Best Life Insurance Companies: One way to supplement your financial plan and protect your family’s financial future is to purchase the best life insurance. The best life insurance policy for you is determined by your financial goals, budget, and the amount of cash value you want to accumulate within a policy. To find the best life insurance companies, we used data from an independent provider of life insurance research and analysis.
Purchasing life insurance can help provide financial security for your loved ones, but selecting the right policy can be difficult. Life insurance policies come in a variety of forms. Some, such as term life insurance, have a set number of years. Others, such as permanent life insurance policies, can provide coverage for a lifetime while also including savings or investment components.
To get you started, we’ve compiled a list of the best life insurance companies of 2022. We’ve also compiled information on various types of policies, how the life insurance quote process works, and how to buy a policy once you’ve found the right one.
What Exactly Is Life Insurance?
Your beneficiaries can spend the money however they want. This frequently includes paying bills, making mortgage payments, or putting a child through college. Having life insurance as a safety net can ensure that your family can remain in their home and pay for the things you have planned for.
Life insurance is classified into two types: term and permanent. Permanent life insurance, such as whole life insurance or universal life insurance, can provide coverage for a lifetime, whereas term life insurance provides protection for a specific period of time.
A life insurance policy is a legal agreement between you and an insurance company. In exchange for your premium payments, the insurance company will pay your beneficiaries a lump sum known as a death benefit after your death.
Therefore, when you die, your chosen beneficiary receives money from your life insurance policy.
List Of 10 Best Life Insurance Companies Summary
- Lincoln Financial – Best for Boomers
- Prudential – Best for Senior Life Insurance
- Mutual of Omaha – Best for Indexed Universal Life Insurance
- Pacific Life – Best for Retirement Planning
- AIG – Best for Recreational Marijuana Use
- Protective – Best for Universal Life Insurance
- Equitable – Best for Variable Universal Life Insurance
- Nationwide – Best for Gen X & Millennials
- Penn Mutual – Best for Estate Planning
- Northwestern Mutual – Best for Whole Life Insurance
10 Best Life Insurance Companies
Below is the list of the top 10 life insurance companies you can choose from. They are proven, tested, and trusted.
1. Lincoln Financial Life Insurance company
This life insurance is best for Boomers.
Lincoln Financial provides a diverse range of competitive products from which Boomers can select. This depends on whether they want low-risk policies or more aggressive investments for cash value accumulation. More so, Lincoln has very strong financial strength.
Lincoln Financial policies also have competitive costs and options that build cash value quickly in the early policy years.
- Competitive term life insurance rates
- The maximum ages for guaranteed renewal and conversion to a permanent policy for term life insurance customers are higher than those of some competitors.
- Lincoln cash value policies have low internal policy costs, which means that more of your premium money goes toward cash value.
- Lincoln is a good option for cash-value life insurance buyers who want to avoid being surprised by a lower-than-expected cash value.
- Some term life products issued up to age 80
- Offers term, whole, and universal policies
- Universal life policies include accelerated death benefits
- Because the investment performance of some of its cash-value products has been subpar, you may not get the kind of robust cash-value growth that you might get with other companies.
- Coverage for whole-life policies is limited.
Types of Life Insurance Sold by Lincoln Financial
Lincoln Financial provides five different types of life insurance to meet the needs of its customers. The includes the following:
- Fixed-rate universal life
- Term life
- Indexed universal life
- Guaranteed universal life
- Variable universal life
2. Prudential Life Insurance – Best Life Insurance Companies
This life insurance is best for Senior Life Insurance. Prudential has a superior combination of strengths that address senior concerns, such as dependable policy illustrations, financial strength, and competitive internal policy costs for most products.
- Prudential’s cash value policy illustrations are generally very reliable. This can give you confidence that the product you’re purchasing will not necessitate additional premiums and will have the expected cash value and internal costs.
- If you need money for nursing home expenses, you can access your own death benefit with Prudential’s term life insurance.
- Prudential’s cash value policies have low internal costs, which is especially important for senior buyers who want certainty and don’t have the time or risk tolerance to invest their cash value in aggressive but risky policy investments.
- The company’s investment performance has been average, which can reduce your chances of building a lot of cash value when compared to competitors with strong investment performance.
