Our Top 10 Best Life Insurance Companies In The United States in 2018-2019
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| What are the best insurance companies on life |
The best life insurance companies change every year.
How can you be so sure you’re choosing the top life insurance carrier for you and your family?
Just because they are highly rated insurers with a strong brand name, how can you be so sure it’s truly the best policy?
We’re going to attempt to help you make your decision (or at least make it simpler) so you only find yourself working with the best life insurance providers available to you.
We found those three carriers to be in leagues of their own.
But, don’t take our word for it (just yet).
Let’s take a look at who else is on our list of best life insurance companies this year and find out who the closest competitors are.
Based on our experiences, financial strength ratings, reviews from clients, and overall product availability, below are our top 10 best life insurance companies in America this year:
TOP 10 BEST LIFE INSURANCE COMPANIES IN THE U.S. 2018-2019
- Haven Life
- MassMutual
- Banner Life
- Protective
- Prudential
- AIG
- Principal
- Northwestern Mutual
- MetLife
- Transamerica
HAVEN LIFE INSURANCE
Hands down, the best “new” life insurance agency on the market today is Haven Life.
How do you take an entire industry by storm? Only by creating the best product on the market, that’s how!
Haven Life offers an easy, online application which can be conveniently completed and submitted without any agent interaction. This is a huge step forward in convenience and efficiency, both for you and them.
It also helps they are backed by MassMutual (ranked 2nd on our list), who is just one of a few life insurance companies who currently hold some of the highest financial strength ratings, by all rating agencies, and over 165 years of history and experience doing business to back it up.
PROS
- SIMPLIFIED Application
- INSTANT Decision
- VERY Affordable
CONS
- Limited Product Types
- N/A
- N/A
See our full Haven Life review.
MASSMUTUAL
After having been ranked 3rd on our list for two years consecutively, they’re pushing closer to the top!
For more than 160 years, MassMutual has been offering life insurance products which are competitive and diverse.
With the addition of backing Haven Life, and having a full suite of financial planning products, it’s no wonder they are leading the best of the marketplace.
You have the ability to, quite literally, get your entire financial portfolio in order, all under one roof. While this may not be necessary, it is possible. The financial strength of MassMutual is virtually unparalleled, so you can feel safe with your decision either way.
PROS
- Financial STRENGTH
- VARIETY of Coverage Options
- FULL Retirement Planning
CONS
- Independent Access
- N/A
- N/A
See our full MassMutual review.
BANNER LIFE INSURANCE COMPANY
If you simply want the best bang-for-your-buck in term life insurance, Banner Life is your company.
Where they lack in speed, when compared to some of the instant issue products on the market, they more than make up for customized, cheap term life insurance coverage. Some of the cheapest on the market!
Banner’s products also come with a great range of riders, convertibility options, and a second-to-none sub-standard underwriting style. If you are part of the 95% of the world who isn’t in perfect, Olympic athlete health, you probably won’t find a more affordable term policy than you will with Banner.
PROS
- Superior UNDERWRITING
- AFFORDABLE Term
- Riders & Convertibility
CONS
- NO Instant Issue
- Unfamiliar Brand Name
- NO True Whole Life
See our full Banner Life review.
PROTECTIVE LIFE INSURANCE COMPANY
Making a big jump our list of best life insurance companies at number four is Protective, another company many haven’t heard of just yet. Despite this, they have a dominant foothold in more than one sector of the life insurance industry.
For more than a century now, Protective Life has lived up to its name in protecting households and businesses all across the United States. With more than 5 subsidiaries, an international presence, four separate “A” ratings, and a huge number of policyholders, Protective is getting noticed for the first time in a major way.
You will have your pick of term life insurance, universal, or variable universal, where Protective is extremely price-competitive. Especially with its universal products, Protective is one of the few companies who offer permanent insurance for all tiers of fully underwritten life insurance.
If you are considering permanent coverage, like for estate planning, Protective should be among your top considerations.
PROS
- Best UNIVERSAL Product
- ESTATE Planning
- Riders & Convertibility
CONS
- NO Instant Issue
- Unfamiliar Brand Name
- N/A
See our full Protective review.
PRUDENTIAL LIFE INSURANCE COMPANY (PRUCO)
Prudential is a household name, and their industry dominance and niche underwriting have bumped them up even higher into our top 10 list this year.
