Banner Life vs. Penn Mutual: Term Insurance Compared

In a Banner Life vs. Penn Mutual comparison, the price difference is small and the product differences are real. In our October 2026 Compulife check, the two were effectively tied at ages 30 and 40 (within $0.34 a month), and Banner Life was lower in the three profiles at ages 45 and 55 by $0.61 to $2.42 a month, roughly 1% to 2% of Penn Mutual’s price. Penn Mutual’s Guaranteed Convertible Term offers a conversion credit, a conversion window that runs while the insured is under age 70, a chronic illness benefit built into permanent policies converted in the first five years, and an optional disability waiver that can convert the term coverage to permanent. Banner’s OPTerm offers 25-, 35-, and 40-year terms that Penn Mutual does not, a terminal illness benefit included on every policy, and Additional Term Insurance Riders for layering temporary coverage.

Live Rate Comparison: Banner Life vs. Penn Mutual

Rates below come from Compulife® as of October 2026 for a $500,000 20-year term policy, non-tobacco, Nevada. Rates are subject to change and depend on full underwriting. Individual outcomes vary.

Profile	Banner Life	Penn Mutual	Difference
Male, 30, Preferred Plus, $500K 20-yr	$18.27/mo	$18.48/mo	$0.21 (effectively tied)
Female, 40, Preferred Plus, $500K 20-yr	$23.72/mo	$24.06/mo	$0.34 (effectively tied)
Male, 45, Preferred Plus, $500K 20-yr	$44.95/mo	$45.56/mo	$0.61 (Banner cheaper)
Male, 45, Standard (Regular), $500K 20-yr	$85.71/mo	$86.83/mo	$1.12 (Banner cheaper)
Male, 55, Preferred Plus, $500K 20-yr	$111.08/mo	$113.50/mo	$2.42 (Banner cheaper)

Rates sourced from Compulife® October 2026, NV, non-tobacco. A.M. Best rating shown by Compulife for Penn Mutual: A+. Rates subject to change. Not an offer of insurance.

Key takeaway: At ages 30 and 40 the two carriers are effectively tied, so we do not name a price winner there. Banner was lower in the other three profiles, but by small amounts: $0.61 a month at age 45 Preferred Plus (about $146 over a 20-year term), $1.12 a month at age 45 Standard (about $269), and $2.42 a month at age 55 (about $581). That is roughly 1% to 2% of the premium, so the decision usually turns on conversion terms, term length, and riders rather than price.

Which products are these quotes for? Compulife returns one price per carrier and does not name the product. Banner’s term line is OPTerm, so that is the product we would expect behind its figure. Penn Mutual’s published materials describe both a convertible term product (Guaranteed Convertible Term) and a non-convertible one (Protection Non-Convertible Term), and we cannot tell which one the Penn Mutual figure reflects. The conversion features discussed below apply to the convertible product, so confirm the product when you request a quote.

Banner Life Insurance: Overview

Banner Life, marketed as Legal & General America, sells OPTerm in 10-, 15-, 20-, 25-, 30-, 35-, and 40-year terms, with coverage amounts starting at $100,000. Banner is highly rated, but sources differ on its current A.M. Best rating, so check the current rating at ambest.com before deciding.

What Banner Offers

• Longer terms: OPTerm includes 25-, 35-, and 40-year options. Per Banner’s product specifications, maximum issue ages (nearest birthday, non-tobacco) are 75 for 10- and 15-year terms, 70 for 20-year, 60 for 25-year, 55 for 30-year, 50 for 35-year, and 45 for 40-year. Tobacco ages are lower. Penn Mutual’s term lengths top out at 30 years.
• Additional Term Insurance Riders: Banner’s materials describe riders that add temporary 10-, 15-, or 20-year coverage on top of a base policy. Availability and issue ages vary by state and from the base plan.
• Terminal illness benefit included: An Accelerated Death Benefit for terminal illness comes with the policy at no extra cost, up to the lesser of 75% of the death benefit or $500,000. Banner’s specifications describe the accelerated amount as a lien that accrues interest. The qualifying prognosis is generally cited at 12 months (up to 24 months in some states), so confirm for your state.
• Conversion through the level period or age 70: Per Banner’s specifications, conversion is available during the level premium period or until attained age 70, whichever comes first, to a single guaranteed universal life product. For policies issued at age 66 or older, conversion is limited to the first five policy years.

