Find the Best Life Insurance Company for Financial Planning and More

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What if you knew how to enjoy the benefits of your life insurance now? If you qualify, life insurance can be part of your retirement plan. Even for buyers who want a larger death benefit (the amount your family gets after you die), living benefits have changed the game for many insurance companies and insured parties. Keep in mind medical exclusions prevent underwriter approval if you try to sign up when you’re already sick.

Why you should know the difference between whole and term life insurance

Every insured should know the difference between term and whole-life insurance policies. As its name would suggest, a term policy is good for a “term.” In short, it expires around age 70 for most buyers. Buyers pay lower rates for more coverage betting the insurer they will die before it expires. Ironically, the insurer is betting the insured will live long enough to pass the expiration date. If they convert to a whole-life policy requiring more premium payments, insurers still benefit.

A whole-life policy does not expire, but the payout is lower relative to your monthly payments. Keep in mind, if you have a term policy, many companies allow qualifying customers to convert it to a whole-life policy. This is one of the key questions to ask upfront.

Unfortunately, there is no guarantee of transition. Buyers still have to qualify for the life policy. Rates for the conversion may not be as low compared to a whole life insurance policy purchased at a younger age. Both for investment and end-of-life financial purposes, the wrong term life policy can leave you in a pinch.

Best life insurance policy based on customer satisfaction: State Farm

Best for older adults: Prudential VUL Protector

Best for long-term care: Columbus Life Insurance Company

Best for high returns on income: Allianz

Best agents: New York Life

Best term policy: North American Company

Compare the best life insurance policies

Best life insurance policy based on customer satisfaction: State Farm

State Farm is one of the biggest companies in auto, home, life, and other insurance types. The company is ranked A++ with AM Best for its financial stability with term, universal, and whole life insurance options. J.D Power’s Individual Life Insurance Study ranks State Farm 822/1000 for overall customer satisfaction.

All State Farm policies have to be purchased through a State Farm agent. Your agent can help you bundle and save or buy one policy. State Farm is also among the companies offering “survivorship universal life insurance,” which means the policy covers two people, and it kicks in after the second person dies. Couples looking to maximize their death benefit for beneficiaries with one premium payment each month may enjoy lower overall costs. State Farm agents can run quotes and compare options to find the right plans for each applicant. The range of options, discounts, and familiar name all contribute to the popularity of State Farm’s life insurance.

Best for older adults: Prudential VUL Protector

Prudential VUL Protector is available in all states but New York. New York residents can buy the Pruco Life of New Jersey VUL Protector plan. This plan allows buyers to pull money out of their plan to pay for nursing home expenses. Cash value policy premiums are fixed, so you won’t have to worry about extra costs later on. Internal costs are low, which minimizes risk. Due to age, many older adults want a safe investment option for their money. Prudential VUL Protector invests to avoid loss. That also means you’re not as likely to see big increases in your available funds outside of what you deposit.

Best for long-term care: Columbus Life Insurance Company

When using living health benefits (otherwise known as accelerated death benefits), buyers are allowed to pull money from policies early to pay for medical bills, living costs, etc. under certain circumstances. Most companies use a discounted death benefit, which reduces your final payout using two models. Columbus Life uses the lien method, which makes it easier to calculate the financial impact of pulling money out early.

As a company, Columbus Life offers a wide range of riders to customize your policy with affordable premiums. The company also allows you to convert term policies to whole life insurance policies until the end of your term (generally around age 70). For this and many other reasons, customer satisfaction is high.

Best for high returns on income: Allianz

Allianz plans are geared towards high-income adults looking for more tax-free income. Allianz offers a 40% multiplier bonus with a 1% annual assets charge. In short, the professionals managing your investments take 10%. Overall, your investments would pull in an extra 14%-1% asset charge. This means you end up with 3% more than what you deposit every year your life policy is active. This plan offers strong returns when using a life policy to supplement your retirement savings. Allianz also offers specialized plans to grow your income by as much as 20% according to some estimates.

Of note: Allianz also offers plans for foreign nationals including those with H-1B visas.

Best agents: New York Life

New York Life agents go through extensive training before they ever hit the sales floor. What does this get you? Policies vary widely, and New York Life offers both large and small payouts. Some policies have significant penalties for early withdrawal, but taking a loan offers more options. Whatever your questions, New York Life agents are trained to offer comprehensive support giving you accurate information about its policies every time.

