Best Life Insurance Companies for 2023

Sadly, losing a loved one may have a devastating emotional impact on the family and financial consequences. The most significant life insurance coverage can assist in establishing financial security for your loved ones in the case of a terminal illness or accidental death, as determined by your financial advisor.

When you purchase life insurance, you can name beneficiaries who will get financial assistance during your death. A preset amount of money, known as the premium, can be paid monthly or yearly. The beneficiary will receive a predetermined amount of money, known as the death benefit, following your death. The premium is paid either monthly or yearly. Two of the variables that influence the tip price are the amount of the death benefit and the term, which refers to the length of time that the policy is in effect.

Essentially, there are two sorts of life insurance products available: basic life insurance and life insurance policies packaged with a quasi-investment product. Overall, bundled insurance products, such as whole life insurance policies, universal life insurance policies, permanent life insurance policies, and any policy with a cash value component, are more expensive and complicated. Term life insurance is the most affordable and straightforward option for most consumers. According to David Gastwirth, an insurance strategist with American Business, “If I need to make sure my family or business is protected in the event of my death early, I want to focus on term insurance.” As one expert put it, “It’s the fundamental cornerstone of one’s insurance strategy.”

Term life insurance policies typically offer $100,000 in death payments. Most people will be happy with a maximum of $3 million, which is enough for most people. In some cases, a $5 million death benefit term life insurance policy is possible. Gastwirth recommends that you buy more life insurance coverage than you think you need because the cost of a life insurance policy increases as you get older. You may become uninsurable if you develop health problems later in life. As long as you can, he urged, “get the most you can for as long as you can, without changing your lifestyle.”

The best time to buy life insurance is while you are young and healthy. Even if you don’t fall into one of these categories, getting insurance is a good idea.) The vast majority of insurance experts recommend a policy with a death benefit of 10 to 12 times the policyholder’s annual income and a term long enough to cover living expenses and future financial responsibilities, like mortgage payments and college tuition. When it comes to the price of your policy and the amount of your monthly or annual premium, the length of the term and the size of the death benefit play a significant role. Other considerations include but are not limited to your health and age, gender, whether or not you smoke, and where you live. Each month, a 20- or 30-year term life insurance policy with a death value of $500,000 can cost between $25 and $50 for healthy persons under 40.

Best life insurance companies, compared

Best overall Best customer service Cheapest and fastest Best overall (runner-up) Most flexible terms Best customer service (runner-up)
Principal Financial Group Northwestern Mutual MassMutual / Haven Life Nationwide Banner Life / Legal and General America State Farm
Go to website Go to website Go to website Go to website Go to website Go to website
JD Power Customer Satisfaction Rank 4 1 12 6 N/A 2
Monthly premium* $23.00 $31.75 $22.34 $23.57 $23.89 $30.44
Coverage terms 10, 15, 20 or 30 years 10 or 20 years 10, 15, 20 or 30 years 10, 15, 20 or 30 years 10, 15, 20, 25 or 30 years 10, 20 or 30 years
Death benefits $200,000 to $5 million $100,000 to $5 million $100,000 to $3 million $100,000 to $1 million $100,000 to $10 million Unspecified
Can you buy a policy online? No No Yes No No Yes

The monthly premium for a 20-year term life insurance policy with a death benefit of $500,000 is paid by a 35-year-old in good health.

We looked at 25 different life insurance companies. We evaluated their coverage options, customer service ratings, financial soundness, and average cost. A 20-year policy with a death benefit of $500,000 costs $23 to $32 monthly from the six companies listed below (or $5,520 to $7,200 in total over the term). Companies like Northwestern Mutual and State Farm, known for their excellent customer service, provide the most expensive policies. We didn’t include a few companies because they don’t sell plans in every state.

Among these, here’s a look at the greatest.

Best Life Insurance Companies

Principal Financial Group

Among the finest life insurance providers, we believe Principal Financial Group provides the most value for money while also providing excellent customer service. According to the National Association of Insurance Commissioners, it has substantially fewer customer complaints than the industry average, placing 4th in J.D. Power’s 2019 customer satisfaction study.

