Life insurance is as complicated as the policyholders and beneficiaries who use it. That means there's no single "best" life insurance company. Instead, you can find the best option based on what you want or what you prioritize.
Business Insider's editorial team has independently reviewed over 30 life insurance companies to find the best provider, based on insurance premiums, policy terms, overall benefits, and customer satisfaction.
Why You Should Trust Business Insider
In life insurance, it's easy to get "sold a bill of goods." Many life insurance agents pass a state test to be thrown into the deep end. Agents sell the company product, but not all know the products. In this vein, we look at the products each company offers. We also look at agent training.
A good life insurance agent may not volunteer all facts upfront. But a company's agents should answer questions about its products accurately and in a way the average consumer can digest. Agents should be able to inform you about the long-term benefits and limitations. This will help customers find the right policy for their long-term plan.
We consider affordability, policy sizes available, and performance for a comprehensive assessment. If you can, we recommend also working with a financial advisor to make a plan for your future with life insurance.
Read more about how Business Insider rates life insurance.
Best Life Insurance Summary
- Best for whole life insurance: Prudential Life Insurance
- Best for long-term care: Ladder Life Insurance
Northwestern Mutual's whole life insurance is available for people up to 85 years old. It's available for purchase with several riders, including accelerated care benefits, waiver of premiums, and additional purchase benefits. The whole life insurance policy particularly stands out for the dividends it pays out to whole life insurance policy holders on an annual basis. The company is expected to pay $8.2 billion in 2025.
Best Life Insurance for No-Exam Policies
Guardian Life Insurance has a 743/1,000 JD Power customer satisfaction rating and an A++ financial strength rating. It offers term, whole, and universal life insurance. Guardian stands out for its no-exam life insurance, offering up to $3 million in coverage, which is high for the industry. You can also convert Guardian's term life insurance to a whole life insurance plan.
Best Life Insurance for Universal Life Policies
State Farm Life Insurance is consistently one of the leading life insurance companies in the industry, receiving the best life insurance ranking in JD Power's Individual Life Insurance Study, with a score of 843/1,000. The company is also ranked A++ with AM Best for its financial stability with term, universal, and whole life insurance options.
All State Farm policies have to be purchased through a State Farm agent. Your agent can help you bundle and save or buy one policy. State Farm is also among the companies offering "survivorship universal life insurance," which means the policy covers two people, and it kicks in after the second person dies. Couples looking to maximize their death benefit for beneficiaries with one premium payment each month may enjoy lower overall costs.
State Farm agents can run quotes and compare options to find the right plans for each applicant. The range of options, discounts, and familiar name all contribute to the popularity of State Farm's life insurance.
Best Life Insurance for Older Adults
Prudential Life Insurance's VUL plan allows buyers to pull money out of their plan to pay for nursing home expenses. Cash value policy premiums are fixed, so you won't have to worry about extra costs later on. Internal costs are low, which minimizes risk. Due to age, many older adults want a safe investment option for their money. Prudential VUL Protector invests to avoid loss. That also means you're not as likely to see big increases in your available funds outside of what you deposit.
Prudential policies are available in all states except New York. New York residents can buy the Pruco Life of New Jersey VUL Protector plan.
Best Life Insurance for Long-Term Care
Brighthouse Financial Life Insurance offers term and indexed universal life insurance options. Its hybrid permanent life insurance policy SmartCare is an indexed universal life insurance that offers long-term care benefits through a collection of riders, including an LTC (long-term care) accelerated death benefit rider.
With this rider, LTC benefits can be determined at the start of the policy. Policyholders have the option to grow LTC benefits at a set rate or with an index. They can also opt for level LTC benefits, which means they don't grow over time. Benefits are paid up to two years after a claim is made, but can be extended by up to four years with an Extension of Benefits Rider.
Brighthouse's other policies are also worth a look. It offers a one-year term life insurance policy that can be converted into a whole life policy. It also offers traditional term life insurance with 10, 20, and 30-year terms and up to $3 million in coverage, with below-average premiums.
Another benefit of Brighthouse Life Insurance is that most of its policies do not require a medical exam, as long as you get regular checkups. However, for patients over 60 who have not seen a doctor within two years, you may have to take a short physical exam.