Prudential Life Insurance Products
Prudential’s term life insurance policies include:
- Term Essential, and
- PruTerm One
3. Mutual of Omaha – Best Life Insurance Companies
The Mutual of Omaha life insurance is best for Indexed Universal Life Insurance.
Mutual of Omaha provides the best combination of financial strength ratings, competitive internal policy costs for indexed universal life insurance policies, and higher interest rate gains from their bond and mortgage portfolio.
Mutual of Omaha was founded in 1909 and is based in Omaha, Nebraska. It provides life insurance as well as Medicare supplement insurance, disability income insurance, and long-term care insurance.
- Superior financial strength indicates that a company will be able to pay claims for many years to come.
- Excellent for competitive costs, which means that more of your premiums can go toward cash value and less toward a company’s internal expenses.
- Mutual of Omaha investments has historically outperformed the market. This increases the chances that their indexed universal life products will perform well.
- The dependability of Mutual of Omaha’s policy illustrations is average, as is common with indexed universal life insurance products.
This means you should be prepared for the possibility that your cash value gains will be lower or your premiums will be higher than the policy illustration indicates.
- In the early years of a policy, there is often less ability to access cash value. If you need a withdrawal or policy loan right away, for example, other companies’ policies may be a better fit.
4. Pacific Life Insurance Company
Best for Retirement Planning.
The monetary value Life insurance can be used to augment retirement income, especially if your 401(k) contributions have been exhausted. If you want to use life insurance for retirement planning, you should look for a policy that has a high cash value accumulation rate. The funds are available through a policy loan or withdrawal.
Low internal costs also help because policy expenses will not deplete your cash value.
For most of its life insurance types, Pacific Life offers an important combination of competitive pricing and dependable illustrations for policies that can maximize cash value accumulation. The firm’s invested assets have also performed well.
- When compared to other companies that can take decades to gain traction, many of Pacific Life’s policies will build cash value even in the early years.
- Excellent term life insurance rates.
- When compared to other companies that can take decades to gain traction, many of Pacific Life’s policies will build cash value even in the early years.
- Because policy illustrations are generally reliable, you will have a good prediction of cash value gains over time.
- Some of its more recent indexed universal life insurance products have significantly higher internal costs and less certain policy performance expectations than other products. Make certain that you fully understand the costs outlined in the policy illustration.
5. AIG – Best Life Insurance Companies
Best for Recreational Marijuana Use
In 1919, American International Group (AIG) entered the insurance market. Today, the insurer operates on a global scale, providing financial services, general property and casualty insurance, and retirement and investment products.
AIG sells health insurance, personal accident insurance, and travel insurance in the United States. AIG also provides individual life insurance, such as term and permanent policies.
- Low-cost term life insurance
- A good financial rating
- Available in every state
- The majority of American General cash value policies have admirable characteristics across the board, such as low internal costs, good policy illustration reliability, and solid performance of investments that fuel cash value growth.
- There is no no-exam term life insurance
- The company’s overall financial strength track record is poor. However, it has improved since AIG’s financial implosion in 2008.
6. Protective Insurance Company
This is the best option for universal life insurance.
Protective’s universal life insurance policies have competitive internal policy costs for most ages and health risks. However, this allows more of your premium to go toward cash value. More so, the company has demonstrated the superior performance of underlying cash value bonds and mortgages, and its universal life insurance policy illustrations are typically reliable.
- The term life insurance rates offered by Protective are competitive.
- Over the years, the company’s investments have performed admirably. This is likely one of the factors that have kept premiums lower than many competitors’ universal life insurance products.
- The internal costs of Protective’s cash-value life insurance policies are generally low. This can result in more money going toward your cash value and less going toward a company’s policy expenses.
- Cash value accumulation may be slow in the early years of a policy. Therefore, if you want faster cash value, make sure you look at the guaranteed parts of the policy illustration to see how your cash value will grow.
7. Equitable – Best Life Insurance Companies
Ideal for Variable Life Insurance That Is Universal.
Equitable (formerly AXA Equitable) provides variable universal life (VUL) insurance buyers with a superior combination of competitive pricing for a wide range of ages and health risks, generally good access to cash value within VUL policies, and a diverse range of mutual fund-like accounts among its investment options.
