When choosing the right life insurance company, it’s important to do your research. Unlike other types of insurance policies, you’ll 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, we looked at third-party agency ratings for financial strength and customer service, as well as website functionality, coverage types, and rider options. This review includes a few of the best life insurance companies and who might find the insurers a good fit.
The 5 Best Life Insurance Companies
- 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.
*J.D. Power 2021 U.S. 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.
*J.D. Power 2021 U.S. 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.
*J.D. Power 2021 U.S. 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.
*J.D. Power 2021 U.S. 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.
*J.D. Power 2021 U.S. 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, number of riders offered, coverage options, customer satisfaction scores and website functionality from each company to determine top picks. Since life insurance rates vary widely among different profiles, we encourage you to continue researching options that fit your specific needs.
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.
- Price: While price isn’t the only consideration, it’s worth looking into whether you can get the same coverage for a lower price.
- Financial strength: Agencies like AM Best and Standard & Poor’s rate the financial strength of companies. Financial strength scores reflect the historical ability of companies to pay out claims.
- Customer service: You want a company that is responsive and easy to work with. Look at customer reviews on sites like BBB, J.D. Power, etc.
- Discounts & add-ons: Some companies offer discounts for bundling your life insurance with other products. Some also have add-ons like long-term care coverage that you can tack onto your life insurance policy.
- Company size: In most cases, larger companies with more assets on the books will be more stable. While there are advantages to shopping small, you must also consider which company is more likely to last.
- Historical performance: Don’t just look at how the company is doing right now — consider how they’ve done in the past. You’ll be holding this policy for many years, so longevity matters.
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.
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.
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.
Life Insurance FAQ
About the Authors
Sara Coleman is a personal finance freelance writer based in Charlotte, NC. A Journalism Major who studied at the University of Georgia, she enjoys creating approachable content. She’s written for sites such as WorkingMother, BetterYouMag, and SmartMoneyMamas. She loves spending time with her husband and 3 kids, and has a healthy obsession with coffee.
