A life insurance policy helps your family prepare for the unexpected. It is a financial contract between you and an insurance company to provide a death benefit when you die.
It is a vital part of a family’s financial security. A life insurance policy helps your family cover the expense of your final expenses, as well as any outstanding mortgages, debts and college tuition.
The best life insurance policies should be affordable and provide your heirs with enough coverage to easily cover final expenses and any other debts.
Which company is truly the best? With all there is to take care of today, you can’t afford to wait until it’s too late to get your life insurance. Thats why were here, to help you make the right decision and make life a little less difficult.
What’s Life Insurance?
Life insurance is a contract between you and an insurance company that offers financial protection for your loved ones in the event of death. In return, you pay a premium. It can be described as a contract, between the insurer and the policy owner, whereby the insurer guarantees to pay a designated beneficiary a sum of money upon the insured person’s death.
Life insurance is extremely important, and the right insurance company will provide you with great service, coverage options, and rates. The best life insurance companies are those with high ratings for financial stability and customer satisfaction, a wide range of products, and many options to choose from.
Read on for details as we break down our picks for the best life insurance companies. Our picks for best life insurance companies are based on customer ratings, financial stability, and product offerings.
1. BEST OVERALL: New York Life
Rated as the top company in its industry by J.D. Power and Associates in 2021, New York Life is the third-largest life insurer in the United States.
Founded in 1845, New York Life has a mutual structure, which means it doesn’t have to pay stockholders. That allows for better customer service and more dividends for policyholders. This insurer offers more benefits to customers than any other insurer in our review.
New York Life also has a superior rating from A.M. Best, one of the most respected ratings bodies in the financial industry. In fact, New York Life earned its A++ (Superior) rating for the 24th consecutive year in 2020. This is the only hurdle that requires a bit of legwork, but we’ll help make it easy.
New York Life is a good option if you want to customize your policy and don’t mind working with a financial team. The company has several different types of life insurance, including term, whole, universal and variable universal life, plus accidental death insurance.
And New York Life also offers some of the most flexible options for premium payment, including annual payment plans, monthly credit card payment plans and bank drafts for direct withdrawal from your bank account.
New York Life is well-known for its customer service and has won several awards for this. It earned a 45/100 from JD Power for first year in-force customer service, which is about average for the industry.
New York Life’s website and app are easy to navigate, and customers can manage their accounts from anywhere.
New York Life is a mutual insurer, meaning it has no shareholders. Instead, it operates for the benefit of its policyowners and participating policyholders on a not-for-profit basis.
If New York Life wants to increase its profits, it must expand its business or create more value for its existing customers instead of raising premiums or cutting benefits.
New York Life offers various types of insurance like whole life, term life, universal life, variable universal life and new accelerato. They claim they offer the highest cash value accumulation in the industry.
2. BEST FOR YOUNG FAMILIES: Northwestern Mutual
Northwestern has been around since 1857 and was the number one life insurance company by premiums written. They have a high financial strength rating and pay dividends to their policyholders.
Northwestern Mutual has been a reliable and dependable company for over 163 years. The company’s commitment to policyholders can be seen in their record-breaking dividend payout in 2020, which was $6.2 billion.
The company is perfect for those looking for term life insurance or permanent life insurance products, but they do not have a speed quote service available on their website.
Northwestern Mutual is a mutual insurance company that offers whole life, universal life, and variable universal life insurance products. The company currently has $2.1 trillion in insurance sold to date.
Northwestern Mutual is a company that sticks with their policyholders for the long-term. The company believes that you deserve to have the time, resources, and knowledge available for making the important decisions regarding your financial future. This is why they work one-to-one with their clients as a whole rather than just selling them products and services.
Northwestern Mutual delivers services to help you live life differently and with greater confidence. In fact, their history of offering quality financial guidance has been built on long-term relationships with our clients.
Financial benefits of this life insurance, include tax-free retirement, income replacement, and final expense coverage.
3. BEST FOR CASH VALUES: MassMutual
Policies from Massachusetts Mutual Life Insurance Company (MassMutual) provide a number of opportunities to build savings throughout life with whole and universal life policies that pay out dividends.
The company has been financially stable since being founded in 1851, providing over 160 years of service. Massachusetts Mutual Life Insurance Company offers a wide array of life insurance options, including term, whole, universal and variable universal life insurance policies.
It has competitive prices for coverage as well as competitive rates for building your cash value. It also does well in financial stability ratings and doesn’t get many complaints from consumers. MassMutual has an A++ rating from AM Best, one of the highest ratings of any life insurance carrier.
The company offers a diverse selection of life insurance products that cater to customers with different needs. It is a challenge for many companies to balance customer service with price competition.
MassMutual has a lower-than-average number of complaints to state regulators compared to other large carriers. Like all insurers, the company charges more for some types of coverage than others, so comparing rates and adapting them to your specific needs will help you get the most value.
MassMutual is an institution that you can entrust your money to. With its long history and a reputation for being financially sound, MassMutual should be high on your list if you’re shopping for life insurance. We recommend it for its excellent financial ratings across the board and its low number of complaints to state regulators.
