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Life insurance is as complicated as the policyholders and beneficiaries who use it. That means there's no single "best" life insurance company. Instead, you can find the best option based on what you want or what you prioritize.
Business Insider's editorial team has independently reviewed over 30 life insurance companies to find the best provider, based on insurance premiums, policy terms, overall benefits, and customer satisfaction.
Best Life Insurance for Whole Life: Northwestern Mutual Life Insurance
Northwestern Mutual Life Insurance offers a range of products, including term life, whole life, and universal life. It has a 790/1,000 JD Power customer satisfaction rating and an A++ AM Best financial strength rating.
Northwestern Mutual's whole life insurance is available for people up to 85 years old. It's available for purchase with several riders, including accelerated care benefits, waiver of premiums, and additional purchase benefits. The whole life insurance policy particularly stands out for the dividends it pays out to whole life insurance policy holders on an annual basis. The company is expected to pay $8.2 billion in 2025.
Read our Northwestern Mutual life insurance review.
Best Life Insurance with No Medical Exams: Guardian Life Insurance
Guardian Life Insurance has a 743/1,000 JD Power customer satisfaction rating and an A++ financial strength rating. It offers term, whole, and universal life insurance. Guardian stands out for its no-exam life insurance, offering up to $3 million in coverage, which is high for the industry. You can also convert Guardian's term life insurance to a whole life insurance plan.
Read our Guardian life insurance review.
Best Life Insurance for Universal Life: State Farm Life Insurance
State Farm Life Insurance is consistently one of the leading life insurance companies in the industry, receiving the best life insurance ranking in JD Power's Individual Life Insurance Study, with a score of 843/1,000. The company is also ranked A++ with AM Best for its financial stability with term, universal, and whole life insurance options.
All State Farm policies have to be purchased through a State Farm agent. Your agent can help you bundle and save or buy one policy. State Farm is also among the companies offering "survivorship universal life insurance," which means the policy covers two people, and it kicks in after the second person dies. Couples looking to maximize their death benefit for beneficiaries with one premium payment each month may enjoy lower overall costs.
State Farm agents can run quotes and compare options to find the right plans for each applicant. The range of options, discounts, and familiar name all contribute to the popularity of State Farm's life insurance.
Read our State Farm life insurance review.
Best Life Insurance for Older Adults: Prudential Life Insurance
Prudential Life Insurance's VUL plan allows buyers to pull money out of their plan to pay for nursing home expenses. Cash value policy premiums are fixed, so you won't have to worry about extra costs later on. Internal costs are low, which minimizes risk. Due to age, many older adults want a safe investment option for their money. Prudential VUL Protector invests to avoid loss. That also means you're not as likely to see big increases in your available funds outside of what you deposit.
Prudential policies are available in all states except New York. New York residents can buy the Pruco Life of New Jersey VUL Protector plan.
Read our Prudential life insurance review.
Best Life Insurance for Long-Term Care: Brighthouse Financial Life Insurance
Brighthouse Financial Life Insurance offers term and indexed universal life insurance options. Its hybrid permanent life insurance policy SmartCare is an indexed universal life insurance that offers long-term care benefits through a collection of riders, including an LTC (long-term care) accelerated death benefit rider.
With this rider, LTC benefits can be determined at the start of the policy. Policyholders have the option to grow LTC benefits at a set rate or with an index. They can also opt for level LTC benefits, which means they don't grow over time. Benefits are paid up to two years after a claim is made, but can be extended by up to four years with an Extension of Benefits Rider.
Brighthouse's other policies are also worth a look. It offers a one-year term life insurance policy that can be converted into a whole life policy. It also offers traditional term life insurance with 10, 20, and 30-year terms and up to $3 million in coverage, with below-average premiums.
Another benefit of Brighthouse Life Insurance is that most of its policies do not require a medical exam, as long as you get regular checkups. However, for patients over 60 who have not seen a doctor within two years, you may have to take a short physical exam.
Read our Brighthouse life insurance review.
Best Life Insurance for High Returns on Income: Allianz Life Insurance
Allianz Life Insurance plans are geared towards high-income adults looking for more tax-free income. Allianz offers a 40% multiplier bonus with a 1% annual assets charge. In short, the professionals managing your investments take 10%.
Overall, your investments would pull in an extra 14%-1% asset charge. This means you end up with 3% more than what you deposit every year your life policy is active. This plan offers strong returns when using a life policy to supplement your retirement savings. Allianz also offers specialized plans to grow your income by as much as 20% according to some estimates.
Of note: Allianz also offers plans for foreign nationals, including those with H-1B visas.
Read our Allianz life insurance review.
