Life insurance is a cornerstone of financial security, providing peace of mind by protecting your loved ones in the event of your passing. Finding the best life insurance company can feel daunting with so many options available. This comprehensive guide will equip you to navigate the world of life insurance with confidence.
In the following sections, we'll explore factors to consider when selecting a life insurance company. Financial strength, policy options, and customer service reputation are all crucial aspects to evaluate. Understanding these key factors empowers you to make an informed decision and secure a life insurance policy that perfectly aligns with your needs and budget.
Best Life Insurance Companies
We determined that Nationwide is the top life insurance company overall due to its generous no-exam policies, strong financial soundness and customer satisfaction scores, and three living benefit riders included with most plans at no additional cost. For our life insurance ratings, we examined 88 carriers based on 55 criteria including policy types and features, financial soundness, convenience of application, customer happiness, and pricing.
In the company information below, we mention NAIC complaint index scores. The NAIC complaint index is a tool in which the National Association of Insurance Commissioners (NAIC) shows whether a company has received more or fewer complaints than other insurers, after adjusting for market share.
1. Nationwide is Best Overall
Nationwide life insurance is a financially stable life insurance company that's been in business for nearly a century. It offers a wide range of life insurance policies that may be available without a medical exam and with fast approval. It's also our top pick for best whole life insurance companies, best no-medical-exam life insurance companies, and best life insurance companies for people over 50.
AM Best gave the company an A+ (Superior) financial stability grade, and the number of complaints was what you'd anticipate for a company of its size in 2022 (the most recent year for which data is available), while the two previous years saw fewer complaints. It offers no-exam life insurance to healthy applicants, a variety of policy types and riders, and, on most policies, three accelerated death benefit riders for chronic, critical, and terminal conditions at no upfront expense. This is an unusual offering among the insurance companies we considered. Nationwide's remarkable features propel it to the top of our list of the best life insurance companies.
Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, based in Columbus, Ohio, issues life and annuity products. Farm Bureau Mutual Automobile Insurance Company, currently known as Nationwide, was founded in 1926.
2. Protective is best for Term Life Insurance
Protective life insurance offers the cheapest term life insurance of any of the firms we researched. Its competitive prices and policy options make it our top choice for the best term life insurance company, the most cheap life insurance business, and the best life insurance companies for young people.
Protective provides longer-than-average term policies and has had less complaints than is typical for a firm of its size over the last three years. The company also provides large child riders on its policies, making it an excellent life insurance option for youngsters.
However, Protective did not perform well in J.D. Power's 2023 U.S. Individual Life Insurance Study, ranking 18th out of 22 businesses. This suggests that you may have a problem with Protective's customer service, as J.D. Power rankings are based on five criteria: communication, interaction, price, product offerings, and statements. J. D. Power. "Satisfaction with Life Insurance and Annuity Products Climbs as Customers Embrace Digital, J.D. Power Finds."
Protective Life, founded in 1907, is headquartered in Birmingham, Alabama, with other offices in the Greater Cincinnati area and St. Louis, Missouri.
3. MassMutual is Best Convertible Term Life Insurance
MassMutual life insurance defines out for several reasons. It has an A++ (Superior) financial rating from AM Best. This is the highest grade a corporation may get, indicating a "superior" ability to pay claims. MassMutual's dividend-paying history further increases its clout: Every year since 1869, qualifying policyholders have received life insurance dividends. In 2024, MassMutual intends to pay $2.2 billion in dividends, its largest payout to date. Furthermore, the company has received significantly fewer complaints than expected for a company of its size, according to the NAIC, and provides a diverse choice of policy options.
It's worth noting that many of MassMutual's term policies can be converted into any of the company's permanent life plans. This is significant because some firms restrict the sorts of insurance you can change your term policy to. (Convertible term life insurance allows you to convert some or all of your term coverage to permanent without having to reapply for life insurance.)
MassMutual launched in 1851 in Springfield, Massachusetts, and now includes operations in Boston and New York City. In October 2023, it announced a pilot program under which new term life policyholders could receive financial incentives of up to 5% of their annual policy premiums by tracking their physical activity and sleep data via an app.
4. Mutual of Omaha is Best Return-of-Premium Term
Mutual of Omaha's Term Life Express and IUL Express policies contain three expedited benefit riders at no cost (for critical, chronic, and terminal illnesses), while the majority of other policies include two of these benefits. Accelerated benefit riders provide additional flexibility to a life insurance policy by allowing you to access the death benefit early if you have a qualifying sickness.
In addition, the company provides at least two unique features: a disability income rider and a return of premium benefit on select term plans (both at an additional fee). Return of premium (ROP) term life insurance allows you to receive up to 100% of your premiums back if you outlast the term. Only 11 of the 91 life insurance firms we analyzed offer this form of coverage. Mutual of Omaha is also our top choice for the best funeral insurance providers.
The aptly titled Mutual of Omaha was founded in 1909 and is headquartered in Omaha, Nebraska. It has locations in 42 states.
