9 Best Life Insurance Companies

Life insurance can serve as a financial safety net for your dependents, providing your loved ones peace of mind in knowing they will be taken care of after your death.

A life insurance death benefit can be used to cover a host of expenses that might arise after or as a result of your death, including funeral and burial expenses, medical bills, mortgage payments (or a full mortgage payoff), supplemental income and college tuition fees for dependent children.

But there are many different types of life insurance policies available, and choosing the one that’s right for you will depend on the use you have planned for the policy and your situation. Read on to find out more about the best life insurance companies in the market and the policies they offer.

Table of contents

• Our top picks for the best life insurance companies
• Best life insurance companies reviews
• Best life insurance guide
• Best life insurance companies FAQs
• How we found the best life insurance companies
• Summary of the best life insurance companies

Our Top Picks for the Best Life Insurance Companies

• Northwestern Mutual: Best for Customizability
• Bestow: Best for No-Medical Exam Life Insurance
• Policygenius: Best Marketplace
• Ethos: Best for Guaranteed Coverage
• Haven Life: Best for Term Life Policies
• Ladder: Best for Flexible Coverage
• New York Life: Best for Whole and Universal Life Policies
• State Farm: Best for High Customer Satisfaction
• Nationwide: Best for Bundling Discounts

Best Life Insurance Companies Reviews

Why we chose it: Northwestern Mutual is among the life insurers on this list offering a broad range of riders and add-ons to increase or modify your life insurance policy. Having a wealth of coverage options can help you build a policy that truly fits your family’s needs and provide significant benefits, such as the ability to waive your premiums or tap into your life insurance if you experience a terminal illness.

Northwestern Mutual is a great choice for prospective policyholders looking to create a policy that better suits their needs by increasing their life insurance benefits through add-ons. Optional coverages through Northwestern include waiver of premium, return of premium and accelerated death benefit riders, among others. Additionally, and unlike other life insurance companies on this list, Northwestern sells multiple different types of policies, including term life and most kinds of permanent life insurance.

Northwestern Mutual has a strong reputation for customer service. It is the third-highest rated company for customer satisfaction in the latest J.D. Power U.S. Individual Life Insurance Study and has a low complaint index when compared to similar competitors.

Another potential benefit of doing business with Northwestern is that, as a mutual insurance company, it is owned by its customers as opposed to investors. This also means it pays dividends to eligible policyholders.

Why we chose it: If you’re looking to buy a term life insurance policy online without having to go through a medical examination, Bestow offers surprisingly high coverage amounts (up to $1.5 million) and quick approval. What’s more, applicants between the ages of 18 and 60 may be eligible for coverage.

Customers looking for quick approval and high coverage amounts will appreciate a company like Bestow. It offers up to $1.5 million in coverage without a medical examination or blood draws and provides coverage to applicants aged 18 through 60.

Bestow only sells term life insurance, so you may want to consider other options if you’re in the market for permanent life insurance options, such as whole or universal life. However, compared to other companies offering no exam life insurance, it does offer pretty high coverage amounts at affordable premiums (you can get coverage for as little as $10 a month).

Bestow’s underwriting process allows you to purchase coverage in minutes by using your medical history and personal details — including your weight, height, hobbies and lifestyle — to determine your eligibility. If eligible, you can purchase a policy through the company’s website or through Lemonade’s mobile app or site.

Bestows life insurance policies are underwritten by North American Company for Life and Health insurance, which has an AM Best financial strength rating of A+ (Superior).

Why we chose it: Policygenius is an insurance marketplace where you can shop around for term or whole life policies from dozens of highly-rated life insurance companies. If you don’t know where to start, a marketplace can be a great way to learn more about insurance and easily compare rates. Additionally, and unlike other life insurance agencies and brokerages, Policygenius promises not to sell your information to third parties, so you don’t get bombarded with unwanted calls.

If you’re looking for a one-stop shop for insurance, Policygenius may be a good match. Since it works with dozens of insurance providers — including Mutual of Omaha, John Hancock, AIG, Banner Life, Prudential and Transamerica — it offers many different life insurance policy types and coverage levels to choose from.

