For many people, life insurance is a necessary part of their financial plan. It can protect your loved ones by replacing lost income or paying off debt if you pass away. It can also help you leave a financial legacy.
However, life insurance can be complicated. There are several different types, a variety of coverage amounts and finding the right one for your needs is important: Term life insurance, in which coverage expires after a certain number of years, is popular with people looking to keep premiums down. Permanent insurance, like whole and universal life insurance policies, keeps coverage in place for as long as you live and can even build cash value.
To help you choose the best policy, CNBC Select compared dozens of life insurance companies and ranked them based on factors like customer satisfaction, financial stability, online usability and whether or not a medical exam was required. (Seeour methodologyfor more information on how we chose the best life insurance companies.)
Best life insurance companies
- Best from a big-name insurer: Northwestern Mutual
- Best for customer satisfaction: State Farm
- Best for seniors: Mutual of Omaha
- Best for affordability: Amica
- Best online life insurance: Ladder
- Best for term life insurance: Guardian
- Best for whole life insurance: MassMutual
- Best for universal life insurance: Pacific Life
Best from a big-name insurer
Northwestern Mutual Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
As the largest life insurer by market share in the U.S., Northwestern Mutual is an established choice with a proven record. And, it offers a number of types of policies across the country.
Pros
- Variety of life insurance products available
- Highly rated for customer satisfaction
Cons
- Policies must be purchased through a financial professional
Who's this for? Founded in 1857, Northwestern Mutual is now the largest issuer of life insurance policies in the U.S., according to the National Association of Insurance Commissioners.
Standout benefits: It earned an A++from A.M. Best, a measure of its financial health and ability to pay out claims.
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Best for customer satisfaction
State Farm Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
State Farm offers a variety of term, whole, and universal life insurance products to choose from, alongside other types of insurance. It's rated highly for both financial stability and customer service.
Pros
- Outstanding customer service
- Reasonable rates
- Offers return of premium policy
- Bundling discount
Cons
- Policies must be purchased through a State Farm agent
- Doesn't sell policies in Rhode Island or Massachusetts
- Fewer riders than the competition
- Accelerated death benefit costs extra
Who's this for: State Farm offers a variety of life insurance policies in addition to auto and home insurance. If you want a policy without a medical exam, State Farm only offers up to $50,000 worth of coverage for those up to age 50 or a 10-year term, whichever comes first.
Standout benefits: State Farm received an impressive score of 843 out of 1,000 on JD Power’s life insurance customer satisfaction survey, the highest of any company on this list.
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Best for seniors
Mutual of Omaha Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
No
Policy highlights
Mutual of Omaha offers term, whole, indexed universal life and universal life policies, giving lots of options.
Pros
- Policies available up to age 85
- No medical exam options available
Cons
- Limited to $25,000 for Guaranteed whole life policies
Who's this for? Mutual of Omaha's relatively high age limits can help seniors overcome challenges with buying life insurance. Term life products are available up to age 80, while whole life products are available up to age 85.
Standout benefits: While Mutual of Omaha’s whole life policies are limited to $25,000 worth of coverage, they don’t require a medical exam.
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Best for affordability
Amica Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
See AlsoBest Life Insurance of June 2024Policy highlights
Amica offers four straightforward life insurance options — a level term life insurance, and whole life insurance policies payable for 20 years or until ages 65 or 100. Both term and whole life insurance policies include a terminal illness rider for free, allowing for an advanced death benefit if the insured is diagnosed with a terminal illness.
Pros
- 10% discount on an Amica auto insurance policy when you bundle
Cons
- Not all policies and features are available in all states
- Does not offer universal or variable policies
Who's this for? For those shopping for term life insurance, Amica makes it simple to gather quotes and submit applications online. And, those in preferred health classes may also find that they can skip the medical exam for term policies. Term policies are available for 10, 15, 20, 25 or 30 years.
Standout benefits: Amica's whole and term life insurance offerings are straightforward but strong. The brand offers competitive rates with one rider, a terminal illness rider free of cost.
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Best online life insurance
Ladder Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
No
Policy highlights
Ladder is a digital-first life insurance company offering up to $3 million in coverage without an exam. It only offers a single term life insurance policy without riders, but Ladder's policies offer the option to increase or decrease coverage as your needs change.
Pros
- Simple online application and quotes
- Coverage starts at $5 per month
Cons
- No riders available
Who's this for? Ladder is worth considering if you want to buy a policy online and potentially skip the medical exam (if you're buying less than $3 million in coverage). While only offering term life insurance, Ladder makes it easy to get a quote and apply online.
Standout benefits: Ladder offers affordable rates to keep the cost of life insurance down. And, coverage is adjustable, allowing you to lower it in the future as you meet goals. While it's a newer player in the space — it was founded in 2015 — Ladder's policies are backed by several major life insurance companies.
Best term life insurance
Guardian Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Guardian offers a variety of policies, including term, whole and universal. Term life insurance can be converted into whole or universal life policies.
