Best life insurance companies of August 2023
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Published 2:58 a.m. ET Aug. 1, 2023
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Life insurance can be an invaluable tool when it comes to estate planning or providing financial protection to loved ones when you pass away. Whether you’re searching for a term life policy to cover a few decades or a permanent policy that will last a lifetime, comparing top life insurance companies is a great place to start.
To help you find the right company and policy for you, our insurance experts reviewed rates, features and other key metrics. According to our analysis, these are the best life insurance companies.
Why trust our insurance experts
Our team of experts evaluates hundreds of insurance products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 28 insurers evaluated
- 1,837 rates reviewed
- 5 levels of fact checking
Key points
- Protective and Pacific Life have the highest rating in our life insurance analysis.
- Term life insurance offers coverage for a period of time, while permanent life insurance is lifelong.
- Your goals and financial needs can help you decide if you should purchase term or permanent life insurance.
Our expert review of the best life insurance companies
- Best overall life insurance: Protective
- Great for retirement planning: Pacific Life
- Great for customizable terms length: Corebridge Financial
- Great for historic portfolio performance: Penn Mutual
- Great for financial strength: MassMutual
- Great for survivorship coverage: Lincoln Financial
- Best for living benefits: Transamerica
- Great for term life insurance: Symetra Life
Compare the best life insurance companies of 2023
| Company | Our rating | AM Best financial strength rating | LEARN MORE | ||
|---|---|---|---|---|---|
| Protective | 5.0 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Pacific Life | 5.0 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Corebridge Financial (Formerly AIG) | 4.5 stars | A (Excellent) | Compare Rates | Compare quotes offered by participating partners | |
| Penn Mutual | 4.5 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| MassMutual | 4.0 stars | A++ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Lincoln Financial | 4.0 stars | A (Excellent) | Compare Rates | Compare quotes offered by participating partners | |
| Transamerica | 4.0 stars | A (Excellent) | Compare Rates | Compare quotes offered by participating partners | |
| Symetra | 4.0 stars | A (Excellent) | Compare Rates | Compare quotes offered by participating partners |
Methodology
To determine the best life insurance companies, our life insurance experts evaluated 25 of the top life insurance companies that offer coverage in the United States.
Each life insurance company included in our evaluation had the opportunity to earn up to 100 points, based on the following factors:
Term life insurance rates: 35 points. Since term life insurance is often the most affordable coverage option, we evaluated rates for both 30- and 40-year-old males and females, for term lengths of 10, 20 and 30 years and coverage amounts of $250,000, $500,000, $1 million and $2 million.
Cost competitiveness of cash value policies: 15 points. Most permanent life insurance policies have a cash value component, but not all are created equal. We looked at internal policy costs, such as administrative fees and policy charges, to determine the competitiveness of permanent life policies offered by insurance companies in our review.
Historical performance: 15 points. The growth of cash value policies depends on several factors, including the historic performance of an insurance company’s investments. Our analysis took into account this metric to determine how an insurance company’s performance and therefore cash growth potential compared to others.
Complaints: 10 points. Life insurance claims are often filed during what may be an extraordinarily difficult time during a beneficiary’s life. As such, the customer experience is an important factor when identifying the best life insurance companies. To determine which companies offer the best service, we analyzed complaints submitted to the National Association of Insurance Commissioners.
Reliability of policy illustrations: 10 points. When you purchase a permanent life insurance policy, the insurer should provide an illustration to show how the cash value is projected to grow over time. This is particularly important if you’re relying on your policy cash value as part of your retirement planning. We evaluated the accuracy of each insurer’s policy illustration to determine which companies provided the most reliable outlooks.
Financial strength: 5 points. There are four major rating agencies — AM Best, Fitch, Moody’s and Standard and Poor’s — that evaluate an insurer’s financial strength, a factor that indicates an insurer’s ability to pay out a claim years from now. We took this into consideration to account for the likelihood an insurance company is able to claim obligations.
Access to cash value: 5 points. Cash value policies grow at different rates, and we factored the liquidity of a cash value policy into our analysis. Some policies have a cash value that grows faster in the early years. Others have slower cash value growth in the early years, and policyholders must wait a significant period of time before having access to a sizable cash value.
Term life conversion availability: 5 points. Some companies allow policyholders to convert their term coverage to a permanent life insurance policy. We factored this in to help those considering term life insurance policies identify companies that provide this option.