Extremely successful in several smaller areas of life insurance, Prudential also has leveraged its brand to become a leader in the life insurance industry, as a whole.
This 140-year-old financial institution is a premiere insurer, with ratings of “A” or better from all of the rating agencies. In competition with MetLife for most life insurance sold, Prudential did take home the highest in net premiums, topping $13 billion.
Although there is no whole life availability, Pru does have term, universal and indexed universal to fill their portfolio of products. Non-life insurance options include accident, critical illness, disability, and more.
To top it all off, Prudential has exceptional underwriting for smokers.
PROS
- Best RISK Underwriting
- Trusted Brand
- Great For SMOKERS
CONS
- Lacking No Exam Product
- Uncompetitive Term
- N/A
See our full Prudential review.
AIG – AMERICAN GENERAL
American General, who is also called AIG for short, is a highly reputable company, having “A” or better ratings across the board and a century-old name behind the rankings.
With a strong presence in the market, they have an exceptionally wide range of Universal and Indexed Universal products. While we love the variety, they can get a little complex for the average person, so we highly recommend working with a knowledgeable agent before buying.
Underwriting is very fair, though it may take a little time, and you can expect a very fair price from AIG. They’ve climbed into our top 10 this year because of product selection, financial strength, and prices which rival the elites.
PROS
- Good PRODUCT Selection
- “A” Rated Carrier
- Competitive Prices
CONS
- Lacks Simplified Product
- Complex IUL Policies
- N/A
See our full AIG review.
PRINCIPAL LIFE INSURANCE COMPANY
Another rising company for life insurance is Principal, coming in at number seven on our list of top 10 life insurance carriers we reviewed.
Although it is more highly rated than some of our other companies on the list, including four ratings of “A” or better, Principal does not quite have the footprint yet of a best-in-class carrier.
One of the prime reasons Principal Life Group made our list was not only their host of term, universal and variable universal life products, but their no exam life insurance underwriting which allows consumers to purchase up to $1,000,000 in coverage, regardless of which type of insurance they choose.
This doubled the industry allowance on death benefit amounts at the time it came to market!
Principal has more than just life insurance among its offerings, including financial
investments through subsidiaries.
investments through subsidiaries.
PROS
- $1M NO EXAM Product
- Trusted Brand
- Product Variety
CONS
- Moderately Priced
- More Strict Underwriting
- N/A
See our full Principal review.
NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
Unquestionably, Northwestern Mutual is our top-rated life insurance carrier, as it was the previous two years.
But, it took a big drop in our total rankings this year due to lack of innovation and keeping up with market trends.
Northwestern has been around for over a century, providing some of the most competitive permanent life insurance products in the entire industry. Backed up by perfect ratings from all four major credit rating agencies, they’re one of just a handful of companies with a perfect Comdex score.
While consumers see higher prices for term life and limited availability of product (sold exclusively through company agents only), these two downfalls are masked by an institution with $220 billion in assets, a long-standing history, a stout financial portfolio, and promising future.
You will have access to insurance products, like participating whole life insurance, to full-scale investments to suit every need in your household or business.
PROS
- Best WHOLE Life
- Trusted Brand
- Opportunity for DIVIDENDS
CONS
- Lacks TERM Options
- More Strict Underwriting
- Expensive Term
See our full Northwestern Mutual review.
METLIFE (BRIGHTHOUSE FINANCIAL)
MetLife continues to be the largest provider of life insurance in the United States, but this was not enough to keep them in the top 5 for this year; simply being the largest life company is not enough.
The largest, most recognized name in life insurance, the Metropolitan Life Insurance Company brand is the giant of the industry.
Since the civil war, MetLife has been offering life insurance to fit any budget, any business, or any need. Among these needs, other insurance products from dental to disability are available all under one roof.
Although it’s harder to get accepted with MetLife than many other companies, they offer a great lineup of products, including term, universal and whole. The ratings received by all four credit agencies are fantastic, and MetLife has secured “A” ratings across the board.
Metropolitan Life also has an affinity for working with those with specials needs, so consider this if it fits your criteria.
PROS
- MOST Trusted Brand
- Affordable Coverage
- Highly RATED
CONS
- Difficult UNDERWRITING
- Lacks No Exam Product
- N/A
See our full MetLife review.
