Best life insurance companies in 2023

Top life insurance companies

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.

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. However, quotes can still vary, so it’s worth shopping around.

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.

How to choose the best life insurance company

• 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.

What is life insurance?

Life insurance is a contract between you and an insurance company. In exchange for regular payments, the insurance company pays out a sum of money to your loved ones in the event of your death. These funds, also known as a “death benefit,” can help with covering expenses such as funeral costs and unpaid medical expenses. Death benefits can be used for anything, though; there are no restrictions on how the money can be used. You could use a death benefit to pay down debt, fund your children’s education or simply to pay everyday bills. Depending on the type of policy, this sum can also be paid out after specific life events, such as a diagnosis of terminal or critical illness, or after you reach a certain age.

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.

How does life insurance work? 

When you purchase a life insurance policy, you are making an agreement with an insurance company to make regular payments toward continued coverage with the policy. You will also choose a beneficiary, which could be a person or organization, that the insurance company will pay once you pass away. To access the funds, your beneficiary would have to file a claim with the company, who will then process it before making the payment.

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.

Whole life insurance

A form of permanent life insurance, whole life insurance usually comes with set premiums and a cash value account. While you may not be able to change the policy after it is active, having the cash value component can be useful, although the money accumulates relatively slowly.

Universal life insurance 

Another form of permanent life insurance, universal life insurance is known for its flexibility. The premium and death benefit can be adjusted as needs or lifestyles change. It also has a cash value component and can come with different investment strategies to help you grow the value of the policy.

Frequently asked questions