When choosing the right life insurance company, it’s important to do your research. Unlike other types of insurance policies, you may have this one for decades or more. And while you might have life insurance provided through your employer, you may also want to purchase additional coverage. When comparing the top-rated life insurance companies in 2025, we considered independent financial strength ratings from AM Best and S&P Global Ratings (and, where available, Moody’s and Fitch), customer experience benchmarks from the latest J.D. Power U.S. Individual Life Insurance Study and the NAIC Insurance Complaint Index, along with website functionality, coverage types, pricing and rider options such as accelerated/living benefits. Ratings are opinions—not guarantees—and outlooks/watch status matter. Since 2023, elevated interest rates (see the Fed’s H.15) have supported stronger participating whole-life dividend scales at major mutuals (e.g., Northwestern Mutual, Guardian), and accelerated (no‑exam) underwriting has become mainstream, broadening eligibility and speeding decisions (RGA; SOA). This review highlights several leading life insurers and who might find them a good fit.
The 5 Best Life Insurance Companies (2025)
- Northwestern Mutual Life: Best Overall
- State Farm: Best Term Life Insurance
- Mutual of Omaha: Best for Prior Health Issues
- Nationwide: Best for Policy Customization
- Pacific Life: Best for Customer Service Experience
Compare the Best Life Insurance Companies
| AM BEST FINANCIAL STRENGTH AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. POWER OVERALL CUSTOMER SATISFACTION J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|
| Pin Northwestern Mutual | A++ (Superior) | 807/1,000 | |
| Pin State Farm | A++ (Superior) | 822/1,000 | |
| Pin Mutual of Omaha | A+ (Superior) | 795/1,000 | |
| Pin Nationwide | A+ (Superior) | 813/1,000 | |
| Pin Pacific Life | A+ (Superior) | 801/1,000 |
Northwestern Mutual Life
Best Overall
WHY WE CHOSE IT
Why we chose it
Pros
- High customer service ratings
- Easy conversion from term to whole life
- Broad range of dividend-generating products
Cons
- Dividends not guaranteed
- Must work with their financial advisors
LIFE INSURANCE PRODUCTS OFFERED
- Term life
- Whole life
- Universal life
- Long-term care
UNIQUE FEATURES
The major ranking companies all point to Northwestern as one of the top life insurance companies in the U.S. It offers term, whole and universal life policies at reasonable rates and with fantastic customer service.
*Source: J.D. Power U.S. Individual Life Insurance Study
State Farm
Best Term Life Insurance
WHY WE CHOSE IT
Why we chose it
Pros
- Best in customer satisfaction & financial strength
- Informational and intuitive website
- Able to customize policies
- Discounts may be available for bundling with auto or homeowner insurance
Cons
- Not licensed in Massachusetts, New York, or Wisconsin
- Policy changes must be made through an agent
LIFE INSURANCE PRODUCTS OFFERED
- Term life
- Whole life
- Universal life
UNIQUE FEATURES
With its whole life coverage, you can choose from a range of payment plans and living benefit options to create a policy that reflects your needs.
*Source: J.D. Power U.S. Individual Life Insurance Study
Mutual of Omaha
Best for Prior Health Issues
WHY WE CHOSE IT
Why we chose it
Pros
- Policies available for those who have had cancer or other serious illness
- Riders include children’s whole life and accidental death
- Informative website
- Online quote tool
Cons
- Limited policy add-ons
- Limited policy customization options
- Guaranteed life policies have a maximum benefit of $25K
LIFE INSURANCE PRODUCTS OFFERED
- Term life
- Whole life
- Universal life
- Long-term care
UNIQUE FEATURES
Guaranteed whole life policies are available for customers ages 45-85, and your benefits are never reduced because of your age or health. Rates may be higher for this type of policy, but if it fulfills your other requirements, that may not be an issue.
*Source: J.D. Power U.S. Individual Life Insurance Study
Nationwide
Best for Policy Customization
WHY WE CHOSE IT
Why we chose it
Pros
- Flexible term options and guaranteed renewal up to age 95
- Riders include critical, chronic, and terminal illness options
- Online quote tool
Cons
- Some policies require a medical exam
- Not all policies have an online quote option
LIFE INSURANCE PRODUCTS OFFERED
- Term life
- Whole life
- Universal life
- Variable
UNIQUE FEATURES
If you already have a homeowners, auto or renters policy with Nationwide, you may be able to receive additional discounts by combining the policies with a life insurance option. Nationwide offers numerous options for customizing a life insurance policy, including riders, to fit your goals and budget.
*Source: J.D. Power U.S. Individual Life Insurance Study
Pacific Life
Best for Customer Service Experience
WHY WE CHOSE IT
Why we chose it
Pros
- Wide variety of policy options
- Riders include children’s term life, accidental death, extended benefit, and auto renewable
Cons
- No online quote option
- Medical exam required for policies
- Limited options in New York
LIFE INSURANCE PRODUCTS OFFERED
- Term life
- Whole life
- Variable Universal life
- Indexed Universal life
- Universal life
UNIQUE FEATURES
Although quotes are not available online, Pacific Life has highly-rated customer service support to walk you through the various policy options. The term life policy is available at a $50,000 minimum with 10, 15, 20, 25, or 30 year terms.
