Best Life Insurance Companies: After analyzing the term life and cash value policies from 16 companies, we found that Pacific Life and Protective stand out as top choices, both earning five stars in our evaluation. Our assessment, based on a database of over 9,000 policies, considered key metrics such as cost, historical performance, financial strength, and cash value.
10 Best Life Insurance Companies List
We comprehensively analyzed term and cash value life policies from 16 companies and found that Pacific Life and Protective are among the best life insurance companies, earning five stars in our analysis.
01. Pacific Life Insurance
Overall Rating: 5.0
Term Life Insurance Quotes Available Online: Yes
Average Cost of Term Life Insurance per Year*:
- # Women: $128
- # Men: $145
AM Best Financial Strength Rating: A+ (Superior)
Editors’ Opinion:
Pacific Life Variable Universal Life Insurance earned top marks in our analysis. We found that you have very reliable illustrations for your VUL policies and very competitive costs. We also like that their VUL policies can build cash value relatively quickly.
- # Very cost-competitive for most cash-value policies.
- # Low costs for smokers.
- # It can build cash value well even in the early years.
- # Higher rates for term life insurance.
Expert Opinion:
Pacific Life has a long history of offering low-cost products and competitive investment options. However, the costs of some newer products may be higher and some newer investment options have underperformed. So, be sure to ask your financial advisor 1) if policies’ internal costs are higher or lower than industry benchmarks and 2) if they know the actual track record (i.e., not just backtesting hypothetical) of the recommended investment options.
Disadvantages:
- # Conversion of term life policies is limited to universal life insurance.
Types of Life Insurance Sold:
- # Term Life Insurance
- # Whole Life
- # Fixed Rate Universal Life Insurance
- # Indexed Universal Life Insurance
- # Variable Universal Life
Life Insurance Riders Available:
- # Child Life Insurance Rider
- # Additional Rider on Chronic Diseases
- # Advance/Enhanced Cash Value Rider
- # Heritage Protection Clause
- # Additional Lapse Protection Clause
- # Long-Term Care Rider
- # Option to Split/Change/Convert Rider
- # Overloan Protection Clause
- # Premium Return
- # Additional Rider for Spouse or Other Insured
- # Terminal Illness Accelerated Death Benefit Rider
- # Waiver of Monthly Deduction
*The availability of riders may depend on the type of policy.
Also Read: Top 10 Best Travel Insurance Companies
02. Protective Life Insurance
Overall Rating: 5.0
Term Life Insurance Quotes Available Online: Yes
Average Cost of Term Life Insurance per Year*:
- # Women: $128
- # Men: $145
AM Best Financial Strength Rating: A+ (Superior)
Plans Available: Compare quotes from participating companies through Policygenius.com
Editors’ Opinion:
Protective’s indexed universal life insurance policies earned top marks in our analysis. We liked that these policies are highly competitive in terms of costs (including internal charges) and can build cash value from the start. Additionally, we are impressed by the excellent historical performance of the investments underlying its indexed universal life policies.
- # Low-term life insurance rates.
- # Long useful life terms of 35 and 40 years.
- # You can choose from up to 8 cash value policies if you convert to a term life policy.
- # The company’s historically superior investment performance helps keep premiums low.
Expert Opinion:
Current regulations in most states for indexed universal life insurance products in particular allow insurers to “quote” low premiums or project high account growth, giving the appearance of low costs, while charging high costs. Under these regulations, insurers do not have to disclose either those high costs or the increased risks of future “premium demands” for more than the premium originally “quoted” to cover the high costs.
They also do not have to disclose the potential total loss due to policy lapse even when all originally “quoted” premiums have been paid. On the other hand, Protective’s IUL products are generally competitively priced and priced based on more reasonable performance expectations. Its IUL policies are backed by generally superior returns on the invested assets that support policy account values.
Disadvantages:
- # Accumulation of cash value can be slow.
Types of Life Insurance Sold:
- # Term Life Insurance
- # Whole Life
- # Universal Life
- # Indexed Universal Life
- # Variable Universal Life
Life Insurance Riders Available:
- # Accidental Death Benefit Rider
- # Child Life Insurance Rider
- # Disability Rider
- # Insurability Guarantee Annex
- # Additional Lapse Protection Clause
- # Overloan Protection Clause
- # Premium Return
- # Terminal Illness Accelerated Death Benefit Rider
- # Waiver of Premium Rider
*The availability of riders may depend on the type of policy.