Best Life Insurance for High Returns
Allianz Life Insurance plans are geared towards high-income adults looking for more tax-free income. Allianz offers a 40% multiplier bonus with a 1% annual assets charge. In short, the professionals managing your investments take 10%.
Overall, your investments would pull in an extra 14%-1% asset charge. This means you end up with 3% more than what you deposit every year your life policy is active. This plan offers strong returns when using a life policy to supplement your retirement savings. Allianz also offers specialized plans to grow your income by as much as 20% according to some estimates.
Of note: Allianz also offers plans for foreign nationals, including those with H-1B visas.
Best Life Insurance for Affordability
New York Life Insurance agents go through extensive training before they ever hit the sales floor. What does this get you? Policies vary widely, and New York Life offers both large and small payouts. Some policies have significant penalties for early withdrawal, but taking a loan offers more options.
Whatever your questions, New York Life agents are trained to offer comprehensive support, giving you accurate information about its policies every time. The company comes in at position eight in JD Power's latest life insurance customer satisfaction study, with a 794/1,000.
Best Life Insurance for Term Life Policies
North American life insurance may be better options.
Ladder's main appeal is its "laddering" function, which lets policyholders adjust their death benefits, and therefore their premiums, an unlimited number of times throughout the lifetime of their policy. This gives policyholders a level of flexibility not usually seen with term life insurance, allowing policyholders to adjust their premiums if they're facing a period of financial hardship.
Get Life Insurance Quotes
Additionally, you may not want to pay for life insurance throughout the duration of the policy's lifetime. In that case, you'll want to look for a limited payment life insurance policy, which sets a predetermined payment period instead of the policy's lifetime.
Plan
What is your intended use? Why are you shopping for a life insurance policy in the first place, and what are your goals? Many successful financial planners also have a background in life insurance. So while they may not be able to find you a specific life insurance policy, financial planners can help you set out a blueprint for your purchase.
Expert Advice on Choosing The Best Life Insurance for You
To inform our choices for the best life insurance companies, we spoke with the following experts:
- Paul LaPiana, head of product at MassMutual
- Barbara Pietrangelo, CFP, CLU, and chair of the nonprofit Life Happens
- Ramon Casanova, Head of Life Insurance Solutions, New York Life
How much life insurance coverage do you believe the average buyer should have?
Paul LaPiana, Head of Product at MassMutual
"There are different approaches to determining how much life insurance you need. One is the 'human life' approach, which estimates the current value of your future earning potential. Another is securing specific coverage to pay off debts such as a mortgage or provide for the education of children. A comprehensive protection plan should provide the right amount of coverage over the course of your working life and into retirement."
Barbara A. Pietrangelo, Chair of Life Happens
"There is no one-size-fits-all life insurance policy because everyone is different. One way to get a rough estimate is to multiply your income by 10 to 15; another is adding $100,00 to that amount, should you have a child and anticipate college education expenses.
Your best bet is to talk to a financial professional or use the Life Insurance Needs Calculator on LifeHappens.org to analyze what's right for you."
Ramon Casanova, Head of Life Insurance Solutions, New York Life
"As you consider what policy best meets your needs, it can help to answer four key questions: First, how much death benefit do you need? Second, how long will you need that coverage? Third, what is your budget (or how much monthly premium can you afford to pay?), and finally, what is your investment risk tolerance?
To determine how much death benefit makes sense, it's helpful to think beyond using life insurance to cover funeral expenses and consider whether anyone is relying on the policy owner's income to maintain a lifestyle, pay rent or a mortgage, or fund a child's education and for how long.
There are various rules of thumb regarding the right amount of life insurance coverage. Some tips can be found online, but they only provide an estimate and don't necessarily factor in an individual's specific needs. Working with a trusted financial professional to determine how life insurance fits into your holistic financial strategy is the best way to determine how much coverage you need. Basically, it comes down to how much money your loved ones would need to remain on firm financial ground if your earnings were no longer in the picture and that is different for everyone."
What is the biggest opportunity you see for improvement in the life insurance industry?
Paul LaPiana, Head of Product at MassMutual
"Increased accessibility through digital and other channels as well as through underwriting enhancements. Increased tailoring of products and features. And an increased emphasis on health and wellness programs."