TRANSAMERICA LIFE INSURANCE COMPANY
Falling down our list once again, Transamerica is a century old life insurer with a great group of product choices to meet any need.
Nearly famous for its prominence in the skyline of San Francisco alone, Bank of America’s purchase of Occidental and it’s re-branding to Transamerica has given the company new life since its inception more than 110 years ago.
Today, they host “A” ratings from all four rating agencies.
Transamerica Life offers an excellent variety of life insurance, including term, universal, whole and accident. Outside of their insurance arm, there are additional resources for investments, if you so choose, where Transamerica and their subsidiaries are competitive.
Transamerica is also an international company.
PROS
- Product OPTIONS
- Affordable Term & Universal
- Four “A” Ratings
CONS
- LENGTHY Underwriting
- Lacks No Exam Product
- N/A
See our full Transamerica review.
While it’s a bit of a daunting purchase, life insurance can truly be one of the more important financial decisions you’ll make as you budget, save, and invest for the future. It’s a key component a full financial plan, and protects your family in the event of a loss, both financially and emotionally.
Life insurance is the best tool in order to protect a person’s lifelong earning potential. This is especially the case when one member of your household is the primary earner. The loss of such a person could mean a significant loss of income, but potentially in assets as well.
Worse, it could mean accumulation of debt if you are unprepared.
These are just a few of the reasons it can be so important to make sure you have coverage in place. But, we also know all coverage options are not the same. One family might have completely different needs, or be experiencing completely different situations.
For this reason, we wanted to break out a few companies who specialize in a few situations or products, in the event you were unable to find a fit for yourself in the list above.
THE BEST LIFE INSURANCE CARRIERS BROKEN DOWN BY CATEGORY OR PRODUCT TYPE
As you assess your particular needs, the type of life insurance you require could be different from the next person. There are several hundreds of life insurance companies available around the U.S., some local, and some national.
Because no single carrier has the best product among all categories, it seemed necessary for us to make the distinction for each specific area of life insurance. While these aren’t the only insurers for each product type or category, they are the ones with the most clear advantages.
To have won the honor of top carrier for any category, greater emphasis was put on product, price and additional benefits provided by the company itself which would enhance the overall experience in buying from them.
The utility of a product, its riders, the conve
rtibility (where appropriate), and its availability to several demographics was most heavily weighted.
rtibility (where appropriate), and its availability to several demographics was most heavily weighted.
Here are our selections for each area:
BEST TERM LIFE INSURANCE COMPANY
Without a doubt, one of the best term life insurance companies this year is Banner Life, who exemplifies what consumers want in affordable term insurance: simplicity, wide availability, and superior pricing.
Banner has some of the most cost-effective term insurance products on the market and includes excellent riders and convertibility for those looking to add a little oomph to their policy.
You should also know Banner has a subsidiary, William Penn Life Insurance of New York, who operates in the state of New York only (where Banner does not).
When you get a life insurance quote for any length of term product, from 10-year to 30, make sure Banner Life Insurance Company is among your research. If you need help getting term quotes from Banner, we can help.
HONORABLE MENTIONS:
BEST UNIVERSAL LIFE INSURANCE COMPANY
Our top universal life insurance carrier this year goes to Protective Life, who hosts the most comprehensive assortment of universal life at virtually unbeatable prices.
With perhaps the most highly customizable universal product out, anyone seeking the cheapest possible solution for permanent coverage should look no further than Protective. When you apply with Protective for a universal policy, you can specify the age you want to extend coverage to, ranging from 90 to 121.
Universal life insurance is best for those who are aiming to have a permanent coverage, but want to have lower premiums (and slightly less guarantees) than a true whole life product.
HONORABLE MENTIONS:
BEST WHOLE LIFE INSURANCE COMPANY
Last year’s overall best life insurance company for the year, Northwestern Mutual, takes the cake for any consumer looking to find top-notch whole life insurance and survivorship life insurance.
The greatest considerations taken into account were safety, security, guarantees, and growth, as those are the pillars to any company looking to establish themselves as the best whole life insurance company.
Among other things, a good selection of riders, credits from term conversion, and dividends make these products second to none. If you’re looking to pair your retirement with the same company as your insurance, Northwestern Mutual has you covered with a full suite of options.