5. Guardian is Great Traditional insurer
Guardian Life insurance, along with MassMutual and New York Life, is one of only nine companies we assessed to receive AM Best's top financial strength grade of A++, which indicates outstanding financial stability. Guardian, like MassMutual and New York Life, pays dividends to qualifying whole-life policyholders and has declared its largest dividend payment ever for 2024. The payoff totals $2.2 billion. For these reasons, it ranked high among the top whole life insurance companies, best life insurance companies for persons over 50, and best senior life insurance providers.
Guardian Life has received an outstanding NAIC index for the last three years, showing that it has fewer complaints with the NAIC than one would expect for a firm of its size. Additionally, the organization provides no-exam policies to qualified applicants. However, Guardian falls short in terms of providing a simplified online experience. It does not provide an online application procedure (without an agent), online claim filing, or credit card payments, and information on its specific product offerings is difficult to locate, making it impossible to compare life insurance plans.
Guardian was founded in New York City in 1860 and continues to have its headquarters there. It contains four major economic hubs: Bethlehem, Pennsylvania; Holmdel, New Jersey; Hudson Yards in New York City; and Pittsfield, Massachusetts.
6. USAA is Best for Military
What makes USAA an excellent alternative for military families are its military-specific riders. Level Term V insurance feature a severe injury rider, which pays out $25,000 for particular injuries sustained while serving in the military. USAA also provides guaranteed insurability riders at no additional cost, allowing you to expand coverage after leaving the military (without having to show insurability) or if you go through specific life events, such as having a kid. Level Term policies also feature a conversion option, which allows you to switch to permanent coverage after at least one year with no medical exam or questions.
The disadvantages include that USAA life insurance cannot take credit card payments and offers few no-medical-exam possibilities. USAA sells Mutual of Omaha's guaranteed issue whole life plans, which have a minimum age of 45 and a coverage limit of $25,000.
USAA Life Insurance Company in San Antonio, Texas, and USAA Life Insurance Company of New York in Highland Falls, New York, both sell life insurance and annuity products. USAA was founded in 1922 by 25 Army officers who started insuring one other's autos.
7. Penn Mutual is Great for Dividends and No Medical Exam Life Insurance
Penn Mutual is a well-known insurer with strong financial backing and a proven track record of client satisfaction. It has the longest dividend-paying history of any company on this list, and it has stated that it will pay qualified policyholders $200 million in dividends in 2024, a record distribution.
Penn Mutual is likewise a fantastic solution for consumers who require extensive coverage. The company provides $7.5 million in coverage to exceptionally healthy candidates up to age 65 without requiring a medical exam. This is the highest no-exam limit we've observed, as well as the maximum age limit for no-exam policies, therefore it's a top pick for:
- Top no-medical-exam life insurance providers (excellent for high coverage)
- Best Whole Life Insurance Companies (Best Dividends)
However, Penn Mutual does not only serve individuals seeking extensive coverage or long-term plans. Its term coverage quotes were the fourth most cheap of the 32 businesses we compared. However, the company does not provide term quotes on its website. To learn more and apply for any sort of coverage, contact an agent.
Penn Mutual was established in 1847 in Philadelphia. Today, Penn Mutual Life Insurance Company is headquartered in Horsham, Pennsylvania.
8. Banner by Legal & general is Cheapest Term Premium
Banner, like Protective, is a fantastic alternative if you want the cheapest term life insurance. Banner is also one of only two firms that provide 40-year term plans (the other being Protective). Furthermore, Banner has generous term conversion options—you can convert your term policy until the conclusion of the level-premium period or until you age 70, whichever comes first. This is significant since some companies restrict the conversion period to the first ten years of the coverage.
While Banner has many positive aspects, it does not provide many policy alternatives beyond term and universal life. It also does not provide as many policy customization options as some of its competitors.
Banner was started as GELICO in 1949 and has been part of the Legal & General Group since 1981. Banner Life Insurance Company is based in Frederick, Maryland. Legal & General was founded in 1836 in London, where it remains headquartered.
9. State Farm Life Insurance is Best for Customer Satisfaction
State Farm life insurance is our top option for the finest life insurance company in terms of customer satisfaction, having ranked first in J.D. Power's U.S. Individual Life Insurance Study for 2023, 2022, 2021, and 2020. The surveys examined consumer experiences with the nation's leading life insurance providers. Furthermore, State Farm has received an A++ (Superior) rating for financial strength from AM Best, the highest attainable grade.J. D. Power, "Pandemic and Tax Code Change Spur Interest in Life Insurance, J.D. Power Finds."
The company is also one of our.
- Best Whole Life Insurance Companies
- Best burial life insurance companies.
- Companies with the best return-on-premium (ROP) for term life insurance
State Farm offers a full life coverage that pays dividends. Furthermore, you may be able to reduce your rate by bundling life insurance with another State Farm policy, such as car. However, the company's term policies are expensive when compared to our assessment of 32 life insurance firms that provide term quotations online. If you don't have a good medical history and want to get life insurance without a medical exam, you should search elsewhere. State Farm's current maximum coverage without a medical checkup is $50,000.
