Having life insurance can provide much-needed financial security to your loved ones after your passing. If you need guidance through the life insurance process, we can help.
There are a lot of life insurance companies on the market. We have reviewed Twenty (20) top choices that may offer some of the best coverage.
What Is Life Insurance?
Life insurance is a contract between an insurer and a policy owner.
A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured dies in exchange for the premiums paid by the policyholder during their lifetime.
For the contract to be enforceable, the life insurance application must accurately disclose the insured’s past and current health conditions and high-risk activities.
What Are The Different Types Of Life Insurance?
- Term life insurance: This lasts for a predetermined period (commonly 10, 15 or 20 years), and then it expires
- Whole life insurance: A policy that covers the insured for the duration of their life as long as the premiums are paid. It includes a guaranteed cash value component, and fixed monthly premiums
- Universal life insurance: Similar to whole life, this protects the insured for the duration and their life as long as premiums are paid, and it includes a cash value component. The cash value component in this policy is not guaranteed and it will fluctuate with the market
Life Insurance Companies
When you start your search for life insurance, you’ll be able to choose between various policy types, including universal life insurance, term life insurance and whole life insurance.
The Insurance Information Institute (Triple-I) recommends you discuss your needs with a financial advisor or insurance agent to determine what type of policy is best for you and what carriers fit your criteria.
20 Best Life Insurance Companies of 2022
1. Guardian
The Guardian Life Insurance Company of America ranks well in customer satisfaction and financial strength and offers the most term life insurance riders on our list.
According to the National Association of Insurance Commissioners (NAIC), the company also has fewer than average policyholder complaints and offers multiple no-medical exam policy options.
Guardian provides easy policy management through its network of more than 3,000 financial representatives across the nation and online account management. Guardian carries an A++ (Superior) financial strength rating from A.M.
Best and offers multiple coverage options depending on your life stage, goals, needs and budget.
It also offers relatively inexpensive life insurance for millennials.
2. MassMutual
MassMutual won a 2022 Bankrate Award for best whole life insurance thanks to its A++ (Superior) financial strength rating from AM Best and for offering 13 whole life insurance riders, the most of any company we analyzed.
MassMutual, also known as Massachusetts Mutual Life Insurance Co., is a U.S. life insurance company owned by its policyholders, allowing select policyholders to earn dividends when the company does well.
MassMutual offers an online application process for term life insurance. Coverage takes effect immediately upon application approval, and applicants must usually complete medical exams for all term and universal life policies.
3. Mutual Of Omaha
Mutual of Omaha ranked just behind the overall winners of Bankrate’s best life insurance study.
The company ranks well above average in J.D. Power’s customer satisfaction survey and earned a financial strength rating of A+ (Superior) from AM Best.
Mutual of Omaha offers no-medical exam life insurance options, and its digital features could make managing your life insurance policy easy.
In terms of accessibility, Mutual of Omaha offers a robust digital app, an online portal, local insurance agents and a 24/7 phone line for accepting your payments.
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4. Nationwide
Nationwide won a 2022 Bankrate Award for best universal life insurance coverage for its accessibility and wide range of riders.
In terms of accessibility, Nationwide offers a user-friendly mobile app, streamlined online portal and a network of independent agents across the U.S.
The multi-lines insurer offers seven riders for universal life, the second-most of any company on our list.
Nationwide also received the second-highest customer satisfaction score on our list and a financial strength rating of A+ (Superior) from AM Best, making it one of the most competitive life insurance companies in the marketplace.
5. Northwestern Mutual
Northwestern Mutual received top-tier customer satisfaction scores and financial ratings, scoring just behind the overall winners of Bankrate’s study on best life insurance companies.
Northwestern Mutual sells coverage through agents, which could be a good fit for those who prefer face-to-face interactions over a digital purchase process.
Earning an A++ (Superior) financial strength rating from AM Best, Northwestern Mutual shows a strong history of being able to pay claims.
As a mutual company, it is owned by its policyholders. Northwestern Mutual offers a variety of term, whole and universal life insurance policies.
The company ranks highly in Bankrate’s internal study of accessibility for providing a mobile app, online portal, local agents and a 24/7 customer service phone line that accepts premium payments.
6. Prudential
Prudential Financial ranked just behind our overall best life insurance company winners in customer satisfaction and accessibility.
Prudential has a national footprint with the resources to offer plentiful rider options, easy-to-use online tools and live agent support.
