10 Best Life Insurance Companies in 2024 (Your Guide to the Top Providers)

The top picks among the best life insurance companies are AIG, USAA, and Allstate, known for their exceptional service and comprehensive policy options.

These companies stand out in the competitive field of life insurance with their proven reliability and commitment to customer satisfaction. 

Our Top 10 Picks: 10 Best Life Insurance Companies

Whether you’re looking for flexible term policies or robust permanent plans, these insurers offer products designed to meet diverse needs and ensure financial security for your beneficiaries. By choosing any of these esteemed providers, you’re partnering with industry leaders in life insurance.

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#1 – AIG: Top Overall Pick

Pros

• High Multi-Vehicle Discount: AIG offers a 10% discount for multiple vehicles. Learn more in our complete AIG insurance review & ratings.
• Strong Financial Rating: With an A.M. Best rating of A, AIG demonstrates robust financial health.
• Comprehensive Policy Options: AIG provides a wide range of coverage options for diverse needs.

Cons

• Limited Personalization: Options for customizing policies may be less flexible compared to others.
• Customer Service Variability: Some customers may experience inconsistent service levels.

#2 – USAA: Best for Military Benefits

Pros

• Exceptional Military Discounts: USAA offers a substantial 25% multi-vehicle discount and is tailored to military families.
• Top-Tier Financial Stability: An A++ rating from A.M. Best underscores exceptional financial strength. Unlock details in our USAA insurance review & ratings.
• Specialized Services for Military: USAA provides services uniquely suited to the needs of military members and their families.

Cons

• Membership Restrictions: USAA services are only available to military members, veterans, and their families.
• Limited Availability: Some products and services may not be available in all locations.

#3 – Allstate: Best for Customer Service

Pros

• High Multi-Vehicle Discount: Allstate offers a significant 25% discount for multiple vehicles.
• A+ Financial Rating: Allstate is financially robust with an A+ rating from A.M. Best. Discover insights in our Allstate insurance review & ratings.
• Customer-Centric Services: Known for excellent customer service, providing responsive support and resources.

Cons

• Higher Premiums: Can be more expensive than competitors, particularly without discounts.
• Complex Policy Options: Some customers may find the variety of options overwhelming.

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#4 – New York Life: Best for Financial Strength

Pros

• Competitive Discounts: Offers a 15% discount for multiple vehicles. See more details in our guide titled “New York Life Insurance Review & Ratings.”
• Superior Financial Rating: Boasts a top A++ rating from A.M. Best, indicating superior financial health.
• Solid Reputation: Renowned for reliability and long-term financial stability.

Cons

• Premium Pricing: Generally, premiums are higher, reflecting the company’s market positioning.
• Less Flexibility: Fewer options for policy customization compared to other competitors.

#5 – Northwestern Mutual: Best for Policy Options

Pros

• Diverse Policy Offerings: Wide range of policy options catering to various insurance needs.
• High Financial Rating: An A++ rating from A.M. Best assures strong financial reliability.
• Policy Flexibility: Offers flexibility in policy adjustments and terms. More information is available about this provider in our guide title “Northwestern Mutual Insurance Review & Ratings.”

Cons

• Costlier Premiums: Premiums can be higher due to extensive policy features.
• Limited Discounts: Offers a smaller multi-vehicle discount of 12%.

#6 – Prudential: Best for Global Reach

Pros

• International Capabilities: Prudential has a strong global presence, providing insurance solutions worldwide.
• A+ Financial Stability: Well-rated for financial strength, ensuring reliability. Read up on the Prudential insurance review & ratings for more information.
• Diverse Financial Products: Offers a broad array of financial services beyond just insurance.

Cons

• Higher Costs for Global Reach: Premiums might be higher to support extensive international operations.
• Limited Multi-Vehicle Discount: Offers a lower 8% discount for multiple vehicles.

