10 Best Life Insurance Companies of September 2022

*Quotes above are examples of what a 40-year-old in excellent health might pay for a 30-year $250,000 policy. Get life insurance quotes from multiple companies to find your best rate.

Other Companies to Consider

Northwestern - Best for Financial Stability

Northwestern Mutual ticks all the boxes for financial stability: it boasts the highest financial strength ratings from AM Best (A++), Moody's (Aaa), and Fitch (AAA), and it's stood the test of time. The company has been in business since 1857, weathering numerous financial storms, and has paid eligible policyholders dividends for the past 150 years.24

These are a few of many reasons it ranked in our review of best whole life insurance companies. Plus, Northwestern Mutual received the fewest complaints (relative to its size) of all companies in this list, and the second-fewest complaints of the 91 insurance companies we reviewed. Considering this, it's no surprise that Northwestern Mutual came in third for customer satisfaction in J.D. Power’s 2021 customer satisfaction survey.21

Unfortunately, there's not much you can do without an agent at Northwestern Mutual. Policy details are lacking online so you'll need to contact the company for specifics.

State Farm - Best for Customer Satisfaction

If you're looking for a whole life policy that pays dividends, State Farm offers one. Plus, you may be able to save on your premium by bundling life insurance coverage with another State Farm coverage, such as auto.

However, the company's term policies are priced high compared to our review of 32 life insurance companies offering term quotes online. And if you're in the market for life insurance without a medical exam, you may want to look elsewhere. At present, the most coverage you can get with State Farm without a medical exam is $50,000.

USAA - Best for Military

USAA is a solid choice for military families because of its military-specific riders. Level Term V policies include a severe injury rider that pays out $25,000 for specific injuries incurred during military service. USAA also offers guaranteed insurability riders at no additional cost.

USAA's guaranteed insurability riders give you the option to increase coverage after leaving the military or if you experience certain life events, like having a child (without having to prove insurability). Level Term V policies also include a conversion option that allows you to convert to permanent coverage without a medical exam or questions after you've had your term policy for at least one year.

Drawbacks are that USAA life insurance does not accept credit card payments and has limited no-medical-exam options. USAA sells Mutual of Omaha's guaranteed issue whole life policies that have a minimum age of 45 and a coverage maximum of just $25,000.

Penn Mutual - Best for Dividends

Penn Mutual is a well-established insurer with superior financial strength, an impressive track record of customer satisfaction, and a strong dividend-paying history. The company received an A+ (Superior) rating for financial strength from AM Best and had far fewer complaints than expected for a company of its size, according to the NAIC. Plus, it's paid dividends to eligible policyholders every year for around 175 years.

On top of this, Penn Mutual makes up to $7.5 million in coverage available to healthy applicants up to age 65 without a medical exam. This is the highest no-exam limit we've seen, and the highest age limit we've seen for no-exam policies. But the company doesn't just cater to those looking for high coverage or permanent policies. Its quotes for term coverage were the fourth most affordable of the 32 companies we collected quotes for. That said, the company does not make term quotes available on its website nor online applications for term coverage. In fact, the website doesn't offer much in the way of policy specifics. For details and to apply for any type of coverage, you'll need to get in touch with an agent.

Final Verdict

When choosing a life insurance company, it’d be hard to go wrong with any of the companies on this list. But if you’re not sure which type of policy you want, start with Nationwide. It makes the process easy with online quotes and applications, a wide range of policy types, and up to $5 million in no-med-exam coverage to eligible applicants.

Most companies on this list received at least an A+ (Superior) rating from AM Best for financial strength. But if only the absolute best will do, MassMutual, Guardian, USAA, New York Life, State Farm, and Northwestern all have A++ (Superior) AM Best ratings. And most are solid choices for dividend-paying policies as well. 

If you want term life insurance, Protective or Banner are top picks. And for a policy packed with no-cost living benefits, consider Mutual of Omaha, Nationwide, or USAA (if you’re in the military).

*Quotes above are examples only and were collected for 30-year $250,000 term life insurance policies for non-smoking males and females ages 25, 40, and 55 in excellent health.

When shopping for a term policy, it's important to look at the company's overall strength and customer satisfaction ratings, as well as policy specifics such as price, coverage amounts, and any special features available. Check out our complete review of the best term life insurance companies to find the right company for you.

