Best Life Insurance Providers For 2022Find out which life insurance companies scored the highest in our 2022 rankings.
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|New York Life|
|State Farm Life|
|John Hancock Life Insurance|
Including life insurance in your long-term financial planning is one of the smartest things you can do for yourself and your loved ones.
But when it comes to choosing the right life insurance company, there are a lot of providers to choose from. So how do you know which one is right for you?
This article will look at the best life insurance providers in 2022 and what makes them stand out from the crowd. Whether you're looking for affordable coverage or exceptional customer service, we've got you covered.
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What Is Life Insurance?
Life insurance is coverage that pays out a benefit to the policyholder's beneficiaries in the event of their death.
Coverage is purchased by the policyholder and can be used to help cover funeral costs, outstanding debts, or other expenses.
Life insurance costs vary based on the policyholder's age, health, and coverage amount.
It is important to note that life insurance coverage typically has conditions that must be met for the benefit to be paid out, such as the policyholder's death caused by an accident. This means it's essential to carefully review a life insurance policy before buying it to ensure that it meets your needs.
Term vs. Permanent Life Insurance
Life insurance is divided into two categories: term and permanent. The difference between them is that term life insurance gives coverage for a set period, whereas permanent life insurance provides coverage for the rest of one's life.
Term life insurance is often less expensive than permanent life insurance, making it an excellent choice for those on a tight budget. It’s also a suitable option for people who only require coverage for a limited time, such as when beginning a family or getting a mortgage.
However, once the term expires, the coverage also expires, leaving the policyholder vulnerable if they still require coverage.
Permanent life insurance, on the other hand, has no time limit. This means that policyholders will be covered for the rest of their lives. Permanent life cover, such as whole life insurance, includes several extra features, such as a cash value account and the option to borrow against the policy.
These benefits, however, come at a price, and permanent life cover is often more expensive than term life insurance.
Consider your needs and budget when deciding between term and permanent life insurance. Permanent life cover is the ideal option if you require lifelong protection. However, if you want affordable coverage for a limited time, term life may be a better option.
Best For Term Life Insurance
Has a website that is easy to navigate.
People can apply online and discuss their policies through an online chat.
For some policies, Haven Life offers same-day decisions on applications.
Some applicants don’t need to go through a medical exam to qualify.
Strong financial ratings and a subsidiary of MassMutual.
They only offer term life insurance.
Their term life plans aren’t convertible into permanent life insurance.
Limited rider options compared to other providers.
Haven Life’s comprehensive online presence and easy-to-use tools make applying for coverage easy. Their no-frills approach to coverage means that anyone can get quality term life insurance.
Haven Life is a subsidiary of MassMutual which means that it has solid financial backing and stability.
The company’s reach is wide and even though the company only started in 2014, they offer life insurance policies in all 50 states and Washington DC.
Haven Life offers ‘no medical exam’ life policies and traditional term plans that include an accelerated death benefit and the option to purchase waiver of premium riders.
To learn more about Haven Life’s products and services, contact one of our agents today.
What to Consider When Choosing a Term Life Plan
When choosing a term life plan, there are a few things to consider.
Determine how much coverage you need.
Compare the costs of different policies.
Consider any conditions or exclusions that may apply.
Decide how long the term is that you need coverage for.
By considering these factors, you can choose the best life insurance that meets your needs and budget.
Types of Term Life InsuranceLevel Term Life Insurance
Level term life insurance offers a death benefit that remains level for the duration of the policy. They are typically issued for 10, 20, or 30 years, but some insurers offer coverage for shorter or longer terms. The cost of level term life insurance varies depending on the insurer, the coverage amount, and the length of coverage, but it is generally less expensive than whole life insurance.Decreasing Term Life Insurance
Decreasing term life insurance is a type of coverage that provides financial protection for a set period, typically 10-30 years. The death benefit decreases throughout the coverage period while the premiums remain level.
This type of policy is often used to cover a specific need, such as a mortgage or car loan. The death benefit can help to ensure that your loved ones are not left with a large debt in the event of your passing.Convertible Term Life Insurance
Convertible Term Life is an insurance plan that allows the policyholder to convert their coverage into a permanent policy without undergoing a medical exam.
Convertible term life insurance costs are usually lower than traditional life insurance policies, and the main benefit of this type of insurance is its flexibility.
Policyholders can choose to convert their coverage at any time, regardless of changes in their health or age. This makes convertible term life insurance an attractive option for many people.
Best For Whole Life Insurance
They offer both term and permanent life insurance plans.
Score highly for customer satisfaction and receive very few complaints.
Offer a range of riders to customize your coverage.
Have a high maximum age limit for life insurance plans.