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#7 – MassMutual: Best for Dividend Payments

Pros

• Robust Dividend Payouts: Known for its strong dividend-paying history to policyholders. Check out insurance savings in our guide titled “MassMutual Insurance Review & Ratings.”
• Superior Financial Rating: Holds an A++ rating from A.M. Best, highlighting financial excellence.
• Comprehensive Coverage Options: Offers a wide array of insurance and financial products.

Cons

• Higher Premium Structures: Premiums can be higher, especially for less common coverage types.
• Limited Multi-Vehicle Discounts: Offers a standard 10% discount for multiple vehicles.

#8 – State Farm: Best for Diverse Coverage

Pros

• Bundling Policies: State Farm offers significant discounts for bundling multiple insurance policies.
• High Low-Mileage Discount: State Farm provides a substantial discount for low-mileage usage.
• Wide Coverage: State Farm offers various coverage options tailored for different business needs. Delve into our evaluation of State Farm insurance review & ratings.

Cons

• Limited Multi-Policy Discount: The multi-policy discount of State Farm is not as high compared to some competitors.
• Premium Costs: Despite discounts, State Farm’s premiums might still be relatively higher for certain coverage levels.

#9 – Guardian Life: Best for Disability Coverage

Pros

• Specialized Disability Insurance: Guardian Life offers robust disability insurance options.
• Strong Financial Health: An A rating from A.M. Best ensures reliability.
• Adaptable Policies: Flexible policy features to meet individual needs. Discover more about offerings in our complete Guardian life insurance review & ratings.

Cons

• Niche Focus: While excellent in disability coverage, may have less focus on other insurance types.
• Moderate Multi-Vehicle Discount: Provides a 12% discount for multiple vehicles.

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#10 – Liberty Mutual: Best for Flexible Plans

Pros

• High Multi-Vehicle Discount: Offers a generous 25% discount for insuring multiple vehicles.
• Flexible Policy Options: Known for offering highly flexible insurance policies.
• Wide Accessibility: Services available widely across different regions. More information is available about this provider in our Liberty Mutual insurance review & ratings.

Cons

• Variable Customer Service: Customer service experiences can vary significantly.
• Complex Claims Process: Some customers may find the claims process cumbersome.

Life Insurance Coverage Costs

Understanding the monthly rates associated with different coverage levels is crucial when selecting a life insurance provider. The table below outlines both minimum and full coverage rates across various insurers.

Life Insurance Monthly Rates by Coverage Level & Provider

The table presents a straightforward comparison of monthly rates for life insurance by coverage level from several leading companies. For instance, AIG offers one of the lowest minimum coverage rates at $15 and a full coverage option at $45. On the higher end, Northwestern Mutual charges $25 for minimum coverage and $70 for full, reflecting its premium offerings.

Other notable entries include Allstate and Liberty Mutual, which provide competitive rates at different coverage levels, illustrating a range of options depending on the insurer’s pricing structure and coverage benefits.

This information is instrumental for individuals looking to balance affordability with adequate and comprehensive life insurance (read our “What is comprehensive coverage?” for more information) protection.

What Is Life Insurance

Life insurance is a type of coverage that offers a financial payout to your beneficiaries when you pass away. Several types of life insurance exist, and you need to choose a company and policy that work best for your needs and your beneficiaries.

Once you determine your type of life insurance coverage, you will apply for coverage with the appropriate company. Applications may include health exams, but you can purchase smaller coverage without a medical exam. 

Once approved, your life insurance policy will pay your beneficiaries the specific amount you signed up for as long as you continue to pay your monthly or annual life insurance premiums. In many cases, beneficiaries use at least part of the money from the policy to pay for funeral costs, burial expenses, loss of income, and more. 

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What Are the Different Types of Life Insurance

Most life insurance companies offer two main types of life insurance: term and permanent coverage. On top of that, permanent life insurance policies exist in various options, and some companies also offer different types of term life insurance coverage.

What Is Term Life Insurance

Term life insurance is a type of temporary life insurance. Coverage with a term life insurance policy lasts a specific term, typically five to 30 years.