Some things to consider when looking for a whole life policy are whether the company is trustworthy and ranks well with customers, as well as policy features such as dividends, living benefits riders, and eligibility factors. Check out our complete review of the best whole life insurance companies to find the right company for you.

Other Types of Life Insurance

Universal (UL)

Universal life (UL) insurance is similar to whole life insurance with a couple of important distinctions. The premiums and death benefit can be changed after the policy has been issued, and interest is credited to the cash value based on current interest rates. So you don’t know in advance how much the cash value will be worth in the future. 

Indexed Universal (IUL)

When cash value performance in a universal life policy is tied to a stock market index, it is said to be indexed. The cash value in an indexed universal life insurance (IUL) policy is credited interest based on the index selected (for example, the S&P 500 or the Nasdaq composite). It’s important to note that the cash value is not invested directly in the index. 

Variable Universal (VUL)

In a variable universal life (VUL) insurance policy you can invest the cash value directly in the stock market. VUL policies typically offer a variety of mutual-fund-like subaccounts that represent a range of investment objectives and risk profiles, from conservative to aggressive. All can potentially lose value. This makes VUL the riskiest type of life insurance and generally inappropriate for someone who doesn’t have other life insurance coverage in place.

Guaranteed Issue

Guaranteed issue (GI) life insurance policies are just what they sound like. Health issues will not disqualify you from approval because no health questions are asked on the application, nor is an exam required. You usually have to be at least 40 or 45 years old to be eligible for coverage, and coverage amounts are low while premiums are relatively high compared to other underwriting methods for the same amount of coverage. 

Burial Insurance (aka, Final Expense Insurance)

These policies may be either guaranteed issue or simplified issue policies. Burial insurance, also called final expense coverage, senior insurance, or funeral insurance, is a low-coverage whole life plan available to applicants at least 40 or 45 years old. While you have to answer some medical questions and coverage is not guaranteed, it can result in lower premium payments than GI. 

Consider these factors when choosing your life insurance company:

• Financial strength: Check AM Best ratings for financial stability. A++ and A+ ratings are considered “superior,” while A and A- are considered “excellent.”
• Customer complaints: Use the NAIC complaint index to see how many complaints a company received, based on its market share. An index lower than 1 means the company received fewer complaints than expected, while a number over 1 means it got more. The higher the index, the more customers complain, and vice versa. 
• Customer satisfaction: Not all companies are ranked by J.D. Power, but check J.D. Power’s U.S. Individual Life Insurance Study to see if companies you’re considering are. At a glance, you can see how a company ranks compared to others when it comes to customer satisfaction.
• Available policy types: If you know which type of insurance you need, make sure each company you’re considering offers it. But though policies between companies might have the same name, each company tries to make their product stand out. Make sure their efforts suit your needs.
• Available and included riders: This is a major way that same-named policies can differ. A UL policy with one company might include accelerated death benefit riders at no cost, while a UL policy with another company may not. Or one company's term policy may let you to convert it to permanent coverage, while another's may not. Research riders to know what you’re paying for.
• Ease of application: Sometimes the biggest barrier to getting a life insurance policy is the application process. It’s often better to get some coverage in place—especially if you have dependents—than it is to find the absolute best coverage you can. If you’re too busy for an exam, look for companies that don’t require one. 

Once you've identified a few solid companies, compare life insurance quotes to decide which makes sense for you.

With those findings in mind, we gathered more than 50 data points on 91 life insurance companies, including ratings for financial strength, customer satisfaction, and customer complaints, as well as information about years in business, cost, online tools, no-exam options, policy types and features, and available riders. 

Our review process gave preference to companies with superior financial stability, few customer complaints, and a robust suite of products and resources. In particular, we valued online quoting and application tools, transparent pricing, and no-exam policy options. Companies received ratings boosts if customer service was accessible via features like live chat. We ranked each company according to the following categories and weights.

• Customer education, application, and online service features: 32%
• Policy types, features, and riders: 29% 
• Financial stability: 17% 
• Customer satisfaction ratings: 15%
• Cost: 8%

We compared individual offerings between companies by delving deeper into product specifics, including maximum coverage amounts, maximum issue ages, included riders, and product-specific application processes. We used this research to determine the best companies for different products and consumer groups, including term life insurance and seniors. 

Of the companies we considered, those with the greatest financial stability, fewest complaints, lowest cost, and most generous no-medical-exam options scored the highest across categories, as we believe these companies are best positioned to help customers secure the life insurance coverage they need and keep it long-term.