The costs of their policies may be more than other competitors.
The company doesn’t offer online quotes.
New York Life is one of the oldest and largest life insurance providers in the U.S. They offer both term and permanent life insurance plans in all 50 states and Washington DC.
Customers who join New York Life can expect a high level of service when they deal with the company and the opportunity to earn dividends from their life insurance coverage.
Besides its top-notch customer satisfaction rating, New York Life offers a wide range of additional riders that can be added to its policies. The company has a confident financial outlook according to AM Best and also offers additional financial services and products to its clients.
To learn more about New York Life’s insurance products and services, read our review.
Types of Permanent Life Insurance
Whole Life Insurance
Whole life insurance provides protection for the policyholder's entire life, but typically costs more than term life insurance. Whole life policies often come with additional features, such as cash value accumulation and the ability to add riders to your contract. As a result, whole life insurance can be a valuable tool for those who want to ensure that their loved ones are taken care of after they've passed away.
Universal Life Insurance
Universal life insurance is a permanent insurance plan that offers death benefits and cash value accumulation. The cash value of a universal life policy increases in a tax-deferred way and can be used during the policyholder's lifetime.
Universal life insurance has several key features:
- Tax-deferred cash value growth.
- The ability to design a policy around your unique coverage needs.
- The potential to build cash value faster than traditional whole life insurance.
If you're looking for a death benefit with the potential to grow cash value over time, universal life insurance may be right for you.
Indexed Universal Life Insurance
Indexed universal life (IUL) insurance is a type of permanent life insurance offering death benefit protection and the potential for cash value accumulation. The cash value of an IUL policy grows based on the performance of a stock index, such as the S&P 500 or Dow Jones.
A portion of the premiums paid into an IUL policy is used to purchase index credits, which are tied to the growth of the chosen index. Policyholders can access their cash value through policy loans and withdrawals, and even use it to help pay premiums. IUL policies also have flexible payment options to adjust as the needs of the policyholder change over time.
Best for Cheap Coverage
A digital-first organization that allows you to buy coverage and get support online.
Some customers qualify for instant approvals.
Some applicants don’t require medical exams to qualify.
Gives customers a wide variety of term lengths to choose from.
Only offers a term life policy type to consumers.
No option to customize coverage with riders.
Lower coverage limits than some other providers.
Bestow is a relatively new player in the life insurance market that offers term life insurance plans in all states except for New York. A big selling point is that they don’t require medical exams for any of their policies, instead using artificial intelligence to build a risk profile from your data.
They lead the market in online life insurance sales and make it easy for anyone to get life cover instantly. On top of this, Bestow offers clients services that they won’t be able to get through other life insurers.
For example, through their partnership with Empathy, Bestow members can get assistance with funeral planning, estate concerns, and benefit claims after the death of a loved one.
If you’re a technically savvy insurance buyer, then Bestow’s approach to life coverage is what you need.
To learn more about Bestow’s products and services, contact a life insurance agent today.
Should I Get Multiple Life Insurance Policies?
There is no single answer to the question of whether or not someone should get multiple life insurance policies. The best course of action will vary depending on your circumstances and needs.
However, here are a few general tips to help you make a decision.
One factor to consider is cost: Life insurance policies are generally more expensive the more coverage they provide. As such, getting multiple policies can be a way to get more coverage without breaking the bank.
Another is to consider is the type of coverage you need: Some policies may only cover certain types of death, such as accidental death or death from natural causes. If you want comprehensive coverage, you may need to get multiple policies.
Finally, it's essential to consult with a financial planner: Work with a registered financial adviser or planner to assess your needs and find the best way to meet them. In some cases, multiple life insurance policies may be the best solution for you and your family.
Best for Families
A wide variety of policy options and riders to customize coverage.
Rated highly for great customer service and financial stability.
Offers affordable term coverage options.
Some policies don’t require a medical exam to qualify.
Applicants can’t get quotes or apply for coverage online.
To apply, you’ll need to go through an agent.
Pacific Life is an established insurance brand that sells both term and permanent life cover in the U.S. They are known for their excellent customer service and the wide range of life cover policies they offer.
Besides this, they offer competitive rates on all their insurance plans and allow members to customize their coverage with several living benefits and riders. The company even offers high-coverage ‘no medical exam’ plans.
Overall, Pacific Life’s financial stability and attention to detail make it a great choice for anyone looking to get flexible, affordable, and dependable coverage. Speak to an agent about finding a plan from Pacific Life.
To learn more about Pacific Life’s products and services, read our latest review.
Consider Final Expense Insurance
Final expense insurance helps pay for funeral and other end-of-life expenses. It can help loved ones with the costs associated with your death like a funeral, cremation, and other final expenses.
