Best Life Insurance Companies in 2022 | Bankrate

Life insurance can provide you with peace of mind by knowing that your loved ones will be left with a form of financial security upon your passing. However, with hundreds of different life insurance companies all selling similar products, finding the right provider for your needs can feel daunting. To help, Bankrate’s insurance editorial team reviewed customer satisfaction, financial strength, available coverage options, riders and digital offerings to find the best life insurance companies. Our research could help make your journey to finding the right life insurance company a little easier.

How Bankrate picked the best life insurance companies for 2022

To find the best life insurance companies of 2022, Bankrate’s editorial team started by researching the largest life insurance carriers on the market. Areas of consideration included customer satisfaction, general affordability and financial strength ratings from trusted, unbiased sources, including J.D. Power and AM Best. We also looked at whether or not each insurer offers a mobile app, online portal, 24/7 customer service and local agents to determine each company’s accessibility. We then factored in each company’s coverage capacity (the maximum dollar amount of each company’s death benefit), the number of riders for optional coverage and the availability of a no-medical exam underwriting option. More information about each carrier is available below to help you learn about their benefits and drawbacks.

  • Choosing the best life insurance policy is not a decision to take lightly. The insurance company’s history, as well as its reputation for customer service, financial stability and death benefit payouts are just a few of the things that can impact both your experience and policy value. We assessed NAIC ratings based on market share, financial stability ratings from sources like AM Best and customer satisfaction scores from J.D. Power. We also examined the number of endorsements and riders available, general accessibility, coverage capacity and whether medical exams were required as part of the underwriting process in order to make our picks.

Compare the best life insurance companies

Shopping for life insurance can be intimidating. With the number of carriers available, each one offering different types of life insurance, it can be difficult to know where to start. When studying the largest life insurance carriers, there are some metrics that you can rely on to help effectively compare carriers. Does one company offer a wide range of life insurance policy types, as well as riders and endorsements to personalize your policy, compared to another? What does the qualification process look like, and what might your estimated life insurance premium be?

From there, you can also compare companies’ financial strength ratings and customer service scores from trusted third-party agencies, such as AM Best and J.D. Power, for an unbiased view of which providers may excel in these areas and give you the best experience.

Guardian

Best for: Life insurance coverage without a medical exam

The Guardian Life Insurance Company of America ranks well in customer satisfaction and financial strength and offers the most term life insurance riders on our list. According to the National Association of Insurance Commissioners (NAIC), the company also has fewer than baseline policyholder complaints and offers multiple no-medical exam policy options.

Guardian provides easy policy management through its network of more than 3,000 financial representatives across the nation and online account management. Guardian carries an A++ (Superior) financial strength rating from A.M. Best and offers multiple coverage options depending on your life stage, goals, needs and budget. It also offers relatively inexpensive life insurance for millennials.

Perks
Drawbacks

Dividends available on some policies
Must purchase coverage through an agent

Easy online management
Rider details limited online

Policies available for HIV-positive applicants

Multiple no-medical exam policy options

Learn more: Guardian Life Insurance review

MassMutual

Best for: Whole life insurance

MassMutual won a 2022 Bankrate Award for best whole life insurance thanks to its A++ (Superior) financial strength rating from AM Best and for offering 13 whole life insurance riders, the most of any company we analyzed.

MassMutual, also known as Massachusetts Mutual Life Insurance Co., is a U.S. life insurance company owned by its policyholders, allowing select policyholders to earn dividends when the company does well. MassMutual offers an online application process for term life policies. Coverage takes effect immediately upon application approval, and applicants must usually complete medical exams for all term and universal life policies.

Perks
Drawbacks

Free coverage for qualifying low-income families
Limited online quotes

Convenient mobile app
Medical exams required for term and universal life policies

Numerous riders
No final expense policies

Superior financial strength
Below-average J.D. Power customer satisfaction scores

High coverage capacity (the maximum dollar amount of a policy’s death benefit)

Learn more: MassMutual Life Insurance review

Mutual of Omaha

Best for: Digital accessibility

Mutual of Omaha ranked just behind the overall winners of Bankrate’s best life insurance study. The company ranks well above average in J.D. Power’s customer satisfaction survey and earned a financial strength rating of A+ (Superior) from AM Best. Mutual of Omaha offers no-medical exam life insurance options, and its digital features could make managing your life insurance policy easy.

Some people may be looking for the best online life insurance experience. In terms of accessibility, Mutual of Omaha offers a robust digital app, an online portal, local insurance agents and a 24/7 phone line for accepting your payments.

Perks
Drawbacks

Easy online quote process
Does not provide dividends

Offers digital money management app
Not all life insurance can be quoted online

High J.D. Power customer satisfaction scores

Learn more: Mutual of Omaha Life Insurance review

Nationwide

Best for: Universal life insurance

Nationwide won a 2022 Bankrate Award for best universal life insurance coverage for its accessibility and wide range of riders.

