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Best life insurance companies in 2023
After an in-depth analysis, Bankrate found our picks for some of the best life insurance companies for every situation, which include MassMutual, Northwestern Mutual and State Farm.
Life insurance should fit your needs, whether you need top-notch customer service, short term coverage or high limits. Here are Bankrate's picks for the best life insurance companies based on various financial and consumer needs.
- Guardian: Best for life insurance coverage without a medical exam
- MassMutual: Best for whole life insurance
- Mutual of Omaha: Best for digital accessibility
- Nationwide: Best for customer satisfaction
- Northwestern Mutual: Best for universal life insurance
- Prudential: Best for policy personalization
- State Farm: Best for term life insurance
Having a life insurance policy in place may help you feel more in control of your legacy, knowing that your family will have the financial means to handle your funeral expenses and outstanding financial obligations. To help simplify the process and give you a place to start when it comes to shopping for life insurance, Bankrate’s insurance editorial team researched dozens of life insurance carriers. We reviewed aspects like customer satisfaction, financial strength, available coverage options, riders and digital offerings to help narrow down your search so you can find the best life insurance for your needs.
Top life insurance companies
| Company | Best for | J.D. Power Score in 2022 U.S. Individual Life Insurance Study | AM Best Financial Strength Rating |
|---|---|---|---|
| Guardian | Life insurance coverage without a medical exam | 787/1,000 | A++ (Superior) |
| Mass Mutual | Whole life insurance | 780/1,000 | A++ (Superior) |
| Mutual of Omaha | Digital accessibility | 801/1,000 | A+ (Superior) |
| Nationwide | Customer satisfaction | 791/1,000 | A+ (Superior) |
| Northwestern Mutual | Universal life insurance | 794/1,000 | A++ (Superior) |
| Prudential | Policy personalization | 773/1,000 | A+ (Superior) |
| State Farm | Term life insurance | 839/1,000 | A++ (Superior) |
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Whole life insurance combines life insurance with an investment component.
- Coverage for life
- Tax-deferred savings benefit if premiums are paid
- 3 variations of permanent insurance: whole life, universal life and variable life include investment component
Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.
- Fixed premium over term
- No savings benefits
- Outliving policy or policy cancellation results in no money back
This advertising widget is powered by HomeInsurance.com, a licensed insurance producer (NPN: 8781838) and a corporate affiliate of Bankrate. HomeInsurance.com LLC services are only available in states where it is licensed and insurance coverage through HomeInsurance.com may not be available in all states. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
How Bankrate picked the best life insurance companies for 2023
To find the best life insurance companies of 2023, Bankrate’s editorial team started by researching the largest life insurance carriers on the market. We also analyzed life insurance company ratings, including customer satisfaction scores and financial strength ratings from trusted, unbiased sources, including J.D. Power and AM Best. Next, we looked at whether or not each insurer offers a mobile app, online portal, 24/7 customer service and local agents to determine each company’s accessibility. We then factored in each company’s coverage capacity (the maximum dollar amount of each company’s death benefit), the number of riders for optional coverage and the availability of a no-medical exam underwriting option. More information about each carrier is available below to help you learn about their benefits and drawbacks.
Compare the best life insurance companies
Shopping for life insurance can be intimidating, but Bankrate is here to make the process easier. When studying the largest life insurance carriers, there are some metrics that you can rely on to help effectively compare your options. Does one company offer a wide range of life insurance policy types, as well as riders and endorsements to personalize your policy, compared to another? What does the qualification process look like, and what might your estimated life insurance premium be?
From there, you can also compare companies’ financial strength ratings and customer service scores from trusted third-party agencies, such as AM Best and J.D. Power, for an unbiased view of which providers may excel in these areas and give you the best experience.
Guardian
The Guardian Life Insurance Company of America ranks well in customer satisfaction and financial strength and offers the most term life insurance riders on our list. According to the National Association of Insurance Commissioners (NAIC), the company also has fewer than baseline policyholder complaints and offers multiple no-medical exam policy options.
Guardian provides easy policy management through its network of more than 3,000 financial representatives across the nation and online account management. Guardian carries an A++ (Superior) financial strength rating from A.M. Best and offers multiple coverage options depending on your life stage, goals, needs and budget.
PROS
-
Dividends available on some policies
Easy online management
Policies available for HIV-positive applicants
Multiple no-medical exam policy options
CONS
-
Must purchase coverage through an agent
-
Rider details limited online
MassMutual
MassMutual won a Bankrate Award in 2022 and 2023 for best whole life insurance thanks to its A++ (Superior) financial strength rating from AM Best and for offering 13 whole life insurance riders, the most of any company we analyzed.