Best Life Insurance for Affordability: New York Life Insurance
New York Life Insurance agents go through extensive training before they ever hit the sales floor. What does this get you? Policies vary widely, and New York Life offers both large and small payouts. Some policies have significant penalties for early withdrawal, but taking a loan offers more options.
Whatever your questions, New York Life agents are trained to offer comprehensive support, giving you accurate information about its policies every time. The company comes in at position eight in JD Power's latest life insurance customer satisfaction study, with a 794/1,000.
Read our New York life insurance review.
Best Life Insurance for Term Life: Ladder Life
Ladder Life is a term-only life insurance company that offers affordable term life insurance with policy periods from 10 to 30 years in increments of five. Applicants can get up to $3 million in coverage without taking a medical exam and up to $8 million if they complete a medical exam.
Like most term-only life insurance companies, Ladder's additional benefits are pretty sparse. It doesn't have any available riders and does not allow for a term to whole life conversion. If you're looking for a term life conversion, Corebridge Direct or North American life insurance may be better options.
Ladder's main appeal is its "laddering" function, which lets policyholders adjust their death benefits, and therefore their premiums, an unlimited number of times throughout the lifetime of their policy. This gives policyholders a level of flexibility not usually seen with term life insurance, allowing policyholders to adjust their premiums if they're facing a period of financial hardship.
Read our Ladder life insurance review.
Types of Life Insurance Available
While there are many different types of life insurance policies, broadly speaking, there are two types of life insurance: temporary and permanent. Let's go over each in detail.
Temporary life insurance
Temporary life insurance is often called term life insurance. This type of policy covers you for a set amount of time before expiring, usually between 10-30 years. If you pass away after your policy expires, your family won't receive any benefits. Additionally, your policy won't accrue cash value like a permanent policy. That said, some term life insurance policies offer a conversion from term to whole life insurance, so you can extend your coverage.
Because its benefits aren't guaranteed, term life policies are generally cheaper than permanent life insurance. That said, the vast majority of term life insurance policies never pay out.
Permanent life insurance
Permanent life insurance is an umbrella term for a variety of life insurance policies that will insure you indefinitely and guarantee a payout as long as you maintain your policy. Policy types that fall under permanent life insurance includes:
- Whole life insurance: Offers permanent benefits with fixed premiums and cash value that accumulates over time. Some providers may pay dividends to whole life policyholders.
- Universal life insurance: Offers permanent benefits with flexible premiums and death benefits. Cash value accumulates over time, usually according to market interest rates.
- Variable life insurance: Cash value can be invested in assets, often mutual funds, or placed in an account with guaranteed interest, which reduces risk.
- Variable universal life insurance: Combines the advantage of universal life and variable life, offering a policy with cash value growth based on investments and flexible premiums.
- Indexed universal life insurance: Similar to universal life insurance, but cash value growth is tied to an index like the S&P 500.
- Simplified life insurance: Offers policies that do not require medical exams, so applicants can get coverage faster. However, applicants must answer health questionnaires and providers can still deny applications. Death benefits are usually more limited than traditional policies.
- Guaranteed issue life insurance: Guaranteed issue life insurance means that applicants are guaranteed to be accepted, so no medical exams or health questionnaires are required. However, death benefits are often very limited, usually only enough to cover burial expenses.
These policies vary widely in purpose and intended buyers, but all guarantee death benefits to your loved ones. Some permanent life insurance policies, like whole, universal, and variable have a cash value component, which you can use as a savings tool or to leave your heirs a larger death benefit.
How to Pick the Best Life Insurance Policy for You
Unlike homeowners or auto insurance, which is required by most states, life insurance is a voluntary purchase. As a result, it's not as easy to purchase life insurance online. As a result, finding the best life insurance for your needs starts with finding a trusted insurance agent. Agents can help buyers figure out what they need and when they need it.
However, there are a few things you can consider before approaching an agent:
Age
Some companies will sell you a policy for your child as soon as they're born. While this may seem morbid, early sign-up means lower rates for a policy your child could enjoy in the future. Regardless, early sign-up equates to more policy for lower premiums and a higher likelihood of acceptance. At 20, you may be healthier and be able to pay into the policy for a longer period compared to when you're 50 with more age-related conditions.
Price
As a general rule, never agree to more than you can afford. For the average life insurance agent, their job is to sell you a large policy with a large commission. Consider not only how much you make now, but how likely your current income is to continue. If you work on a project basis and your project is scheduled to end in 12 months, you may want to reconsider a policy premium outside your monthly savings.
Limits
How much are you prepared to buy? Some people only want a small policy to cover funerals and other end-of-life expenses. Others build a life policy into their retirement plan. Whatever direction you're going, involving a financial planner could help you make the right decisions. Depending on the carrier, customers can also compare set limits with index universal life policies, which set no limit. These policies never expire, and the value builds over the entirety of your life.