State Farm is based in Bloomington, Illinois. In 1929, George J. Mercherle, the company's founder, purchased the first State Farm Life policy for $2,000.
10. New York Life is Best Whole Life Insurance
New York Life Insurance has an A++ (Superior) AM Best rating and receives few customer complaints. It also offers whole-life plans to qualifying 90-year-old candidates. Its excellent reputation and financial stability are two of the reasons why it ranks first in our best life insurance companies for seniors and best whole life insurance companies reviews.
Also, we like that New York Life has paid dividends for 169 consecutive years. In 2024, it intends to pay $2.2 billion in dividends, the largest payout in corporate history.
The company provides term, whole life, and universal life policies, as well as variable universal life (VUL) insurance and a wide range of riders and customization options for life insurance plans. These include living benefits riders and a Spouse's Paid-Up Purchase Option (SPPO). The SPPO is a unique option that allows the insured person's spouse to use the death benefit to acquire a fully paid-up life insurance policy on their own life (without medical underwriting) once their spouse dies.
Unfortunately, it’s difficult to locate policy-specific information on the website. If you have questions or want a quote, you’ll need to provide your name and number and wait for an agent to contact you.
New York Life was founded in New York City and is still headquartered there. Founded in 1845, it is the oldest company on this list
11. Northwestern Mutual is Largest Life Insurance Company
Northwestern Mutual Life Insurance meets all of the criteria for financial stability: it has the highest financial strength ratings from AM Best (A++), Moody's (Aaa), and Fitch (AAA), and it has stood the test of time. Since its inception in 1857, the company has weathered various financial storms and has paid dividends to qualifying policyholders for more than 150 years.
Northwestern Mutual expects to pay $7.3 billion in dividends to qualified policyholders in 2024. This is not just the company's greatest payout to date, but it is also the largest dividend payment of any company on this list. Dividends are an important component of many of the top whole life insurance companies.
Furthermore, Northwestern Mutual has the second-lowest NAIC complaint index among the 91 organizations we evaluated, indicating that the company has a very low rate of complaints in relation to its size. Unfortunately, you won't be able to accomplish anything without a Northwestern Mutual representative. Policy details are not available online, therefore you will need to contact the company for further information. The company's lack of openness and self-service choices is primarily responsible for its low rating in our study.
Northwestern Mutual is headquartered in Milwaukee, Wisconsin. Read the complete Northwestern Mutual life insurance review.
Compare the 11 Best Life Insurance Companies in May 2024.
| Insurance Company | Recognized For | AM Best Rating | Sample Monthly Cost for Term Life | Policy Offerings | Accepts Credit Cards |
|---|---|---|---|---|---|
| Nationwide | Top-notch Overall Services | A+ | $26.25 | Comprehensive options including Final Expense, IUL, Term, UL, VUL, and Whole | Yes |
| Protective | Leading Term Life Insurance | A | $22.92 | Diverse choices such as IUL, Term, UL, VUL, and Whole | Yes |
| MassMutual | Superior Convertible Term Life Insurance | A++ | $26.97 | A selection of Term, UL, VUL, and Whole | No |
| Mutual of Omaha | Prime Return-of-Premium Term | A+/td> | $28.38 | Options include Final Expense, IUL, Term, and UL | Yes |
| Guardian | Excellent Traditional Insurer | A++ | $26.86 | Providing Term, UL, and Whole | No |
| Penn Mutual | Notable for Dividends & No-Medical Exam Policies | A+ | $23.92 | Offering Term, UL, VUL, and Whole | Yes |
| Banner by Legal & General | Most Affordable Term Premiums | A+ | $22.92 | Offering Term and UL | No |
| State Farm Life Insurance | Champion in Customer Satisfaction | A++ | $35.24 | Includes Final Expense, Term, UL, and Whole | Yes |
| New York Life | Premier Whole Life Insurance | A++ | N/A | Offering Term, UL, VUL, and Whole | No |
| Northwestern Mutual | Largest Life Insurance Provider | A++ | N/A | Offering Term, UL, VUL, and Whole | No |
| USAA | Optimal for Military Personnel | A++ | $26.86 | Providing Term, UL, and Whole | No |
Conclusion of best Life Insurance Companies
You can't go wrong with Nationwide, a financially strong corporation with a wide choice of coverage that may not require a medical exam. Most plans have three living benefit riders, which is an uncommon perk, so if they are important to you, Nationwide may be your best option.
If you're looking for a term life insurance coverage from one of the top-rated firms, look into Protective. It outperforms most competitors, but be mindful that its customer satisfaction scores are low. Consider MassMutual for convertible term insurance and Mutual of Omaha for return-of-premium coverage. Banner is another favorite, and its term cost is comparable to Protective's, although it has fewer rider alternatives.
Shoppers looking for whole life insurance may consider New York Life, our all-around top, and Penn Mutual, which specializes in dividends.