Best Life Insurance Companies [2023]

Life insurance protection is vital to keeping your loved ones financially secure after your death, but understanding how to buy it can be confusing. Finding the right life insurance might seem overwhelming with a seemingly endless choice of companies.

However, finding a company ideally suited to your needs doesn’t have to be challenging. With a little research and quote comparison, you can easily find the right type of life insurance policy.

Read on to explore some of the top life insurance companies that can meet almost any need. Then, compare rates with as many companies as possible to find the right fit for you.

What are the best life insurance companies?

The best life insurance company depends on you — there’s not one overall best company that fits every situation.

Insurance companies look at various factors to determine your rates, and some companies charge lower rates for specific circumstances than others. You can get a quick idea of how some of the largest companies in America are best for specific situations below:

• Best universal life insurance options — Lincoln Financial
• Best for instant coverage — Haven Life
• Best for online experience — Fabric
• Best for customer satisfaction — State Farm
• Best for customization options — Mutual of Omaha
• Best for active military members — USAA
• Best for easy no-exam policies — AARP
• Best for permanent life insurance options — Pacific Life
• Best for affordable term policies — Penn Mutual
• Best for dividends — MassMutual
• Best for people living with HIV — Guardian Life

As you can see, you have many life insurance options. Other companies that don’t score quite as high might also be a good choice for your unique situation — comparing multiple quotes is the only way to find the best policy.

Lincoln Financial Group

Best for: People who want universal life insurance options

Available policies: Term, universal, indexed universal, and variable universal

Founded in 1905, Lincoln Financial provides many financial services, including life insurance, annuities, and workplace benefits. If you’re looking for less than $1 million in coverage, you might not need a medical exam or blood work.

Lincoln Financial offers a variety of add-ons, including three accelerated death benefits that might not affect your monthly rates. Instead, you’ll pay a one-time fee to access your death benefit if you have a terminal, chronic, or critical illness.

Lincoln Financial receives far fewer complaints than similar companies and has an A+ rating from A.M. Best for its financial stability. It also has an A- from the Better Business Bureau (BBB) for its ability to resolve customer complaints.

Often carrying the lowest rates, Lincoln Financial is a solid choice for people in good health looking for term policies. However, Lincoln Financial’s life insurance application isn’t as easy as some of its competitors — your only option to get a quote is to call and speak with an insurance representative.

Mutual of Omaha

Best for: People who want to customize their life insurance

Available policies: Term, indexed universal, universal, and final expense

Since 1909, Mutual of Omaha has sold several types of life insurance policies. However, while people looking for standard coverage have several options with Mutual of Omaha, it sells only one no-exam life insurance policy.

Many of Mutual of Omaha’s policies come with an accelerated death benefit add-on for free. Unlike many other companies, Mutual of Omaha offers a waiver of premium add-on, allowing you to pause your payments after qualifying events like unemployment, disability, or if your house sustains more than $25,000 in damage.

Mutual of Omaha scores well with professional rating companies, with an A+ from A.M. Best and the BBB. In addition, customers enjoy Mutual of Omaha’s unique live chat feature on its website, affordable rates, and add-on availability. However, some policies can be difficult to apply for and require help from a representative. You can read the Mutual of Omaha insurance review for more information. 

MassMutual

Best for: People who want to be paid dividends

Available policies: Term, whole, universal, and variable universal

Headquartered in Massachusetts, MassMutual is a popular choice for life insurance, partly because of its LifeBridge program. LifeBridge is a free 10-year term policy for $50,000 in coverage, available to eligible parents and guardians.

MassMutual offers many valuable add-ons, including a waiver of premium and guaranteed insurability. Although MassMutual sells life insurance in all 50 states, you’ll need to check with a representative to see which add-ons are available in your area.

As a mutual company, MassMutual pays its customers dividends when the company does well. MassMutual also has an A++ rating from A.M. Best and an A- from the BBB. These scores — along with potential dividends, add-on availability, and other unique life insurance options — have helped MassMutual become one of America’s largest life insurance companies.