MassMutual offers the best of both worlds in life insurance. The company’s term policies are straightforward and affordable, while its permanent life insurance options provide opportunities for long-term savings.
What sets MassMutual apart from other life insurance companies is its term policies. They’re straightforward and affordable, with permanent life insurance options that provide opportunities for long-term savings.
The company’s also highly rated for great customer service and its financial strength. Life insurance doesn’t have to be complicated. MassMutual provides the protection you need at a price you can afford – and we’ll make sure you understand what it is that you’re getting.
4. BEST TERM FOR SENIOR VETERANS: Prudential
Prudential was founded in 1857, and is one of America’s oldest life insurance companies. In addition to life insurance, the company also markets a variety of insurance products, including annuities and mutual funds.
Prudential’s has a solid financial strength rating and has an ownership structure that protects policyholders. It is one of the largest life insurance providers in the U.S., with a history spanning more than 140 years.
It has an AM Best financial strength rating of A+ (Excellent), and offers a large selection of life insurance products with surprisingly low prices and short policy approval times.
It also has below-average complaint ratings with the NAIC, and its sample term life quote was less expensive than those from many competitors.
As a top-level insurer globally, they offer products and services in many markets across the globe, including Europe, Japan, Latin America, and Asia Pacific. Its U.S. operation offers individual life and annuities coverage to provide financial security for their customers’ loved ones if they pass away or become disabled.
With Prudential whole life insurance, your rate and death benefit are guaranteed—and you can access but never outlive the cash value. You can even start earning lifelong dividends as early as your second policy year.
When you purchase a whole life insurance policy from Prudential, they guarantee that your rates will never increase and the payout value will always stay at the minimum payout value.
They also guarantee that you can access but never outlive the cash value. You can even start earning lifelong dividends as early as your second policy year.
Whole life insurance with Prudential is a great way to protect your family’s future, increase your cash savings, pay for unexpected expenses, and potentially earn dividends over the long haul.
5. BEST PRICE: USAA
USAA is known in the military community for an outstanding insurance company and excellent customer service. They are easily one of the best auto insurance companies, and they provide other services such as homeowners, renters, health insurance, banking and retirement accounts and more.
For anyone who is or was part of the military, USAA offers unbeatable service and great policies. It is a leader in home insurance and auto insurance, having received the highest score for customer satisfaction in J.D. Power’s 2017
Being in the military is hard enough without having to worry about protecting your family, which is why this life insurance can provide some peace of mind. After all, your family deserves to be taken care of.
With a military-like focus on integrity, loyalty, and service, USAA has been helping customers meet their insurance needs.. Today, there is more to the company than auto insurance. For example, the group now offers homeowners insurance with plenty of coverage options.
Headquartered in San Antonio, TX, there are more than 27 million current and former members of the U.S. military who can access this insurer’s products through its exclusive offering.
Since 1922, USAA has stood apart as a different kind of insurance company with one that serves military members and their families. It remains committed to providing a strong, reliable insurance product at a competitive price.
USAA is a well-known and trusted brand for military insurance, banking, and investing, offering top rated auto insurance and customer service at very competitive rates.
6. BEST GROUP PLAN OPTIONS: USBA
The Uniformed Services Benefit Association (USBA) offers term and whole life insurance for members of the US Military, National Guard, Reserve, Federal employees, and their families.
Established in 1959, USBA is a not-for-profit association that provides insurance solutions for men and women serving the U.S nation’s military as well as federal employees, National Guard members and reservists.
Backed by New York Life Insurance Company, USBA offers life insurance, personal accident insurance, accidental death & dismemberment insurance, end of life services, and identity theft protection to those who serve our country.
Customers of the Uniformed Services Benefit Association have peace of mind knowing their loved ones will be financially secure should an unfortunate event occur, giving them support for all of life\’s challenges.U.S. military personnel, reservists and their family members – including the National Guard – are eligible to apply for life insurance through USBA (Uniformed Services Benefit Association).
It offers several types of coverage in a friendly, understanding manner that may be unmatched by any private life insurance company.
If you’re a member of the military, National Guard, reservists, or a qualified family member of one, you’ll find this life insurance through USBA an amazing option to consider.
You could qualify for: large coverage amounts and low premiums — up to $400,000 in coverage with premiums as low as $22 per month! What a great opportunity it is to get coverage at the lowest possible price.
7. BEST FOR NO MEDICAL EXAM: Navy Mutual
Navy Mutual was formed in 1879 and is now the United States’ oldest Veterans Service Organization. Life insurance policies are available for purchase from ages 18 to 75.
Life Insurance Benefit Highlights include: Tax-Free Distribution of Benefits; Income Protection for Family; Surviving Spouse Benefit Protection; Portable Coverage, not affected by change of jobs or base transfers; NO Waiting Periods for Death from Injury or Accidental Means; NO War Provisions.Navy Mutual, a national not-for-profit Association, was formed in 1879 and is the nation’s oldest Veterans Service Organization.
With roots as a burial association for Sailors of modest means, Navy Mutual has grown to become the premier choice of service members and their families.