HONORABLE MENTIONS:
BEST NO EXAM LIFE INSURANCE COMPANY
If there was any one category which had a front-runner most separated from the pack, it’s our winner for the top no exam life insurance company this year, Sagicor.
The evolution in accessible, no medical exam coverage is dominated by Sagicor, who sports top honors in virtually every aspect, including variety, types of coverage, and everyone’s favorite, price. In addition, their prowess includes some of the fastest issuing coverage in the industry.
The largest degree of separation between Sagicor and its closest competitor in this space, Haven Life, is offering a wider range of products, as well as ratings. This is key for those who aren’t in impeccable shape, or want something other than term.
HONORABLE MENTIONS:
BEST BURIAL LIFE INSURANCE COMPANY
The final expense arena, the top burial life insurance company lies with Mutual of Omaha and their level, permanent coverage options.
Though there were close contenders because of the necessity to compare all sub-types of burial (level, graded, guaranteed), Mutual of Omaha stood out with superior availability to wider demographics, simple and fast underwriting, and very comparable prices.
Their products have plenty of long-term guarantees, and the company behind the product is strong and stable. Feel confident in buying the last policy you’ll ever need from the product line of Mutual of Omaha.
HONORABLE MENTIONS:
BEST IMPAIRED RISK LIFE INSURANCE COMPANY
Not everyone is perfectly healthy, and for those looking for affordable higher risk coverage, Prudential is easily the top pick for our impaired risk life insurer and has been for a while.
The most aggressive, liberal underwriter for coverage in the industry, Pru, as their often referred to, boasts uncharacteristically relaxed guidelines in the most progressive areas of life insurance. Where some carriers won’t even attempt to go, Prudential offers traditional coverage with little reserve.
If you have a medical condition or other type of impairment, consider looking at life insurance from Prudential. Underwriting may take a little longer and be more comprehensive, but you’ll save in premiums.
HONORABLE MENTIONS:
BEST LIFE INSURANCE COMPANY FOR SMOKERS
In addition to being one of the top high risk life insurance companies, overall, Prudential has a specific strength in helping to insure those who use any and all types of tobacco. Whether you smoke cigarettes or cigars, chew dip, e-cigarettes, or even use marijuana, Prudential should be atop your list.
Their guidelines are a bit technical for each, so we highly suggest talking to one of our agents before applying. You should also know its mandatory to tell them up front about any types of smoking.
Banner Life Insurance is a close second, so consider them if there is a clear price distinction in your state (remember, it’s William Penn in the state of NY).
HONORABLE MENTIONS:
BEST LIFE INSURANCE COMPANY FOR DIABETICS
Unfortunately, there are a large number of diabetics in the United States, and those numbers are climbing every year. For this reason, it was important to us to find an insurance company who was as diabetic-friendly as possible.
American General stood out to us as a top provider for fully underwritten life , providing great term products and riders lasting up to 30 years.
One thing to note, however, is if you have multiple risks, you may find them a little tougher to work with than, say, Prudential. If you have diabetes, but are otherwise an average risk or better, expect a great experience and competitive rates.
HONORABLE MENTIONS:
BEST LIFE INSURANCE COMPANY FOR OVERWEIGHT APPLICANTS
Much like diabetes is reaching near-epidemic proportions, those who are overweight or obese are also on the rise. With more than half of all Americans experiencing issues with their weight, it was imperative for us to discover who might be most helpful, and Genworth took the cake.
Industry wide, most carriers tend to shy away from any kind of discounted rate for obese people, but Genworth goes against the current here. If your BMI (body mass index) is overweight, but not quite obese, you can still get a discounted rate, so long as you’re otherwise healthy.
In addition, even those who are obese might be eligible for a Standard (non-discounted) rate, assuming all other factors are within normal ranges. No exam policies are hard to come by, but Phoenix would be your go-to in this category.
HONORABLE MENTIONS:
OUR CRITERIA FOR EVALUATING EACH OF THE INSURANCE PROVIDERS
There are several characteristics we focus on when narrowing down the top 10 best life insurance companies to choose from:
- Financial Strength
- Type of Company
- Type of Agent
- Type of Policy
- Level of Service
- Premium
- Risk Tolerance
There are more than this, but focusing on these help us get down to 8 or 10 which are most appropriate; and, remember, just because you haven’t yet heard of an insurer doesn’t mean they are not great.
