Selecting the right life insurance company is one of the most important decisions you will make, even though it is a complex process. When deciding on a funeral plan, you should compare the costs and other financial obligations, such as mortgage and tuition payments. .
In addition to building cash value over time, permanent life insurance policies can also provide additional financial security throughout your life.
Life insurance companies with strong finances, high customer service standards, straightforward application procedures, and comprehensive features are the best.
Our methodology IN theboomoney consisted of comparing the insurance companies according to these categories, collecting data points from each insurer, and looking at third-party ratings.
Read also: Best interest rates for personal loans
What are the best insurance companies?
- Overall, Winner: Nationwide
- Term Life Insurance Best Company: Protective
- Insurance Best Financial Stability: MassMutual
- Life Insurance: Mutual of Omaha
- Lowest complaint rate: Guardian
- Military Discount: USAA
1- Nationwide
- The company ranked second in J.D. Power’s customer satisfaction study for 2021.
- No-medication coverage is available to healthy applicants for up to $5 million
- Most policies include living benefits
that allow credit payments
Why We Chose It
AARP received an A+ rating from AM Best for its financial strength and has received less than a handful of customer complaints over the past three years.
Moreover, J.D. Power ranked it second out of 21 insurance companies. A new consumer study has been released on life insurance. In addition to a no-exam benefit, the company offers living benefits of $100,000 per year and no-exam applications up to $5 million.
A variety of exceptional features are offered by the company, one of the best life insurance companies.
Founded in 1900, Nationwide offers a variety of life insurance products, including whole life insurance, universal life insurance, variable life insurance, and index life insurance.
When applicants do not have to undergo a medical exam in order to open these policies, applications can be approved the same day. There are three accelerated death benefit riders that are available for free on most policies offered by the company.
Depending on the severity and type of illness, policyholders may be able to access some of their death benefit while still alive. Nationwide requires that you are an existing customer in order to offer you a final expense or burial insurance policy.
2- Protective
- The least expensive term policy is tied with Banner
- Insurance, which provides coverage for up to 40 years
- and accepts credit cards
Why We Chose It
Our research found Protective and Banner to be the cheapest life insurance companies. It also offers policies for 40 years, an unusual feature in the industry – most companies only offer 30-year policies.
The company was founded in 1907 and holds an AM Best rating of A+ for financial stability. Likewise, it has received fewer complaints in the past three years than would be expected for such a large company.
The company performed worse than the industry average in J.D. Power’s study of 21 companies, which placed it 16th. A no-medical-exam policy capped at $1 million is only available to people under the age of 45.
If you are under the age of 50, this is less than some competitors who offer up to $5 million in coverage, and $3 million for those under 60.
3- MassMutual
- A++ rating for financial stability
- with a long history of dividend payments
- and few complaints
- about its dividend conversion options
Why We Chose It
The advantages of MassMutual are numerous. AM Best gives it an A++ financial rating. The highest rating a company can receive indicates a “superior” ability to pay claims.
2 MassMutual’s history of dividend payments also adds to its clout: Since 1869, it has paid dividends to eligible policyholders every year. According to the NAIC complaint index, the company has received very few complaints over the past three years.
MassMutual’s term policyholders can convert to any of the company’s permanent policies. You need to know this because some companies limit what type of policy you can convert your term policy into.
(With convertible term life insurance, you can exchange some or all of your term coverage for permanent coverage without having to reapply.)
Although, unlike some competitors, it does not include many accelerated benefit riders free of charge on most of its policies and does not accept credit card payments.
4- Mutual of Omaha
- At least two living benefits are included in policies
- A wide range of riders is available
- through live chat
Why We Chose It
We consider Mutual of Omaha to be the best company for life insurance with living benefits. With its Term Life Express and IUL Express policies, it offers three accelerated benefit riders at no additional cost (for critical, chronic, and terminal illnesses).
Most of its other policies include two (for chronic and terminal illnesses). You can tap the death benefit of a life insurance policy early if you have a qualifying illness by using an enhanced benefit rider.
You can use them to pay for whatever you like, but your beneficiaries will receive a smaller benefit.
There is only one other company on this list that provides a disability income rider, which is unusual for the industry. If you become disabled and are unable to work, the disability income rider of Mutual of Omaha will provide you with a monthly income benefit.
When it comes to complaints, however, the company does not compare well to our other top picks. All our other picks received fewer complaints than it, which is expected for a company of its size.
Despite the fact that many of our other favorite companies let you apply online for term life insurance, you’ll have to speak to an agent to get a policy from Mutual of Omaha.
Read also: Are crowdfunding donations taxable?
5- Guardian
- Top companies receive the fewest complaints
- regarding coverage of up to $3 million without requiring a medical exam: A++
- Whole-life policies are dividend-paying
Why We Chose It
In our review of ninety-one companies, Guardian received the fifth-fewest complaints out of all of our top-rated companies. As a result, there are few complaints from Guardian policyholders.
Every year, NAIC measures complaints; we examined each company’s complaint history over the past three years.
As with MassMutual, Guardian also earns a top financial stability rating of A++ from AM Best, which reflects superior financial stability, and it pays dividends to eligible policyholders.
Healthy applicants over the age of fifty can apply for life insurance coverage up to $3 million without having to undergo a medical exam.
But Guardian falls short of the mark when it comes to streamlined online experiences.
A credit card payment option is not available, nor is an online application process (without an agent). Information about each product is not readily available.
6- USAA
- Benefits for serious injuries
- include guaranteed insurability at no cost
- and “Anytime conversion” riders for term policies.
Why We Chose It
The US Automobile Association, which was incorporated in 1922, will celebrate its 100th anniversary in 2022.
As measured by the NAIC complaint index, the company has a top A++ rating for financial stability and strong customer satisfaction.
USAA offers military-specific riders that make it a solid choice for military families.
A severe injury rider is provided for Level Term V policies and pays out $25,000 for specific injuries sustained while serving in the military.
Additionally, USAA offers guaranteed insurability riders at no additional cost that lets you increase your coverage without having to prove insurability after leaving the military or after undergoing certain life events, such as having a child.
A conversion rider can also be added to your term policy that lets you convert it to a whole life policy at any time. Typically, conversions are permitted within five to ten years of your term policy being issued.
Among USAA’s shortcomings are its limited non-medical exam options and the inability to pay with credit cards. To qualify for its no-exam term policy, you must be thirty-five or younger. It covers a maximum of $100,000, and it expires when you turn thirty-nine.