As the second-cheapest monthly insurance premium package, including universal life insurance, among the businesses profiled here, Principal’s insurance premium came in second place. It costs $23 per month for a healthy 35-year-old to have a $500,000 term life insurance policy for the next 20 years, compared to the average life insurance premium rate of $25.80. A+ financial strength rating from A.M. Best and 140 years in the business make Principal an excellent insurance company choice for almost anyone wishing to assure further financial stability for their loved ones.

The principal offers a choice of life insurance policies with terms of 10, 15, 20, or 30 years, with death payouts ranging from $200,000 to $5,000,000. Go for a policy that covers at least $250,000 instead of the required $200,000 in coverage.

Haven Life Insurance

A leading insurance company in the United States, MassMutual, provides the backing for Haven Life Insurance Agency’s policies. However, this insurance agency’s modern touches and unparalleled convenience set it apart from the rest of the field.

A leading insurance company in the United States, MassMutual, provides the backing for Haven Life Insurance Agency’s policies. But its modern features and unparalleled ease of use are the real draws. The majority of insurers require you to meet with a financial advisor or a life insurance product agent before they may approve your policy. Some companies won’t even offer you a quotation until you call them first. This new coronavirus era presents a compelling opportunity for people to shop around for life insurance policies from the comfort and safety of their own homes. Before purchasing a policy with Haven Life, no medical exam or lab tests are required, making it unique among life insurance companies. You may be able to get some of your policy’s cash value death benefit in the event of a disability or terminal illness through Haven Life policy riders. This insurance company stands out from the competition.

After signing up, there is a 120-day waiting period for most customers to conduct a medical exam. Still, coverage begins right away if they are accepted online. For the death benefit to be paid on time, you must answer all questions truthfully. The application shouldn’t take more than 15 to 20 minutes if you have a good grasp of your family’s (and your own) health history.

Haven Life was the cheapest when it came to term life insurance quotes from the various carriers. A healthy 35-year-old can get a 20-year, $500,000 policy for $22.34 instead of $25.80. Haven Life provides term life insurance policies with benefits ranging from $100,000 to $3 million to help protect your family’s financial future. In addition, MassMutual has an excellent track record of providing excellent customer service and maintaining a healthy financial position.

Northwestern Life Insurance

Even though each of these life insurance companies has a good reputation for customer service, Northwestern Mutual is the best. Customer satisfaction surveys conducted by JD Powers and the National Association of Insurance Commissioners have ranked Northwestern Life Insurance Company as the most satisfied life insurance company in the United States, with an average customer complaint rate lower than any other life insurance company.

Term insurance contracts from Northwestern typically last between ten and twenty years. Though a company representative noted that they’re continually adding new products and you should consult with a financial advisor about what life insurance package makes the most sense for your situation, benefits begin at $100,000 and go up to $5 million.

However, Northwestern’s life insurance policies aren’t inexpensive, such as term and universal policies. The company prides itself on providing exceptional customer care. There are several more cheap possibilities for life insurance if you’re willing to pay 20% more than the competition’s rates. However, Northwestern is the most excellent option if you are looking for the best customer service.

Other Good choices

nationwide life insurance

Nationwide does not win any life insurance coverage category outright. Still, it routinely rates high in all life insurance product plans with a similar offering to Principal Financial Group. Term life insurance, universal life insurance, whole life insurance, and variable life insurance are all available at competitive rates from this life insurance provider. Customer service and financial strength are two of the company’s strong suits.

State Farm's

State Farm’s prices are similar to Northwestern Mutual’s, but this insurance company’s more expensive policies earn excellent customer service marks and offer a lot of term length flexibility. You can also begin the life insurance coverage application process on the State Farm website, though in most cases, you’ll eventually need to speak with a State Farm representative to finalize your insurance product application. Like Haven Life, State Farm offers add-on riders that let the policyholder access a living benefit subtracted from the death benefit cash value should that person have a situation such as terminal illness or disability.

Legal and General America

A life insurance company called Banner Life Banner Life insurance products are issued by Legal and General America, the American part of the British international financial services corporation. Legal and General wasn’t featured in JD Power’s evaluation, but the life insurance firm has been around since 1836 and has a good reputation for customer service and affordability. This insurance firm provides both term life insurance and universal life insurance, permanent insurance. The company offers 25-year terms, making it a rarity in the industry.