Pros
- Has paid dividends since 1868
- Whole life insurance policies up to age 90
- Available in all 50 states
Cons
- Can't get rate quotes or apply online
- Customer service not available 24/7
- Doesn't offer auto or home insurance
Who's this for? Guardian shines for offering quotes online and a top-tier A++ rating for financial strength from AM Best. It offers term limits of 10 years, 15 years, 20 years and 30 years, in addition to a number of permanent insurance options.
Standout benefits: If your needs change, Guardian's level term insurance offers the option of conversion to a whole life policy in the first five years for free, a perk that generally costs extra as a rider on other policies.
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Best whole life insurance
MassMutual Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
MassMutual has been in business for over 170 years, and carries the highest ratings for financial security from AM Best.
Pros
- Offers a number of policies to choose from
Cons
- No online quotes available
- Policies must be purchased through a financial professional
Who's this for: MassMutual offers a variety of whole life policies with competitive rates that can be adjusted to your needs. It's also noted for its solid history of paying out dividends to policyholders — which it's done every year since 1869.
Standout benefits: MassMutual has set a 6.1% dividend interest rate for 2024, when it estimates it will issue $2.2 billion to customers, the largest payout in its history.
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Best universal life insurance
Pacific Life Life Insurance
Cost
The best way to estimate your costs is to request a quote
App available
No
Policy highlights
Pacific Life offers permanent life insurance policies in addition to term insurance. A number of riders make it possible to customize the policy to fit your needs.
Pros
- Offers specialized products that tailor the coverage to your needs
Cons
- Must be purchased through an advisor
- No online quotes available
Who's this for? Pacific Life stands out for its affordable universal, indexed universal and variable universal life insurance policies.
Standout benefits: Individualized plans are available to help policyholders with specific concerns, like supplementing retirement income.
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Compare life insurance companies
More on our top life insurance companies
Northwestern Mutual
Life insurance is at the core of Northwestern Mutual's business, and it's established itself with a long history and a strong record of financial strength.
Types of policies
Term life insurance, whole life insurance, universal life insurance, variable universal life insurance
A.M. Best financial strength rating
A++
J.D. Power customer satisfaction rating
790 out of 1,000
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State Farm
State Farm life insurance policies stand out for their customer satisfaction ratings, while also providing a variety of choices to fit almost any need.
Types of policies
Term life insurance, whole life insurance, universal life insurance, joint universal life insurance
A.M. Best financial strength rating
A++
J.D. Power customer satisfaction rating
843 out of 1,000
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Mutual of Omaha
Mutual of Omaha was founded in 1909 and serves more than 5.4 million individual customers. Today, its life insurance policies are available to customers up to age 85, making it a senior-friendly option.
Types of policies
Term life insurance, whole life insurance, universal life insurance
A.M. Best financial strength rating
A+
J.D. Power customer satisfaction rating
805 out of 1,000
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Amica
Life insurance through Amica is straightforward and affordable, and can be bundled with other products for savings.
Types of policies
Term life insurance, whole life insurance
A.M. Best financial strength rating
A+
J.D. Power customer satisfaction rating
Not rated
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Ladder
Ladder provides life insurance to those between ages 20 and 60 and offers a unique approach that allows you to lower their coverage over time, since many people don't need as much coverage as they age and meet certain goals or milestones. It's one of a few no-exam life insurance companies that offer a completely online experience.
Types of policies
Term life insurance
A.M. Best financial strength rating
Varies based on the underwriter
J.D. Power customer satisfaction rating
Not rated
Guardian
Guardian is a mutual company founded in 1860, and its life insurance options are notable for their financial strength ratings and flexibility.
Types of policies
Term life insurance, whole life insurance, universal life insurance
A.M. Best financial strength rating
A++
J.D. Power customer satisfaction rating
784 out of 1,000
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MassMutual
MassMutual has been offering insurance for over 170 years, so it has a long history of protecting families. As a mutual company, it's also owned by its policy owners.
Types of policies
Term life insurance, whole life insurance, universal life insurance, variable universal life insurance
A.M. Best financial strength rating
A++
J.D. Power customer satisfaction rating
809 out of 1,000
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Pacific Life
Pacific Lifehas been offering insurance policies for over 150 years. Its variety of policies makes it an excellent option for those looking for permanent life insurance.
Types of policies
Term life insurance, whole life insurance, universal life insurance, variable universal life insurance, indexed universal life insurance
A.M. Best financial strength rating
A+
J.D. Power customer satisfaction rating
799 out of 1,000
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How does life insurance work?
Life insurance functions differently depending on what type of coverage you choose.
Generally, you first receive your life insurance quotes and then you apply for a policy. After applying, your information is sent through underwriting, a process that determines your life insurance rates, and the amount of coverage you're eligible for. This is also where you'll undergo a medical exam if required. From there, your application will be approved or denied.
For term life insurance, you'll make monthly payments for a set number of years. If you survive to the end of the term, there's no payout. If you die before the end of the term, your loved ones receive a payout from the policy.