Prudential has fewer policyholder complaints than average, according to the NAIC’s complaint index.
The company has nine universal life insurance riders — more than any other carrier on our list.
It offers a variety of term life and universal life insurance policies, giving customers a greater level of flexibility than some of its competitors.
However, keep in mind that Prudential does not offer whole life insurance or no-medical exam policy options.
7. State Farm
State Farm won a 2022 Bankrate Award for best term life insurance, thanks to its top-notch customer service and accessibility tools.
The company also received the highest customer satisfaction score from J.D. Power on our list.
State Farm offers accessibility tools including a 24/7 customer helpline, easy-to-use mobile app, online portal and more than 19,000 local agents across the U.S.
With an A++ (Superior) rating from AM Best, State Farm has a history of financial stability.
The carrier offers a variety of term life insurance options as well as whole, universal and variable universal options.
8. Bestow
Bestow is the choice for individuals who want to get life insurance coverage but don’t want to go through the hassle of a medical exam.
The company sells term insurance policies (and only those), so you can apply online and purchase a policy without visiting a doctor or having tests such as bloodwork done.
You can get up to $1.5 million in coverage, which is a higher maximum than for many other no-exam policies.
The company uses your personal information and your answers about your medical history, hobbies and lifestyle to determine your eligibility for life insurance and your rates.
Bestow claims you can get a quote and purchase a policy within minutes, all online.
Bestow policies are issued by top-rated insurer North American Company for Life and Health Insurance.
Additionally, life insurance from Bestow is now embedded into Lemonade’s app and website.
Bestow also offers a comprehensive library of helpful information.
9. Ethos
Ethos uses either simplified issue and fully underwritten methodology for its term policies, and guaranteed issue underwriting for its whole life insurance policies (no company we know of offers term policies with guaranteed coverage).
The guaranteed issue whole life policy is available to individuals between 65 and 85.
Applicants can obtain instant approval for up to $25,000 of coverage, regardless of their medical history.
Most include an accelerated death benefit rider that allows policyholders to tap into a portion of their benefits if they’re diagnosed with a terminal illness.
10. Policygenius
Policygenius takes the top spot as the best comparison tool and broker for its satisfying provision of one-stop shopping from a range of insurers.
Policygenius’s partners include such names as AIG, Banner Life, Brighthouse, John Hancock, Lincoln Financial, Mutual of Omaha, Pacific Life, Principal, Protective, Prudential, SBLI and Transamerica.
This online marketplace also offers an extensive library of educational resources for those new to life insurance, including recommendations for life insurance for people who suffer from depression and diabetes.
Coupled with its broad range of coverage options such as term or permanent coverage policies, these resources make Policygenius a standout option for comparing life insurance quotes.
If you need help choosing the right policy or coverage amount, PolicyGenius’ agents can give you personalized assistance.
They are paid by salary rather than commission, the company says, so they aren’t incentivized to oversell or to direct you to certain products that may earn them a higher commission.
11. Haven Life
Haven Life gets our nod for the best term insurance coverage because of its impressive array (10-, 15-, 20-, 25- and 30-year) of policy terms, along with coverage amounts that range from $100,000 to $3 million.
Haven Life offers two types of term life insurance policies: Haven Term and Haven Simple.
Haven Term includes Haven Life Plus, a rider that provides access to an online service to develop a will or trust, fitness and sleep tracking apps and an online storage vault for important documents.
Applicants who are younger than 64 can get up to $3 million of coverage through Haven Term.
Haven Simple is only available for applicants aged 20-55 and includes the Accelerated Death Benefit rider.
12. Ladder
Ladder is one of the best flexible life insurance option we’ve found. It uses a simple three-step online application and offers affordable policies that start at $5/month.
The company also doesn’t charge any cancellation fees, which means you can cancel your coverage any time, with no strings attached.
Another appealing feature for Ladder is that, unlike other insurers, it allows policyholders to change their coverage amount online at any time — with corresponding changes in premiums, of course.
This perk can help policyholders maintain an affordable policy at all times, and might be especially attractive to those worried about possible changes in their financial circumstances down the road.
13. New York Life
While it also sells term life insurance, New York Life is the best company for those seeking a permanent life insurance policy – which will be more costly but accumulate a cash value in addition to its death benefit.
The company offers multiple permanent options, including whole, universal and variable universal life insurance plans.
