Based in Sioux Falls, South Dakota, Midland National Life Insurance Company is a privately-held insurance business founded in 1906. The company boasts strong third-party financial ratings from AM Best, paying over $593 million in life insurance claims and over $470 million in annuity benefits in 2019. Midland National Life Insurance Company offers multiple life insurance products and is licensed to do business in the District of Columbia and every state except New York.
- Date established: 1906
- Insurance products offered: Term, guaranteed universal, indexed universal
- AM Best financial strength rating: A+ (Superior)
- J.D. Power rating for overall satisfaction: Not ranked in 2021 study
- National Association of Insurance Commissioners (NAIC) complaint index: .14 (Fewer complaints than the industry average of 1.0)
- Availability: 49 states and D.C.
|Availability in Washington, D.C. and every state except New York||Only three policy options available|
|Fewer than average NAIC complaints||J.D. Power customer satisfaction score below industry average|
|High financial strength rating from AM Best, S&P and Fitch||Only offers life insurance, so you won’t be able to manage home, auto and life policies in one place|
Midland National life insurance coverage types
Midland National provides a few different life insurance products designed to help policyholders protect their loved ones financially. The company’s offerings include:
- Term life insurance: Midland National Life Insurance Company offers term life insurance, which stays in effect for a predetermined amount of time (usually 10, 20 or 30 years) and comes with a level premium payment. You can get term life insurance in varying amounts and term lengths. Depending on the policy, customers may have the option to convert their term policy to permanent life insurance before the end of the term. With certain term policies, the company offers an accelerated death benefit endorsement included at no extra charge that helps pay expenses associated with chronic and terminal illnesses.
- Guaranteed universal life insurance: Guaranteed universal life is a permanent policy that generally does not include a cash value account. It provides a death benefit up to a maximum age stated in your policy and may be a good fit for those who want lifelong coverage at a lower cost than many other permanent life insurance types. Note that guaranteed universal life insurance is a completely separate product from guaranteed issue life insurance, a type of life insurance that doesn’t require a medical exam and has high premiums.
- Indexed universal life insurance: Indexed universal life provides a regular death benefit along with a cash value portion that earns tax-deferred interest. The cash value funds are invested in certain stock market funds chosen by the policyholder. Your gains will have a cap and a floor, which protects your money in a poorly performing market but also limits the gains you can earn.
Midland National offers life insurance riders in addition to the accelerated death benefit, including riders for the purchase of additional insurance, waiver of premium and children’s term insurance.
Midland National life insurance customer and claims satisfaction
According to the NAIC, Midland National Insurance Company receives significantly fewer complaints than the industry average. When it comes to customer satisfaction, Midland National was not ranked in J.D. Power’s 2021 U.S. Individual Life Insurance Study but did rank lower than average in its 2020 study with a score of 725, compared to the industry average of 763.
Despite the company’s low rating in the J.D. Power survey, Midland National Life Insurance remains a strong competitor in the life insurance marketplace. The company’s annuity options make it a strong choice for policyholders who are preparing for retirement.
Midland National has a solid financial base and high financial ratings, which means that customers can feel confident it has a solid financial history. The fact that the company is privately owned may allow it to focus more on serving its customers instead of worrying about generating short-term earnings for shareholders. The company has scored high ratings from several different financial ratings agencies, broken down as follows:
|AM Best||A+ – Superior|
|S&P Global Ratings||A+ – Strong|
|Fitch Ratings||A+ – Stable|
Midland National offers a range of well-built life insurance and annuity products. However, note that these products are only available through independent advisory channels and cannot be purchased directly from the company or online.
Other insurance products
Midland National offers the following list of annuity products:
- Multi-year guarantee annuities (MYGAs): A fixed annuity that pays a guaranteed interest rate.
- Single-premium immediate annuities (SPIAs): This type of annuity starts paying a guaranteed stream of income immediately and will pay this income either for the rest of the annuitant’s life or a predetermined period.
- Fixed-indexed annuities: This type of annuity credits interest to the contract based upon the performance of an underlying financial benchmark index such as the Standard & Poor’s 500 Index. They resemble indexed universal life insurance policies in that they have no downside risk, meaning that your investment will be protected if the market performs poorly.
Frequently asked questions
What is the best life insurance company?
There is no one best life insurance company in the financial marketplace today. The best company for one consumer could be a bad choice for someone else, depending upon the needs and circumstances of the prospective buyer. Consumers may want to look at a given company’s financial strength, customer satisfaction surveys and other data in order to determine whether that company may be a good choice. While premiums will not differ much among companies, you may want to get life insurance quotes to see how much you’ll be paying once your policy kicks in, and you may want to see what requirements each company has for its available policies before making a decision.
How much life insurance do I need?
When answering the question of how much life insurance you need, you may want to first consider your financial goals. Are you using life insurance as a way to provide for loved ones after you pass? If so, you may want to consider the financial burdens you’d leave behind for your loved ones to handle. For instance, do you have a mortgage or a child’s eventual college tuition payments? If you have debt, you may want to factor it in so that your loved ones aren’t saddled with it after your death. If you have a special needs child who depends on you financially, you may want to consider additional coverage. Since each person’s circumstances differ, calculating how much life insurance you need should be an individualized process. You may benefit from using a life insurance calculator or other formula to help you calculate a dollar amount. Speaking with a licensed insurance agent may help you make the determination.
Do I need to purchase life insurance for my children?
Whether or not you want to purchase life insurance for your children is a personal decision. Infant mortality rates are low in the United States. However, some parents appreciate the peace-of-mind that comes with knowing that funeral expenses would be covered in the event that the unthinkable happened. Importantly, purchasing life insurance for your child can make them more insurable in the future. You may be able to lock in a low premium rate while your child is young, that they can benefit from even if they develop health issues in the future.
What types of life insurance should I consider?
If you’re starting your search for life insurance, you may be wondering what types of life insurance are available to you. The most popular form of life insurance is term life, which provides coverage for a predetermined number of years. If you’re interested, you may want to look into the best term life insurance providers in your area. Whole life insurance is a permanent policy that includes a cash value account that many policyholders find beneficial. For life insurance over the age of 50, you may want to look into companies that cater to you. Note that the cheapest time to purchase life insurance is as soon as possible since premiums will be higher for older people. If you’re having trouble deciding which policy types might be right for you, it may be helpful to work with a licensed insurance agent who can act as your guide to life insurance.