Some companies allow policyholders to turn a term life insurance policy into a permanent one, though this is not an option for all life insurance companies. If you outlive your life insurance policy terms, there is no payout, and you no longer have life insurance coverage.

What Is Permanent Life Insurance

Permanent life insurance is cultivated to last for a person’s life. If you purchase a permanent policy, your coverage will last until you pass away. At that point, the death benefit of your life insurance policy will go to your beneficiaries. 

Most permanent life insurance policies offer two components: a death benefit and cash value. The cash value of a life insurance policy is a sort of savings plan or investment opportunity. Different companies offer and accrue cash values in different ways. For example, whole and universal life insurance are two types of permanent life insurance policies. 

What Is Whole Life Insurance

A whole life insurance policy is a type of permanent life insurance policy that offers a death benefit and can accrue a cash value. The cash value of a whole life policy can grow if you purchase life insurance with a company that pays dividends into your policy’s cash value. Dividends for cash value in a whole life policy may be based on the company’s financial performance. 

You may find that certain companies offer cheap whole life insurance quotes, while other companies charge more for their whole life coverage. 

What Is Universal Life Insurance

Universal life insurance is also a type of permanent life insurance. However, universal life insurance policies tend to have a lot more flexibility, allowing policyholders to adjust their policy’s premium, death benefit, and more. Most companies offer different types of universal life insurance coverage, like indexed universal life, variable universal life, and guaranteed universal life coverage.

What Is No-Exam Life Insurance

No medical exam life insurance does not require the policyholder to take a medical exam when applying for life insurance coverage. Companies offer no-exam coverage in both term and permanent policies. Since individuals don’t have to take a medical exam for no-exam insurance, the application and approval processes are typically quick.

Coverage may be limited with no-exam life insurance, and monthly or annual premiums for a no-exam life insurance policy are typically expensive. 

What Are the Best Life Insurance Companies

Finding the best life insurance company will depend on what you’re looking for in terms of a policy. For example, the best life insurance company for you may not be the best company for a friend or neighbor. Because some life insurance policies allow individuals to customize their coverage, learning what you want in a life insurance company is important to know which will be best for you.

Still, some life insurance companies rank higher than other options in the U.S. If you’re new to life insurance, consider the companies below to determine whether one would work for you and your loved ones. 

Lincoln Financial: The Best Life Insurance Company for Boomers

Lincoln Financial offers several options when it comes to life insurance. With Lincoln Financial, you can purchase the following policies:

• Fixed-Rate Universal Life Insurance
• Guaranteed Universal Life Insurance
• Indexed Universal Life Insurance
• Term Life Insurance
• Variable Universal Life Insurance

Lincoln Financial may work great for Boomers and anyone else working toward estate planning for their beneficiaries and loved ones. The company offers survivorship policies that make estate planning simple and effective, and beneficiaries don’t have to jump through the legal hoops they may otherwise have to.

Lincoln Financial offers cash-value policies with permanent life insurance options. The company typically has low internal policy costs, keeping money in your pocket or your policy rather than going to someone else. Lincoln Financial offers higher-than-average rates for its term life insurance policies. The company may not offer the kind of robust cash-value growth you could get if you invested with other life insurance policies.

Lincoln Financial offers two options for term life policies — Lincoln TermAccel and LifeElements — and coverage extends up to 80 years of age and $5 million. With a permanent policy with Lincoln, you can choose from several options that build cash value differently. The company also offers several rider options to help policyholders customize their coverage.

Check out our Lincoln Financial insurance review to learn more.

Mutual of Omaha: The Best Life Insurance for Indexed Universal Life Insurance

Life insurance with Mutual of Omaha offers several coverage options. For example, you can purchase a term life insurance policy with the company or choose permanent insurance for the duration of your lifetime. 

Mutual of Omaha’s life insurance coverage options include the following policies:

• Term Life Insurance
• Guaranteed Whole Life Insurance
• Indexed Universal Life Insurance

Mutual of Omaha does not offer extremely competitive rates for term life insurance, but the company excels in indexed universal life and guaranteed whole life insurance options.