Of course, MassMutual isn’t without complaints. Getting anything but a term life insurance plan can be a hassle since you must speak with a representative. Additionally, some customers find it frustrating that they can’t use a credit card to pay for their policy.

State Farm

Best for: People looking for top customer satisfaction scores

Available policies: Term, whole, and universal

As one of the most recognizable names in insurance, State Farm is a good choice for people looking for a whole life plan that pays dividends. State Farm life insurance is available everywhere except Rhode Island, and the company’s vast network of agents makes finding help easy.

While State Farm’s list of life insurance add-ons isn’t the most impressive, it’s one of the few large companies to offer return of premium for term life plans. This add-on returns the money you spent on a term life plan if you outlive your policy.

However, State Farm lacks an accelerated death benefit that many competitors provide at no charge. A long-term care add-on for universal plans is the only accelerated death benefit available to State Farm customers.

Despite lacking a few common add-on options, State Farm generally receives positive reviews. It ranked number one in J.D. Power’s customer satisfaction study for life insurance, has an A++ from A.M. Best, and an A+ from the BBB.

Although customers report satisfaction with State Farm’s policies and customer service, rates tend to be much higher than other companies, especially for term life plans. Read our State Farm life insurance review for more information on the company. 

Haven Life

Best for: People who want instant coverage

Available policies: Term

As one of the youngest insurance companies, Haven Life focuses on streamlining the online buying experience for customers. It only sells term life policies, but you can get immediate coverage if you qualify.

Haven Life doesn’t have the same add-on availability as older competitors, only offering a waiver of premium and accelerated death benefit for terminal illnesses.

Although Haven Life is a young company with limited insurance options, it’s backed by MassMutual, meaning Haven Life shares the excellent financial stability of MassMutual. Haven Life also has an A+ from the BBB.

Customers enjoy the easy application process and that you usually don’t need a medical exam for approval. However, Haven Life only sells to people 64 or younger, a much younger age limit than many competitors. Read our Haven Life Insurance review for more information on the company. 

Guardian Life

Best for: People living with HIV

Available policies: Term, whole, and universal

Guardian Life has been selling life insurance for over 100 years and pays dividends to eligible policyholders when the company does well. Not only does Guardian Life sell various standard policies, but it also sells term and whole life for high-risk individuals like people living with HIV.

Available add-ons with Guardian Life are fairly standard, with options like accelerated death benefit, accidental death, and guaranteed insurability. Guardian Life also offers no-exam insurance for up to $3 million in coverage, and you can buy policies until you’re 90.

Getting quotes online is easy, and Guardian Life generates rates without requiring your contact information. You can also compare rates between Guardian Life’s different products without restarting a quote.

However, you can’t finish your insurance application online. To finalize your coverage, you’ll need to work with a representative. With an A++ from A.M. Best and an A+ from the BBB, customers are often satisfied with their Guardian Life insurance.

AARP Life Insurance

Best for: AARP members who need minimal coverage

Available policies: Term and whole

AARP offers basic term and whole life insurance policies, but you can only buy AARP coverage if you’re a member. If you’re 50 to 80 years old — or 50 to 75 in New York — you’ll qualify for AARP’s guaranteed acceptance policy no matter your health concerns.

Although AARP’s reputation for services for people over 50 is usually stellar, its life insurance doesn’t do as well. AARP has a B+ from the BBB, meaning it doesn’t do quite as well at resolving customer complaints as other insurance companies.

It also offers fewer choices compared to other insurance companies. The only add-ons you can purchase for your policy are a waiver of premium for nursing home stays, accelerated death for terminal illness, and a term addition to increase your coverage.

AARP is easy to apply for online, especially since you likely won’t need a medical exam. However, you’ll need to look elsewhere if you want more coverage or better add-on options. Read our AARP life insurance review for more information. 