Navy Mutual is committed to providing veterans and their families with benefits they deserve, and has been working to ensure members and beneficiaries have strong financial futures through meaningful services and solutions.
In February 2018, Navy Mutual had an A+ (superior) rating from A.M. Best and more than $1 billion of life insurance in force. In October 2019, the company had $7.8 billion in insurance coverage in force for its nearly 70,000 members.
Built with a financial strength rating of A+ by Fitch Ratings, Navy Mutual offers level and convertible premiums for term life insurance policies. Lifetime coverage with no service or age restrictions for returning to active duty is available.
Navy Mutual was founded by retired United States Navy officers to provide term life insurance for individuals with military affiliation.
Navy Mutual offers fully underwritten two-year term life insurance policies, with a maximum death benefit of $1 million. The policy will automatically convert to universal life unless you choose otherwise when the two years is up.
8. BEST TERM LIFE OPTIONS: AIG
Founded in 1919, AIG is a leading insurance company that has provided its customers with trusted products for more than 100 years.
The insurer offers life insurance, annuities and financial planning. While AIG has received 289 complaints over the last three years, according to the NAIC, it scored below average on J.D. Power’s 2020 U.S. Life Insurance Study and was ranked fourth out of 18 insurers by NerdWallet.
American International Group (AIG) ranks in the top ten of insurance companies in the U.S. With a proven track record and experience dating back to 1919, AIG offers clients reliable auto insurance, life insurance, home insurance, health insurance, and business and retirement planning.
Customers report below industry average satisfaction rate in the J.D. Power survey and fewer than expected NAIC complaints for the company’s size for reliable service.
AIG is a leading provider of life insurance products. A member of the Fortune 100 and Dow Jones Industrial Average, AIG offers several life insurance options to meet your needs.
This company is a global insurer serving over 80 million customers in more than 100 countries. They offer many types of insurance including accident, property, and casualty. Its life insurance includes whole life and universal policies, as well as annuities. They also provide disability, critical illness, multigenerational life insurance and long-term care insurance products.
AIG overall pricing isn’t discounted like some companies on our list, but it might still be worth a look.
It specializes in life insurance, auto, and home products for people in their 40s and 50s. AIG Life is part of American International Group, Inc. (AIG Life) and part of the AIG family.
As the largest life insurance company in the U.S., they have over 100 years of experience offering a variety of life insurance products to their customers.
AIG Life insurance offers both term and permanent life insurance coverage. The company offers term life insurance for 10, 20, and 30 years, as well as universal life, variable universal life, and whole life policies.
9. BEST ESTATE PLANNING OPTION: Guardian Life
Founded in 1860 and based in New York City, Guardian Life Insurance Company is one of the largest mutual insurers in the U.S.
The company helps protect its customers through high-quality insurance products that help provide a lifetime of protection, and strives to be amongst the most customer-centric companies.
It has received numerous awards including being in Fortune’s list of World’s Most Admired Companies and being named a Best Employer by Forbes. Guardian Life Insurance is a major mutual insurance company.
The company has been in business for more than 150 years and offers a variety of life insurance policies. However, it doesn’t have nearly as many complaints as the industry average. Additionally, it has great financial strength ratings all-around.
The Guardian Life Insurance Company aims to offer financial security and protection through their huge variety of life insurance products.
It is built on solid ethical standards and in recent years has even won awards for workplace excellence. Partnering with Guardian provides you with a broad range of life insurance and annuity products, top-tier ratings and outstanding service. In fact, they have some of the most competitive rates in the industry. Guardian Life Insurance provides a great life insurance option for both individuals and employers.
Guardian Life’s headquarters are in New York, but they serve more than 2 million customers across the United States. And because the Guardian Life Insurance Company’s headquarters are in a northeastern state, it hasn’t expanded much outside that region.
As at 2019, you’ll only be able to buy this company’s policies if you live in California, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Idaho, Iowa, Maryland, Maine, Massachusetts, Michigan, Nebraska, New Hampshire, New Jersey, New York (except Manhattan), North Dakota, Oregon, Pennsylvania (outside Philadelphia), Rhode Island , South Dakota , Texas or Virginia.
10. BEST GUARANTEED ISSUE: Transamerica
Transamerica is a well-respected insurance company that has provided more than 100 years of reliable service.
It is one of the largest insurance companies in the U.S., and has been around for more than 110 years. It administers life insurance to about three million people and provides coverage to about five million more through workplace retirement plans that it manages.
Founded in 1904 and headquartered in Baltimore, MD, Transamerica is best known for offering life insurance and retirement planning.
Overall, their offerings are good but their customer service occasionally leaves something to be desired.
Transamerica offers a range of life insurance products, including term, whole, universal, index universal, and variable universal life. The company has an A.M. Best rating of A- (Excellent), meaning it might be a good choice for you if you’re looking for an insurer with a history of financial stability
While it is a solidly built institution, it has average ratings for complaints and is only average for customer satisfaction.
Transamerica has issued over $1 trillion in life insurance to date, and is worth considering.
Conclusion
Making the best decision as regards life insurance policy is a very critical factor in securing your future and that of your family. The reviewed options in this list should guide you in choosing one.