With guaranteed whole life insurance, policyholders can purchase coverage for their entire lives without taking a medical exam. In addition, premiums for a guaranteed whole life policy will not increase, and Mutual of Omaha offers coverage for policyholders up to 85 years old. The death benefit of a guaranteed whole life policy can be anywhere from $2,000 to $25,000.

The cost for guaranteed whole life coverage with Mutual of Omaha is often cheaper than with companies like AIG and Gerber. For example, the standard monthly fee for a 70-year-old policyholder is $89.

Still, Mutual of Omaha’s best product may be its indexed universal life insurance coverage. With an indexed universal life insurance policy from Mutual of Omaha, policyholders have a permanent death benefit and cash value directly associated with the policy.

The interest rate of Mutual of Omaha’s indexed universal life insurance policies is tied directly to the market index. The company offers two indexed universal plans policyholders can choose from. Learn more about the company by visiting our Mutual of Omaha insurance review.

Pacific Life: The Best Life Insurance Policy for Retirement Planning

Pacific Life offers life insurance options that may work well for anyone planning for retirement. Additionally, the company offers term life options with rates lower than the industry average. 

If you’re interested in purchasing a permanent life insurance policy with a cash-value component, Pacific Life offers competitive rates for life insurance coverage. Additionally, many policyholders agree that Pacific Life has excellent performance for cash-value growth with whole life policies.

With Pacific Life, you can purchase the following policies:

• Term Life
• Whole Life
• Indexed Universal Life
• Variable Universal Life

The company’s universal life insurance often receives top marks for coverage and value, and Pacific Life is known for its assistance investing for retirement. However, while the company’s term life insurance rates are competitive, Pacific Life offers lower-than-average rates for its permanent life insurance options.

Because Pacific Life offers helpful cost competitiveness for its permanent insurance investments, policyholders often receive more cash value with a policy. And if you’re a smoker, Pacific Life still offers competitive rates for a cash-value policy. 

While other life insurance companies may take a decade or longer to build cash value with permanent policies, Pacific Life policies offer cash-value growth almost immediately. Pacific Life also offers riders for its policies, so you can customize your life insurance plan to work best for you and your beneficiaries. 

Protective: The Best Option for Universal Life Insurance

Protective Life Insurance may be a great option for you if you’re looking for universal life insurance coverage. And Protective also offers low rates for term life insurance. With Protective Insurance, you can get a term life policy with a term length of 10 to 40 years. In addition, the company offers level term lengths for up to 40 years, which makes it a great option for people looking for long-term coverage.

The company’s universal life insurance options provide competitive costs for most policyholders, even individuals with substantial health risks that would increase their rates with other insurance companies. Protective Life’s universal health insurance policies typically grow significantly in cash value.

Protective offers eight different types of permanent life insurance coverage. The cash value associated with each of its permanent policies typically has low internal costs, meaning you’ll have more money added to your policy instead of going elsewhere within the company.

Unfortunately, the cash value with any of Protective’s permanent life insurance policies may be slow. So if you’re looking for immediate cash-value growth, you should look elsewhere. 

Prudential: The Best Life Insurance Company for Seniors

Prudential offers great life insurance policies for seniors. The company allows policyholders to utilize the death benefit associated with their term life insurance coverage to pay for nursing home care. Additionally, Prudential’s illustrations for its policies are often incredibly reliable. 

With Prudential, policyholders can accrue a significant cash value with their policies relatively quickly. Additionally, the company has low internal costs regarding the cash value associated with many of its permanent life insurance policies. 

While Prudential may be a great company for seniors, it has not had significant success with its investment performance. Because of this, policyholders may not be able to build the same cash value they could with a different life insurance company. Visit our Prudential Insurance review to learn more.

Aig: The Best Life Insurance Company for Recreational Marijuana Use

If you’re a recreational marijuana user, AIG may be your best bet. With AIG, marijuana users who smoke eight days or fewer each month can qualify for the best rate class. Additionally, rates are competitive across the board with AIG for both term and permanent life insurance. 