Living Benefits
Life happens unexpectedly. You could be healthy one day and in the hospital the next. Many life policies offer living benefits. These allow you to draw a limited amount out of your policy to cover medical and other bills you cannot pay while sick.
Penalties
Much like a 401(k), many life insurance policies have penalties for early withdrawal. No matter what policy you want, this question is critical to an informed decision. It's a question of how early you can withdraw and how much you'll lose from the total to have the money in 10 years instead of 30 or after death.
Exclusions
Some policies require insured parties to pay premiums for at least one year before any significant payout would be available. Suicide exclusions are common. Even with no medical exam policies, the company may still do a check for known conditions. An insurance company has to mitigate its risk.
Flexibility
Once you've been denied a life insurance policy, a mark goes on your record. No matter the reasons, other insurance companies may deny you coverage based on the first denial. So consider your whole situation and choose your policy carefully before you submit any applications. Some policies have greater flexibility if you lose your job or otherwise can't make payments. Others will lapse if you miss even one payment.
Payment Type
The best life insurance for you will also depend on how you want to pay for it. Universal policies have flexible premiums and adjustable death benefits, which may be appealing if you're worried about periods of financial hardship.
Even within whole life or term life insurance policies, customers have the option to choose guaranteed fixed or variable rates. Some have guaranteed payouts, but you'll need to ask your agent for details.
Additionally, you may not want to pay for life insurance throughout the duration of the policy's lifetime. In that case, you'll want to look for a limited payment life insurance policy, which sets a predetermined payment period instead of the policy's lifetime.
Plan
What is your intended use? Why are you shopping for a life insurance policy in the first place, and what are your goals? Many successful financial planners also have a background in life insurance. So while they may not be able to find you a specific life insurance policy, financial planners can help you set out a blueprint for your purchase.
Best Life Insurance Companies FAQ
If your life insurance policy is paid up, it means you no longer have to make regular premium payments.
The three main types of life insurance are term life insurance, whole life insurance, and universal life insurance.
The best type of life insurance policy for you depends o your needs. If you're looking to cover a specific period of your life, term life insurance is best. If you have a high income and are looking for aggressive growth, a variable universal life insurance policy will be best.
The latest JD Power life insurance customer satisfaction study shows that State Farm has the best customer satisfaction.
The most popular type of life insurance is term life insurance. Term policies are only good for a specified term that you select when opening the policy — the fact that they don't last forever also makes these policies the most affordable. Consider the timing of your purchase if you go with a term policy. Your family will only receive a payout if you pass away within the specified term of the policy.
Why You Should Trust Us: How We Reviewed the Best Life Insurance Companies
In life insurance, it's easy to get "sold a bill of goods." Many life insurance agents pass a state test to be thrown into the deep end. Agents sell the company product, but not all know the products. In this vein, we look at the products each company offers. We also look at agent training.
A good life insurance agent may not volunteer all facts upfront. But a company's agents should answer questions about its products accurately and in a way the average consumer can digest. Agents should be able to inform you about the long-term benefits and limitations. This will help customers find the right policy for their long-term plan.
We consider affordability, policy sizes available, and performance for a comprehensive assessment. If you can, we recommend also working with a financial advisor to make a plan for your future with life insurance.
Read more about how Business Insider rates life insurance.
The Experts' Advice on Choosing The Best Life Insurance for You
To inform our choices for the best life insurance companies, we spoke with the following experts:
- Paul LaPiana, head of product at MassMutual
- Barbara Pietrangelo, CFP, CLU, and chair of the nonprofit Life Happens
- Wykeeta Peel, Corporate Vice President and Market Manager, African American Market Unit at New York Life
How much life insurance coverage do you believe the average buyer should have?
Paul LaPiana, Head of Product at MassMutual
"There are different approaches to determining how much life insurance you need. One is the 'human life' approach, which estimates the current value of your future earning potential. Another is securing specific coverage to pay off debts such as a mortgage or provide for the education of children. A comprehensive protection plan should provide the right amount of coverage over the course of your working life and into retirement."
Barbara A. Pietrangelo, Chair of Life Happens
"There is no one-size-fits-all life insurance policy because everyone is different. One way to get a rough estimate is to multiply your income by 10 to 15; another is adding $100,00 to that amount, should you have a child and anticipate college education expenses.
Your best bet is to talk to a financial professional or use the Life Insurance Needs Calculator on LifeHappens.org to analyze what's right for you."
Wykeeta Peel, Corporate Vice President & Market Manager African American Market Unit at New York Life
"As you consider what policy best meets your needs, it can help to answer four key questions: First, how much death benefit do you need? Second, how long will you need that coverage? Third, what is your budget (or how much monthly premium can you afford to pay?), and finally, what is your investment risk tolerance?