Fabric

Best for: Younger people who want a great online experience

Available policies: Term

Another young company, Fabric specializes in working with younger people looking to build a financial security net for their families. Although it only sells term policies, you can purchase a convertible add-on to make your plan permanent later.

Fabric might not be the best choice for people looking for extensive options. The only add-on it offers is accidental death life insurance, covering vehicle crashes, murder, and fire-related deaths. Only people 25 to 50 are eligible to add accidental death to their policies.

While it doesn’t have much variety, customers enjoy Fabric’s free will creation kit, which comes with every policy. It’s also a highly rated company, with an A+ from A.M. Best and the BBB.

You can complete the application process in as little as 10 minutes, but the maximum age Fabric sells to is 60.

Penn Mutual

Best for: Affordable term policies

Available policies: Term, universal, variable universal, and whole

Penn Mutual puts many choices at your fingertips when shopping for life insurance. As a mutual company, it also pays dividends to specific policyholders and has done so for the last 174 years. It offers one of the highest coverage limits for no-exam insurance at $7.5 million.

Penn Mutual’s add-on availability is fairly standard, including guaranteed insurability and child term additions. Most Penn Mutual life insurance policies include an accelerated death benefit at no extra charge.

With an A+ from A.M. Best and the BBB, Penn Mutual is a solid option for life insurance. Although you can’t apply or get a quote online, Penn Mutual offers reasonably priced term and whole life plans. Read our Penn Mutual life insurance review for more information. 

Pacific Life

Best for: People looking for permanent life insurance options

Available policies: Term, universal, variable universal, indexed universal, and whole

Pacific Life has exceptionally few customer complaints, affordable policies, and no-exam insurance plans with high coverage limits. It also has several add-ons, including a long-term care addition allowing you to access your death benefit if you need long-term care for up to eight years.

With excellent customer satisfaction levels, no-exam coverage limits of $5 million and $3 million for people over 60, and low prices, Pacific Life comes highly recommended. The only drawback is that you can’t apply online.

USAA Life Insurance

Best for: Military members

Available policies: Term, universal, and whole

Although USAA is famous for serving active and retired military members and their families, life insurance is one of its only products open to civilians. However, military members benefit most from a USAA plan since it has many features built specifically for military service and veterans.

The biggest perk for military members is that USAA covers them during wartime and acts of terrorism, while most other companies don’t. Also, USAA offers the option to increase your coverage at crucial moments in your life, like buying a house, having a baby, or getting married, another feature not commonly found elsewhere.

USAA includes accelerated death benefits for terminal illnesses at no additional charge, and you can add your children to your policy for $7.99 a month. There are several other add-ons, though the list isn’t as impressive as some other companies.

USAA has an A.M. Best rating of A++ and few customer complaints. The number of available policies is one area where USAA life insurance doesn’t compete well.

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What is life insurance?

Life insurance is integral to providing for your loved ones after death, but what exactly is it?

In short, life insurance provides a payout for your beneficiary of choice. Whether that beneficiary is a spouse, child, or estate fund, they can earn a significant payout if you have the right policy.

Your payout depends on the type of plan you buy. Some policies pay for a little more than your funeral expenses, while others send checks to your beneficiary for millions of dollars.

No matter what policy type you buy, you must make monthly payments for your coverage to stay active. Monthly rates vary due to several factors, but term life insurance is usually cheaper than whole life policies.

How much is term life insurance?

Term life insurance is a popular choice for many reasons, but one of the most important is that they’re affordable. While term life is usually the cheapest option, you’ll see varying rates based on the company you shop from, your age and gender, and your policy’s length.

Life insurance companies consider many variables when they craft your term life rates. These include your:

• Lifestyle
• Health
• Age
• Tobacco use
• Location
• Family medical history

Insurance companies usually sell term policies in 10- to 30-year periods, with longer policies costing more. Comparing quotes is essential when you’re shopping for term life since companies favor different demographics. You could miss out on lower rates if you buy from the first company you find.