In terms of accessibility, Nationwide offers a user-friendly mobile app, streamlined online portal and a network of independent agents across the U.S. The multi-line insurer offers seven riders for universal life, the second-most of any company on our list. Nationwide also received the second-highest J.D. Power customer satisfaction score on our list and a financial strength rating of A+ (Superior) from AM Best, making it one of the most competitive life insurance companies in the marketplace in terms of third-party ratings.

Perks
Drawbacks

No-medical exam options available for universal, whole and term life insurance programs, depending on the customer’s eligibility
Limited online quotes

Second-highest J.D. Power customer service score
Policy acceptance not guaranteed

Plentiful rider options
No 24/7 help line

Can bundle life insurance with other Nationwide policies for significant potential savings

Learn more: Nationwide Insurance review

Northwestern Mutual

Best for: Customer service

Northwestern Mutual received top-tier customer satisfaction scores and financial ratings, scoring just behind the overall winners of Bankrate’s study on best life insurance companies. Northwestern Mutual sells coverage through agents, which could be a good fit for those who prefer face-to-face interactions over a digital purchase process.

Earning an A++ (Superior) financial strength rating from AM Best, Northwestern Mutual shows a strong history of being able to pay claims. As a mutual company, it is owned by its policyholders. Northwestern Mutual offers a variety of term, whole and universal life insurance policies. The company ranks highly in Bankrate’s internal study of accessibility for providing a mobile app, online portal, local agents and a 24/7 customer service phone line that accepts premium payments.

Perks
Drawbacks

Dividends available on whole life insurance policies
Must buy coverage through an agent

Flexible policy options
Limited information available online

Wide range of riders

Easy-to-use online portal and mobile app

Learn more: Northwestern Mutual Insurance review

Prudential

Best for: Policy personalization

Prudential is the third-largest U.S. life insurer based on new market share rankings from the Insurance Information Institute (Triple-I). Prudential Financial ranked just behind our overall best life insurance company winners in customer satisfaction and accessibility. It offers plentiful rider options, easy-to-use online tools and live agent support.

The company has fewer overall policyholder complaints than average, according to the NAIC’s complaint index. The company has nine universal life insurance riders — more than any other carrier on our list. It offers a variety of term life and universal life insurance policies, giving customers a greater level of flexibility than some of its competitors. However, keep in mind that Prudential does not offer whole life insurance or no-medical exam policy options.

Perks
Drawbacks

Live agent support available
Medical history required for quotes

Online tools
Limited online quotes

Plentiful rider options
Selective policy options

Variety of term and universal life policies
Below-average J.D. Power customer satisfaction scores

Learn more: Prudential Life Insurance review

State Farm

Best for: Term life insurance

State Farm won a 2022 Bankrate Award for best term life insurance, thanks to its top-notch customer service and accessibility tools. As one of the top life insurance companies, State Farm also received the highest customer satisfaction score from J.D. Power on our list.

State Farm offers accessibility tools including a 24/7 customer helpline, easy-to-use mobile app, online portal and more than 19,000 exclusive local agents across the U.S. With an A++ (Superior) rating from AM Best, State Farm has a history of financial stability. The carrier offers a variety of term life insurance options as well as whole, universal and variable universal options.

Perks
Drawbacks

Numerous policy and rider options
$10,000 maximum for final expenses insurance

No medical exams required for some policies
Age-dependent exam plans

Can bundle life insurance with other State Farm policies for significant potential savings
Can only purchase from an agent; no online option

Best J.D. Power customer satisfaction rating on our list

Learn more: State Farm Insurance review

What is life insurance?

Life insurance is a contract between you and an insurance company. In exchange for regular payments, the insurance company pays out a sum of money to your loved ones in the event of your death. These funds, also known as a “death benefit,” can help with covering expenses such as funeral costs and unpaid medical expenses. Depending on the type of policy, this sum can also be paid out after specific life events, such as a diagnosis of terminal or critical illness, or after you reach a certain age.

Types of life insurance policies:

There are many types of life insurance policies, but in general, they fall under two categories: term life insurance, which is only in force for a set time, and permanent life insurance, which is in effect as long as premiums are paid in most circumstances. Permanent life insurance comes with a cash value component. Depending on your individual needs and preferences, having one or both of these types of policies could be an integral part of your financial plan.