03. Corebridge Financial Life Insurance
Overall Rating: 4.8
Term Life Insurance Quotes Available Online: No
Average Cost of Term Life Insurance per Year*:
- # Women: $129
- # Men: $146
AM Best Financial Strength Rating: A (Excellent)
Plans Available: Compare quotes from participating companies through Policygenius.com
Editors’ Opinion:
Corbridge stands out in our analysis for its relatively marijuana-friendly underwriting. Buyers who use marijuana eight or fewer days a month may still qualify for Corebridge’s best-rate class. However, life insurance buyers who use marijuana frequently (more than 16 days a month or more than four days a week) should expect to be turned away.
- # Excellent term life insurance rates for a variety of buyer ages and coverage levels.
- # Customizable term duration between 10 and 35 years, for example, 27 years.
- # Low internal costs for cash value policies.
- # Good reliability of policy illustrations.
Disadvantages:
- # High level of complaints about life insurance.
- # It once had poor financial strength but has recovered since AIG’s financial implosion in 2008.
Types of Life Insurance Sold:
- # Term Life Insurance
- # Whole Life
- # Guaranteed Universal Life
- # Indexed Universal Life Insurance
Life Insurance Riders Available:
- # Accidental Death Benefit Rider
- # Child Life Insurance Rider
- # Disability Rider
- # Advance/Enhanced Cash Value Rider
- # Additional Lapse Protection Clause
- # Expiration Extension Rider
- # Overloan Protection Clause
- # Premium Return
- # Additional Rider for Spouse or Other Insured
- # Terminal Illness Accelerated Death Benefit Rider
- # Waiver of Monthly Deduction
- # Waiver of Premium Rider
*The availability of riders may depend on the type of policy.
04. Penn Mutual Life Insurance
Overall Rating: 4.7
Term Life Insurance Quotes Available Online: Yes
Average Cost of Term Life Insurance per Year*:
- # Women: $129
- # Men: $146
AM Best Financial Strength Rating: A+ (Superior)
Plans Available: Compare quotes from participating companies through Policygenius.com
Editors’ Opinion:
Penn Mutual’s universal life insurance policies offer an excellent combination of financial strength, competitive in-house policy costs, and reliable policy illustrations. Senior buyers will like the ability to maximize their death benefit from the premiums paid for universal life policies.
- # Very competitive rates for term life insurance (non-convertible policy).
- # Cash value policies are competitive in terms of costs.
- # Term life insurance conversion is available for any Penn Mutual permanent life insurance policy.
Expert Opinion:
Penn Mutual is one of the highest-rated insurers for its financial strength and claims-paying ability. It offers universal life products with broadly competitive in-house policy costs for most ages, health risk classes, and face amounts. Penn Mutual also provides generally reliable quotes and policy examples, good access to cash value on some of its products, and historically superior performance of the invested assets underlying policy account values.
Disadvantages:
- # Expensive rates for term life insurance convertible to permanent life insurance.
- # Not all permanent policies generate good cash value from the start.
Types of Life Insurance Sold:
- # Term Life Insurance
- # Whole Life
- # Guaranteed Universal Life
- # Variable Universal Life
- # Indexed Universal Life Insurance
Life Insurance Riders Available:
- # Accidental Death Benefit Rider
- # Additional Insurance Clause
- # Child Life Insurance Rider
- # Additional Rider on Chronic Diseases
- # Disability Rider
- # Advance/Enhanced Cash Value Rider
- # Heritage Protection Clause
- # Insurability Guarantee Annex
- # Additional Lapse Protection Clause
- # Option to Split/Change/Convert Rider
- # Overloan Protection Clause
- # Premium Return
- # Additional Rider for Spouse or Other Insured
- # Terminal Illness Accelerated Death Benefit Rider
- # Waiver of Monthly Deduction
- # Waiver of Premium Rider
- # Delivery Charge Waiver Addendum
*The availability of riders may depend on the type of policy.
05. Transamerica Life Insurance
Overall Rating: 4.7
Term Life Insurance Quotes Available Online: Yes
Average Cost of Term Life Insurance per Year*:
- # Women: $130
- # Men: $148
AM Best Financial Strength Rating: A (Excellent)
Plans Available: Compare quotes from participating companies through Policygenius.com
Editors’ Opinion:
Buyers of cash-value life insurance will appreciate Transamerica’s reliable policy illustrations. It obtained the best marks in this category, meaning you are less likely to be surprised by lower-than-expected cash value gains.