MassMutual, also known as Massachusetts Mutual Life Insurance Co., is a U.S. life insurance company owned by its policyholders, allowing select policyholders to earn dividends when the company does well. MassMutual offers an online application process for term life policies. Coverage takes effect immediately upon application approval, and applicants must usually complete medical exams for all term and universal life policies.
PROS
-
Free coverage for qualifying low-income families
Convenient mobile app
Numerous riders
Superior financial strength
High coverage capacity (the maximum dollar amount of a policy’s death benefit)
CONS
-
Limited online quotes
-
Medical exams required for term and universal life policies
-
No final expense policies
Mutual of Omaha
Mutual of Omaha ranked just behind the overall winners of Bankrate’s best life insurance study. The company ranks well above average in J.D. Power’s customer satisfaction survey and earned a financial strength rating of A+ (Superior) from AM Best. Mutual of Omaha offers no-medical exam life insurance options, and its digital features could make managing your life insurance policy easy.
Some people may be looking for the best online life insurance experience. In terms of accessibility, Mutual of Omaha offers a robust digital app, an online portal, local insurance agents and a 24/7 phone line for accepting your payments.
PROS
-
Easy online quote process
Offers digital money management app
High J.D. Power customer satisfaction score
CONS
-
Does not provide dividends
-
Not all life insurance can be quoted online
Nationwide
Nationwide offers a user-friendly mobile app, streamlined online portal and a network of independent agents across the U.S. Combine those features with an above-average J.D. Power customer satisfaction rating, and Nationwide could be a great choice for customer satisfaction.
The multi-line insurer offers seven riders for universal life, the second-highest number of riders of any company on our list. Nationwide also received an A+ (Superior) financial strength rating from AM Best, making it possibly one of the best life insurance companies in the marketplace in terms of third-party ratings.
PROS
-
No-medical exam options available for universal, whole and term life insurance programs, depending on eligibility
Above-average J.D. Power customer service score
Plentiful rider options
CONS
-
Limited online quotes
-
Policy acceptance not guaranteed
-
No 24/7 help line
Northwestern Mutual
Northwestern Mutual won the 2023 Bankrate Award for best universal life insurance company due to its high financial strength rating, highly-rated customer satisfaction and available financial planning services. Northwestern Mutual sells coverage through agents, which could be a good fit for those who prefer face-to-face interactions over a digital purchase process.
Earning an A++ (Superior) financial strength rating from AM Best, Northwestern Mutual shows a strong history of being able to pay claims. As a mutual company, it is owned by its policyholders. Northwestern Mutual offers a variety of term, whole and universal life insurance policies. Because universal life coverage is flexible, you may be contacting your agent more often. Northwestern Mutual ranks highly in Bankrate’s internal study of accessibility for providing a mobile app, online portal, local agents and a 24/7 customer service phone line that accepts premium payments.
PROS
-
Dividends available on whole life insurance policies
Flexible policy options
Wide range of riders
Easy-to-use online portal and mobile app
CONS
-
Must buy coverage through an agent
-
Limited information available online
Prudential
Prudential is the third-largest U.S. life insurer based on market share rankings from the Insurance Information Institute (Triple-I). In our study, Prudential Financial ranked just behind our overall best life insurance company winners in customer satisfaction and accessibility. It offers plentiful rider options, easy-to-use online tools and live agent support.
The company has nine universal life insurance riders — more than any other carrier on our list. It offers a variety of term life and universal life insurance policies, giving customers a greater level of flexibility than some of its competitors. However, keep in mind that Prudential does not offer whole life insurance or no-medical exam policy options.
PROS
-
Live agent support available
Online tools
Plentiful rider options
Variety of term and universal life policies
CONS
-
Medical history required for quotes
-
Limited online quotes
-
Selective policy options
-
Below-average J.D. Power customer satisfaction score
State Farm
State Farm was another two-time Bankrate Award winner, scoring the prize for best term life insurance in 2022 and 2023, thanks to its top-notch customer service and accessibility tools. As one of the top life insurance companies, State Farm also received the highest customer satisfaction score from J.D. Power.
State Farm offers accessibility tools including a 24/7 customer helpline, easy-to-use mobile app, online portal and more than 19,000 exclusive local agents across the U.S. With an A++ (Superior) rating from AM Best, State Farm has a history of financial stability. The carrier offers a variety of term life insurance options as well as whole, universal and variable universal options.
