Best Life Insurance Companies

Final Verdict

When choosing a life insurance company, it’d be hard to go wrong with any of the companies on this list. But if you’re not sure which type of policy you want, start with Nationwide since it offers the most policy types of the group. Nationwide is also a top pick if you’re seeking a high-coverage no-exam policy, along with Guardian.

All companies on this list have received at least an A+ rating by AM Best for financial stability. But if only the absolute best will do, MassMutual, Guardian, USAA, and New York Life have A++ AM Best ratings. And, except USAA, all are solid choices for dividend-paying policies as well. 

If you want term life insurance, Protective is your go-to for the most affordable coverage. It’s also one of only two companies of the 91 we reviewed offering term coverage for 40 years (Banner is the other). 

And for a policy packed with no-cost living benefits, start with Mutual of Omaha, Nationwide, or USAA (if you’re in the military).

When shopping for a term policy, it's important to look at the company's overall strength and customer satisfaction ratings, as well as policy specifics such as price, coverage amounts, and any special features available. Check out our complete review of the best term life insurance companies to find the right company for you.

Some things to consider when looking for a whole life policy are whether the company is trustworthy and ranks well with customers, as well as policy features such as dividends, living benefits riders, and eligibility factors. Check out our complete review of the best whole life insurance companies to find the right company for you.

Other Types of Life Insurance

Universal (UL)

Universal life (UL) insurance is similar to whole life insurance with a couple of important distinctions. The premiums and death benefit can be changed after the policy has been issued, and interest is credited to the cash value based on current interest rates. So you don’t know in advance how much the cash value will be worth in the future. 

For this reason, universal life policies can be a way to get permanent coverage at a fixed premium that is often much lower than that of an equivalent whole life policy, at least in its early years.

Indexed Universal (IUL)

When cash value performance in a universal life policy is tied to a stock market index, it is said to be indexed. The cash value in an indexed universal life insurance (IUL) policy is credited interest based on the index selected (for example, the S&P 500 or the Nasdaq composite). It’s important to note that the cash value is not invested directly in the index. 

IUL policies usually have at least a 0% floor, which means the cash value will not see a negative return even when the index performs poorly. Conversely, gains are limited as well. In fact, insurance companies are innovative when it comes to the complexity of calculations they employ to limit gains. For example, an IUL policy may be subject to one or more (usually “more”) of the following:

• Participation rate: This is the percentage of index gains that will be credited to the policy. For example, if the index returns 10% and the participation rate is 60%, 6% would be credited).
• Spread: This rate is deducted from the index’s gains. If the index returns 10% and the spread is 4%, your policy would be credited 6%.
• Cap: This limits the amount of interest your policy can be credited. If the cap is 6% and the index returns 10%, 6% will be credited to the cash value.

IUL policies can be an attractive proposition if you want the potential for stock market gains but want to avoid losses. Just be aware that if the index doesn’t perform well enough, interest credited could be insufficient to keep up with policy expenses and your premium could increase. 

Variable Universal (VUL)

In a variable universal life (VUL) insurance policy you can invest the cash value directly in the stock market. VUL policies typically offer a variety of mutual-fund-like subaccounts from which to choose; subaccounts available represent a range of investment objectives and risk profiles, from conservative to aggressive, and all can potentially lose value. This makes VUL the riskiest type of life insurance and generally inappropriate for someone who doesn’t have other life insurance coverage in place. It’s only available through an agent that is also licensed to sell securities. 

Guaranteed Issue

Guaranteed issue (GI) life insurance policies are just what they sound like. Health issues will not disqualify you from approval because no health questions are asked on the application, nor is an exam required. You usually have to be at least 40 or 45 years old to be eligible for coverage, and coverage amounts are low while premiums are relatively high compared to other underwriting methods for the same amount of coverage. 

GI policies are whole life policies that have a “graded benefit” for two to three years. If you die from natural causes during this time, your beneficiaries will only receive a return of the premiums you paid (usually plus a percentage like 10%). They will not receive the full death benefit unless you die after this period. After the waiting period, the policy’s full face value will be paid.

Burial Insurance (aka, Final Expense Insurance)

These policies may be either guaranteed issue or simplified issue policies. Burial insurance, also called final expense coverage, senior insurance, or funeral insurance, is a low-coverage whole life plan. While you have to answer some medical questions and coverage is not guaranteed, it can result in lower premium payments than GI. 

Burial insurance, like GI, may only be available if you’re older than 40 or 45. Face values often range from $2,000 to $50,000 and policies often have a graded death benefit period before your beneficiaries are able to receive the full death benefit. 

When shopping for burial insurance, be sure to compare each policy's graded benefit period. The length of the graded benefit period can differ between companies, and some policies might not even have one. It's also crucial to check how satisfied customers are with any company you're considering. To make these tasks easier, check out our review of the best burial insurance companies.

Consider these factors when choosing your life insurance company:

• Financial strength: Check AM Best ratings for financial stability. A++ and A+ ratings are considered “superior,” while A and A- are considered “excellent.”
• Customer complaints: The National Association of Insurance Commissioners (NAIC) uses customer complaints to create the NAIC complaint index, which indicates whether a company received more or fewer complaints than expected, based on its market share. An index lower than 1 indicates the company received fewer complaints than expected, while a number over 1 means it got more than expected. The higher the index, the more customers complain, and vice versa. 
• Customer satisfaction: Not all companies are ranked by J.D. Power, but check J.D. Power’s U.S. Individual Life Insurance Study to see if companies you’re considering are. At a glance, you can see how a company ranks compared to others when it comes to customer satisfaction.
• Available policy types: If you know which type of insurance you need, make sure each company you’re considering offers it. But note that a whole life policy with one company can be very different from a whole life policy with another. Though policies between companies might have the same name, each company tries to make their product stand out. Make sure their efforts suit your needs.
• Available and included riders: This is a major way that same-named policies can differ. For example, a universal life policy with one company might include a generous accelerated death benefit rider at no cost, while a UL policy with another company may not. Or a term policy with one company may allow you to convert it to permanent coverage, while a term policy with another company may not. Research riders to know what you’re paying for.
• Ease of application: Sometimes the biggest barrier to getting a life insurance policy is the application process. And often, it’s better to get some coverage in place—especially if you have dependents—than it is to find the absolute best coverage you can. If you’re too busy for an exam, look for companies that don’t require one. 

Once you've identified a few solid companies, compare life insurance quotes to decide which makes sense for you.

With those findings in mind, we gathered more than 50 data points on 91 life insurance companies, including ratings for financial strength, customer satisfaction, and customer complaints, as well as information about years in business, cost, online tools, no-exam options, policy types and features, and available riders. 

Our review process gave preference to companies with superior financial stability, few customer complaints, and a robust suite of products and resources. In particular, we valued online quoting and application tools, transparent pricing, and no-exam policy options. Companies received ratings boosts if customer service was accessible via features like live chat. We ranked each company according to the following categories and weights.

• Customer education, application, and online service features: 32%
• Policy types, features, and riders: 29% 
• Financial stability: 17% 
• Customer satisfaction ratings: 15%
• Cost: 8%

We compared individual offerings between companies by delving deeper into product specifics, including maximum coverage amounts, maximum issue ages, included riders, and product-specific application processes. We used this research to determine the best companies for different products and consumer groups, including term life insurance and seniors. 

Of the companies we considered, those with the greatest financial stability, fewest complaints, lowest cost, and most generous no-medical-exam options scored the highest across categories, as we believe these companies are best positioned to help customers secure the life insurance coverage they need and keep it long-term.