How much is whole life insurance?

Like term policies, whole life insurance considers many factors when setting premiums. Whole life is usually more expensive because it lasts your entire life, guaranteeing your policy will pay your beneficiary eventually.

If you’re interested in whole life insurance, buying as young as possible locks in the lowest rates. Although some plans have rates that occasionally increase, whole life insurance rates usually stay the same throughout your policy.

Types of Life Insurance

Although you’ll see a wide range of products, life insurance comes down to two coverage types: term and permanent.

Term is usually the simplest insurance type to understand. Term policies stay active for a specified number of years, usually between 5 and 30 years. Many term policies include an add-on allowing you to convert your term plan to a permanent policy before it expires. You can also find add-ons that extend your term.

As its name suggests, permanent life insurance lasts if you pay your monthly bill and usually has a cash value accumulation. However, these plans are more complex than term policies, and other permanent options exist.

How many types of permanent life insurance are there?

The most basic type of permanent life insurance is whole life. Whole life insurance accumulates cash as you pay your monthly bills, which you can use as an emergency fund or collateral for a loan.

You can also purchase universal life insurance, which works similarly to whole life but is more flexible and can create higher accumulated cash values. There are several types of universal life insurance:

• Universal. Universal plans usually let you adjust your monthly rates and death benefit as needed.
• Variable universal. Variable universal plans use your accumulated cash value to invest in subaccounts, similar to a mutual fund.
• Indexed universal. Your cash value earns interest based on the performance of a specific stock market index.

Depending on the plan you buy, your cash value can build quickly with a universal policy. However, there are risks of losing value if the market does poorly. Some plans, like indexed universal policies, also have costly administrative fees. Comparing whole vs. universal life insurance will help you come to a decision about what policy is best for you. 

What is no-exam life insurance?

Since life insurance companies look at health when determining rates, people with serious medical conditions often struggle to find coverage. No-exam life insurance might be your best bet if this applies to you.

No-exam life insurance allows you to skip the medical exam other policies require when applying. As a bonus, your policy will likely get quick approval since you don’t need to wait for results from a medical exam.

Unfortunately, no-exam insurance rates tend to be higher since companies can’t base their price on medical information. Most insurance companies also limit how much coverage you can buy, though some allow considerable amounts.

How do you buy life insurance?

Buying life insurance is similar to buying any other type of coverage.

If you’re ready to purchase life insurance, follow these easy steps:

• Determine which policy is best. Insurance experts usually recommend term life policies since they’re affordable. However, you might need a different type of insurance.
• Decide how much coverage you need. Generally speaking, you should only buy enough coverage to pay off outstanding debts and cover a few years for your financial dependents.
• Research companies. As seen above, there’s a great deal of variation between companies. Finding the best company for your needs is vital to maximizing policy satisfaction.
• Compare quotes. No matter what type of insurance you buy, comparing quotes is integral. You can see vastly different rates for the same coverage between companies.
• Fill out an application. Most life insurance applications are simple, requiring only basic information like your driver’s license and Social Security number.
• Wait for a phone interview. Most insurance companies follow up with an interview to gather additional information. A representative usually asks about your lifestyle, hobbies, and overall health.
• Schedule a medical exam. Unless you’re buying no-exam insurance, you might need to schedule a meeting for a representative to take your vitals and collect a blood sample.
• Wait for approval. It usually takes a few weeks for a life insurance company to review your information and develop a rate. Once your application is approved, you simply need to sign the documents.

Figuring out the best life insurance policy for you might seem complicated, but you don’t have to do it alone. An insurance representative can help you sort through your options and determine which policy best fits your needs.

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Find the Best Life Insurance Companies Today

When looking for the top life insurance companies, comparing quotes is the most important part of your search. Just because one company is good on paper doesn’t mean it has the best policy for you.

Once you’ve researched your options, get quotes from a few companies. Life insurance is a long-term investment, and comparing quotes is the best way to ensure you get the right policy.

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