Another perk of buying insurance through Policygenius is that it provides helpful resources such as guides and calculators to help you determine which type and level of coverage may be right for you. And if you still have questions or need guidance, the company is staffed by licensed professionals who can help point you in the right direction.

While Policygenius does earn commissions for the policies it sells, it guarantees never to steer clients toward a particular company or product based on commissions. Moreover, clients can ask what commission the brokerage would earn for any product on its marketplace.

Why we chose it: Life insurance options get more limited as you age and develop health conditions. Ethos is among the few life insurance companies on this list offering guaranteed issue policies for which applicants aged 65 to 85 may qualify. If you’ve been denied coverage in the past due to your age or health concerns, you may be able to obtain coverage through Ethos without the need for a medical examination.

You can purchase up to $2 million in term life coverage through Ethos, although benefit amounts and eligibility vary by carrier. As for their guaranteed issue whole life policies, benefit amounts are quite low — between $1,000 and $30,000. Applicants aged 20 through 65 may qualify for term life coverage, while those over the age of 65 and up to age 85 may only qualify for whole life policies.

Ethos’ term and whole life policies both feature level premiums that will not increase for the life of the policy, which isn’t always the case with life insurance. Additionally, some whole life policies include a graded death benefit feature that allows beneficiaries to receive a portion of the death benefit if the insured dies during the waiting period.

Policies sold by Ethos are insured by Legal & General America, Ameritas Life Insurance Corp., Principal and TruStage and may fall in one of three categories:

• Fully underwritten life insurance policies require a medical examination complete with blood samples.
• Simplified issue life insurance policies don’t require a medical exam, but there will be a health questionnaire and the company will look into your medical history.
• Guaranteed issue life insurance policies you will not be denied coverage because of your age or health.

Again, policy types, coverage amounts and other features will vary depending on your personal details and the insurance carrier’s qualification criteria.

Why we chose it: Haven Life offers two term life insurance options with generous death benefit amounts and add-on features that can help simplify end-of-life planning. If you’re looking for a full-package deal complete with an online will and instructions for how you want your online accounts to be handled after your death, Haven Life could be for you.

Haven life offers two-term life insurance options featuring 10 to 30-year terms in five-year increments. Coverage amounts are also generous, ranging from $100,000 to $3 milion. Note, however, that medical exams may be required (but not always) for coverage amounts over $500,000.

The company’s standard term life policy, Haven Term, is available for up to $3 million in coverage and to applicants of up to 64 years of age. This coverage may also be augmented through the company’s Haven Life Plus rider, which allows the policyholder access to several different subscription services, including an online will making and estate planning service and an online hub to house your end-of-life plan and last wishes.

Those looking to avoid medical exams altogether may opt for the Haven Simple term life policy, which is only available to applicants between the ages of 22 and 55 and features a more modest death benefit of up to $500,000. Both Haven Term and Haven Simple feature level premiums that will not increase as you age and an accelerated death benefit feature that lets you access a portion of the death benefit in the event you are diagnosed with a terminal illness.

Why we chose it: If you’re looking for life insurance that grows with you, Ladder Life is an excellent option. With Ladder, you can decrease or increase coverage as your life insurance needs evolve, and policies start at just $5 a month — perhaps the most affordable option on this list.

Younger applicants looking for some of the highest death benefits available — up to $8 million —  will find Ladder to be a great option for flexible term coverage. The company utilizes a unique laddering method that allows you to decrease or increase coverage as your life insurance needs evolve. This way, you can pay for the exact level of coverage you need at any given time.

If, for example, your main reason for purchasing life insurance is to cover mortgage payments for your dependents, you might want a policy with a death benefit that decreases over time as you pay off your loan. This will allow you to save money on insurance premiums and invest it in other areas of your life.

Ladder policyholders can adjust their death benefits as many times as needed and at no additional cost. Note, however, that if you choose to ladder up by increasing your death benefit amount on a monthly basis, your rate will increase to account for the added coverage. Another benefit of these adjustable policies is that, depending on your health and the coverage amount and plan you choose, you could pay as little as $5 a month for coverage.

Lastly, and unlike with other companies, you can cancel your Ladder life insurance policy at any time without incurring a fee.