Where Banner Is More Limited

• Banner’s OPTerm specifications do not list a conversion credit.
• The materials we reviewed do not list a chronic or critical illness benefit on the term policy.
• The OPTerm rider list we reviewed does not include an accidental death rider. Confirm with Banner if you want one.
• The conversion product is a single guaranteed universal life policy rather than a broad permanent shelf.

Penn Mutual: Overview

The Penn Mutual Life Insurance Company was founded in 1847 and is a mutual company, meaning it is owned by its policyholders rather than outside shareholders. Compulife shows its A.M. Best rating as A+. Its Guaranteed Convertible Term (policy form ICC18-LT) is offered in 10-, 15-, 20-, and 30-year terms with premiums level for the selected period. Maximum issue ages vary by term length and tobacco status, and we could not confirm a current schedule from Penn Mutual’s documents, so confirm the limit for your age when you apply.

What Penn Mutual Offers

• Conversion credit: Per Penn Mutual’s client brochure, converting to a permanent policy earns a credit equal to the term policy’s annual premium, beginning in the second policy year. The credit excludes policy fees, substandard-class premiums, and optional rider premiums.
• Broad conversion: You can convert to any Penn Mutual permanent life product sold at the time of conversion, without evidence of insurability, while the insured is under age 70 and during the term (or during the first 20 years of a 30-year term). Partial conversion is allowed, subject to minimums.
• Chronic illness benefit at conversion: If the policy is converted within the first five years, the new permanent policy automatically includes a chronic illness benefit, subject to eligibility and availability. Ask what it costs to use, since accelerated benefits reduce the death benefit.
• Optional disability waiver with automatic conversion: Per the brochure, this rider waives premiums if the insured is totally disabled and converts the term coverage to permanent coverage if the disability lasts beyond three years, with premiums on the new policy waived for the duration. One third-party summary adds that the disability must begin before age 60, which we could not confirm in Penn Mutual’s documents.
• Mutual company structure: Dividends at a mutual company apply to its participating permanent policies, not to term, and are not guaranteed. Press coverage reports that Penn Mutual approved a record $300 million dividend for 2026. A term buyer benefits only if they later convert to a participating policy.

Where Penn Mutual Is More Limited

• Term lengths stop at 30 years, with no 25-, 35-, or 40-year option.
• Penn Mutual’s client brochure does not list a terminal illness benefit among the included features. Confirm whether an accelerated benefit is available on the term policy you are quoting.
• The brochure does not list a return of premium rider or an equivalent to Banner’s Additional Term Insurance Riders. We were unable to verify a return of premium option from Penn Mutual’s documents, so if that feature matters to you, ask us to check current availability.

Conversion Options Compared

Feature	Banner Life OPTerm	Penn Mutual Guaranteed Convertible Term
Conversion window	Level premium period or attained age 70, whichever comes first (first five policy years if issued at 66 or older)	Under age 70, during the term (first 20 years of a 30-year term)
Conversion products	A single guaranteed universal life product	Any Penn Mutual permanent product sold at the time of conversion
Conversion credit	None listed in Banner’s materials	Equal to one year’s term premium, starting in policy year two (excludes fees and some premiums)
Partial conversion	Confirm with Banner	Allowed, subject to minimums
Chronic illness at conversion	Not listed in Banner’s materials	Included in the permanent policy if converted within five years, subject to eligibility
Disability-triggered conversion	Not listed	Optional Disability Waiver of Premium with Automatic Conversion rider
Longest term	40 years	30 years
Company structure	Stock company (Legal & General group)	Mutual company, owned by policyholders

Riders: What’s Included vs. What Costs Extra

Using an accelerated benefit reduces the death benefit, so the cost of these riders shows up when you use them rather than in the premium.