*Source: J.D. Power U.S. Individual Life Insurance Study
Further Reading on Life Insurance
- Types of Life Insurance Policies
- Life insurance for children
- Guide to life insurance with pre-existing conditions
Methodology
For the best life insurance companies, our editorial team compared financial strength (AM Best/S&P and, where available, Moody’s/Fitch), product breadth and rider availability (including living benefits and accelerated underwriting), coverage options and pricing, customer satisfaction (latest J.D. Power study) and NAIC complaint indexes, plus website functionality and digital servicing. We treat ratings as expert opinions (see AM Best, S&P, Moody’s, Fitch) and note outlook/watch status; where relevant we consider solvency context such as NAIC risk‑based capital benchmarks (RBC). Since life insurance rates vary widely by age, health class, state and coverage amount, we encourage you to gather real-time quotes tailored to your profile.
How to Choose the Best Life Insurance Company
When choosing a life insurance company, there are many things you need to consider. Remember that you’ll likely have this policy for decades or more, so it’s even more important to put thought into deciding which company to buy from.
- Policy types: Not all life insurance companies offer every type of policy. Consider what type of policy you want and find a company that offers it (and check term convertibility windows if you may want permanent coverage later).
- Price: While price isn’t the only consideration, compare real-time quotes; benchmarks for $500,000/20-year level term for Preferred non-smokers often run about $14–$20 per month for women and $18–$25 for men at ages 25–30, rising materially with age, while smokers typically pay ~2–3× more for the same coverage (Policygenius LIPI; NerdWallet).
- Financial strength: Use multiple agencies where possible and note outlook/watch status. Strong ratings (e.g., AM Best A- or S&P/Fitch A-/Moody’s A3 and above) indicate historically solid claims-paying capacity, but ratings are opinions, not guarantees (AM Best; S&P; Moody’s; Fitch).
- Customer service: Look at the latest J.D. Power U.S. Individual Life Insurance Study and the NAIC Complaint Index (and the NAIC Consumer Information Source) for complaint performance.
- Discounts & add-ons: Some companies offer discounts for bundling your life insurance with other products. Many also offer living-benefit riders (terminal/chronic/critical illness) governed by NAIC Model #620, long-term care options (qualified 7702B riders vs. 101(g) chronic illness benefits; see IRS Pub. 502), and accelerated (no-exam) underwriting for eligible applicants.
- Company size: In most cases, larger companies with more assets on the books will be more stable. Consider capitalization context too; NAIC RBC action-level thresholds are commonly cited (e.g., Company Action Level at 200% of Authorized Control Level, Regulatory Action at 150%, Authorized Control at 100%, Mandatory Control at 70%) (NAIC RBC).
- Historical performance: Don’t just look at how the company is doing right now — consider how they’ve done in the past. U.S. life insurers’ sector outlooks are broadly stable for 2025, reflecting strong capitalization and liquidity (AM Best; Fitch; S&P). Longevity and dividend consistency (for participating policies) matter, but dividends are not guaranteed.
Types of Life Insurance Policies
Term life
Term life insurance is the most basic and most common type of life insurance. You purchase a policy with a term of anywhere from 10 to 30 years, although shorter and longer terms may be available depending on the company. You pay a monthly premium, and if you pass away during that term, your beneficiary(ies) receives a death benefit. Both the monthly premium and the death benefit amount remain the same for the entirety of the term. In some cases, you may be able to convert your term policy into a whole life or permanent life insurance policy. Many insurers now use accelerated (no-exam) underwriting for eligible applicants, and current market snapshots show typical quotes for $500,000/20-year Preferred non-smokers around $14–$20 per month for women and $18–$25 for men at ages 25–30, rising with age, while smoker rates are commonly ~2–3× higher (Policygenius Life Insurance Price Index; NerdWallet).
Whole life
Whole life insurance is one of the two primary types of permanent life insurance, meaning they cover you for the rest of your life. Whole life insurance combines the death benefit of term life insurance with a cash value component. Each month you pay a monthly premium. Part of the premium goes toward your death benefit and the rest goes into a cash value account. Like term life insurance, whole life insurance typically comes with a fixed monthly payment and guaranteed cash value return. In the elevated rate environment since 2023, many mutual insurers announced stronger dividend scales for participating policies, with examples including a 2024 dividend interest rate of 5.90% from Guardian and 6.34% from Penn Mutual, plus large 2024 payouts at New York Life and Northwestern Mutual—though dividends are not guaranteed and are smoothed over time.
Universal life
Like whole life, universal life insurance is a type of permanent life insurance. When you pay your monthly premium, a portion of it goes toward your death benefit, while the rest goes into a cash value account. But unlike whole life insurance, universal life policies are more flexible. You may be able to adjust your coverage or premium. But unlike whole life, universal policies don’t have a guaranteed return in most cases — you’re dependent on the market. Indexed universal life (IUL) credits interest tied to market indices using caps/participation rates, while variable universal life (VUL) invests in market-exposed subaccounts; guarantees, costs, and risks vary by design and should be reviewed carefully (see NAIC’s consumer guidance on life insurance).