Why we chose it: New York Life offers an ample selection of term, whole, universal and variable universal life insurance policies. This carrier may be best for those who are on the fence about purchasing permanent coverage, as several of its term policies include the option of converting to permanent coverage in the future.

Purchasing term life coverage through New York life has several benefits. For starters, the company offers at least two plans that include the option of converting the policy into permanent coverage later on. Additionally, several options that feature level premiums for a specified number of years (typically between 10 and 20).

Besides flexible term life policies, New York Life also offers conventional as well as custom whole life insurance. This last option allows you to choose when you would like to pay premiums on your coverage. This means you can pay the bulk of your premiums over a period of, say, 10 or 20 years and then enjoy the benefits of lifetime coverage without monthly payments.

Lastly, New York Life’s universal life insurance policies are an option for those looking to use their life insurance for estate planning or as a source of supplemental income in retirement. By virtue, universal policies are the most flexible type of life insurance, allowing policyholders to adjust the death benefit and their monthly premiums.

Those looking to customize their policies through added benefits will be glad to know New York Life also offers several optional riders. Some of these include living benefits for those diagnosed with a terminal or chronic illness and the ability to waive premium payments during a disability.

Why we chose it: State Farm has the best reputation for customer satisfaction in the life insurance industry, according to J.D. Power’s most recent study. Besides providing excellent customer service, it is also among the most financially stable insurers and the market.

Prospective policyholders looking to do business with a highly-rated company can do no better than State Farm. It was the top pick for customer satisfaction in J.D. Power’s 2021 U.S. Life Insurance Study, selected for its high performance in areas such as communication and interactions with clients, price and product offerings. Moreover, it has a very low number of complaints against its life insurance segment and has the strongest possible financial strength rating (A++ Superior with AM Best).

Besides all the standard life insurance options and very generous coverage limits (over $10 million, depending on the policy), State Farm offers no-medical exam life insurance for applicants under 45 and term life policies with return of premium benefits or the option to convert to permanent coverage. It also sells several different whole and universal policies and features such as joint benefits for couples and the ability to purchase coverage through a single lump-sum payment.

Lastly, State Farm also offers several optional riders with which to increase coverage, including guaranteed insurability and a waiver of premium benefit in the event of a disability.

Why we chose it: Nationwide is among the few insurance companies offering bundling discounts that apply to their life insurance products. You can get up to 20% off when you bundle any life insurance policy — whether term, whole or universal life — with homeowners, renters or auto insurance. The company also has a great reputation for customer service and some of the strongest financial strength ratings in the industry.

As a leading insurance company, Nationwide has a strong AM Best financial strength rating and scores highly (second only to State Farm) on customer satisfaction based on J.D. Power’s most recent U.S. Life Insurance Study.

As for its life insurance policies, Nationwide offers the whole gamut of coverage options: term, whole, universal and variable universal life. It’s also among the few life insurance companies that sell a long-term care insurance rider, which can afford financial protection against the often exorbitant costs of nursing home care in late adulthood. This makes Nationwide a good option for those seeking relatively affordable coverage for long-term care, as stand-alone policies can be much more expensive than life insurance with an LTC rider.

Note, however, that like other traditional life insurance companies, Nationwide doesn’t offer online quotes and most policies must be purchased through an insurance agent. Additionally, term life coverage is somewhat limited compared to other companies on this list, as you can only purchase up to $1 million in insurance.

Best Life Insurance Guide

The following guide covers such details as how life insurance works, the different types of policies available (and the differences between them) and how to select the right amount of coverage for your needs.

What is life insurance?

A life insurance policy is a contract with an insurer that guarantees a lump sum of money or death benefit to your beneficiaries, provided certain conditions are met. The death benefit of a life insurance policy can be used to replace your income and cover all sorts of expenses, from college tuition fees to mortgage payments.

How does life insurance work?

A life insurance policy can cover you for either a specified period or term or your entire life, depending on your plan. Upon your death, and provided you have made timely premium payments for the duration of your policy, your designated beneficiaries would receive a death benefit.

Life insurance premiums, the price you pay for the type and amount of life insurance you’ve selected, will depend on your age, gender, health, occupation, habits and hobbies. To keep a policy active, you must keep up with your monthly or annual premium, otherwise the policy will lapse and your beneficiaries will not receive a benefit upon your death.

