If you’re in the market for life insurance, you’ll quickly realize there is no shortage of insurance companies offering life insurance. Each company has their own advantages and disadvantages.
Understanding what the best life insurance company is can certainly be confusing! We’ll explore our top 10 best life insurance companies below, and will help you find the best life insurance policy.
Table of Contents
- How Does Life Insurance Work?
- What to Look for With a Life Insurance Company
- 10 Best Life Insurance Companies
How Does Life Insurance Work?
Not only are there a lot of companies that offer life insurance, there are also numerous types of life insurance policies available.
On a high level, how does life insurance work? Simply put, life insurance is a contract between the insured and the insurance company.
This contract can be for one’s entire life, or it could be for a fixed period of time. If one were to pass away within the terms and conditions of the contract, the life insurance company would pay a beneficiary a death benefit.
The two main types of life insurance are, permanent or whole life insurance and term life insurance. What is the difference between term and whole life insurance? We’ll cover that below.
- Permanent life insurance – As the name suggests, this is life insurance that is in effect for the duration of the insured life – contingent on all payments being made in full and on time. Permanent life insurance also builds a cash value, which offers various tax advantages. Whole life insurance is a form of permanent life insurance.
- Term life insurance- This is life insurance that is in effect for a specific length of time, typically 10, 20, or 30 years. Term life insurance is affordable, and it’s also the most popular life insurance option.
What to Look for With a Life Insurance Company
Before you can decide what the best life insurance company is, you need to know what to look for in a life insurance company. The best life insurance company for one individual may be different from the best life insurance company for another individual.
When evaluating companies, make sure the company offers the type of insurance you’re looking for. Also remember to consider the following:
Options for Riders
Having the option for riders is something else that must be considered when choosing the best life insurance policy. A rider is simply an “add on” insurance coverage.
There are numerous types of riders one can choose from, which provides additional benefits for a rather affordable rate.
The Best Option Will Be Unique to Your Needs
As mentioned above, the best life insurance policy will be unique to your needs. No two people have the same exact needs or wishes.
With so many insurance companies to choose from, and an endless amount of life insurance combinations, you can certainly find something that is ‘custom’ to your needs.
Customer Satisfaction Scoring
You’ll also want to make sure the company has a strong customer satisfaction or customer service rating. It’s incredibly frustrating when you have a question regarding your life insurance, and the customer service team is anything but helpful.
Considering how important life insurance is, you’ll want to make sure you’re purchasing insurance from a company with a strong reputation. There are plenty of legacy insurance companies to choose from, but just because the insurance company has been around for decades doesn’t mean they have a strong reputation in the present day.
Last but not least, the best life insurance company will offer affordable insurance! Before signing the contract, you’ll want to get numerous quotes from other insurance companies to see if they can beat your quoted rate.
10 Best Life Insurance Companies
Now let’s dive into our top 10 best life insurance companies!
Northwestern Mutual is a top-rated insurance company, founded in 1857. They are known for their competitive rates and exceptional customer service.
Best For: Northwestern Mutual is often considered the best whole life insurance option
Life Insurance Options: Northwestern Mutual offers whole life, term life, variable universal life and universal life insurance.
Ages Issued: If you’re between 18 and 80, you can receive insurance from Northwestern Mutual.
- This is a tried and true company and nearly two centuries old!
- Northwestern Mutual is the complete package. You can use this company for your financial needs as well.
- Their customer service is top-notch.
- You cannot get online quotes, you must use one of their financial advisors to get a proper quote.
- Northwestern Mutual has numerous insurance options, which may get confusing.
Prudential is another tried and true insurance company, founded in 1873, offers a wide range of insurance options.
Best For: The wide coverage Prudential provides makes it the best overall option.
Life Insurance Options: Prudential offers a wide range of insurance options, such as term life insurance, variable life insurance, indexed universal life, and various riders you can add on to your policy.
Ages Issued: Prudential issues insurance if you are between the ages of 18 and 75.
- You can get a quote online for term life insurance.
- You can add numerous riders to your policy, maximizing your death benefit.
- Their website has a great deal of resources and useful information customers can read and learn from.
- Prudential does not offer whole life insurance options
If you’re looking for an instant quote, consider Bestow! Bestow is a relatively new company that caters to modern times.
Best For: Bestow is undoubtedly best for instant quotes.
Life Insurance Options: Bestow only offers term life insurance.
Ages Issued: Coverage is issued if you’re between 18 and 60 years old.
- You will receive an instant quote online.
- Their customer service, including live chat, is excellent.
- You can get coverage without completing a medical exam.
- Bestow only offers term life insurance.
- The coverage amount is limited.
