The life insurance market in the U.S. is competitive, made up of a mix of longstanding insurers and newer “insurtechs” that sell policies online. To narrow down our list of the best life insurance companies, we looked at customer complaints data, consumer experience and financial strength. We also assessed the types of policies on offer, and the ways you can buy coverage.
best life insurance companies in March 2024
All of the life insurance companies listed below scored 5 out of 5 stars. There are hundreds of insurers competing for your business, often selling very similar products, so it’s smart to Compare life insurance policy before making a decision.
Best life insurance company overall: MassMutual
Massachusetts Mutual Life Insurance Co., often shortened to MassMutual, is one of the largest life insurers in the country. Founded in 1851, it offers a wide range of products, from term life to Variable universal life insurance a type of permanent policy with flexible premiums and investment opportunities. MassMutual is a mutual company, which means it’s owned in part by its policyholders and pays out dividends to qualifying members.
Best life insurance company for applicants with HIV: Guardian
Guardian was founded in 1860 and has paid dividends to its eligible policyholders since 1868. The company is set to pay out $1.4 billion in dividends in 2024, the largest sum in the company’s history The insurer drew significantly fewer complaints to state regulators than expected for a company its size. Aside from life insurance, Guardian also sells a range of products including dental, vision and cancer insurance.
Best life insurance company for consumer experience: Northwestern Mutual
Founded in 1857, Northwestern Mutual is the largest seller of individual life insurance in the United States, according to the latest data from S&P Global Market Intelligence. Universal life policyholders have flexible payment and coverage options, while term life customers have the opportunity to convert their policy to permanent coverage without taking a medical exam. The company is set to pay $7.3 billion in dividends to qualifying policyholders in 2024. Northwestern Mutual received significantly fewer complaints to state regulators than expected for a company of its size
Best life insurance company for permanent life insurance: Pacific Life
Pacific Life has been in business for more than 150 years. It has drawn significantly fewer complaints than expected for a company of its size over the past three years. Among Pacific Life’s range of policies is the company’s indexed universal life insurance These policies typically grow investments based on stock market indexes like the S&P 500. They also have a guaranteed floor, which means your life insurance value won’t fall below a certain value if the stock market dives.
Best life insurance company for coverage amounts: New York Life
New York Life is a mutual company, which means it’s owned by its policyholders. As such, you may be eligible to vote in board elections if you’ve held a permanent policy for more than a year and earn dividends — the insurer is set to pay out $2.2 billion in 2024. The company is one of the largest life insurance companies in the U.S. and drew fewer complaints to state regulators than expected for a company of its size. It ranked above average in J.D. Power’s 2023 customer satisfaction study for life insurance.
Best life insurance company for older applicants: AARP
AARP’s Life Insurance Program offers coverage to its members in all 50 states and Washington D.C. The policies are underwritten by New York Life, U.S. Members can apply for a term or whole life policy by answering a few health questions, with no medical exam required. AARP also sells a guaranteed issue whole life policy via New York Life, which bypasses both the questionnaire and medical exam for eligible applicants.
Best life insurance company for customer satisfaction: State Farm
When you think of State Farm, you probably think of its auto insurance products. But it also offers a decent range of life insurance policies, including return of premium life insurance if you outlive the term, you get a refund of the premiums you paid into the policy. State Farm also offers a single premium option for its whole life policy and a final expense policy that can help cover funeral costs. State Farm ranked first out of 22 companies in J.D. Power’s 2023 U.S. Life Insurance Study for customer satisfaction, and has consistently topped this list in recent years pointing to its positive reputation among policyholders.
How to choose the best life insurance company
Follow these four steps to find the best life insurance company for your family.
1. Look at customer satisfaction scores
Other customers’ experiences can help you decide whether you want to do business with a company. You can get clues about an insurer’s reputation through complaints filed with state regulators, which are visible on the National association of insurance commissioners website. All of the companies listed above have had fewer complaints to state regulators than expected for insurers of their size, according to three years’ worth of data from the NAIC.
2. Consider financial strength
It’s especially important to look into life insurance companies financial strength because you’ll want a company that can pay claims many years down the road. NerdWallet’s insurance reviews use weighted averages of financial strength ratings. For additional information about life insurance companies, try a ratings agency like am best. We recommend looking at insurers with an AM Best rating of A- or better.
3. Evaluate the policy options
Term and permanent are the two main types of life insurance.
- Term life insurance lasts a set number of years and is typically sufficient for most families.
- Permanent life insurance lasts your entire life and often includes an investment component. Under the umbrella of permanent life insurance, there are several different types of policies.
4. Get prices from a handful of companies
The cost of coverage varies among companies, so it’s smart to compare life insurance quotes from multiple insurers.
Although many companies sell similar policies, some focus on certain products such as whole life or on particular customers, such as seniors who need life insurance. You can narrow down your options by focusing on the companies that specialize in the type of insurance you’re looking for.
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FAQ Questions and Answers
Look at customer satisfaction scores and complaints filed with state regulators.
It ensures the company can pay claims in the future. Aim for an AM Best rating of A- or better.
Term and permanent. Term lasts for a set period, while permanent lasts your entire life.
Cost, company specialization, and policy options available.
Get quotes from multiple companies to find the best rates and coverage options.