It is typically less costly than traditional life insurance coverage and can be obtained even if you have health conditions.
You can get final expense insurance for a set amount or a percentage of your final expenses, and coverage may be for a specific length of time or the insured's lifetime.
Best for Investment
Provides a wide range of term life coverage options.
Some policies are eligible for dividend payouts.
Great customer satisfaction and financial stability ratings.
Allows policyholders to bundle their coverage.
Limited plan options for ‘no medical exam’ policies.
Adding riders or living benefits aren’t free.
State Farm is a name that is synonymous with insurance. Their dedication to customer service and wide availability have made them a staple for Americans for over 100 years.
State Farm offers a range of life insurance products to suit individual needs, including whole life, universal life, instant answer term life, and return of premium term life.
Their large size and other insurance products make it possible to combine your homeowners, car, and business insurance to save more each month on your coverage.
If you value exceptional customer care, then State Farm is the company for you. In the last JD Power Report, they took first place for customer satisfaction. Added to this, their financial stability is considered to be rock-solid.
How to Choose a Life Insurance Plan
When choosing life cover, there are a few things you'll need to consider.
Take a look at your current circumstances and ask yourself whether you need life cover: If you have dependents, life cover can provide peace of mind in knowing they will be financially protected. However, life cover may not be necessary if you don't have any dependents.
Think about the cost of life cover: Premiums can vary depending on your age and health, so it's important to get quotes from a few different providers before making a decision.
Consider your coverage needs: Your coverage should be based on your current financial needs and plans. Once you've considered these factors, you'll be better positioned to choose the right life cover amount.
Do your research or get professional help: Look into the ratings and overall customer satisfaction for different life insurance providers. Similarly, working with a life insurance agent can help you find the best plan options in your area to meet your financial goals and needs.
See if you can customize your life coverage: Once you have a particular provider in mind, think about whether or not you want to add additional coverage or riders to your life insurance contract.
Best for Diabetics
No medical exam policies up to $3 million.
Offers specific life cover for diabetics.
High coverage limits are available.
Sells both term and universal life insurance.
Allows applicants to customize their policies with riders.
Applicants can’t get quotes or apply for cover online.
Doesn’t offer whole life insurance plans.
Additional riders may cost you more each month.
John Hancock is a well-known insurance brand continually delivering top-class service and market-leading universal and term life insurance.
They’re also one of the few insurance providers offering tailored plans focusing on people living with diabetes.
If you or your loved one has diabetes and wants coverage, John Hancock is a great choice, and they allow you to customize your policy with an assortment of riders and living benefits.
Besides their generous coverage limits (up to $65 million), you can expect access to several programs that help you manage your condition and lead a healthier life.
Life Insurance FAQs
While whole life insurance policies have some advantages, term life insurance is usually the better choice for most people. Whole life policies are more expensive than term life policies, but they will remain in effect for your entire life. On the other hand, term life policies are cheaper and protect for a set period, usually 10-30 years. This makes them a better option for people looking for temporary coverage or those who want to save on premiums.
There is no definitive answer to the question of when to stop term life insurance. The decision depends on various factors, including your age, health, debts, and dependents. Many experts recommend that people maintain their life insurance coverage until they reach the age of 65 or retire. However, if you are healthy and have no dependents, you may be able to cancel your policy at an earlier time.
One of the most significant disadvantages of whole life insurance is the cost. Because whole life insurance policies are designed to last a lifetime, they typically have higher premiums. Another disadvantage of whole life insurance is that it can be inflexible, and some people find it complex and confusing to navigate.
Life insurance can give you peace of mind in knowing that, in the event of an untimely death, your loved ones will be taken care of financially. However, as people age, their need for life insurance generally declines. For example, a healthy 60-year-old man can expect to pay more for a term life insurance policy than he would have at age 30. For many people over the age of 60, the cost of life insurance simply outweighs the benefits.
Those who are single and have no dependents may consider not buying life insurance. Life insurance can be an essential safety net if you have a family or other dependents. If, however, you are married and have children, and your spouse works and earns enough to support the family, then you also may not need life insurance. Ultimately, whether or not to purchase life insurance depends on your circumstances and the financial needs of your loved ones.
How much life insurance do I need?
What types of policies are there?
What is a life insurance premium?
A life insurance premium is a recurring payment to keep your insurance policy active. Your insurance company determines your premium based on several factors and premiums can be paid in monthly, semi-annual, or annual installments. These payments are made for the duration of the policy as specified by your insurance company.
Is a health exam required in order to get life insurance?
Who can be a life insurance beneficiary?
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