While some companies might have what you need, it might not be the best solution because of the health rating you’ll get, the level of service you require, or simply, price.
If you’re like many people we’ve worked with before, you don’t even know how many choices you really have when it comes to picking the best life insurance company for you. There are more than 800 life insurance companies throughout the United States, all of which are different sizes, structures, and business models.
Just because you have your car, your homeowner’s, or your business insurance with a single company, does not mean it’s the best place to buy your life insurance policy.
In fact, you’re probably significantly better off not doing so, because you’ll have a much wider selection of companies all bidding for your business, with a larger selection of policy types as well.
Don’t get tricked into thinking you can lower your rates by ‘bundling’ your policies, because it’s bogus.
To put this into perspective, you wouldn’t expect to buy every piece of clothing you
have from the same retailer, right?
have from the same retailer, right?
I can’t imagine a scenario where someone would try to purchase all their clothes at the same store just to not have to go look somewhere else for a better deal, a better fit, or a better style.
Buying your life insurance privately will almost always yield you lower prices, so long as you find a good life insurance company for your situation. The best life insurance rates don’t always come from the same insurance providers.
The best insurance companies for life insurance are those who give you the exact policy you need, for the best price you can get (based on your age, gender, and health), with the stability and financial foundation we all expect of a multi-million or multi-billion dollar institution.
If you aren’t confident the company you do business with is going to be here in 5, 10, or 20 years, how can you be confident in a product which needs to last just as long?
A LIFE INSURANCE COMPANY’S FINANCIAL STRENGTH RATINGS (THIRD PARTY)
This one is paramount and should be included in all life insurance company reviews.
Choosing a company who will be outlasted by its own product is not one you want to deal with.
While it would be nearly impossible to sit down and rummage through the financial documents of all the possible companies, it is possible to get a good idea of where they stand financially by reviewing their financial ratings through independent rating agencies.
The most reputable life insurance companies are rated by independent agencies, by request.
You also want a life insurance carrier who pays out, not one who will default when your family needs the benefit most.
TOP 10 HIGHEST RATED LIFE INSURANCE COMPANIES
| A.M. Best | Fitch | Moody's | S&P | J.D. Power | |
|---|---|---|---|---|---|
| Northwestern | A++ | AAA | Aaa | AA+ | 802 |
| New York Life | A++ | AAA | Aaa | AA+ | 782 |
| AARP | A++ | AAA | Aaa | AA+ | N/A |
| TIAA | A++ | AAA | Aa1 | AA+ | N/A |
| Massachusetts Mutual | A++ | AA+ | Aa2 | AA+ | 787 |
| Haven Life | A++ | AA+ | Aa2 | AA+ | N/A |
| USAA | A++ | Aa1 | AA+ | N/A | |
| Guardian | A++ | AA+ | Aa2 | AA+ | N/A |
| State Farm | A++ | AA | Aa1 | AA | 853 |
| Geico | A++ | AA+ | N/A |
WHAT EXACTLY ARE LIFE INSURANCE COMPANY RATINGS?
Ratings are a sort of “report card” where we attempt to rank life insurance companies based on many, many factors.
A.M. Best, Fitch, Moody’s and Standard & Poor’s are the major credit rating agencies, with A.M. Best one of the go-to for the life insurance industry.
Others take a look at J.D. Power and Associates, TrustPilot, TheStreet, and others. We don’t think these are very accurate, and they also include non-insurance companies, so it’s not apples-to-apples.
Within the financial space, the “Big Three” consist of Fitch, Moody’s, and Standard & Poor’s, though within the life insurance arena, A.M. Best holds the most clout.
Again, while these ratings aren’t a perfect measure, they tend to be close.
Look for a company with nothing lower than an “A-” from A.M. Best, and we recommend not going any further down.
This isn’t to say it means another company isn’t a great fit, but we’re looking long term. You need your company to be solvent to pay a claim as quickly as possible.
Other financial signs to think about are
- company surplus
- company assets
- in-force policies
- total liabilities
Most life insurance companies will publish this kind of information on their website to promote transparency and to be compliant where necessary, but someone like A.M. Best furnishes these as well.