It also has several optional riders you can add to plans to customize your coverage.
New York Life has a strong reputation, and, because it’s a mutual insurance company, its policyholders own part of the company’s shares.
Depending on the type of policy you have, you may be eligible to receive dividends.
However, New York Life doesn’t allow customers to get quotes online.
For details on its policies and rates, you have to work with an agent.
14. Transamerica
While Transamerica may not be a household name, this company has been around since 1904 and boasts solid ratings for financial strength, including an A rating with AM Best and an A+ rating.
Transamerica also offers a broad selection of life insurance coverage including term policies, whole life insurance, universal life insurance, index universal life insurance, and final expense life insurance.
Transamerica has you speak to an agent in order to get a quote for most of its life insurance products.
However, you can get quotes for term life online. Its premiums for term coverage tend to be an excellent value.
15. Lincoln Financial
Founded in 1905 and headquartered in Radnor, Pennsylvania, Lincoln Financial group offers two term life insurance policies: Lincoln TermAccel and Lincoln Life Elements. Both offer terms ranging from 10 to 30 years with the option of including riders such as accelerated benefits, children’s level term insurance, and waiver of premium.
The main difference between the two is the amount of coverage you can get. TermAccell’s ranges from $100,000 to $1 million, whereas LifeElements has coverage for $1 million and up.
Lincoln Financial Group’s term life application process is fairly straightforward and you can complete some of it online.
Depending on the policy you choose and your initial application, you may not need to complete any lab work as part of the process.
Those who qualify are typically those who want $1 million or less in coverage, and are considered healthy.
Another important aspect to note is if you’re a smoker, Lincoln Financial Group may have younger age limitations compared to someone who is a non-smoker.
16. John Hancock
In business for almost 160 years, Boston-based John Hancock holds an AM Best rating of A+. Applicants can receive quotes online and may qualify to waive the medical exam.
Anyone between the ages of 18 to 80 can apply. Coverage levels start at $750,000, and you can choose terms ranging from 10 to 30 years.
Policyholders can earn discounts and other rewards through the Vitality Plus wellness program.
Perks include savings on food, a free subscription to the Headspace meditation app, and more.
The insurance company also allows you to convert your term life to a whole life policy for no additional fee, nor will you need to undergo a medical exam.
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17. Fabric
Fabric sells term life insurance with coverage amounts ranging from $100,000 to $5 million.
The online application takes 10 minutes to complete. If you choose to buy more than $1.5 million in coverage, an in-person medical exam is required. Policy lengths range from 10 to 30 years.
18. Pacific Life
Policies are available in 10-, 15-, 20-, 25- and 30-year term lengths, with a minimum coverage amount of $50,000.
You can choose to add life insurance riders at an extra cost, such as an accelerated death benefit, waiver of premium or child term rider.
19. USAA
USAA life insurance covers you during wartime and helps pay bills if you’re severely injured in the line of duty.
It also lets you replace your lost group coverage if you retire or leave the military.
20. AARP
Available to AARP members between the ages of 50 and 74. Coverage amounts range from $10,000 to $100,000.
Higher coverage amounts may be available by speaking to New York Life, the company that issues AARP’s term life products.
Frequently Asked Questions On Life Insurance Companies
Below are some frequently asked questions about Life Insurance Companies:
How do you buy life insurance?
Once you have selected a life insurance company and policy, you can buy your life insurance policy.
The first step in the policy purchasing process is to complete an application with the company you select.
Many insurance companies offer online quotes. Depending on the company and your situation, you may be asked to get a medical exam or participate in a phone interview to discuss your medical history.
Once approved, you will review and sign the policy and pay the premium. After that, your life insurance coverage will be active.
How much does life insurance cost?
The cost of life insurance depends on a number of rating factors. Personal aspects like your age and health play a large role.
Generally, younger people and healthier people pay lower rates. Additionally, the type of policy you choose, your coverage limits and what riders you include will affect rates.
Permanent policies tend to be pricier, and higher coverage limits generally mean higher rates.
Adding riders will also likely increase your premium. While shopping around might help you find cheaper life insurance, keep in mind that rates don’t vary nearly as much between companies as auto or home insurance rates do.
CONCLUSION
Choosing the best life insurance policy is not a decision to take lightly.
The insurance company’s history, as well as its reputation for customer service, financial stability and death benefit payouts, are just a few of the things that can impact both your experience and policy value.