To evaluate life insurance companies, we used data provided by Veralytic, an independent publisher of life insurance research and analytics, and AccuQuote, a national online insurance agency.
Why some companies didn’t make the cut
Of the 25 insurance companies we evaluated, only eight made our list of the best life insurance companies. Companies with high policy rates, growth prohibitive internal costs or a poor historic performance were less likely to make our list. The same is true for companies that did not provide reliable policy illustrations for permanent life insurance policies or had a high number of consumer complaints.
Best term life insurance companies of August 2023
Term life insurance allows you to lock in rates for a set period of time, such as 10 or 20 years. At the end of your level term period, you can usually renew your policy every year, but for a much higher rate at each renewal.
If you’re shopping for term coverage, be sure to get quotes from Symetra and Pacific Life. Both insurers offer term life insurance products that earn 5 stars in our rating of the best term life insurance companies.
Best whole life insurance companies of August 2023
Whole life insurance is a form of permanent coverage, which means you’re covered for life, as long as you pay your premiums. This type of coverage also typically includes a cash value that you can tap into while you’re alive.
State Farm earns the highest rating in our analysis of the best whole life insurance companies, but getting quotes from any of the insurers in the table below can help you jump start your search and find a whole life policy that meets your needs and budget.
Best no-exam life insurance companies of August 2023
No-exam life insurance gives you the option of buying life insurance without needing a medical exam as part of the application process. But this choice sometimes comes with higher rates. Here are the policies that make our rating of the best no-exam life insurance.
Cheapest life insurance companies of August 2023
Shopping around for life insurance can help you find an affordable policy that meets your needs. If you’re looking for a policy that will fit into your budget, consider one of the companies that earn a spot in our rating of the cheapest life insurance companies.
How to choose the best life insurance company
When shopping for life insurance, here are a few factors that can help you narrow down your options.
Policy and product availability. Most of the life insurance companies in our expert rating of the best life insurance offer both term and permanent life insurance products, but product availability can vary from insurer to insurer. For instance, Symetra, which earns a spot in our best term life insurance rating, only sells term and universal life insurance — you won’t be able to purchase other types of permanent coverage, like whole life insurance.
Differences also exist even if multiple insurers offer the same type of coverage. For instance, term life insurance companies often sell policies with terms up to 30 years, but others, like Protective, issue policies with terms as long as 40 years to eligible individuals.
Another example of how similar life insurance products may vary by insurer is rider availability. Most insurers offer riders, but the options will vary. Some companies may also sell policies that automatically include a specific rider, while others may charge you extra. Pacific Life, for instance, includes a terminal illness rider in some of its policies.
Financial strength. To ensure that your life insurance beneficiaries receive a financial payout when you die, you want to choose a life insurance company that is able to hold up its end of its bargain and issue the death benefit. A company’s ability to do so is considered its “financial strength.”
Companies like AM Best, Standard & Poor’s and Moody’s assess the creditworthiness of insurers, so you don’t have to. They evaluate insurers based on factors like their balance sheet strength, enterprise risk management (ERM) and operating performance to determine their financial strength rating (FSR).
AM Best issues ratings that range from A++ (Superior) to D (Poor). The higher the score, the more confidence AM Best has in a company’s ability to pay out on life insurance claims.
All of the insurers in our rating of the best life insurance companies have an A (Excellent) or higher financial strength rating from AM Best.
Cost. The cost of life insurance is an important factor when choosing a life insurance company. That’s why we recommend you get at least three different quotes before making your decision. However, keep in mind that cost isn’t limited to the face value of your premium.
Life insurance premiums include internal costs and fees as well, and understanding the internal costs of a policy can help you evaluate insurers. This is particularly true if you’re purchasing a permanent life insurance policy with a cash value. The policy’s internal costs can directly affect how quickly your cash value grows.
Ask a potential insurer for insight into internal costs for the policy you’re considering before you make your decision.
What is life insurance?
Life insurance is a product designed to provide financial protection to your loved ones when you pass away. A life insurance policy pays out a death benefit to the beneficiary when the policyholder dies.
The death benefit can be spent in any way the beneficiary chooses. They may choose to use the money to cover mortgage payments, tuition or everyday expenses such as utilities and groceries.
Life insurance can also be an estate-planning tool and the death benefit can be used to cover end-of-life expenses, such as burial or cremation costs.