- # Premium benefits on your Trendsetter Living Benefits term life policy, such as the ability to access your own death benefit money if you develop a chronic or critical illness.
- # High maximum ages to renew or convert term life insurance.
- # Cash value usually builds up quite well in the first few years.
Expert Opinion:
In recent years, Transamerica has reduced its new product offerings, but policy illustrations for its policies continue to be based on 1) competitive and generally stable internal policy costs and 2) the performance of invested assets that support policy values. Policy accounts are generally consistent with actual historical performance.
If you are presented with a proposal to change a Transamerica policy, be sure to ask your financial advisor to demonstrate 1) that the proposed costs are less than current internal policy costs and 2) that the performance requirements to achieve the company’s expectations are as reliable as your current policy.
Disadvantages:
- # High level of complaints about life insurance.
- # The company’s investments have not always had very good results.
- # Internal policy expenses passed on to clients have been higher compared to some major competitors.
Types of Life Insurance Sold:
- # Term Life Insurance
- # Whole Life
- # Indexed Universal Life Insurance
Life Insurance Riders Available:
- # Accidental Death Benefit Rider
- # Additional Insurance Clause
- # Child Life Insurance Rider
- # Disability Rider
- # Insurability Guarantee Annex
- # Overloan Protection Clause
- # Terminal Illness Accelerated Death Benefit Rider
*The availability of riders may depend on the type of policy.
Also Read: Best Car Insurance Companies
06. Symetra Life Insurance
Overall Rating: 4.5
Term Life Insurance Quotes Available Online: Yes
Average Cost of Term Life Insurance per Year*:
- # Women: $128
- # Men: $145
AM Best Financial Strength Rating: A (Excellent)
Plans Available: Compare quotes from participating companies through Policygenius.com
Editors’ Opinion:
Symetra scored highly for term life insurance in our analysis. We especially like their low-term life insurance rates.
- # Possible no-exam option for term life insurance if you are under 60, for up to $3 million in coverage.
- # Cash value policies have competitive costs (including internal charges).
Expert Opinion:
Term life insurance products are intended for a specific period of years, such as 10, 20, or 30 years. However, throughout the initial period, needs and health may change. Additionally, term life insurance products can be sold on the secondary life settlement market, sometimes for a full refund of premiums paid or even more, but only if the product is convertible to some form of permanent coverage. As such, Symetra may be a good choice for term life insurance, both because its term insurance rates are generally competitive and because its permanent products are also typically well-priced.
Disadvantages:
- The cash value can accumulate slowly.
- Poor performance on the company’s investments over time.
- It lacks a long history of financial strength (founded in 1957).
Types of Life Insurance Sold:
- Term Life Insurance
- Universal Life
- Indexed Universal Life Insurance
Life Insurance Riders Available:
- Accelerated Death Benefit
- Accidental Death Benefit Rider
- Children’s Term Life Insurance Rider
- Waiver of Premium Rider
07. Lincoln Financial Life Insurance
Overall Rating: 4.3
Term Life Insurance Quotes Available Online: Yes
Average Cost of Term Life Insurance per Year*:
- Women: $131
- Men: $148
AM Best Financial Strength Rating: A+ (Superior)
Plans Available: Compare quotes from participating companies through Policygenius.com
Editors’ Opinion:
For couples planning their estate, Lincoln Financial is worth considering for its survivorship life insurance policies. These policies insure two lives under a single policy and provide a payout when both people die. The beneficiaries can then use the money to pay estate taxes or other financial obligations.
- # Very reliable policy illustrations for cash value policies.
- # Low internal policy costs.
Expert Opinion:
The type of life insurance most often used in estate planning is a policy that insures two people (usually not necessarily the husband and wife) and pays the death benefit when the last survivor dies.
This type of joint and last survivor policy perfectly combines the death benefit payment with estate taxes that are only payable upon death. Joint life policies are also useful for balancing inheritances between a child who inherits a family business and children who would otherwise divide their parents’ typically smaller assets.
Lincoln Financial offers several joint life products that are among the lowest cost, most price stable, and have a broad spectrum of different investment options and risk profiles for estate plans with different risk tolerances.
Disadvantages:
- # Term life insurance rates are high.
- # Investment performance has been so-so, which has affected cash value growth.
