Life insurance is a great way to protect your family or leave a legacy. It can cover funeral expenses, medical bills, or long-term costs like mortgage payments while your estate is sorted out. But many people who need it don't have it. According to a 2022 study by LIMRA and Life Happens, 44% of households said it would take less than six months to feel financial hardship if a primary wage earner passed.
1 This is a problem that life insurance can solve.
To choose the best life insurance companies, we compared 91 life insurance companies in the following key categories: AM Best financial strength ratings, three years of NAIC complaints data, 2022 J.D. Power life insurance rankings, the quote and application process, product transparency, available policies and riders, cost, and the availability of living benefits
January 2023's Best Life Insurance
Companies Overall: National Runner-Up and Overall Winner: Best Term Buying Experience: MassMutual Best Term Life Insurance from Haven Life: Best Guard Whole Life Insurance: Benefits for Living: New York Life Best Life Insurance The smallest number of complaints: Best for Military Personnel from Guardian: Best for dividends: USAA Penn Mutual Competes for the Cheapest Term: Banner
Nationwide MassMutual Haven Life Protective New York Life Mutual Of Omaha Guardian USAA Penn Mutual Banner See More (7) Compare Providers Final Verdict FAQ Methodology BEST OVERALL Nationwide Investopedia's Rating: 4.7 Nationwide AM Best Rating: Insurance companies receive a letter grade from AM Best, a credit rating agency, ranging from "A++" to "D." A company's grade indicates its capacity to pay its claims and fulfill its financial obligations. Credit Cards Are Accepted at A+: Yes, call Nationwide directly at 844-457-7984 for the most personalized quote experience. GET A QUOTE
Why We Picked Nationwide: It has strong financials, generous no-exam requirements, three living benefits that come with most policies, and satisfied customers.
Cons No live chat is available online quotes are only available for term coverage. Overall, Nationwide is a financially stable life insurance company that has been in business for nearly a century. It was ranked second in the customer satisfaction study conducted by J.D. Power in 2021. It provides numerous policies that may be obtained quickly and without a medical examination. It also tops our list of the best whole life insurance companies, the best life insurance companies that don't require a medical exam, and the best life insurance companies for people over 50.
In J.D. Power's U.S. Individual Life Insurance study, the company ranked second for customer satisfaction out of 21 life insurers and received an A+ (Superior) financial stability rating from AM Best. Over the course of the previous three years, the company had very few customer complaints.
It also offers a wide variety of policy types and riders, no-exam life insurance for healthy applicants, and three free accelerated death benefit riders for chronic, critical, and terminal illnesses in most policies. It is unquestionably at the top of our list of the best life insurance companies thanks to its numerous exceptional features.
Plans and Prices Nationwide offers term policies in addition to universal life insurance (UL), variable universal life insurance (VUL), and indexed universal life insurance (IUL), which are all forms of traditional whole life insurance.
Guaranteed Level Term Whole Life 100 and 20Pay Whole Life No-Lapse Guarantee UL II (universal life insurance) VUL Accumulator (variable life insurance) VUL Protector Advisory VUL IUL Accumulator II 2020 (indexed universal life insurance) IUL Protector II 2020 Survivorship IUL 2020 With Nationwide's indexed policies, you can participate in gains in the stock market without being directly exposed to the market. The S&P 500, the NASDAQ-100, and/or the Dow Jones Industrial Average all have an impact on cash value growth. Even though these policies aren't as risky as variable life insurance, they can still lose value if gains in the market aren't enough to cover the cost of the policy.
Term pricing We discovered that a $26.25 monthly premium for a healthy female would cover a $250,000, 30-year term policy.
Available Riders: Critical illness accelerated death benefit rider, terminal illness accelerated death benefit rider, long-term care accelerated death benefit rider, accidental death benefit rider, children's term insurance rider, Guaranteed insurability benefit rider, Waiver of premium rider
Best Overall MassMutual Investopedia Rating: 4.6 Best MassMutual AM Rating: Insurance companies receive a letter grade from AM Best, a credit rating agency, ranging from "A++" to "D." A company's grade indicates its capacity to pay its claims and fulfill its financial obligations. Credit Cards Are Accepted at A++: No GET A QUOTE Why We Decided to Go With MassMutual MassMutual is at the top of the financial strength rankings, has paid dividends annually since 1869, has few complaints, and offers a wide range of policies.
Cons and Pros: Pros: Rated A++ for financial stability; long track record of dividend payments; few complaints; ample term conversion options; few free accelerated benefit riders; inability to accept credit card payments. Overall: MassMutual stands out for a number of reasons. AM Best has given it a financial rating of A++ (Superior).
5 This is the highest possible rating, indicating a "superior" capacity to pay claims. The dividend-paying history of MassMutual also increases its influence: Life insurance dividends have been paid to eligible policyholders each year since 1869. MassMutual intends to make a record-breaking dividend payment of $1.9 billion in 2023.
6 Additionally, according to NAIC data from the previous three years, the company has received very few complaints and offers a wide variety of policy types.