With whole or permanent life insurance policies, such as universal life insurance, you'll pay into the account, and the coverage will follow you for your entire life. With whole life insurance, the premiums and death benefit are fixed from the beginning of the policy. With universal life insurance, the premium and death benefit can both change throughout the life of the policy. At the end of your life, as long as there's value in the policy, there will be a payout to your family and loved ones.
Different policy options, called riders, can be added to personalize your coverage. Things like accelerated death benefit riders or long-term care provisions can be added to your policy to make it a better fit for your needs.
How to shop for life insurance
Life insurance is an important part of financial planning. To get life insurance, you’ll want to consider your unique needs and choose the right type of insurance. From there, choose a life insurance company that’s ranked highly for customer satisfaction and financial strength to ensure that your policy will work for you.
Types of life insurance
Here's what you need to know about several common types of life insurance:
- Term insurance: This coverage generally has the cheapest premiums and offers coverage for a set number of years. After that term expires, there's no coverage or death benefit.
- Whole life insurance: Whole life insurance policies follow you for your whole life, building a cash value component. The family or organizations you choose, also called beneficiaries, will receive money when you die.
- Indexed universal life insurance: Like whole life insurance, this policy also lasts a lifetime and builds cash value, earning value based on index funds.
- Guaranteed universal life insurance: Like term policies, this type of permanent life insurance generally has a very high age as an end date where the policy will remain active, usually between ages 90 and 100. But, this policy generally doesn't accumulate much cash value, if any.
- Variable universal life insurance: A type of life insurance where you control how the account is invested. This type of life insurance generally doesn't have a guaranteed death benefit.
If you're not sure which type of life insurance coverage is best for you, speaking with a financial advisor or insurance agent could help you decide.
What is the average cost of life insurance?
Life insurance costs vary largely based on your gender, age, health information and your coverage amount. While small, guaranteed-issue policies might have lower premiums, a large whole life policy will have much higher premiums.
For term policies, which generally have the lowest premiums, the typical life insurance premium for a $500,000 20-year term policy is about $22 per month for a 30-year-old female, and about $30 per month for a male of the same age according to Policygenius data.
For a whole life policy, premium payments are higher. Policygenius estimates that a 30-year-old male would pay about $487 per month, while a female of the same age would pay about $415 per month.
FAQs
Do I need life insurance?
Life insurance is useful if you have expenses that won't be able to be met if you die. In many cases, this includes things like having dependents or partners that depend on your income, or things like debt, including student loans or a mortgage. Permanent life insurance is also useful for those who want to be able to leave a financial legacy for their children or families.
How much life insurance should a person have?
There's no set amount of life insurance that everyone needs. Rather, your insurance needs depend on your income amount, debt, and whether or not others depend on your income. A common rule of thumb is to have enough life insurance to cover 10 times your annual expenses.
What age is best to get life insurance?
Life insurance gets more expensive with age. Therefore, it will cost the least to get it while you’re young. Buying life insurance sooner rather than later could help you save in the long run.
What is final expense insurance?
Final expense insurance is one coverage option designed to help your family and loved ones payout to cover your expenses after you die, like funeral expenses or burial expenses. These policies are generally small whole life policies and may be guaranteed issue, or a no-exam policy.
Is a life insurance policy through work enough?
Some employers offer life insurance as a benefit. However, many people who have dependents or loved ones who need their income need more coverage than the typical workplace policy offers. Getting an individual life insurance policy can help add to the amount of insurance coverage you have.
What is the most reputable life insurance company?
There are many reputable life insurance companies on the market. To find the top life insurance providers, we looked at financial strength, market share and complaint index data, among other factors.
What insurance company is best for life insurance?
Some of our top picks for life insurance include Northwestern Mutual, Amica, Guardian, Ladder and State Farm, among others. However, the best for you can vary based on your needs, age, preferences, and location, among other factors.
Which company has the best whole life insurance?
We named MassMutual as a top pick for whole life insurance. However, other top companies including Amica, State Farm, Mutual of Omaha and Northwestern Mutual also offer whole life insurance.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every life insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of life insurance products.While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. Seeour methodologyfor more information on how we choose the best life insurance companies.
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Our methodology
To determine the best life insurance companies, CNBC Select collected data points on dozens of U.S. life insurance companies with a variety of policies.
When selecting the best life insurance companies, we focused on insurance companies that write individual policies. From there, we considered ratings from JD Power’s life insurance customer satisfaction ratings, AM Best financial strength ratings (which measure a company’s ability to pay on debts), and market share data from the National Association of Insurance Commissioners. We also considered the types of life insurance products offered, the number of riders available, the availability of online quotes, and medical exam requirements.
After considering the features listed above, we sorted recommendations by the best insurance companies for term life insurance, best for whole life insurance, best for universal life insurance, best for customer satisfaction, best life insurance for seniors, and the best life insurance company overall.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.