For quick reference, and to put things into perspective industry-wide, here is a list of many of the most well known life insurance companies and their current financial ratings:
| Company | A.M. Best | Fitch | Moody’s | S&P |
| 5Star | A- | |||
| AAA | A- | |||
| AARP | A++ | AAA | Aaa | AA+ |
| Accordia Life | A- | A- | ||
| Aetna | A | AA- | A2 | A+ |
| Aflac | A+ | AA- | A+ | |
| Allianz | A+ | A2 | AA | |
| Allstate | A+ | A1 | A+ | |
| American Amicable | A | |||
| American Fidelity | B++ | |||
| American General (AIG) | A | A+ | A2 | A+ |
| American Income Life | A+ | A+ | AA- | |
| American National | A | A | ||
| Americo | A | |||
| Assurity | A- | |||
| AXA/Equitable | A+ | AA- | Aa3 | AA- |
| Baltimore Life | B++ | |||
| Bankers Life | A- | BBB+ | Baa1 | BBB+ |
| Banner Life | A+ | AA- | AA- | |
| Cincinnati Life | A | A+ | A+ | |
| Colonial | A- | BBB+ | Baa1 | BBB+ |
| Columbus Life | A+ | AA | AA3 | AA |
| EquiTrust | B++ | BBB+ | ||
| Farmers | A | A+ | A | |
| Fidelity | A- | |||
| Foresters | A | |||
| Forethought | A- | Aa3 | A- | |
| Geico | A++ | AA+ | ||
| Genworth | B | Ba2 | BB- | |
| Gerber | A | A | ||
| Globe Life | A+ | AA- | ||
| Guardian | A++ | AA+ | Aa2 | AA+ |
| Haven Life | A++ | AA+ | Aa2 | AA+ |
| ING (Reliastar) | A | A | A2 | A |
| John Hancock | A+ | AA- | A1 | AA- |
| Kansas City Life | A | |||
| Kemper | A- | A- | ||
| Knights of Columbus | A+ | |||
| Lincoln | A+ | A+ | A1 | AA- |
| Massachusetts Mutual | A++ | AA+ | Aa2 | AA+ |
| MetLife (Brighthouse Financial) | A+ | AA- | Aa3 | AA- |
| Midland National | A+ | A+ | A+ | |
| Minnesota Life | A+ | AA | Aa3 | A+ |
| Mutual of Omaha | A+ | A1 | AA- | |
| Mutual Trust | A | A | ||
| National Life Group | A | A2 | A | |
| National Western | A | A | ||
| Nationwide | A+ | A1 | A+ | |
| New York Life | A++ | AAA | Aaa | AA+ |
| North American | A+ | A+ | ||
| Northwestern | A++ | AAA | Aaa | AA+ |
| Pacific | A+ | A+ | A1 | AA- |
| Penn Mutual | A+ | Aa3 | A+ | |
| Phoenix | B | |||
| Primerica | A+ | |||
| Principal | A+ | AA- | A1 | A+ |
| Progressive | A+ | AA | Aa2 | AA |
| Protective | A+ | A+ | A2 | AA- |
| Prudential | A+ | A+ | A1 | AA- |
| Royal Neighbors of America | A- | |||
| Sagicor | A- | |||
| SBLI | A | A- | ||
| State Farm | A++ | AA | Aa1 | AA |
| Sun Life | A+ | AA- | ||
| Symetra | A | A | A2 | A |
| TIAA | A++ | AAA | Aa1 | AA+ |
| Transamerica | A+ | A+ | A1 | AA- |
| United American | A+ | AA- | ||
| United Home Life | A- | |||
| USAA | A++ | Aa1 | AA+ | |
| Vantis | A- | BBB+ |
THE TYPE OF LIFE INSURANCE COMPANY YOU SHOULD CONSIDER
There is more than one type of life insurance provider, and it’s the internal structure and operating personnel which make them different.
One type of company is called a mutual life insurance company, and the other is a stock held life insurance company.
A mutual company is one who is owned entirely by those who do business with the company.
The only way to own a piece of the company is to own their product, and they answer directly to their customers. Typically, dividends, or excess gains and funds acquired throughout the year, are distributed back to consumers.
These dividends are never guaranteed, but some companies have been paying them out for over 160 years in a row. The type of agent you’ll deal with is more likely to be an in-house, or captive, agent, so you may need to find a local agent or call the company directly to make a purchase.
A stock held company is one who has gone public, and it’s not owned by its policy owners.
