurance companies for decreasing term life insurance?

There are many more life insurance companies that don’t sell decreasing term life insurance, but you can still find affordable coverage with companies that do.

The table below lists rates and policy lengths from the top two life insurance companies that sell decreasing term life insurance.

Term Life Insurance Rates with Companies That Sell Decreasing Term Life Insurance
Life Insurance CompanyMonthly Term Life Insurance RatesDecreasing Term Life Policy Lengths
Banner Life$20.5620-40 years
Prudential$31.071 year
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Decreasing term life insurance isn’t available everywhere, and coverage can vary as every company will not be available in every state. Your rates will also vary based on your age and the death benefit amount you choose.

Let’s take a closer look at these two companies and their financial and customer satisfaction ratings to see which is the best life insurance company with decreasing term life insurance.

Banner Life OPTerm Decreasing Term Life Insurance

Banner Life Insurance offers the OPTerm life insurance plan, which can be modified with term riders. These riders will decrease your death benefit every 10, 15, or 20 years based on your preferences.

Term riders can only be applied to term life insurance policies that last longer than 10 years, but a perk with Banner OPTerm is that your life insurance rates will also decrease along with your benefit amount.

The policy ends when the death benefit reaches $0.

When it comes to financial strength, Banner Life received an A+ rating with A.M. Best, showing that the company is well-positioned in the market to deliver on death benefits.

Its customer satisfaction is also high, and the National Association of Insurance Commissioners (NAIC) reports a low consumer complaint ratio of 0.16.

Prudential PruTerm One Term Life Insurance

Prudential’s decreasing term life insurance option is actually the opposite — policyholders are allowed to purchase coverage that lasts for one year at a time. It is specifically marketed for small business owners and new families who have short-term loans and financial plans.

However, life insurance rates increase with every year you renew the policy. Depending on the length of your loan, it may be more cost-effective to buy traditional term life insurance instead.

For example, while most life insurance companies don’t advertise that policyholders can buy decreasing term life insurance, they do offer coverage with shorter terms to help families with short-term needs.

Prudential Life Insurance received an A+ rating with A.M. Best, showing that the company is financially capable of paying out death benefits. Its complaint ratio is 1.0 with the NAIC, which is much higher than Banner Life’s but still on par with other insurance companies of its size.

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What are the best life insurance companies for alternative decreasing term life insurance?

If you’re looking for competitive decreasing term life insurance rates, you may find more savings if you buy a 10-year term life insurance policy instead.

Many life insurance companies that don’t sell decreasing terms will sell alternative short-term policies designed to act like decreasing term life insurance.

Take a look at the table below to compare the top two companies offering 10-year terms that cater to those shopping for decreasing term life insurance quotes.

Alternative Options for Decreasing Term Life Insurance and Rates
Life Insurance CompanyMonthly 10-Year Term Life Insurance RatesTerm Life Insurance Death Benefit
Farmers$24.12$150,000 - No Max
State Farm$28.29$50,000
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Both life insurance companies offer competitive rates, but their policy types are very different.

State Farm’s Instant Answer Term life insurance offers a limited death benefit of $50,000 while the term length can last for 10 years or until you turn 50, whichever is longer.

Farmers Value Term Life Insurance, on the other hand, has no maximum limits on death benefits, can extend terms for up to 30 years, and allows policyholders to convert coverage to a permanent policy later.

What You Need to Know About Life Insurance Companies That Sell Decreasing Term Life Insurance

Decreasing term life insurance is best for families and individuals looking for extra coverage that will pay out for short-term loans, like mortgage, education, and small business loans.

Banner Life is one of the best life insurance companies that sell decreasing term life insurance, and its financial ratings rank it among the best life insurance companies that pay out on death benefits.

Depending on your financial needs, a short-term alternative to decreasing term life insurance may be a more affordable option. Shopping for 10-year term life insurance quotes with Farmers, State Farm, and local insurance companies will help you find the best rates.

To find the best term life insurance companies, Consumer Reports, A.M. Best, and the NAIC are great places to start for life insurance reviews and comparisons. To start comparing free life insurance quotes right now, enter your ZIP code below.