Whole life insurance is permanent coverage designed to last your entire life if premiums are paid. Most whole life policies include guaranteed cash value; some are “participating” and may also pay non‑guaranteed dividends. Cash value can often be borrowed against or withdrawn, but loans accrue interest and reduce policy values. In today’s market, dividend momentum has improved as insurers reinvest at higher yields, leading many mutual companies to announce stronger dividend outlooks for 2025; remember dividends are not guaranteed and vary by company and product series (interest rate backdrop; see also company dividend disclosures). If you’re shopping for whole life, compare financial strength (AM Best), current-year dividend scales for participating policies, customer satisfaction in the latest J.D. Power U.S. Individual Life Insurance Study, and your state’s complaint history via the NAIC Consumer Resources/Complaint Index.

The Best Whole Life Insurance Companies in 2025

Our 2025 evaluation emphasizes financial strength (AM Best), customer experience (J.D. Power), participating whole life dividend history, and product depth. Major mutual insurers remain leaders for participating whole life and dividend potential: Northwestern Mutual, MassMutual, New York Life, Guardian Life, and Penn Mutual. State Farm continues to lead industrywide in customer satisfaction per the latest J.D. Power study, though its whole life is typically non‑participating (no dividends). The five companies below offer notable strengths for different buyer needs.

• Nationwide: Best for Personalized Coverage
• USAA: Best for Military-Centric Options
• State Farm: Best for Local Assistance
• Mutual of Omaha: Best for Guaranteed Issue Policies
• MassMutual: Best for Riders

Compare the Best Whole Life Insurance Companies

While we feature these companies for specific strengths, the best fit depends on your goals and budget. For participating whole life, ask for the current-year dividend scale and illustration. Cross-check service with the latest J.D. Power rankings, review AM Best Financial Strength Ratings for claims‑paying ability, and look up each insurer’s most recent complaint index in your state via the NAIC Consumer Information Source (index median = 1.00; lower is better). Industry context can also be gauged using the ACSI Finance & Insurance benchmarks.

Information accurate as of November 2025. Ratings, rankings, and complaint levels change over time; verify details on the insurer’s site, J.D. Power, NAIC Consumer Information Source, and AM Best at the time of purchase.

* J.D. Power’s 2021 U.S Individual Life Insurance Study. Based on a 1,000 point scale; State Farm ranked highest overall in the latest release, with Northwestern Mutual also among the top-scoring carriers. For financial strength categories and definitions, see AM Best’s Guide to Best’s Credit Ratings. To review a carrier’s most recent complaint index (median = 1.00), use the NAIC Consumer Information Source and filter by Individual Life.

What Is Whole Life Insurance?

Whole life insurance is a type of permanent policy combining lifetime death benefit protection with a guaranteed cash value schedule. Many policies are participating, meaning they may pay non‑guaranteed dividends that can be taken in cash, used to reduce premiums, or to buy paid‑up additions (PUAs). Illustration governance has tightened under the revised actuarial standard for the NAIC Illustration Model (ASOP No. 24), effective for work on/after 2025—expect clearer disclosures around non‑guaranteed elements like dividends (ASOP No. 24).

Whole life is designed to provide a guaranteed death benefit to your beneficiary and builds guaranteed cash value on a schedule. Policies also build cash value that can provide liquidity via withdrawals or policy loans. In the current higher‑rate environment, dividends at many mutuals have strengthened, but policy loan interest costs have risen with market rates—owners should review loan provisions and updated illustrations (interest rate context).

Benefits of Whole Life Insurance

Whole life insurance is popular for several reasons: 

• Permanent coverage: Lifetime protection with guaranteed death benefit and guaranteed cash value if required premiums are paid; no need to renew coverage.
• Dividend potential (participating policies): Many mutual insurers have long dividend‑paying histories, and higher portfolio yields have supported improving dividend outlooks heading into 2025 (dividends are not guaranteed; confirm current scale with your agent).
• Steady premiums and simple guarantees: Premiums are typically level for life, and guarantees are clearly defined, which can simplify long‑term planning compared with more flexible permanent products.

Drawbacks of whole life insurance

While whole life policies can be great for many people, these policies have drawbacks:

• Higher cost and early liquidity limits: Whole life’s lifetime guarantees and savings component make premiums much higher than term for the same face amount, and early surrender values can be reduced by surrender charges.
• Less flexibility and higher loan costs in a higher‑rate world: Design changes are limited versus universal life; dividends (if any) are not guaranteed, and policy loans accrue interest that has risen alongside market rates. Updated illustration standards (ASOP No. 24) emphasize clearer disclosure of these trade‑offs.

Further Reading

• What is Life Insurance?
• Whole Life vs. Term Life Insurance
• The Best Cheap Life Insurance Companies
• The Best Life Insurance Companies 
• The Best Term Life Insurance Companies

Frequently Asked Questions

Methodology

We evaluated life insurers on financial strength, participating whole life track record, customer experience, product depth (including riders), and consumer resources. We emphasize permanent-policy durability (claims‑paying ability), current consumer experience data, and non‑guaranteed element governance in illustrations.

• Number of Riders: More riders can mean greater customization (e.g., accelerated death benefits, chronic illness/LTC features, waiver of premium, paid‑up additions). Compare triggers, costs, and impact on policy values.
• Financial Stability: Reviews.com utilized AM Best Financial Strength Ratings and criteria to assess claims‑paying ability; see AM Best’s guide and verify the current FSR on the carrier’s site before purchase.
• Customer Satisfaction: We used the latest 2021 Life Insurance Satisfaction Study and consulted the NAIC Consumer Information Source complaint index (median = 1.00) for recent complaint patterns. We also reviewed industry benchmarks from the ACSI Finance & Insurance Study.
• Resources: We compared website functionality, phone availability, and mobile app options, including availability of online quotes/e‑apps, policy information, and digital servicing, noting broader digitalization trends in life insurance.

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