They are traded on a stock exchange, like the New York Stock Exchange (NYSE) available for anyone to become a part owner. In other words, profits go back towards those who own stocks first, not those who own a life insurance policy, like a dividend paying company might.
TYPES OF AGENTS YOU HAVE ACCESS TO
As briefly alluded to above, there are also two types of agents: captive life insurance agents and independent life insurance agents.
By choosing a certain type of agent you prefer, it could limit what life insurance companies you have access to because of what affiliations (called appointments) your agent has.
Captive agents are those who are employed directly by the company for whom they offer insurance. They typically do not sell for any other life insurance companies, although certain types of contracts now allow it.
However, first and foremost, they must continue to sell their company’s insurance in order to keep their active status. These will also be local agents more often than not, operating in small towns to big cities all across America.
Independent agents are those who are not employed directly with any one company, but rather as many of the life insurance companies as they need. If you’ve heard of the coined term broker in regards to life insurance agents, they are one in the same.
By offering many companies at once, they are able to ‘shop your rate’ quickly and efficiently, and knowledgeable independent agents are well versed in different products and their underwriting guidelines.
If you want access to a mutual life insurance provider’s policy, however, they may not be able to assist you.
THE DIFFERENT TYPES OF LIFE INSURANCE A COMPANY CAN OFFER
A long-standing question is the term whole life debate, but there are actually even more to consider. When you’re buying life insurance, you should have an idea of what you want the policy to do for you, and this will ultimately help you choose what type of life insurance fits your circumstance. For example, there are:
- Term Life Insurance
- Return of Premium Term Life Insurance
- Universal Life Insurance
- Guaranteed Universal Life Insurance
- Variable Universal Life Insurance
- Indexed Universal Life Insurance
- Survivorship Universal Life Insurance
- Single Premium Universal Life Insurance
- Whole Life Insurance
- Survivorship Whole Life Insurance
- and more!
TERM LIFE
Of course, the vast majority of people end up with a term life insurance policy, which is just a death benefit in exchange for paying a monthly premium. There is no cash value, which most of the other types do have.
A term life policy is best for those who are looking to maximize their bang-for-the-buck, especially younger applicants who are strictly looking to protect their incomes for their spouse and children. The most common bought term life policy is a 20-year term, and the average american purchases around $400,000 in coverage.
Term is also great for those seeking to protect certain assets, like a house (think of the mortgage, for example), a business (useful for satisfying SBA loan requirements, or buy-sell agreements), and other major purchases.
RETURN OF PREMIUM TERM
A return of premium term life insurance policy is a bit of a newer type, and not quite as popular as a basic term.
It has the same basic policy features, with just a death benefit and corresponding premium, but the premium will be slightly larger. This is because, when you reach the end of your term, say, 20 years, you actually get all your money back.
Understand, though you have to reach the end of the policy or all premiums paid are forfeited.
For many, this does not tend to be a wise investment.
UNIVERSAL LIFE
If you need an insurance plan to build cash value, a universal or variable life insurance contract are your best bets, depending on how much risk you are willing to take. They are also best to simply secure permanent coverage, at a lower cost.
Universal life insurance policies are getting more and more common, as their utility has increased over time. However, this is also because we are in a low interest environment, where planning for the future with a cash value build-up is a little more secure.
While there are slightly more details you should understand before buying a universal contract, understand its components are much like term, with the addition of a small cash accumulation. This cash, however, only exists to offset future premiums.
GUARANTEED UNIVERSAL
Like the idea of a universal policy, but require a little more security? Enter, the guaranteed universal life insurance policy, which, as long as you maintain your premiums, will stay in force.
Several companies are entering this policy into their suite of products, and many even allow you to customize the age of guarantee to help you fit your premiums into your budget.
VARIABLE UNIVERSAL
Much like a basic universal policy, a variable life insurance policy gives you a little more control over what the cash component does for you by allowing you to invest it.
This is a bit of a more risky type of insurance, to be honest, but for someone who is young and doesn’t mind having a small portion being invested into mutual funds and other securities, it can offer an additional way to grow money in a tax-free environment.
WHOLE LIFE
The original type of life insurance, whole life is, literally, a policy which will cover your whole life, regardless of how old you become.
Whole life insurance policies are best for when you don’t need a large death benefit, and want a secure way to guarantee your insurance can never lapse. Whole life can also come with additional benefits, like access to policy funds (through loans), dividends (if the company offers them), and riders which may not be available with term.
