Do you know what your financial and estate plan should include? Life insurance offered by Life Insurance Companies is a part of many people’s financial and estate plans.
However, not all providers offer the same level of service or coverage.
And according to Bankrate, Gender, age, smoking status, health, medical history, and other factors impact your life insurance rates.
That’s why we did the research for you and created this list!
The following list contains 10 of this year’s top-rated life insurance companies- their ratings, marketing strategy, as well as customer reviews from previous customers.
Why You Need A Life Insurance Policy
A life insurance policy is a contract with an insurance company that names a beneficiary for the policy’s value.
In exchange, the insured person pays a premium based on their age, health status, and other factors.
In case of death or critical illness, where somebody’s life is in danger, this contract will pay out the benefit to your loved ones.
In addition to the emotional support that a life insurance policy can provide, it can also help replace lost income through death or critical illness and is a key part of your financial planning.
In fact, according to one survey, most people would endure considerable hardship if they had to live without their income for more than six months due to their family situation.
Depending on your stage in life, different types of life insurance policy options are available.
- Term-life insurance is the most basic type of coverage and provides a death benefit if you pass away during the term (or coverage period).
- Whole-life policies typically provide lifelong coverage, starting with low premiums that increase over time.
- Universal life insurance policies combine term-life coverage with the ability to boost your death benefit or cash value through contributions or investment earnings.
Best Life Insurance Companies
Here are our top 10 options based on:
- Best Overall – Prudential
- Best Affordable – Principal Financial Group
- Best Popular – Northwestern Mutual
- Best For Fast Coverage – Haven Life
- Best Customer Service – State Farm
- Best Value – Transamerica
- Most Flexible Terms – New York Life
- Best For Military – USAA
- Best For Diverse Age Groups – Ethos
- Best No Medical Exams – Mutual of Omaha
1. Prudential — Best Overall
The Prudential Financial was founded in 1873 and has since been providing reliable service to its customers.
Prudential Insurance has several positive ratings when it comes to financial strength, with an AA- rating from Standard & Poor’s and an A+ rating from AM Best.
It provides term life insurance, variable universal life insurance, and indexed universal life insurance.
The insurer also offers riders such as living requirements benefit, a children’s protection rider, and an accidental death benefit that you may add to your policy.
According to the NAIC’s complaint index, Prudential has fewer policyholder complaints than the industry average.
At nine, the firm has the most universal life insurance riders of any provider on our list.
It provides a broader range of term and universal life insurance products than some competitors, offering clients more options.
Pros and Cons
Pros
- There are many universal life insurance plans available.
- Online resources and tools that are robust
- To pick an insurance plan, you can speak with a financial advisor.
Cons
- A medical history must be provided.
- For certain insurance, online quotes are not available.
2. Principal Financial Group — Best Affordable
Principal Financial Group comes second in our ranking of the top life insurance companies because we think it delivers the best balance of affordable coverage and client satisfaction.
According to the National Association of Insurance Commissioners, it placed fourth in JD Power’s 2019 customer satisfaction study and had much fewer customer complaints than the industry average.
Principal’s insurance coverage monthly premium, with packages containing universal life insurance, was the second least costly of the companies listed here.
A healthy 35-year-old may get a 20-year, $500,000 term life policy for $23 per month, compared to the average life insurance premium of $25.80.
As a result, Principal Finance Group is an excellent insurance provider for anybody wishing to provide extra financial security to their loved ones.
Life insurance plans from the Principal provide term lengths of 10, 15, 20, and 30 years, with death payouts ranging from $200,000 to $5,000,000.
Pros and Cons
Pros
- There are several permanent coverage options available.
- Many riders to choose from
- Several term conversion options
Cons
- There are no whole-life policies available.
3. Northwestern Mutual — Best Popular
Northwestern Mutual was founded in 1857 and has a long history of providing high-quality products and services, as shown by its excellent ratings.
AM Best gave Northwestern Mutual an A++ rating, whereas S&P Global rated it AA+.
The company also received top honors in the JD Power 2020 US Life Insurance Study for customer satisfaction.
Whole life insurance, term life insurance, and universal life insurance are available from Northwestern Mutual.