Types of Life Insurance Sold:
- # Term Life Insurance
- # Guaranteed Universal Life
- # Variable Universal Life
- # Fixed Rate Universal Life Insurance
- # Indexed Universal Life Insurance
Life Insurance Riders Available:
- # Additional Insurance Clause
- # Child Life Insurance Rider
- # Additional Rider on Chronic Diseases
- # Additional Rider for Serious Illness
- # Advance/Enhanced Cash Value Rider
- # Heritage Protection Clause
- # Additional Lapse Protection Clause
- # Long-Term Care Rider
- # Option to Split/Change/Convert Rider
- # Overloan Protection Clause
- # Premium Return
- # Additional Rider for Spouse or Other Insured
- # Terminal Illness Accelerated Death Benefit Rider
- # Waiver of Monthly Deduction
*The availability of riders may depend on the type of policy.
08. Midland National Life Insurance
Overall Rating: 4.1
Term Life Insurance Quotes Available Online: Yes
Average Cost of Term Life Insurance per Year*:
- # Women: $140
- # Men: $155
AM Best Financial Strength Rating: A+ (Superior)
Plans Available: Compare quotes from participating companies through Policygenius.com
Editors’ Opinion:
Midland National deserves attention for its generous lifetime term life insurance benefits. We like that their Premier Term policy allows policyholders to withdraw money from the death benefit if they develop a terminal, chronic, or critical illness, a situation that is more likely to occur in later life.
- # Cash value builds up faster than some competitors.
- # Decent historical performance on the company’s investments.
Expert Opinion:
Seniors on a fixed income are generally looking for value for money and security in their later years. Midland can be a great option for seniors due to its generally low costs, reliable quotes and illustrations, and good access to cash value in case of emergencies. Midland has also demonstrated superior performance on invested assets underlying policy account values.
Disadvantages:
- # Policy illustrations are less reliable than those of most competitors in our analysis.
Types of Life Insurance Sold:
- # Term Life Insurance
- # Indexed Universal Life Insurance
- # Variable Universal Life
Life Insurance Riders Available:
- # Child Safe
- # Disability Premium Forgiveness
*The availability of riders may depend on the type of policy.
09. MassMutual Life Insurance
Overall Rating: 4.0
Term Life Insurance Quotes Available Online: Yes
Average Cost of Term Life Insurance per Year*:
- # Women: $125
- # Men: $144
AM Best Financial Strength Rating: A++ (Superior)
Plans Available: Compare quotes from participating companies through Policygenius.com
Editors’ Opinion:
MassMutual is noted for its superior financial strength, offering reassurance for those planning to keep their policies for many decades. This strength supports the ability to grow cash value more quickly.
- # The cash value builds up quite well initially.
- # Better-than-average overall performance of the company’s investments over time.
Expert Opinion:
Whole life products are required by regulation to invest the assets underlying the cash value predominantly in highly rated bonds and government-backed mortgages. MassMutual’s whole-life policies may be excellent for those seeking security, given its high ratings for financial strength and claims-paying ability and the superior performance of its bond and mortgage portfolio. However, the costs charged on MassMutual policies may be higher than those of other whole life insurance providers, and its quotes may be more optimistic and less reliable than those of other whole life insurance sellers. It’s advisable to compare internal policy costs and performance expectations with benchmarks for asset classes.
Disadvantages:
- # Policy illustrations are not very reliable.
- # Internal policy costs are typically higher than many competitors.
Types of Life Insurance Sold:
- # Term Life Insurance
- # Whole Life
- # Universal Life
- # Variable Universal Life
Life Insurance Riders Available:
- # Additional Insurance Clause
- # Catastrophic Disability Rider
- # Advance/Enhanced Cash Value Rider
- # Heritage Protection Clause
- # Insurability Guarantee Annex
- # Additional Lapse Protection Clause
- # Long-Term Care Rider
- # Option to Split/Change/Convert Rider
- # Overloan Protection Clause
- # Terminal Illness Accelerated Death Benefit Rider
- # Waiver of Premium Rider
*The availability of riders may depend on the type of policy.
10. Nationwide Life Insurance
Overall Rating: 4.0
Term Life Insurance Quotes Available Online: Yes
Average Cost of Term Life Insurance per Year*:
- # Women: $173
- # Men: $180
AM Best Financial Strength Rating: A+ (Superior)
Plans Available: Compare quotes from participating companies through Policygenius.com
Editors’ Opinion:
Nationwide excels in policy illustrations, which is particularly important for young buyers who will likely have a policy for many decades and want a reliable cash value prediction.