  • Term life insurance: With a term life policy, you and the life insurance company enter into a contract for a specified death benefit amount for a set number of years. Unlike permanent life insurance, a term life insurance doesn’t have the savings or investment potential, and because it’s only active for a set number of years, it’s possible to outlive your policy and receive no benefits. However, you may be able to convert it into a permanent life policy if your company offers this endorsement.
  • Whole life insurance: A form of permanent life insurance, whole life insurance usually comes with set premiums and a cash value account. While you may not be able to change the policy after it is active, having the cash value component can be useful for those who need a low-interest loan.
  • Universal life insurance: Another form of permanent life insurance, universal life insurance is known for its flexibility. The premium and death benefit can be adjusted as needs or lifestyles change. It also has a cash value component and can come with different investment strategies to help you grow the value of the policy.

How to choose the best life insurance company:

When you are ready to buy life insurance, taking a few extra steps can ensure you find the best policy based on your wants and needs. Here are some things to look for when choosing the best life insurance company for you:

  • Ask for recommendations: Your friends and family may have life insurance with a company they love. You may want to ask them about their experiences with customer service at these companies.
  • Review customer satisfaction ratings: You can visit the J.D. Power website or check the carrier reviews in this article to review each insurance company’s customer satisfaction ratings. J.D. Power assigns each company a score out of 1,000 possible points.
  • Assess financial stability: We recommend looking at a company’s financial strength rating from a third-party agency such as AM Best, Standard & Poor’s (S&P) or Moody’s. A company with a low financial stability rating has a poor history of being able to meet financial obligations and may struggle to pay life insurance death benefits to policyholders if a high volume of claims are filed simultaneously. It is important to have the assurance that your insurer has a history of strong financial stability.
  • Look at customer reviews: Dozens of consumer-oriented sites such as Google, Yelp and Consumer Affairs provide reviews from insurance companies’ customers. It may be most helpful to ignore the outlier reviews and focus on the overall average instead. What did the average customer say about the company you are considering? Are the items they complained about important to you? For example, if someone complained that the company does not offer a mobile app, but a mobile app is unimportant for your needs, you may not need to consider that review in your assessment.
  • Get multiple life insurance quotes: It can be beneficial to compare life insurance quotes from multiple carriers and compare prices to help you find the best cheap life insurance policy. Keep in mind that prices will vary more widely for different policy types, although additional policy features could be another cost-influencing factor.
  • Seek professional counsel: While a life insurance calculator can be useful, you may be better able to determine your needs by talking with a financial advisor or a licensed life insurance agent if you have more complex needs or questions. A life insurance agent can help you decide what type of life insurance coverage is right for you and how much life insurance you need. When choosing between the many types of life insurance, it may help to get a second opinion from a professional.

Frequently asked questions

    • It depends on your unique situation. Life insurance can be a prudent purchase, but it might not be right for everyone. If you have anyone relying on your income, you should consider a life insurance policy to help ensure your loved ones are taken care of if you pass away and your financial contribution is lost. Additionally, if you have debts, life insurance could help your loved ones pay those off when you’re gone. You can also use a life insurance policy to help pay for your children’s college expenses, leave a financial gift to someone or donate to charity. Working with a licensed life insurance agent or a financial advisor could help you decide if life insurance is right for you.

    • In general, life insurance covers natural causes of death, such as old age and terminal illness. It will also typically cover accidents. There are, however, certain exclusions for life insurance, such as illegal activity and substance abuse. Most importantly, if the insured is found to have lied about their age, health or any other crucial information, this could void the life insurance policy and prevent the death benefit from being paid. That’s why it’s very important to be honest when applying for life insurance.

    • The cost of life insurance depends on a number of rating factors. Personal aspects like your age and health play a large role. Generally, younger people and healthier people pay lower rates. Additionally, the type of policy you choose, your coverage limits and what riders you include will affect rates. Permanent policies tend to be pricier, and higher coverage limits generally mean higher rates. Adding riders will also likely increase your premium. While shopping around might help you find cheaper life insurance, keep in mind that rates typically don’t really vary much between companies for the same exact policy type and coverage limits. You may be able to find a cheaper policy by looking at different types of life insurance, however, or adjusting the death benefit amount.

    • When you purchase a life insurance policy, you are making an agreement with an insurance company to make regular payments toward continued coverage with the policy. You will also choose a beneficiary, which could be a person or organization, that the insurance company will pay once you pass away. To claim the funds, your beneficiary would have to file a claim with the company, who will then process it before making the payment.

    • Life insurance coverage works by paying out a designated amount to the policy’s beneficiaries once the policyholder passes away. Life insurance primarily functions as a way to support your loved ones financially after you pass away, and could be used to cover funeral expenses, as well as living and education expenses, or serve as a financial gift.

    • When you decide to purchase life insurance is largely a personal decision based on your health status, financial needs and if you have any dependents. In general, buying life insurance when you’re younger allows you to get a more competitive rate than buying life insurance when older. Even so, this doesn’t mean it’s impossible to find affordable life insurance options at any age that fit your budget. Shopping around with multiple carriers and considering policies from both traditional and newer life insurance companies could result in several suitable options for your life stage and financial needs.