- Equitable has a strong track record of providing trustworthy policy illustrations for its cash-value products. This can provide some reassurance that your cash value is unlikely to plummet unexpectedly, or that you will face higher internal costs in the future.
- Internal policy costs for the company’s cash value policies are generally low. This means that more money goes toward your cash value and less goes toward policy expenses.
- Financial strength ratings for the company have not always been as high as those of its top competitors.
8. Nationwide – Best Life Insurance Companies
Best for Gen X and Millennials.
Nationwide provides benefits to younger life insurance buyers who require policy illustrations that are dependable over the long term and policies with good historical performance of invested assets in order to grow cash value.
Nationwide was founded in 1925 and is now one of the world’s largest financial services companies. It provides a wide range of insurance products, including life, auto, homeowners, renters, and pet insurance. The company is based in Columbus, Ohio.
- Provides a lifetime no-exam policy.
- There is no annual policy fee.
- Nationwide’s policy illustrations have a high level of dependability. This is especially important for younger buyers because you will be holding a policy for many decades.
- Nationwide provides advantages to younger life insurance buyers who require policy illustrations that are dependable over the long term and policies that have generally the good historical performance of invested assets in order to grow cash value.
- The internal costs of its cash value policies are generally low, so more of your money can be used to build cash value.
- Eligibility is limited.
- There are no riders available.
- Not all of Nationwide’s policies will quickly accumulate cash value in the early years. Check the policy illustration to see what you can expect if accessing cash value sooner rather than later is important to you.
9. Penn Mutual Insurance Company
Excellent for Estate Planning.
Buyers of life insurance who intend to use it for estate planning typically seek a high death benefit for their money. Beneficiaries can use the death benefit to pay estate taxes without selling off portions of the estate. Creating cash value is typically less important.
Penn Mutual provides the best combination of financial strength, competitive internal policy costs, and trustworthy policy illustrations for products that maximize the death benefit for the premium paid.
- The majority of Penn Mutual’s cash value policies are reasonably priced, allowing you to purchase a higher death benefit for the same premium.
- Penn Mutual’s cost competitiveness has most likely been aided by the company’s superior investment performance.
- The term life insurance offered by Penn Mutual can be renewed up to age 98, whereas most competitors stop at 90 or 95.
- Penn Mutual policies do not always build cash value quickly. That may not matter to someone buying life insurance for estate planning, who wants a high death benefit.
10. Northwestern Mutual Insurance – Best Life Insurance Companies
Most suitable for Whole Life Insurance.
Northwestern Mutual offers a superior combination of high financial strength ratings, competitive pricing on whole life insurance (for a wide range of ages and health risks), and easy access to cash value within whole life policies.
Northwestern Mutual provides both term and permanent life insurance. Its term policies range in length from 10 to 20 years. Northwestern Mutual provides universal and whole life insurance as permanent life insurance policies.
More so, you can begin with a term life policy from Northwestern Mutual and later, without additional fees or a medical exam, convert it to a whole life policy.
- Policy options include term, whole, and universal.
- Term policies can be upgraded to whole life policies.
- Superior financial strength, indicating an insurer’s ability to pay claims decades in the future.
- The majority of Northwestern Mutual’s cash value policies build cash value well in the early years, allowing you to access more money more quickly than with other companies.
- Northwestern Mutual’s policy illustrations are highly reliable, so changes in projected cash value or policy expenses are less likely to catch you off guard.
- Only available through an agent.
- Pricing information is scarce online.
- Northwestern Mutual’s investments have historically lagged behind top competitors in terms of performance. Depending on the type of policy, this could have an impact on how much cash value you accumulate over time.
- Internal policy costs are typically higher than those of most competitors. Internal costs that are too high can deplete your cash value and/or result in higher premiums.
How to Find the Best Life Insurance Companies Policy
With so many different types of life insurance policies to choose from, it can be difficult for any buyer to find the right one. When looking for the best life insurance policy, don’t go it alone. Financial advisors and experienced life insurance agents have the knowledge to assist you in making the best decision for your goals and budget.
However, here are some of the things to consider before choosing the best life insurance companies or policies.
- Consider life insurance as part of a larger financial plan.
- Take a look at the financial strength ratings.
- Insist that any proposals include cost disclosures for universal life insurance.
- Do not assume that insurers offer competitive prices to everyone.
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