What does life insurance cover?

For those who have dependents — whether children, adults with disabilities or even older family members who rely on their income — a life insurance policy can be a way of protecting loved ones from financial hardship. The payout of a life insurance policy can be used to replace a primary breadwinner’s income for years into the future and cover final expenses and debts.

Individuals who don’t have dependents may still wish to purchase life insurance as part of their investment strategy, for estate planning purposes or to make a charitable donation to an important cause.

Types of life insurance policies

There are two main types of life insurance policies: term life insurance and permanent life insurance, such as whole and universal life. Understanding how these policies work and how they differ from one another can help you determine which might be right for you.

Term life

Term life insurance is the simplest and most affordable type of life insurance policy. This kind of policy will cover you for a predetermined number of years, most commonly between 20 and 30 years.

If you, the insured, were to die within the life insurance term, your beneficiaries would receive a death benefit equivalent to the policy’s face amount. If, on the other hand, you outlived the term of your policy, your insurance would expire and your beneficiaries would not receive payment upon your death.

Because they are simple products with only a death benefit and a clear expiration date, term life insurance premiums can cost as little as $15 to $20 a month, depending on your details and the amount of coverage you select.

Whole life

Whole life insurance is a type of permanent life insurance coverage that does not expire as long as you keep up with premium payments. Traditional whole life policies also feature level premiums, meaning the price you pay for coverage will not increase as you age.

Besides a death benefit, whole life insurance policies have a cash value component that functions as a type of savings account. While you may take loans from the cash value of your whole life policy, the funds in the account will remain with the insurance company upon your death. If there is an outstanding loan amount in your cash value component at the time of your death, that amount would be deducted from your beneficiaries’ payout. Additionally, it may take years before there is enough cash value accumulation for you to borrow from.

Because permanent life insurance policies do not expire and have a savings component that accrues value over the life of the insured, these policies tend to cost much more than their term life insurance counterparts. Whole life insurance premiums can cost anywhere between $40 and $300 a month, depending on the coverage amount you choose and your personal details.

Read our guide for more information on the differences between term vs. whole life insurance.

Universal life

Universal life insurance is another type of permanent life insurance coverage. Like traditional whole life insurance, it also features a cash value component. The difference between these two policies is that the cash value of universal life accrues interest at the rate of a money market account.

Universal policies also allow greater flexibility than traditional whole life policies. Policyholders may increase the death benefit (pending a medical examination) and increase or decrease their monthly premium payments once there is enough cash value accumulation to cover the costs of the policy.

Of course, universal life insurance isn’t without risks. If, for example, the insured chose to cover part of the premium payment with the money in the cash value, they would run the risk of depleting their savings and having the policy lapse.

Other types of insurance policies

According to the Insurance Information Institute, there are two other forms of permanent life insurance: variable life insurance and variable-universal life.

Variable life

The cash value can be invested in stocks, bonds and money market mutual funds. Because of this, funds in the account can accumulate faster, but there is also greater risk.

Variable universal life

Combines features of variable life and universal life policies. You can opt for higher risk/reward investments while having the ability to adjust your premiums and the death benefit.

There are also other types of life insurance plans that better suit certain populations. For example, no-exam life insurance is a term that encompasses several different policy types that don’t require policyholders to undergo a medical examination. These policy options —  including guaranteed issue and simplified issue policies — may be an option for individuals over the age of 55 who have pre-existing conditions or those who want to purchase a policy quickly.

How much life insurance do I need?

If you’re purchasing life insurance as income replacement for your family, the Insurance Information Institute recommends you do the following to determine a life insurance coverage amount sufficient enough to meet your loved one’s needs:

1. When calculating how much life insurance you would need to replace your income, consider “hidden income” you bring in. This can include benefits you receive through work, like health insurance.
2. Consider services you provide your family, including childcare, home maintenance, tax preparation, etc.
3. Account for your debts and financial obligations, including credit card and mortgage payments.
4. Include an overage for expenses related to your death, including funeral costs, medical bills and potential moving costs.
5. Subtract any additional sources of income your loved ones might receive, such as a pension or Social Security benefits.
6. Don’t forget about inflation when calculating the number of years your dependents will need financial support.