If you use marijuana for vaping, AIG may allow you to get standard tobacco rates with the same coverage options. Additionally, the company offers no-exam coverage options for individuals who do not want to take a medical exam to qualify for life insurance. AIG term life insurance policies are customizable, meaning you can choose coverage for a specific number of years instead of choosing in five or 10-year increments.

If you purchase permanent coverage with the company, AIG policies have low internal costs. Additionally, the company offers reliability in terms of policy illustrations and excellent growth regarding the cash value of a policy. Unfortunately, AIG does not have the best track record regarding financial strength. Still, the company now has an A (Excellent) financial strength rating with A.M. Best.

See our AIG insurance review for more.

Equitable: The Best Option for Variable Universal Life Insurance

Equitable offers term and whole life insurance options, and the company’s variable universal life coverage includes several helpful features. For example, with a variable universal life insurance coverage with Equitable, policyholders can enjoy cash-value investments, flexibility for premium payments, and options regarding the death benefit payout of a policy. 

If you purchase a variable universal life insurance policy, you can borrow from your policy’s cash value tax-free. When it comes to term coverage, Equitable offers relatively inexpensive rates, especially for older policyholders.

Equitable works to keep internal costs low, so policyholders don’t have to pay more fees or premiums as the policy ages. Additionally, customers can see extensive growth in the cash value of a life insurance policy with Equitable relatively quickly.  Similar to AIG, Equitable does not have the best financial strength. Still, Equitable has an A (Excellent) financial strength rating with A.M. Best. 

You can learn more by visiting our Equitable insurance review.

Nationwide: The Best Life Insurance Company for Gen X and Millennials

Nationwide offers competitively low rates for term and whole life insurance policies if you’re a young life insurance buyer. The company also has a good track record regarding invested assets for permanent life insurance policies. 

Anyone looking for the cash value of a life insurance policy to multiply quickly should look elsewhere, as Nationwide’s permanent policies take a while to build extensive growth in cash value. Still, younger clients may benefit from purchasing a policy with the company in terms of investments. 

Check out our Nationwide insurance review to learn more.

Northwestern Mutual: The Best Option for Whole Life Insurance

Northwestern Mutual could work well for you if you’re shopping for whole life insurance. With Northwestern Mutual, you have two whole life options: Whole Life One and Whole Life Plus. Visit our Northwestern Mutual insurance review for more information.

With Whole Life One, policyholders can purchase coverage up to 85 years of age, and the death benefit of a policy can go up to $50,000. Additionally, premium payments for a Whole Life One policy will stop once the policyholder reaches 100. 

Whole Life Plus allows customers to customize their coverage. With Whole Life Plus, you can select the premium payment and death benefit associated with your policy. The minimum death benefit for a Whole Life Plus policy is $50,000, and policyholders can blend a term life policy with a Whole Life Plus policy for an increased death benefit. 

Penn Mutual: The Best Life Insurance Policy for Estate Planning

If you’re looking for a life insurance policy that aids in estate planning, a policy with Penn Mutual may be a great option. However, with Penn Mutual, your policy may not build a high cash value early on. Still, if you’re searching for a policy with a significant death benefit for estate planning, the cash value of a policy may not matter much to you.

In addition to being good for estate planning, Penn Mutual offers competitive rates for term life insurance policies. The company also allows policyholders to convert certain term life policies into permanent policies.

The cash value of many of Penn Mutual’s permanent life insurance policies is competitive, so you can rest assured that a higher death benefit for your policy is worth the investment. Additionally, the company has significant financial strength. One downside to purchasing term life insurance with Penn Mutual is that the company charges more if you want a term life insurance policy that’s convertible into a permanent option.

Visit our Penn Mutual insurance review to learn more.

Transamerica: The Best Option for Term Life Insurance

Term life insurance with Transamerica is a great option, as the company allows policyholders to renew or convert their term life insurance policies, even if they’re elderly or terminally ill.