PROS
-
Numerous policy and rider options
No medical exams required for some policies
Highest J.D. Power customer satisfaction rating
CONS
-
$10,000 maximum for final expenses insurance
-
Age-dependent exam plans
-
Can only purchase from an agent; no online option
How to choose the best life insurance company
When you are ready to buy life insurance, taking a few extra steps can ensure you find the best policy based on your wants and needs. Here are some things to look for when choosing the best life insurance company for you:- Ask for recommendations: Your friends and family may have life insurance with a company they love. You may want to ask them about their experiences with customer service at these companies.
- Review customer satisfaction ratings: You can visit the J.D. Power website or check the carrier reviews in this article to review each insurance company’s customer satisfaction ratings. J.D. Power assigns each company a score out of 1,000 possible points.
- Assess financial stability: We recommend looking at a company’s financial strength rating from a third-party agency such as AM Best, Standard & Poor’s (S&P) or Moody’s. A company with a low financial stability rating may have a poor history of being able to meet financial obligations and may struggle to pay life insurance death benefits to policyholders if a high volume of claims are filed simultaneously. It is important to have the assurance that your insurer has a history of strong financial stability.
- Look at customer reviews: Dozens of consumer-oriented sites such as Google, Yelp and Consumer Affairs provide reviews from insurance companies’ customers. It may be most helpful to ignore the outlier reviews and focus on the overall average instead. What did the average customer say about the company you are considering? Are the items they complained about important to you? For example, if someone complained that the company does not offer a mobile app, but a mobile app is unimportant for your needs, you may not need to consider that review in your assessment.
- Get multiple life insurance quotes: It can be beneficial to compare life insurance quotes from multiple carriers to help you find the best cheap life insurance policy. Keep in mind that prices will vary more widely for different policy types, although additional policy features could be another cost-influencing factor.
- Seek professional counsel: While a life insurance calculator can be useful, you may be better able to determine your needs by talking with a financial advisor or a licensed life insurance agent if you have more complex needs or questions. A life insurance agent can help you decide what type of life insurance coverage is right for you and how much life insurance you need. When choosing between the many types of life insurance, it may help to get a second opinion from a professional.
Life insurance cost
You may notice that we don’t include average rates in our analysis. That’s because rates vary widely based on each policyholder’s age and health metrics, as well as the type of policy they choose, their death benefit level and any riders they add on. Life insurance companies don’t reveal average rates, since that information reflects the general health of its policyholders and could put privacy at risk.
Life insurance rates are incredibly personal, so average rates aren’t a helpful metric when choosing a company. Generally, insurance experts recommend that you choose a life insurance company based on the specific product you need, rather than the rate. That said, the premium will vary between providers. Comparison shopping life insurance companies can help you find coverage that works for your family at a price that fits your budget.
Bankrate’s take: Finding life insurance can be challenging if you have declining health or pre-existing conditions, but options are still available. Many employers offer group insurance to employees, which typically does not require a medical exam or individual underwriting. If this is not an option, guaranteed life insurance plans are another avenue worth exploring. While they can be costly, your medical status is not a qualifier for coverage.
What does life insurance cover?
In general, life insurance covers natural causes of death, such as old age and terminal illness. It will also typically cover accidents. There are, however, certain exclusions for life insurance, especially during the policy’s contestability period. For example, death by suicide is generally not covered in the first two years of a policy. Most importantly, certain misrepresentations on your policy could be deemed fraudulent and might void the life insurance policy and prevent the death benefit from being paid. That’s why it’s important to be honest when applying for life insurance.
Types of life insurance policies
There are many types of life insurance policies, but they all fall under two categories: term life insurance, which is only in force for a set time, and permanent life insurance, which is in effect as long as premiums are paid in most circumstances. Permanent life insurance comes with a cash value component. Depending on your individual needs and preferences, having one or both of these types of policies could be an integral part of your financial plan.
Term life insurance
With a term life insurance policy, you and the life insurance company enter into a contract for a specified death benefit amount for a set number of years. Unlike permanent life insurance, a term life insurance doesn’t have the savings or investment potential, and because it’s only active for a set number of years, it’s possible to outlive your policy and receive no benefits. However, you may be able to convert it into a permanent life policy at the end of your term.
Permanent life insurance
In contrast to term coverage, permanent life insurance stays in place for your entire life, as long as you pay the premiums. There are many types of permanent coverage, but the two main forms are whole and universal.
Bankrate’s take: The premiums paid toward a permanent life insurance policy are portioned into three groups: the insurance company's cost and profits, the death benefit payout and lastly, the policy's growing cash value. Policyholders can access the cash value of the policy when needed by making a withdrawal, loan or canceling the policy in full. When money is withdrawn or the policyholder cancels the policy during the surrender period, most companies initiate a surrender fee, typically around 10 percent of the contributed funds. The surrender period varies between providers and can last up to 15 years.
Frequently asked questions