You will need to go through a thorough financial review to obtain a quote since it employs financial consultants that manage your whole financial picture.
Pros and Cons
Pros
- Whole life insurance policy dividends
- Wide range of riders
- Flexible policy options
Cons
- Scarce information is available online
- Coverage must be bought via an agent.
4. Haven Life — Best For Fast Coverage
Haven Life offers a broad range of insurance options, including no-medical-exam term plans.
Its Haven Plus term insurance provides free bonuses, including state-specific and legally acceptable digital wills, as well as fitness app subscriptions, and an online vault to keep vital documents digitally.
However, some or all of its coverage choices are not available in several of the country’s most populous states.
Haven Life is a life insurance company that exclusively offers term life insurance and uses an online application procedure to avoid dealing with a traditional agent.
While it is a newcomer to the insurance industry, it is backed by the well-known MassMutual.
Haven Life aims to provide term life insurance products online that are simple to manage and affordable, free of the hassles of traditional insurance purchasing.
Pros and Cons
Pros
- Insurance products are underwritten by a leading insurance firm
- Additional benefits come with the rider.
- Without a medical exam, coverage is available.
Cons
- In certain states, coverage options are not available.
- Only term life insurance is available.
5. State Farm — Best Customer Service
Another insurance firm with a long and successful record is State Farm. A retired farmer found State Farm in 1922.
The company has since grown to provide various insurance products. It has also received an A++ rating from AM Best has for financial strength.
State Farm’s pricing is similar to Northwestern Mutual’s, but the latter’s more expensive plans have high customer service ratings and a wide range of term length options.
You can also start the life insurance application process on the State Farm website, but you’ll almost always need to speak with a State Farm agent to complete your insurance product application.
Pros and Cons
Pros
- There are several insurance options available.
- Multiple rider options
- Some policies do not require exams.
Cons
- Age-dependent exam plans
- The maximum amount for final expenses insurance is $10,000.
Here’s what Reddit users are saying:
Why is statefarm so much cheaper than all the other auto insurance providers? Is it a trick?
by u/DariusIV in personalfinance
6. Transamerica — Best Value
While Transamerica is not a household name, the company has been around since 1904 and has received strong financial strength ratings, including an A+ from S&P Global and an A from AM Best.
Transamerica also provides term life insurance, whole life insurance, universal life insurance, index universal life insurance, and ultimate cost life insurance, among other options.
To obtain a quote for most of Transamerica’s life insurance products, you must speak with an agent. Term life quotes, on the other hand, can be found online.
Pros and Cons
Pros
- Some insurance products have online quotations available.
- Up to $50,000 available without an exam
- An interactive tool to assist you in selecting a life insurance policy.
Cons
- Not all insurance options have online quotes available.
- No access to financial professionals
7. New York Life — Most Flexible Terms
New York Life is an insurer with one of the most flexible terms, offering multiple permanent and term life insurance options, plus a conversion option for term plans.
Customers also have the option to add riders to their term policy, such as the Spouse Paid Up rider.
If you die, your spouse can utilize the death benefit payment to acquire their own insurance coverage without having to have a medical exam if you have this rider.
The AARP Life Insurance Program, which provides both term and permanent group coverage without a physical exam, is likewise underwritten by New York Life.
Some of the policies in the program have guaranteed life insurance rates, while others have flat premiums.
We picked New York Life as the best option for flexible terms because it provides term life insurance that can be converted to permanent life later.
It also has a customizable disability and terminal disease add-ons that you may use to create the type of coverage that best suits your needs.
Pros and Cons
Pros
- Flexible life insurance plans
- There are four primary types of life insurance coverage.
- Low premium payment is required to start yearly convertible insurance.
Cons
- Conversion premiums are higher than average.
- Quotes not available online.
8. USAA — Best For Military
Only military members and veterans have access to USAA’s car and home insurance and banking products, while the company’s life insurance products are open to the general public.
USAA has high financial strength ratings and a variety of riders you may add to your policy to increase your benefits.
Since USAA focuses solely on military members, it is familiar with their lifestyle and risks, making the underwriting process simpler.
When it comes to life insurance, USAA provides both term and permanent life insurance plans that can last up to 30 years.