Placement Patterns We See

• A buyer in their 40s who expects to convert to permanent coverage within a few years. Penn Mutual’s conversion credit, broad permanent shelf, and chronic illness benefit for early conversions are the reasons to consider it. In our October 2026 check the premium cost of choosing Penn Mutual was small: $0.34 a month for a 40-year-old woman in Preferred Plus.
• A buyer who needs coverage past 30 years or wants to layer temporary coverage. Banner is the only one of the two with 35- and 40-year terms and Additional Term Insurance Riders, subject to age limits and state availability.
• A buyer in their 50s focused on the lowest base premium with no plan to convert. Banner tends to fit. In our October 2026 check it was $2.42 a month lower for a 55-year-old man ($111.08 vs. $113.50), about $581 over 20 years.
• A buyer who wants premiums protected if they become disabled and sees conversion as a possibility. Penn Mutual’s optional automatic-conversion waiver rider is the feature to ask about, along with its cost and exact trigger.

These are illustrative, anonymized patterns, not descriptions of specific clients or guarantees of outcome. Individual outcomes vary.

The Verdict

Choose Banner Life if:

• You want a 25-, 35-, or 40-year term, or temporary coverage layered through Additional Term Insurance Riders
• You want a terminal illness benefit included on every policy
• You are 45 or older and want the lower base premium, which in our check was $0.61 to $2.42 a month
• You expect to convert, if at all, to a guaranteed universal life policy

Choose Penn Mutual if:

• You expect to convert to permanent coverage and want a conversion credit and a choice of Penn Mutual’s permanent products
• A chronic illness benefit in the permanent policy, available on early conversion, matters to you
• You want the option to add a waiver rider that converts the term policy to permanent coverage after a prolonged disability
• You prefer a mutual company and a 30-year or shorter term is enough

At ages 30 and 40 the two priced essentially the same in our check, so those buyers should decide on features. See our guide on why an independent broker beats going direct, and use our life insurance needs calculator if you are not sure how much coverage to buy.

Frequently Asked Questions

Is Banner Life or Penn Mutual cheaper for term insurance?

It depends on the profile. In our October 2026 Compulife check for $500,000 of 20-year term, the two were effectively tied at age 30 ($18.27 vs. $18.48 a month) and age 40 ($23.72 vs. $24.06). Banner was lower at age 45 Preferred Plus ($44.95 vs. $45.56, a $0.61 gap), age 45 Standard ($85.71 vs. $86.83, $1.12), and age 55 ($111.08 vs. $113.50, $2.42, about $581 over 20 years).

Does Penn Mutual offer a chronic illness benefit on term insurance?

Per Penn Mutual’s client brochure, the benefit comes with the permanent policy rather than the term policy: if Guaranteed Convertible Term is converted within the first five years, the new permanent policy automatically includes a chronic illness benefit, subject to eligibility and availability. The materials we reviewed from Banner do not list a chronic illness benefit on its term policy.

Does Penn Mutual offer a conversion credit?

Yes, on Guaranteed Convertible Term. Per Penn Mutual’s client brochure, the credit equals the term policy’s annual premium, beginning in the second policy year, and excludes policy fees, substandard-class premiums, and optional rider premiums. Banner’s OPTerm specifications do not list a conversion credit.

Which carrier offers longer term lengths?

Banner. OPTerm is offered in 10-, 15-, 20-, 25-, 30-, 35-, and 40-year terms, with lower maximum issue ages on the longest terms (nearest birthday, non-tobacco, up to age 45 for the 40-year term). Penn Mutual’s Guaranteed Convertible Term is offered in 10-, 15-, 20-, and 30-year terms.

What happens to my Penn Mutual term policy if I become disabled?

Penn Mutual offers optional Disability Waiver of Premium riders, and only one disability waiver rider may be elected. The version with Automatic Conversion waives premiums during total disability and, per Penn Mutual’s brochure, converts the term coverage to permanent coverage if the disability lasts beyond three years. Waiting periods and eligibility rules vary, so ask for the exact terms at the time of application. Banner offers a Waiver of Premium rider that requires a total disability of at least six continuous months, but its materials do not list an automatic-conversion version.

Authoritative Resources

• NAIC — Life Insurance Consumer Information
• A.M. Best — Insurer Financial Strength Ratings