Best term policy: North American Company

North American Company offers term policies alongside accelerated death benefits for critical, chronic, and terminal illnesses and more. The company allows one conversion on a 20-year policy at 15 years or 70 years old (whichever is earlier). The conversion cannot happen later than the five-year marker regardless of which policy you choose or the length. North American Company also offers a term policy with a lower premium renewable up to the age of 95 for qualifying insureds.

Best life insurance companies ranked by customer satisfaction

The most recent J.D. Power survey rates life insurance companies on communication, interaction, price, product offerings, and statements. Based on customer ratings in these areas, its top life insurance competitors are as follows:   

Additionally, Here’s how. these life insurance companies stack up in terms of financial stability, based on ratings from AM Best, a credit rating agency.

Why trust our recommendations?

Insider works to offer impartial reviews and assessments of all financial products and services. Insurance reviews and guides are reviewed by licensed insurance professionals. We know insurance from the agent’s perspective and the user experience. We aim to provide a comprehensive review to ensure satisfaction when you use the product (i.e. when you file a claim for the first time).

While we have partnerships with some brands, Our partnerships do not determine our opinions. Ultimately, the “best” insurance company is the one that fits your needs.

Our methodology

In life insurance, it’s easy to get “sold a bill of goods.” Many life insurance agents pass a state test to be thrown into the deep end. Agents sell the company product, but not all know the products. In this vein, we look at the products each company offers. We also look at agent training.

A good life insurance agent may not volunteer all facts upfront. But a company’s agents should answer questions about its products accuratelyAnd in a way the average consumer can digest. Agents must be able to explain the benefits and limitations of long-term policies. This will enable customers to choose the best policy for their long-term plans.

To provide a comprehensive assessment, we take into account affordability, policy sizes, and performance. We recommend that you also consult a financial advisor in order to plan for your life with life insurance.

How to choose the right life insurance policy

Find a reliable insurance agent to help you find the right life insurance policy. Online shopping for homeowners and auto insurance is possible due to the many state regulations. Life insurance is optional. This is why it’s voluntary. Many buyers don’t know what they want or when they will need it. Consider these things before you make your purchase.

• AgeSeveral companies will offer to sell you a policy as soon as your child is born. Although it may sound absurd, signing up early can help you get a lower rate for a policy that your child will be able to enjoy in the future. Early sign-up means more coverage for lower premiums, and higher acceptance rates. If you are younger, you might be healthier and able to contribute more to the policy over time than if you were 50.
• PricesAs a rule of thumb, you should never agree to more than what you can afford. Life insurance agents have one job: to sell you a large policy at a high commission. You should consider not only how much money you are making now but also how likely it is that your income will continue. You may want to reconsider working on a project basis if your project is expected to end within 12 months. policy premiumYou can save more than you pay monthly.
• There are limitsWhat amount are you willing to pay? Some people want only a small policy to pay for funeral expenses and other end-of life expenses. Some people incorporate a life insurance policy into their retirement plans. A financial planner may be able to help you determine the best path for you, regardless of your current direction. Customers can also compare the set limits of index universal life policies depending on which carrier they are with. These policies do not expire and their value will continue to grow over your entire life. 
• Living Benefits: Life happens unexpectedly. One day you could be in good health, the next day you might need to go to the hospital. Many life insurance policies provide living benefits. These policies allow you to take a small amount from your policy to pay for medical bills and other expenses that you are unable to pay while you are sick.
• PenaltiesMany life insurance policies, much like a 401K have penalties for early withdrawal. This is a critical question to ask before you make a decision. It is a question about how soon you can withdraw, and how much you will lose from the total amount to have the money in 10 instead of 30 years or after your death.
• Exclusions: Before any payouts are made, some policies require insured parties that they pay premiums at least for one year. Suicide exclusions can be common. Even though there is no policy for medical exam, the company might still perform a check to see if any conditions are present. Insurance companies must reduce their risk.
• Flexibility: Life insurance policyIf you have a mark on your record, it will be recorded. No matter what reason, insurance companies could deny coverage to you based upon the first denial. Before you apply for any policy, make sure to consider all aspects of your situation. Certain policies offer greater flexibility in the event that you lose your job or are unable to make payments. If you miss one payment, your other policies will be canceled.
• Types of paymentsCustomers have the choice of choosing between fixed or variable rates, even if they are purchasing whole or term life insurance policies. You can ask your agent about guaranteed payouts.
• Plan: What are you planning to use this for? Why do you want to shop for life insurance policies?What is your goal? Many of the most successful financial planners have experience in life insurance. While they might not be able locate you a life insurance policy that suits your needs, financial planners can help to create a plan for your purchase.

Life insurance — frequently asked questions (FAQ)