It also allows customers to get a free quote for both term and permanent coverage online, making it more transparent than many of its competitors in terms of cost.
Pros and Cons
Pros
- Online life insurance quotes are simple to get.
- The value of their insurance is capped at a high level.
- Life Insurance products are available to the public.
Cons
- Some insurance policies are not available in New York.
- All insurance products require a medical exam.
9. Ethos — Best for Diverse Age Groups
Because of its three levels of underwriting: simplified issue, guaranteed issue, and fully underwritten, Ethos is our top pick for accommodating a wide range of ages.
Their simple issue policies demand you answer a few medical questions but do not require you to undergo a medical examination.
Fully underwritten plans require a medical exam and the applicant’s medical history disclosure.
Guaranteed issue policies do not require medical examinations or any information regarding medical issues.
Ethos utilizes a simplified issue and fully underwritten technique for its term policies, whereas, for its whole life insurance products, the company uses guaranteed issue underwriting.
For individuals between 65 and 85, the company also offers a guaranteed issue whole life insurance policy insured by AAA Life.
Applicants with no medical history can get fast approval for coverage levels ranging from $10,000 to $25,000.
Pros and Cons
Pros
- Get quotes and apply online in minutes
- All insurance products include an accelerated death benefit.
- Coverage is available to all without a medical exam.
Cons
- Rider options are limited.
- There aren’t many policy options available.
10. Mutual of Omaha — Best For No Medical Exams
Mutual of Omaha provides term and whole life insurance plans for those who qualify with no medical exam.
This means you could be able to receive coverage after filling out a health questionnaire from the comfort of your own home and paying your first month’s premiums.
Term life insurance, whole life insurance, universal life insurance, children’s entire life insurance, and accidental death insurance are all available from Mutual of Omaha.
If you want, you can speak with a local agent, but Mutual of Omaha also allows you to obtain a free quote or apply for any of its plans online.
Mutual of Omaha also offers no-exam term and whole life insurance, albeit not all applicants will be eligible.
Pros and Cons
Pros
- Offers online quotes
- Options for mutual funds are available.
- Health issues, such as cancer, can be insured at a low cost.
Cons
- Online quotes aren’t available for all types of life insurance.
Comparison
| Life Insurance Company | Best For | Price | Best Feature | Rating |
|---|---|---|---|---|
| Prudential | Overall value | N/A | Universal life insurance plans available | 4.7/5 |
| Principal Financial Group | Affordable | Starts at $23 per mont | Several term conversion options | 4/5 |
| Northwestern Mutual | Popular | N/A | Flexible policy options | 3.8/5 |
| Haven Life | Fast Coverage | N/A | Backed by MassMutual | 4.5/5 |
| State Farm | Customer Service | Starts at $52 per month | Multiple rider options | 3.7/5 |
Conclusion
In this article, we’ve gone through the top 10 best life insurance companies for 2021.
From their ratings and marketing strategy to customer reviews from previous customers, you’ll find what matters most when selecting a provider that offers high-quality coverage at an affordable price.
This list can help answer any questions or doubts about which company is suitable for your specific needs, as well as if it’s worth investing in life insurance now more than ever before!
FAQs
Do I need life insurance?
The answer depends on your specific situation and needs. However, life insurance can provide much-needed peace of mind for you and your family in case of passing or if you are the main source of income.
If you have dependents, life insurance is important to ensure that your loved ones will be properly taken care of after your passing.
What is the average cost of life insurance per month?
The monthly cost of life insurance will vary depending on the provider, your age, and other factors. However, on average, it costs around $50-$100 per month for a 20-year policy.
What is a ‘rider,’ and should I add one to my policy?
A rider is a term used to describe an add-on or extension to a life insurance policy.
For instance, if you plan on having a significant other or family member who needs extra protection, you can add them as a beneficiary under your policy.
Other riders might include the return of premium after death and accidental death.
Amit Gupta is the founder of National Planning Cycles, a company that helps startups, individuals, and small businesses with their financial planning. He has a vast amount of experience in the finance sector, having managed Google Play accounts for some of the world’s most successful unicorns. Amit is an expert in his field, and he uses his knowledge to help others achieve their individual goals.