There are two major types of life insurance: term life insurance and permanent life insurance. Term life insurance locks in rates for a specific period of time, or term. Permanent life insurance lasts for your lifetime. There are several types of permanent life insurance, including whole life, universal life and variable life insurance.
Types of life insurance
Life insurance is typically broken down into two types: term life insurance and permanent life insurance. While shopping for the best life insurance policy, it’s important to understand both options.
Term life insurance
Term life insurance, sometimes called temporary coverage, locks in level premiums for a specific period of time. Terms usually range from 10 to 30 years, though some insurers offer longer terms.
If you pass away during the term and your policy is in force, your beneficiary receives the policy’s death benefit. When the term ends, you can typically renew your coverage up to the age specified in your policy, but your renewal rate will likely be much higher. If you pass away after the term ends and you have not renewed your policy, your beneficiary will not receive a death benefit.
Term life insurance is typically cheaper than permanent life insurance. However, unlike most permanent life insurance policies, term life policies don’t build cash value.
Whole life insurance
Unlike term life coverage, which is designed to be temporary, whole life insurance is permanent. When you purchase whole life insurance, you have coverage for your lifetime as long as you pay your premiums on time.
Whole life policies can also accumulate cash value. A portion of each premium payment is set aside in an account, and you can tap into that cash value later on to supplement your retirement, pay your premiums or pay for a child’s education.
Whole life coverage has a guaranteed premium and death benefit, and the cash value accumulates at a fixed rate. As such, it tends to be substantially more expensive than term life coverage.
Universal life insurance
Like whole life coverage, universal life insurance is a form of permanent insurance and it often has a cash value. It is considered more flexible than whole life insurance because many universal life insurance policies allow you to change your premium and death benefit.
There are several types of universal life insurance, each with a varying level of flexibility and risk. Some types, like guaranteed universal life, offer less flexibility but have a guaranteed death benefit and premiums that stay the same over time.
Other types, like index universal life and variable universal life offer flexible premiums and death benefits but cash value gains and losses are dependent on the market index (index universal) or your chosen investments (variable universal). This can create an opportunity for higher gains when compared to guaranteed universal life insurance, but it also leaves you vulnerable to losses that can wipe out your cash value.
If you’re considering this type of coverage, it’s wise to speak to a financial advisor who can help you understand the potential risks and how they may affect your retirement planning.
Variable life insurance
A variable life insurance policy combines a death benefit with an investment element. The cash value operates as a savings account, and you can use it to invest it in stocks, bonds, mutual funds or money market funds to potentially grow your money. These policies have the potential for stronger gains when compared to other policies but are riskier since the value of the account can decline if your investments perform poorly.
Unlike variable universal life insurance, variable life insurance does not provide flexible premiums. Though the death benefit may fluctuate, it won’t fall below the amount specified in your policy.
No-exam life insurance
When you apply for life insurance, the traditional process includes a review of your medical history and a physical exam with lab work. But there are some options that allow you to get coverage without a medical exam:
- Accelerated: Policies that use accelerated underwriting allow qualifying customers to skip medical exams. Instead, insurance companies use data and algorithmic tools to determine the applicant’s eligibility and rates. You can still be denied coverage based on your medical history, but accelerated policy rates are similar to those of fully underwritten policies.
- Guaranteed issue: Guaranteed issue policies, sometimes called final expense plans, are a form of permanent life insurance. They usually have a small death benefit, such as $25,000 or less, and they don’t require medical exams. They are guaranteed issues, meaning you cannot be denied based on your health or medical history and are only available to certain age groups. You usually need to be 45 or older to qualify for a guaranteed-issue policy.
- Simplified issue: Simplified issue policies don’t require medical exams and typically offer a faster route to life insurance. When you apply for a simplified issue life insurance policy, you’ll usually need to complete a health questionnaire. The insurer may also rely on third-party sources to gain information about other pertinent risk-related factors, such as your prescription drug use history.
Not everyone is eligible for simplified underwriting, and it’s often more expensive than fully underwritten policies.
Other types of life insurance
Many insurers offer other types of specialized life insurance that may be worth considering depending on your financial circumstances and reason for seeking coverage.
Mortgage life insurance
Also known as mortgage protection insurance, this type of life insurance is designed to pay off your mortgage when you die. Policy premiums are level throughout the policy, and terms align with the duration of your mortgage. The coverage amount decreases as you pay down your loan.
Unlike other types of life insurance, the death benefit from a mortgage life insurance policy does not go to your loved ones or other chosen beneficiaries. Instead, the mortgage lender is the beneficiary.