- # Cash value builds up quite well in the early years of the policies.
- # Wide variety of life insurance riders available.
Expert Opinion:
Young adults have more time to withstand short-term volatility and can benefit from higher long-term returns by allocating cash value to different asset classes. Nationwide products may be advantageous for young adults due to their history of low and stable costs. The wide selection of investment options—from stocks to fixed income, large cap to small cap, growth to value, domestic to foreign—can further benefit young adults. Restrictions on accessing cash value may encourage long-term growth.
Disadvantages:
- # Historically, investments have performed poorly compared to competitors.
- # Cost is only mediocre compared to competitors.
Types of Life Insurance Sold:
- # Term Life Insurance
- # Whole Life
- # Indexed Universal Life Insurance
- # Guaranteed Universal Life
- # Variable Universal Life
Life Insurance Riders Available:
- # Accidental Death Benefit Rider
- # Child Term Insurance Rider
- # Additional Rider on Chronic Diseases
- # Additional Rider for Serious Illness
- # Advance/Enhanced Cash Value Rider
- # Heritage Protection Clause
- # Insurability Guarantee Annex
- # Additional Lapse Protection Clause
- # Long-Term Care Rider
- # Overloan Protection Clause
- # Premium Return
- # Terminal Illness Accelerated Death Benefit Rider
- # Waiver of Monthly Deduction
- # Additional Premium Waiver Clause
*The availability of riders may depend on the type of policy.
Top Life Insurance Companies
Best-Term Life Insurance Companies
According to our findings, Corbridge Financial, Pacific Life, Protective, and Symetra stand out as the top providers of term life insurance. Term life insurance is ideal for addressing temporary financial needs, such as those occurring before retirement.
Best Whole Life Insurance Companies
In our analysis, State Farm emerged as the top choice for whole life insurance. Whole life insurance is known for its guarantees, including a fixed premium, a fixed death benefit, and guaranteed cash value growth.
Best Universal Life Insurance Companies
Penn Mutual is highlighted as the leading company for universal life insurance. Universal life insurance offers flexibility with adjustable premium payments and death benefits, providing customizable coverage options.
Best Life Insurance Companies Without an Exam
Our research indicates that Brighthouse Financial, Legal and General America, Pacific Life, and Transamerica are the top choices for no-exam life insurance. This type of policy allows you to skip the medical exam usually required for traditional life insurance.
Cheapest Life Insurance Companies
Symmetra is noted as the most affordable option among life insurance providers according to our evaluation.
Life Insurance Policy Costs
Based on our analysis, here are the average costs for life insurance policies:
- Term Life Insurance: For a $500,000, 20-year term policy, a 30-year-old woman pays about $207 annually, while a 30-year-old man pays approximately $251 annually.
- Whole Life Insurance: For a $500,000 policy, the average cost is $3,945 per year for a 30-year-old woman and $4,375 per year for a man of the same age.
Factors Influencing Life Insurance Costs
The cost of life insurance varies depending on the type of policy, the company, and personal factors such as age, health, gender, and coverage amount.
Evaluation Methodology
To determine the best life insurance companies, we assessed:
- Term Life Insurance Rates (50%): We examined rates for healthy buyers in their 30s and 40s for policies with terms of 10, 20, and 30 years, with coverage amounts of $250,000, $500,000, $1 million, and $2 million. Source: Forbes Advisor Research.
- Financial Strength (10%): This includes ratings from AM Best, Fitch, Moody’s, and Standard and Poor’s, reflecting the insurer’s ability to pay claims long-term. Source: Veralytic.
- Cost Competitiveness of Cash Value Policies (10%): This evaluates premiums, internal charges, and coverage rates based on cash value. Source: Veralytic.
- Reliability of Policy Illustrations (10%): Measures how reliable the company’s policy claims are over time. Source: Veralytic.
- Historical Performance (10%): Assesses the company’s investment performance driving cash value growth. Source: Veralytic.
- Access to Cash Value (10%): Evaluate the liquidity of cash value and accessibility for policyholders. Source: Veralytic.
Additional Life Insurance Company Ratings
- Life in Minnesota: 3.8 stars
- Prudential: 3.6 stars
- Guardian: 3.5 stars
- USA: 3.2 stars
- Omaha Mutual: 3.2 stars
- State Farm: 3 stars