With Transamerica, you’ll have reliable policy illustrations for the cash value associated with any of the company’s permanent life insurance policies. Typically, this translates to higher cash value in less time. Additionally, the cash value of a Transamerica policy typically builds well, even in the early years.

Unfortunately, Transamerica has not always performed excellently in terms of investments for permanent life insurance options. Because of this, you could potentially pay higher premiums for life insurance if your policy includes a cash-value component. For more information, check out our Transamerica insurance review.

John Hancock: The Best Life Insurance Company for Minimal Cigar Use

John Hancock may be an excellent option if you’re a smoker or nicotine user. John Hancock considers the celebratory use of cigars to be separate from the smoking category in life insurance policies. For many occasional cigar users, this could mean incredible savings for term or whole life insurance coverage. Visit our John Hancock insurance review to learn more.

John Hancock has exceptional financial strength, and the company accurately assesses the cash value associated with any of its permanent policies. Still, term life insurance rates are exceptionally high compared to other companies. Some permanent life insurance policies may not garner cash-value growth as quickly as desired, especially in a policy’s early years. 

How Can I Compare the Best Life Insurance Companies Out There

If you’re searching for the best life insurance company, it will depend on your needs. Companies are all competitive in different ways.

If you are looking for a term life policy, the best life insurance policy for you will differ from someone looking for a guaranteed issue whole life insurance policy. Discover insights in our guide titled “7 Tips to Save Money on Life Insurance.”

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Best Life Insurance: A Complete Guide to Claims Process

Ease of Filing a Claim

Life insurance claims can typically be filed through various methods, including online, over the phone, or through mobile apps. Modern insurance companies often provide user-friendly online platforms and mobile applications, making it convenient for policyholders to initiate a claim from anywhere.

Average Claim Processing Time

The processing time for life insurance claims varies by company and can depend on the complexity of the claim. Generally, insurance companies strive to process claims efficiently to provide timely assistance to beneficiaries during a challenging period. Understanding the average claim processing time can help beneficiaries plan accordingly.

Customer Feedback on Claim Resolutions and Payouts

Customer feedback on claim resolutions and payouts is a valuable indicator of an insurance company’s performance. Hearing about the experiences of other policyholders in similar situations can offer insights into how responsive and fair an insurance company is when it comes to claim settlements. Gathering customer feedback is a vital step in choosing the right insurance provider.

Learn more: Your Insurance Agent’s Role in the Claims Process

Best Life Insurance: A Complete Guide to Digital and Technological Features

Mobile App Features and Functionality

Many insurance companies offer dedicated mobile applications that allow policyholders to manage their policies, access important documents, pay premiums, and initiate claims directly from their smartphones. These apps often provide a user-friendly interface and essential features for a seamless experience.

Online Account Management Capabilities

Online account management portals give policyholders access to their policy details, payment history, beneficiary information, and other essential documents. This digital platform allows policyholders to conveniently manage their policies and make informed decisions regarding their coverage. To learn more, explore our comprehensive resource on “Insurance Quotes Online.”

Digital Tools and Resources

Insurance companies often provide various digital tools and resources, such as online calculators to estimate coverage needs, educational articles, and interactive content to help policyholders understand their policies better. These resources empower policyholders to make informed choices about their insurance coverage.

Best Life Insurance Companies: The Bottom Line

If you’re looking for the top life insurance companies in the U.S., you’ll get different answers depending on who you ask. To find the best life insurance policy, you first need to assess what you need. Learn more about how does life insurance work?

Are you looking for a term policy that only lasts a set amount of time? Do you need permanent coverage that accrues cash value for yourself and your beneficiaries? You have a lot to consider before purchasing life insurance, but once you know what you’re looking for, the process can be quite simple.

As you decide on the type of policy you want, it’s important to compare options from several companies before you make a coverage decision. Likewise, find and compare life insurance premiums from several companies before deciding. Comparing coverage and premiums can help you determine which company offers the coverage you need at the best price. 

If you’re looking to protect your family’s future at a low cost, enter your ZIP code below to buy affordable whole life insurance prices with our free quote comparison tool.

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