Best Life Insurance Companies

Final Verdict

When looking for a life insurance company, it’s important to find a provider that has a strong and stable history, offers a full gamut of insurance options, and gives the added support and resources, including articles and calculators, to help you make an educated decision. 

Prudential Financial checks all these boxes and even makes it convenient by allowing you to quote policies online for up to $250,000. Of all the companies we reviewed, Prudential can fulfill the life insurance needs of more people when compared side by side to the competition.

Compare the Best Life Insurance Companies

Frequently Asked Questions

What Is Life Insurance?

Life insurance is a financial product you purchase in order to protect your family against the financial consequences of your death. Life insurance coverage intends to provide money to replace your wages in the event of your untimely death, and many consumers buy enough coverage to pay for debts like a mortgage or to cover college expenses for their children.

While people who purchase life insurance hope they never need it, this kind of coverage is crucial for consumers who want to sleep well at night without worrying about what might happen to their family if they pass away. Life insurance is also an integral part of the average person’s comprehensive financial plan, and this is especially true for families who have children to care for.

Term Life Insurance vs. Permanent Life Insurance 

Term life insurance is sold for a particular term, usually in 10-, 20-, and 30-year increments. Once that term expires, the policyholder will have to apply again for a new policy. Premiums for term life insurance are almost always less expensive than permanent life insurance.

Permanent life insurance provides coverage for the policyholder’s entire life. There are two types of permanent life insurance: whole and universal.

Unlike term life, permanent life insurance offers a savings benefit to the owner, known as the cash value of the policy. The cash value can be borrowed or withdrawn from the policy.

How to Find the Best Life Insurance Policy

The best type of life insurance is the one that fits you and your family. Term life policies can be very affordable compared to whole life insurance.

For example, a 30-year-old man with a 20-year $500,000 policy will pay an average of $27 a month. A 30-year-old man with a $100,000 whole life policy will pay $82.06 a month. This is more than double the cost of term life while providing less coverage.

To get the best life insurance policy for your situation, and one that fits your budget, we advise following these steps:

• Step 1: Decide what kind of policy you want, term or permanent.
• Step 2: Figure out how much you need and how long of a term you need if you’re buying a term policy. You may want to talk to a financial planner about what makes sense for you and your family.
• Step 3: Talk to a life insurance broker and ask them to pull quotes for the type of life insurance you’re interested in. If you're not sure whether to choose term or permanent life insurance, ask the broker to get quotes for both kinds.
• Step 4: Compare quotes from different providers and choose one that meets your requirements and fits your budget.
• Step 5: Schedule a medical exam if necessary. If not, apply for and wait to be approved for the policy.

What Does Life Insurance Typically Cover?

Life insurance is purchased on an individual, so it pays out a death benefit if that person passes away. Since term life insurance is offered in a specific amount for a specific term, the death benefit is the main component of a basic term life insurance policy.

However, some life insurance policies also build cash value over time. This cash value can serve as a savings account or as collateral the insured can borrow against. Note, however, that the cash value you accrue with some policies is a living benefit, meaning it goes back to the insurance company when you die.

Many life insurance companies have additional riders added on that can provide more coverage. Common riders include accidental death riders that pay out more if you die in an accident or the waiver of premium rider that comes into play if the insured becomes unable to work and pay their premiums. Another rider, the accelerated death benefit rider, allows the insured to collect a portion of their death benefit before they pass away upon diagnosis of a terminal illness.

What Does Life Insurance Typically Exclude?

During a recent interview with Andrew Mais, commissioner of the Connecticut Insurance Department, he remarked that "Policies tend to have certain exclusions. So if I go skydiving, for instance, it may not cover me for that."

There's a handful of exclusions that can come into play when you purchase life insurance. For example, you may be denied a payout on a policy if the insured commits suicide or dies within two years of the policy coming into force. Also, your policy may not pay out if you lie or purposely mislead the insurer on your health questionnaire.

What Are the Expected Costs of Life Insurance?

Life insurance costs can vary widely depending on the type of policy you purchase, the amount of coverage you buy, your age, your gender, your weight, whether or not you smoke or have smoked in the past, and your overall health. Some insurance providers also ask customers to complete a medical exam to qualify.

If you plan to buy a term policy and you’re age 30, you might pay as little as $12 per month for a policy worth $250,000 that lasts 20 years. If you’re 50 and want that much coverage, on the other hand, you can expect to pay closer to $35 per month or more. However, permanent life insurance coverage is always more expensive than term life insurance coverage.

The good news is that most companies make it easy to get a free, no-obligation quote for life insurance online. If you’re curious about how much you might pay for a policy, you should submit your information to find out.

Is Paying for Life Insurance Worth It?

If you want basic life insurance coverage that will replace your income for a specific term if you pass away, then it’s hard to argue against term life insurance. Premiums for term coverage tend to be inexpensive for consumers who are in good or excellent health, and you can gain peace of mind when you have a policy in place.

However, you may benefit from permanent life insurance if you have a more complicated financial situation, or if you have a certain level of wealth to protect. If you’re curious about which type of life insurance would serve you better, it may be wise to set up an appointment with a life insurance agent to go over the pros and cons of different types of coverage.

Either way, a basic level of life insurance coverage is usually worth the monthly premiums you’ll pay. You can pay more if you want a generous death benefit or an extremely long term, but anyone can benefit from some basic coverage to help care for dependents and cover final expenses.

Methodology

Our life insurance methodology is comprehensive. In order to compile our list of the best life insurance companies, we researched and evaluated more than two dozen different life insurance companies. We gathered data (both qualitative and quantitative) about each company, including ratings for financial strength (using independent ratings from companies like AM Best), customer satisfaction scores (using J.D. Power ratings, BBB complaints, and independent customer reviews), as well as pricing and customer experience.

Our review process gave preference to companies that offered online quoting tools and transparent pricing. We also looked at the functionality, such as online forms and customer portals, offered by carriers for customers to manage their policies and file claims online. Companies that offered multiple forms of customer service, such as phone, email, and live chat through their websites, also received ratings boosts.

Lastly, we looked at the individual offerings available—types of policies and riders offered, as well as additional products and services, such as investment options—from each of the companies we reviewed and assessed the relative strengths of each. Of the companies we considered, those that offered numerous types of policies (e.g., term, whole, universal), riders (e.g., living benefits, waiver of premium, return of premium), and other services were given higher ratings, as we believe these companies are better positioned to help individual customers find the life insurance coverage they need.