How We Chose The Best Life Insurance Companies

All the providers mentioned here satisfy the minimum requirements for a life insurance firm. Our analysis prioritized customer service, financial standing, and price — but each of these companies has earned good customer service grades from J.D. Power, a standard complaint index from the National Association of Insurance Commissioners, and an A++ or A+ rating for financial strength from A.M. Best.

Though some of their policies are less expensive than others, these insurance product companies offer competitive premium rates. Note that the exact price of your life insurance policy will depend on your health, location, sex, and age. The bottom line: You can confidently choose any of these insurance company options for a reasonably priced, comprehensive term life insurance policy.

Frequently asked questions

Should I buy life insurance?

You should carry life insurance if you have dependents who depend on your income, such as children, a spouse, or a parent.

Many people get insurance coverage when they reach a significant life event. When you take on debt to buy a property or send a child to college, insurance can ensure that your obligations are met even if you die. In addition to helping your dependents manage their living expenses, a life insurance policy can also provide insurance for your final expenses, such as burial and funeral expenses.

I’m under 40 and in good health. Do I really need life insurance?

Yes. The best time to buy life insurance is when you are young and healthy.

I have health problems or pre-existing conditions. How should I shop for insurance?

It’s worth checking to discover whether any life insurer offers customized coverage for your specific scenario. Health insurance companies often place consumers in one of four categories: Preferred Best (also termed “Super Preferred”), Second Best Preferred (or “Preferred”), Standard Plus, and Standard. Current or recent smokers are categorized as either Preferred Smokers or Standard Smokers.

Each insurance company has its own approach to classifying customers; some may categorize you as a smoker even if you quit three years ago. Your category will help set your life insurance coverage price, so be honest and clear when dealing with an advisor or agent. And it’s worth the work to locate a life insurance company and policy that will protect you inexpensively and effectively, whatever your health situation.

How should I choose a life insurance term period?

You want coverage that covers the period of your most significant financial liabilities. A 10-year policy is appropriate if, for example, you want to ensure that your 12-year-old child’s college tuition is covered by your death insurance. Generally, it’s advisable to go with a longer-term strategy because the cost and availability of things will alter as you grow older.

How should I choose a coverage amount?

There are two ways to approach this. A plan known as “income replacement” offers your family a distribution that will cover their living expenses for 15 to 20 years, using both principal and interest. A suitable amount of coverage is around 10 to 12 times your current annual income.

The alternative is “cost calculation,” which ties the size of the insurance with your present and future financial obligations — such as a mortgage or college tuition (which presently comes to roughly $175,000 on average for a private four-year university). Both considerations can benefit you when selecting the size of your coverage. As an additional resource, Nationwide offers a comprehensive online worksheet.

What should I do if my financial situation changes significantly?

Life is unpredictable, and when your financial condition changes, you’ll need to reassess your insurance coverage. You can permanently terminate your insurance policy if you no longer require it. You can always buy more insurance if your responsibilities rise dramatically, such as having a mortgage or having children. Even while life insurance is geared for the long term, there are many additional options for when circumstances change.

Should I buy a guaranteed life insurance policy?

For most people, the answer is no. Guaranteed life insurance policies are easy to purchase — even for older or less healthy persons who may not even need to take a medical exam. Death benefits on life insurance policies are often pitiful, and the costs of maintaining the policy are prohibitive. Also, most guaranteed policies have a two-year waiting period: If you die during the first two years of coverage, the insurer will repay the cash value of the premiums you paid — but not provide the death benefit.

What if my coverage term expires before I die?

To be honest, life insurance is more of a form of income insurance than anything else. It ensures constant financial assistance for your family. Your need for life insurance will diminish after your children are self-sufficient, your mortgage is paid off, and you’ve saved enough for a comfortable retirement.

What is a ‘rider’ — and should I add one to my policy?

A rider is an optional feature that you can add to a basic policy; they’re normally available exclusively for a whole life insurance policy or a universal life insurance policy. A chronic disease rider, for example, gives the insured a percentage of their death benefit if they’re diagnosed with a terminal illness. A disability rider waives or decreases the monthly payment if the policyholder becomes incompetent.

Though that may sound enticing, most riders aren’t worth the investment. They may only raise your premiums by a few cents each month, but over the course of a decade or two, that can mount up.

More about insurance and finances

The editorial information on this page is based completely on objective, independent assessments by our authors and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.

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