The largest life insurance companies

Choosing small vs. large life insurance companies

When choosing the best life insurance company, is it best to stick with an insurer on the list of life insurance companies that write the most premiums? Not necessarily. There are certainly advantages to going with major insurance companies, but quantity doesn't always equal quality when it comes to market share.

What to look for beyond size

No matter the size of the carrier you're considering, here are some quality indicators to keep an eye on when shopping for life insurance:

• Financial stability rating: A high financial stability rating from agencies like AM Best is a value add for life insurers. It reflects the insurer's robust track record in paying out claims, which may be crucial during unexpected events. AM Best ratings range from A++ (Superior) to D (Poor).
• Customer service: A smooth claims process can be meaningful for grieving beneficiaries, but you may need to contact the customer service department many times before that point. Looking at NAIC Complaint Indexes and customer reviews can give you an idea of the level of service a company provides.
• Ethical practices: The integrity of a life insurance company's business operations is vital. Firms that adhere to high ethical standards in their dealings are more likely to be transparent with policy terms, fair in pricing and straightforward in the claims process.
• Community engagement: Insurers that actively contribute to community initiatives or engage in sustainable practices often hold a sense of corporate responsibility that goes beyond the bottom line. This commitment can be a reflection of a company's values and how it might value its policyholders.
• Technological advancements: In a digital era, the ease of managing your policy online, from quoting to filing a claim, adds immense value. Insurers who invest in technology like efficient online quoting systems, accelerated underwriting processes and comprehensive mobile apps offer convenience and speed.
• Product portfolio: Offering a variety of life insurance products, such as term, whole and universal life insurance, can be particularly beneficial. This is especially true if you're uncertain about the type of coverage you need. Having more than just term insurance options means it’s more likely their term policies are convertible, which can be a valuable feature. Should you develop a terminal illness or your needs change over time, converting to a permanent policy without additional medical exams can help ensure continued coverage and financial security.

Choosing a large life insurance company

The most obvious reason to go with one of the top life insurance companies is that they typically have more financial assets and, therefore, probably have an easier time achieving financial stability. Large life insurance companies also tend to have more years in the business. Northwestern Mutual, for example, the largest company on our list, was founded in 1857. With more than a century and a half of writing policies, this company is a leader in the industry with a strong track record of policyholder satisfaction.

The digital tools offered by large life insurers are often superior to those offered by smaller competitors. For example, you might be able to manage your life insurance policy through a smartphone app or get instant quotes online from a company that has the resources to invest in these features. Smaller companies may not have the budget to develop advanced technological tools.

On a similar note, larger life insurance companies can sometimes offer easier access to customer service channels. You may be able to get in touch with a company representative without having to pick up the phone, thanks to mobile apps and live web chat. But if you would rather dial in, larger companies typically extend phone hours or even provide 24/7 support.

Choosing a small life insurance company

On the other hand, small life insurance companies can sometimes have the upper hand by providing more tailored and personalized customer service. As a smaller firm, they may specialize in life insurance over other types of insurance — whereas a large company may provide many different types of insurance products. This type of relationship may offer better recommendations for your individual needs.

Smaller life insurance companies sometimes provide more specialized coverage. For example, some small life insurers are created specifically for certain groups, such as final expense insurance.

Last but not least, if you have been denied coverage by a major life insurance company, it is worth asking around with smaller competitors. While large life insurers can afford to turn down customers, small companies may be more flexible in order to win business. It is possible that a smaller insurer may be willing to accept greater risk than a larger insurance company.

Frequently asked questions

Methodology

Life Bankrate Score

Our 2025 Bankrate Score considers variables our insurance editorial team determined impact policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s financial strength, product and rider offerings, availability, customer experience and corporate sustainability. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.