Burial insurance
Also known as final expense insurance or funeral insurance, burial insurance is a type of whole life insurance that is designed to cover final expenses. This may be the best life insurance option if your only goal is to cover costs such as funeral home services, a burial plot, cremation, a headstone, obituary notice and a casket or urn.
Policies generally offer $5,000 to $25,000 in coverage, and the death benefit can also be used to cover other expenses, such as legal services, outstanding auto or home loans, credit card debt or medical bills.
Survivorship life insurance
Survivorship life insurance is a type of permanent coverage that covers two individuals, typically spouses. Also known as second-to-die life insurance, this type of coverage offers one death benefit that is paid out only after the second covered person dies. For example, if a couple purchases a survivorship policy and their child is the beneficiary, that child won’t receive a death benefit until both parents have passed.
Survivorship life insurance is typically available as whole or universal life insurance policies and carries a cash value.
Supplemental life insurance
A supplemental life insurance policy is one offered for free or at a very low rate through your employer. Also known as group life insurance, this type of coverage is tied to your job and is often offered as a benefit of employment. As long as you stay with your employer, you are covered. If you leave your job, coverage typically ends.
Which type of life insurance is the most popular?
Term and whole life insurance account for 86% of sales in the first three quarters of 2022, according to recent data released by LIMRA. Term life insurance is often the most affordable option for buyers, making it a popular choice among individuals and families who want to protect their loved ones but want to stay within their budget. Whole life insurance is often more expensive, but it’s a straightforward popular choice among individuals who are looking for permanent coverage.
Who needs life insurance?
Life insurance is an essential tool for protecting your family and loved ones financially in the event of your death — especially if you have anyone financially dependent on you. For example:
- If you’re a primary wage earner. According to the LIMRA 2022 Insurance Barometer, 44% of families would feel the financial impact of losing the primary wage earner within just six months. Ten percent said they would feel that impact within just one week. If you’re the primary wage earner in your household, life insurance ensures that your family can still maintain their current lifestyle if something happens to you.
- If you’re a stay-at-home spouse. If one partner stays home while the other works, it’s still a good idea to have coverage for the stay-at-home person. If that person were to pass away, the working spouse may have difficulty affording childcare and other services that their partner provided.
- If you’re a caregiver. If you provide financial or physical care to a loved one, such as a child, sibling or parent, life insurance can help pay for ongoing care in the event of your death.
How to choose the best type of life insurance
To decide which type of life insurance is right for you, ask yourself the following questions.
Permanent or term life insurance?
Alison Salka, Ph.D., senior vice president and head of LIMRA Research, suggests that consumers begin their quest for coverage by establishing a clear understanding of their goals and why they want coverage in the first place.
Term life insurance is often billed as the more affordable option. “People can purchase larger coverage amounts for less than a permanent policy,” said Salka. “Generally, if someone knows they’re only going to need [life insurance] for a short period of time [like] while they have dependents living with them or for the duration of mortgage or other expenses, term is a really good, simple and easy to understand option.”
What about permanent coverage? Salka points out that while permanent life insurance may be more expensive per dollar of coverage, there are benefits to considering it. Permanent policies “offer a savings or investment component, known as a cash value, and that grows tax deferred over time and can be withdrawn or borrowed against while the owner is still alive.” Another benefit of permanent life insurance is that you can lock in coverage and premium rates for your lifetime.
How much coverage does my family need?
Your current income and the length of time your family will need financial support impact how large of a death benefit you’ll need.
If your goal is to cover your mortgage or a child’s tuition, factoring that into your calculations can help you determine how much life insurance you need. You can also use your salary as a guide, determining how long you’d like to replace your income to support your family if you pass away.
Life Happens, a non-profit organization, has a life insurance calculator you can use to help you determine how much coverage to buy.
What is my budget?
Think about what you can reasonably afford to pay in monthly premiums. If you have a limited budget, term life coverage tends to be significantly cheaper than whole life coverage.
If you’re more financially comfortable and have longer-term goals, such as wanting to build cash value for your retirement, permanent life insurance may be a better choice.
How much does life insurance cost?
A healthy 30-year-old woman can expect to pay around $142 a year for a $250,000, 20-year term life insurance policy, based on our research. A male of the same age and health status can expect an average premium of $162 a year for the same policy.