7 It's important to note that MassMutual term policyholders can switch to any permanent policy. This is important because some companies restrict the kinds of policies your term policy can be converted into. Without having to re-qualify for life insurance, convertible term life insurance lets you exchange some or all of your term coverage for permanent coverage.)
Plans and Costs MassMutual provides variable universal life insurance, whole life insurance, term life insurance, and more.
MassMutual Term Whole Life 100 Whole Life 65 Whole Life 10/15/20-Pay Whole Life High Early Cash Value (HECV) The whole-life policyholders of MassMutual are eligible for annual dividends based on the financial performance of the company. Dividends can be used to pay premiums or increase the death benefit or cash value.
Universal Life (UL) Guard Survivorship Universal Life (SUL) Guard Apex VUL (variable universal life insurance) Some universal life insurance policies can be structured like term coverage, which requires that the coverage be in place for a predetermined amount of time.
Pricing for term policies We discovered that a healthy female would pay $27.26 per month for a $250,000, 30-year term policy from MassMutual.
Available Riders Guaranteed insurability rider Waiver of premium rider Accelerated death benefit rider for terminal illness Long-term care accelerated death benefit rider for chronic illness accelerated death benefit rider
BEST TERM BUYING EXPERIENCE The Haven Life AM Best Rating is 4.6 on Investopedia. Insurance companies receive a letter grade from AM Best, a credit rating agency, ranging from "A++" to "D." A company's grade indicates its capacity to pay its claims and fulfill its financial obligations. Credit Cards Are Accepted at A++: Yes, GET A QUOTE Why We Decided to Use It Haven Life provides an online quote, application, and purchasing experience that is nearly effortless. In addition, MassMutual's A++ (Superior) financial standing stands behind it.
Cons and Pros Haven Life's website is the gold standard for other life insurance websites. It is simple to use, has an online application, offers same-day decision, and has excellent pricing. Cons: Only term life insurance is available; term policies cannot be changed; there are limited riders. The application and quote procedures are completely online. Short educational blurbs are well-placed to guide you and address any questions you may have, and you are not required to provide any personal information until you decide to apply. However, if you still require assistance, live chat with an agent is just a click away; alternatively, you can call in instead.
Additionally, Haven's term pricing is among the lowest of the companies we examined. Additionally, you may be approved the same day if you select a life insurance policy with no medical exam. Because of these factors, Haven ranks highly among the best life insurance companies for young adults and term life insurance. Haven Life's term policies cannot be converted to permanent coverage, which is an option offered by 89% of the term life insurance companies we examined.
Plans and Prices Haven Term (with higher coverage limits and a medical exam) Haven Simple (without a medical exam) Term Pricing We discovered that a healthy 40-year-old female would pay $22.90 per month for a $250,000 30-year term policy.
Available Riders Accelerated death benefit rider (terminal illness) Read the full Haven Life Insurance Review
Best Whole Life Insurance New York Life AM Best Rating: Investopedia's Rating: 4.0 Insurance companies receive a letter grade from AM Best, a credit rating agency, ranging from "A++" to "D." A company's grade indicates its capacity to pay its claims and fulfill its financial obligations. Credit Cards Are Accepted at A++: According to the most recent NAIC data, New York Life is the second largest life insurance company. For the past 169 years, the company has been paying dividends to eligible policyholders annually.
Ten Advantages and Disadvantages A++ (Superior) AM Best rating Long history of dividend payments Some policies available to applicants up to the age of 90 Wide range of riders Cons Very limited policy details on the website Can’t get much information without contacting an agent Online quotes and applications are not available Overview New York Life, founded in 1845, is the oldest company on this list. It has paid dividends for 169 years in a row. It intends to distribute $2 billion in dividends in 2023, the company's largest payout ever.
11 New York Life has a rating of A++ (Superior) from AM Best and receives very few complaints from customers.
It also issues whole life policies to qualified applicants over the age of 90. It is one of the best companies for whole life insurance and life insurance for seniors due to its excellent reputation and financial stability.
The company offers policies for whole, term, and universal life, as well as variable universal life (VUL) insurance, a wide range of riders, and the ability to customize plans. Living benefit riders and a spouse's paid-up purchase option (SPPO) are two examples of these. The SPPO is a unique option that, in the event of the insured person's death, allows the insured person's spouse to use the death benefit to purchase a fully paid-up life insurance policy for themselves (without the need for medical underwriting).
Unfortunately, the website is difficult to navigate for policy-specific information. You will need to provide your name and phone number and wait for an agent to contact you if you have questions or want a quote.
Plans Level Premium Convertible Term 10-20 Yearly Convertible Term Million Plus Level Term 10 Whole Life Insurance Custom Whole Life Insurance Basic Universal Life Insurance Custom Universal Life Guarantee Protection Up to Age 90 Variable Universal Life Accumulator II Available Riders Spouse's Paid-Up Insurance Purchase Option (SPPO) Guaranteed insurability rider Child term rider Disability waiver of premium rider Disability income rider Accidental death benefit rider Terminal illness accelerated death benefit rider Long-term care accelerated death benefit
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