To determine how much death benefit makes sense, it's helpful to think beyond using life insurance to cover funeral expenses and consider whether anyone is relying on the policy owner's income to maintain a lifestyle, pay rent or a mortgage, or fund a child's education and for how long.
There are various rules of thumb regarding the right amount of Life insurance coverage. Some tips can be found online, but they only provide an estimate and don't necessarily factor in an individual's specific needs. In my opinion, human guidance, powered by technology, is required. Basically, it comes down to how much money your loved ones would need to remain on firm financial ground if your earnings were no longer in the picture and that is different for everyone."
What is the biggest opportunity you see for improvement in the life insurance industry?
Paul LaPiana, Head of Product at MassMutual
"Increased accessibility through digital and other channels as well as through underwriting enhancements. Increased tailoring of products and features. And an increased emphasis on health and wellness programs."
Barbara A. Pietrangelo, Chair of Life Happens
"Having enough qualified insurance professionals to walk potential buyers through the multiple benefits of life insurance will be pivotal to the growth of the industry. Education is a key factor here, as professional agents also need to be able to explain life insurance and its benefits in an easy, digestible way, especially when there are so many misconceptions about life insurance."
Wykeeta Peel, Corporate Vice President & Market Manager African American Market Unit at New York Life
"The need for life insurance is greater than ever. In fact, a recent New York Life Wealth Watch survey found that 37% of adults have been thinking about life insurance more often these days – and half of adults report that financial products that provide protection (50%) and reliability (50%) are more important now compared to last year. This may be especially true for middle-market and Cultural Market families.
Our organizational structure of having Cultural Market agents embedded in the communities where we live and work allows us to understand the needs of diverse communities and develop solutions that resonate with them."
What advice would you give to buyers who are debating whether or not to buy life insurance?
Paul LaPiana, Head of Product at MassMutual
"It is difficult to say with any certainty how healthy you will be years from now. That's why securing life insurance, and insuring your insurability, today, when you are the youngest you'll ever be again, and perhaps your healthiest is a wise decision."
Barbara A. Pietrangelo, Chair of Life Happens
"Do you love someone? If the answer is yes, then life insurance is certainly something you should consider. Many buy gifts and experiences to express their love, but haven't considered that life insurance is just another way to say I love you. Nothing says support like ensuring your family's financial security and peace of mind."
Wykeeta Peel, Corporate Vice President & Market Manager African American Market Unit at New York Life
"If you have someone depending on your income, you should consider purchasing life insurance. A death benefit from a life insurance policy can replace income from the loss of a breadwinner, ensure a family can stay in their home, fund educational or retirement expenses, address debt and so much more.
A life insurance policy can also help you grow your family's wealth over time. Once the risk of an unexpected loss has been managed, you can begin to think more broadly about your family's financial future. Life insurance can enable your mindset to shift from death to growth."
What's the most important thing buyers should look for when choosing a life insurance agent/company to buy from?
Paul LaPiana, Head of Product at MassMutual
"With life insurance, you are securing a future commitment that may be decades away. Research the company behind the policy to ensure it has high financial strength ratings, longevity, and an excellent track record of paying claims."
Barbara A. Pietrangelo, Chair of Life Happens
"When looking for an insurance agent or company, be sure to do your research. When comparing companies, be sure to remember that the policy features that fit you and your loved ones best is the most important factor. Don't automatically assume you should buy from the higher-rated company.
If the policy from the other company has more of what you're looking for, it might be the better choice. If you're unsure where to start, try the Life Happens Agent Locator to find an insurance professional in your area."
Wykeeta Peel, Corporate Vice President & Market Manager African American Market Unit at New York Life
- "The insurers' track record: At its core, life insurance is protection - a hedge against the unexpected - and you are paying premiums in exchange for the promise that the insurer will be there when you need them, so the financial strength and track record of the company backing your policy is critical.
- Customer service: Are service professionals available by phone and digital channels? Is there an online dashboard where you can manage your policy? Beyond ensuring assistance is available after you purchase a policy, it's also critical to ensure you have access to trusted advice and guidance before you buy.
- Flexibility in conversion: How easy is it to change? Life can be unpredictable and while term insurance can cover your loved ones through a critical period of time, you may decide that access to cash value is an important piece of your strategy.
- Accelerated online applications: Online applications are convenient but don't replace human guidance. Keep in mind that accelerated online applications may have a maximum coverage amount, meaning that you may not be able to get all the coverage you may need exclusively through an online process.
- A range of payment options: It's important to understand how often you're required to make premium payments and whether and how often you can change the frequency of payments."