Barbara A. Pietrangelo, Chair of Life Happens
"Having enough qualified insurance professionals to walk potential buyers through the multiple benefits of life insurance will be pivotal to the growth of the industry. Education is a key factor here, as professional agents also need to be able to explain life insurance and its benefits in an easy, digestible way, especially when there are so many misconceptions about life insurance."
Ramon Casanova, Head of Life Insurance Solutions, New York Life
"The U.S. faces a $25 trillion mortality protection gap, leaving millions underinsured. Our organizational structure of having our 12,000 agents and advisors embedded in the communities where customers live and work allows us to understand and serve the needs of diverse communities and develop solutions that meet their needs, expanding access to financial protection and security. This is more important than ever, as continued economic headwinds and uncertainty have made financial planning daunting for many. Solutions exist, and it's up to us to expand access.
Our Wealth Watch research has found that owning protection products like life insurance has myriad benefits across financial behaviors and financial health, including correlations with higher savings amounts, better retirement preparedness, and better feelings about finances."
What advice would you give to buyers who are debating whether or not to buy life insurance?
Paul LaPiana, Head of Product at MassMutual
"It is difficult to say with any certainty how healthy you will be years from now. That's why securing life insurance, and insuring your insurability, today, when you are the youngest you'll ever be again, and perhaps your healthiest is a wise decision."
Barbara A. Pietrangelo, Chair of Life Happens
"Do you love someone? If the answer is yes, then life insurance is certainly something you should consider. Many buy gifts and experiences to express their love, but haven't considered that life insurance is just another way to say I love you. Nothing says support like ensuring your family's financial security and peace of mind."
Ramon Casanova, Head of Life Insurance Solutions, New York Life
"If you have someone depending on your income, you should consider purchasing life insurance. A death benefit from a life insurance policy can replace income from the loss of a breadwinner, ensure a family can stay in their home, fund educational or retirement expenses, address debt and so much more.
A life insurance policy can also help you grow your family's wealth over time. Once the risk of an unexpected loss has been managed, you can begin to think more broadly about your family's financial future. Life insurance can enable your mindset to shift from death to growth."
What's the most important thing buyers should look for when choosing a life insurance agent/company to buy from?
Paul LaPiana, Head of Product at MassMutual
"With life insurance, you are securing a future commitment that may be decades away. Research the company behind the policy to ensure it has high financial strength ratings, longevity, and an excellent track record of paying claims."
Barbara A. Pietrangelo, Chair of Life Happens
"When looking for an insurance agent or company, be sure to do your research. When comparing companies, be sure to remember that the policy features that fit you and your loved ones best is the most important factor. Don't automatically assume you should buy from the higher-rated company.
If the policy from the other company has more of what you're looking for, it might be the better choice. If you're unsure where to start, try the Life Happens Agent Locator to find an insurance professional in your area."
Ramon Casanova, Head of Life Insurance Solutions, New York Life
"The insurer's track record: At its core, life insurance is protection - a hedge against the unexpected - and you are paying premiums in exchange for the promise that the insurer will be there when you need them, so the financial strength and track record of the company backing your policy is critical.
Customer service: Are service professionals available by phone and digital channels? Is there an online dashboard where you can manage your policy? Beyond ensuring assistance is available after you purchase a policy, it's also critical to ensure you have access to trusted advice and guidance before you buy.
Flexibility in conversion: How easy is it to change? Life can be unpredictable and while term insurance can cover your loved ones through a critical period of time, you may decide that access to cash value is an important piece of your strategy."
FAQs
What are the three main types of life insurance?
The three main types of life insurance are term life insurance, whole life insurance, and universal life insurance.
What type of life insurance is best?
The best type of life insurance policy depends on your needs. Term life insurance is best for temporary coverage while whole life or universal is best for permanent coverage.
Which life insurance company is best?
The latest JD Power life insurance customer satisfaction study shows that State Farm has the best customer satisfaction.
What is the most-used life insurance?
The most-used life insurance is term life insurance. It's a cheap life insurance option that's good for covering specific points in your life, like your prime working years.
What happens if my life insurance is paid up?
If your life insurance policy is paid up, it means you no longer have to make regular premium payments.
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