According to the 2023 Insurance Barometer compiled by LIMRA and Life Happens, an organization that educates consumers about life insurance, the perceived cost of coverage leads many to forego life insurance. However, most consumers overestimate the cost of a policy by three times or more than the average rate.
When it comes to cost, term life coverage tends to be the cheapest type of life insurance. Permanent coverage, including whole and universal life options, are usually much more expensive than term life policies.
Factors that affect your life insurance premium
How much you pay for life insurance depends on several factors, including:
- Your age and gender
- Type of policy you choose
- Smoking status
- Height and weight
- Your health (past and current)
- Prescription history
- Family medical history
- Driving record
- Criminal record
- Occupation and hobbies
Average annual cost of coverage for females by insurer
Average annual cost of coverage for males by insurer
Average annual cost of a term life policy for a female by age
Average annual cost of a term life insurance policy for a male by age
Average annual cost of whole life insurance by age
Is life insurance worth it?
Life insurance is worth it if you have someone, such as a spouse, partner or child, who partially or completely depends on you for financial security.
If your family would struggle financially if they no longer had access to your income, a life insurance policy can protect them from significant financial hardship. The proceeds from your policy can help them cover mortgage or rent payments, tuition costs and even everyday expenses, such as utilities, groceries and other necessities.
Even if your loved ones won’t face financial hardship after your death, a life insurance policy can help them cover the cost of end-of-life expenses, such as a burial or cremation.
Life insurance may not be worth it if you don’t have anyone who depends on you for financial security or if you have another savings vehicle in place to help them find financial stability in your absence.
Glossary of life insurance terms
Beneficiary
The person or entity who receives the death benefit of a life insurance claim. There can be more than one life insurance beneficiary — common options include a spouse, partner, child or grandchild. You can also choose a trust, estate or organization as your beneficiary.
Cash value
A savings or investment account that is commonly offered with permanent life insurance policies, such as whole life or universal life insurance. The cash value of a life insurance policy can grow over time and be accessed while you’re alive.
Death benefit
A death benefit is the amount of money that will be paid out by a life insurance company after a claim. The death benefit is paid out to the beneficiary or beneficiaries named in the policy.
Dividend
A portion of a life insurance company’s earnings that are distributed to some permanent life insurance policyowners as a partial return of premiums. Dividends are dependent on the company’s earnings.
Riders
Riders are add-on features that you can use to customize or enhance your life insurance policy. Some policies come with riders that are built into the policy at no extra charge, but often you have to pay extra to add a rider.
Underwriting
Life insurance underwriting is the process insurers use to analyze the risk associated with an applicant. It is also used to determine eligibility and premiums, or how much you’ll pay for life insurance.
The primary difference between term and whole life insurance is how long coverage lasts. A term life insurance policy lasts for a specific period of time, such as 20 or 30 years, during which the rates are locked in. Whole life insurance is a type of permanent coverage that will last your lifetime and typically include a cash value that you can tap into while you’re alive.
Term life insurance may be a better choice if you want financial protection for a certain period of time, such as until you pay off your mortgage or your child graduates school. It’s also a good option if you want to purchase life insurance but are on a limited budget.
Whole life insurance is better if you want coverage that lasts a lifetime and you don’t want to have to worry about renewing a policy — which often means paying a higher rate. Whole life insurance may also be a better option if you want a life insurance policy that includes a cash value component.
A life insurance policy may not cover deaths under the following circumstances:
- Cause of death is homicide and the beneficiary was involved.
- Insured dies by suicide within the first few years of opening the policy.
- Insured dies after their term life insurance policy has expired.
- Insured dies after a lapse in their life insurance premium payments.
- Insured dies during the contestability period and it’s determined the insured lied on their application.
Coverage and exclusions can vary by life insurance company, so it’s important to thoroughly read your policy and contact your insurer if you have questions regarding your coverage.
Yes, you can buy life insurance on someone else, but only if they know about and consent to the purchase. People commonly purchase policies for their:
- Spouses or ex-spouses to replace income, alimony or child support when that person dies.
- Child or grandchild, to ensure their insurability down the road, even if they develop a health condition, and to provide a jump start on cash value accumulation.
- Parents, to cover end-of-life expenses or other bills you may inherit upon their passing.
- Siblings, particularly if they care for a parent or other dependent for whom you will be responsible should they pass.
- Business partner, as part of a buy-sell agreement.
Shopping for coverage? How life insurance works
Editor’s Note: This article contains updated information from previously published stories:
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