If you do not have dependents and have enough savings to cover your final expenses, you may not need life insurance at all. When in doubt, consult a financial planner or advisor to determine whether life insurance has a place in your overall financial plan.

How to choose the best life insurance company

Choosing the best life insurance company for your needs will require some legwork. You should already have a clear idea of what you want to accomplish by purchasing a policy. This, in turn, will determine how much life insurance you need and which type of life insurance policy is better suited to help you achieve those goals.

If you want to pay less for life insurance, your next step should be to shop around and compare life insurance quotes from different companies. This will allow you to get the lowest rate for the amount and type of coverage you want. You see, life insurance companies use different underwriting guidelines when determining how much risk they’re taking on by insuring you, so rates can vary considerably between insurers.

Besides shopping around for the lowest rate, consider a company’s reputation for claims satisfaction, its financial strength and online customer reviews for its products. You may also want to look into lawsuits and complaints filed against any company you do business with. These tips can help you get a clearer picture of what to expect from your life insurance provider and avoid unwelcome surprises.

Main things to know before buying life insurance

Before buying a life insurance policy, you should consider the amount of coverage you want and the type of policy that suits your needs. You should also determine the length of the coverage, as well as the premiums you can afford.

Additionally, you should research the insurance company’s financial stability and reputation to ensure they can deliver on their promises. It’s also important to understand the policy’s terms and conditions, including any exclusions and limitations.

Benefits to buying life insurance

Life insurance provides financial protection to your loved ones in case of your unexpected death. It helps them pay off debts, maintain their standard of living and cover expenses such as funeral costs. Life insurance also provides a tax-free benefit to your beneficiaries, which can help them deal with the financial difficulties that may arise in your absence. Additionally, some life insurance policies can also accumulate cash value, which can be used as a savings or investment vehicle.

Requirements to buy life insurance

To buy a life insurance policy, you typically need to provide personal information such as your age, health status, occupation and lifestyle habits. You may also need to undergo a medical exam, which will help the insurer assess your health and determine your premium rates. In addition, you will need to provide information about your beneficiaries, including their names and contact information.

Who is eligible to buy life insurance?

Anyone can buy life insurance, as long as they meet the insurer’s requirements. However, certain factors such as age, health status and lifestyle habits can affect your eligibility for certain types of policies or your premium rates. For example, people with pre-existing medical conditions or dangerous occupations may face higher premiums or exclusions.

Is life insurance taxable?

Life insurance benefits are generally not taxable, as they are considered a transfer of wealth rather than income. However, there are some exceptions, such as when the policy owner sells their policy for cash or borrows against the policy’s cash value. In these cases, the proceeds may be subject to taxation. It’s important to consult with a financial advisor or tax professional to understand the tax implications of your specific life insurance policy.

How We Found the Best Life Insurance Companies

As part of our methodology to find the best life insurance companies of the year, we looked into factors such as:

• Financial strength – Choosing a financially stable life insurance company can ensure your claims are paid out in a timely manner. Our research focused on insurance underwriters with high AM Best ratings for financial strength.
• Customer satisfaction ratings – We chose some of the best life insurance companies in the industry based on the most recent J.D. Power Life Insurance Study. This study takes into account customer feedback regarding each company’s application process, communications and interactions, price, product offerings and statements.
• Customer complaints – The National Association of Insurance Commissioners maintains a database of consumer complaints against insurance companies’ segments. A higher-than-average complaint index — which is based on market share — may indicate customer dissatisfaction with a company’s life insurance products. We took complaint index data into account when reviewing the companies on this list.

Summary of the Best Life Insurance Companies

• Northwestern Mutual: Best for Customizability
• Bestow: Best for No-Medical Exam Life Insurance
• Policygenius: Best Marketplace
• Ethos: Best for Guaranteed Coverage
• Haven Life: Best for Term Life Policies
• Ladder: Best for Flexible Coverage
• New York Life: Best for Whole and Universal Life Policies
• State Farm: Best for High Customer Satisfaction
• Nationwide: Best for Bundling Discounts