New York Life
Customers of New York Life give this insurance company extremely high ratings. New York Life has been around for more than 175 years, and has a wide product range under their umbrella.
Best For: New York Life is well known for its competitive term life insurance policies.
Life Insurance Options: New York Life offers; term life insurance, whole life insurance, universal life insurance, and variable universal life insurance.
Ages Issued: Insurance is issued to infants, all the way up to 90 years old.
- You can do a lot under New York Life’s umbrella. For example, New York Life also offers investment options.
- New York Life is well known and respected for their strong customer service.
- SImilar to Northwestern Mutual, you must consult with a financial advisor before reviewing insurance options for coverage
- There are no online quotes
Pacific Life Insurance
Pacific Life was founded in 1868. This company has a strong financial rating and offers numerous insurance and investment products.
Best For: Pacific Life is well respected for combining insurance with investments.
Life Insurance Options: Pacific Life offers; term life insurance, whole life insurance, universal life insurance, indexed life insurance, and life insurance with various long-term care benefits.
Ages Issued: Pacific Life offers insurance for those between 17 and 75 years old.
- Pacific Life offers strong investment options.
- Pacific Life offers competitive rates.
- Some of their life insurance options have higher internal costs when compared against other products.
- There are no online quote options available.
USAA offers auto, home, banking products, and life insurance. Their life insurance option is available to the general public, but all other services are reserved for members of the United States military, or Veterans of the United States military.
Best For: Active Duty or Veterans of the United States Military.
Life Insurance Options: USAA offers term and whole life insurance options.
Ages Issued: Insurance is issued up to 85 years old.
- If you’re a member, or veteran, of the United States military, you can complete all your personal finance needs under one roof.
- The rates are highly competitive.
- You can get quotes online.
- If you’re not an active member of the United States military, or a veteran, you can only use USAA for their life insurance. You’d have to also use another company if you were interested in investments.
Allstate is an insurance company that can take care of all your insurance needs. This company has been around for ages, and has evolved with the modern times.
Best For: Allstate is known for having all insurance under one roof.
Life Insurance Options: Allstate offers; term, whole and universal life insurance options.
Ages Issued: Allstate will issue insurance to you as long as you are less than 80 years old.
- Not only does Allstate offer term, life, and universal life insurance, they also offer auto, home, renters and motorcycle insurance.
- Allstate has an A+ rating and is highly praised for strong customer service.
- Allstate’s term life does not require a medical exam.
- Not all applications can be completed online.
- Depending on your health condition, you may not be able to receive a quote online and will need to work with an agent.
Guardian Life is another fantastic insurance option! They offer a wide range of life insurance, investment products, and health insurance policies.
Best For: Guardian Life offers the best survivorship benefits.
Life Insurance Options: Whole, term, and universal life insurance.
Ages Issued: 18-80 years old.
- The website has a great deal of resources available.
- You can receive quotes online, although you will not be able to solidify coverage.
- Dividends are available with whole life insurance policies.
- There are no guaranteed issue life insurance options.
- There are no discounts for bundling insurance policies.
- You must apply for life insurance through an agent.
Nationwide was founded in 1925 and is now one of the biggest financial and insurance companies in the entire world. This company provides a wide variety of insurance and investment products.
Best For: Bundling, Discounts, and Customer Service
Life Insurance Options: Nationwide offers; whole, variable, term, and universal life insurance.
Ages Issued: Up to 75 years old.
- Nationwide has a wide variety of insurance options, and offers discounts for bundling.
- Policies can be customizable.
- Nationwide can also take care of your investment needs.
- It’s difficult to obtain an online quote.
- The numerous universal life insurance options can be overwhelming.
Haven Life was founded in 2014. Although this is a relatively young company, it has quickly risen through the ranks as being a highly respected insurance company, with an A++ rating!
Best For: Self Service
Life Insurance Options: Haven Life offers term life insurance.
Ages Issued: You are eligible for their insurance as long as you are not older than 64 years old.
- A complete digital experience.
- You do not need to go through an agent to purchase insurance.
- Their website and technology is world class.
- You can only purchase this insurance until you are 64 years old.
- You will never have a personalized agent assisting you throughout the process, many consider this to be a major disadvantage.
Protect Your Loved Ones
Life insurance is about protecting your loved ones. During a time of loss, the last thing a family wants to think about is money.
The best life insurance policy will pay a death benefit to your beneficiary and will allow them to keep life as ‘normal’ as possible in your absence. With that said, life insurance is just one of the numerous variables one must consider when they are managing their personal finances.
Working with a professional financial advisor is a great way to ensure all financial variables are considered and planned for. A financial advisor will do more than just offer investment advice. A good financial advisor will review your spending and saving habits, and will also identify gaps within your insurance coverage.
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