For the more complex issues, like trying to use life insurance as a saving account or alternative to being limited by a Roth IRA, many of these can be used to build up cash value, all while keeping them somewhat income tax advantaged.
This also goes for using life insurance for estate planning, having more than one person on a policy, and other scenarios where term or whole policies just don’t meet the need.
The more you need from your life insurance policy, the more you need from your insurance providers, especially by way of company ratings, financial strength, and level of service they can offer you, both now and in the distant future.
THE LEVEL OF SERVICE MAKES A DIFFERENCE (AT LEAST IN THE BEGINNING)
As with any industry, the level of customer service you receive from a company can vary widely. This will be the hardest component of a carrier’s reputation to judge.
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You can first ask around from people you know for a reference to a company or agent who they were exceptionally satisfied with. You can also read reviews online, dial a few companies to see how quickly you can get access to someone, or even reach out to several agents to see who is most responsive and helpful.
Of course, the Better Business Bureau might be able to help, too.
They are one of the easiest places to quickly search and find a carrier to get an overview of any complaints filed against them in the past. Just remember, a company can keep a high grade even with a large number of complaints.
The fact of the matter is, you won’t need to talk to your life insurance agent all that much, in the long run.
Communication is very important in the beginning as you’ll both need to come to terms with what your goals are, your budget is, and what product and insurance company are the best fit.
But, you will likely only speak with your agent at annual reviews, product changes like conversions or adding new riders, and when maintenance is required for contact information or beneficiaries.
An exceptional agent is one who is proactive, not reactive, in these matters.
When it comes to filing a claim, however, you’ll need to use the carrier themselves.
The agent will be able to assist you, but it’s the carrier who ultimately settles all claims. For a point of reference, 7-10 days is about how fast life insurance companies pay, considering they will begin to owe interest once a claim is filed and in good order.
PREMIUMS (PRICE) AND HOW THEY ARE CALCULATED
For most consumers, this is going to be one of the larger determinations in where they’ll place their business.
A life insurance policy is no more than a promise on a piece of paper, so it’s not uncommon to think they’re all the same with the lowest cost policy being the right one.
But, there is some truth to it.
All the top life insurance companies in the United States are essentially selling the exact same thing, with minor differences.
Did You Know: nobody can beat our prices because we all use the exact same pricing charts!
Should you need a very basic policy without any bells and whistles, your price sensitivity has the most merit.
If you need something like complex an estate plan created, stop and think twice because the quality of company will really make a difference based on what you need to accomplish. Only the top companies are suitable for larger, intricate financial plans.
Age plays a big role, as does the policy type, so life insurance for seniors is usually more expensive than their younger counterparts. Gender, tobacco use, and policy size all make a difference.
Consider asking your estate lawyer for a referral, but don’t skip on researching your own reviews for life insurance companies, too. At the end of the day, you’re the one purchasing the life insurance policy, not the lawyer.
WHAT IS YOUR RISK TOLERANCE?
If you really have a low-risk tolerance, you’re probably more likely to go with a brand you already know rather than the company you’ve never heard of, and that’s perfectly fine.
There are a handful of insurers who have been around for a very long time who have very household names. There’s no reason not to do business with them.
These might include:
- MetLife (Snoopy, anyone?), though they recently changed to Brighthouse Financial
- Colonial, who adopted Alex Trebek, one of TV’s most famous faces, as an endorser
- State Farm, who is simply the most popular insurance brand of all time
The trade-off may be a higher price, but many consumers are okay paying for a little extra peace of mind. Especially when a lot of these companies let their clients “bundle and save” to house all their insurance policies under one roof.
If a big brand name doesn’t matter to you and you want the simplest coverage at the most affordable rate, then you probably have a higher risk tolerance. You can forego the discussions of financials and company types and simply seek out what policy solves your needs with the lowest price.
WHO ARE THE LARGEST LIFE INSURANCE COMPANIES RIGHT NOW?
While size, on its own, is not indicative of who the best life insurance company is, it is good to put each carrier side-by-side to put it all into perspective.
You may be a consumer who prefers to deal with a larger, brand name as opposed to a smaller, local life insurance agency.
LIFE INSURANCE COMPANY MARKET SHARE DATA
| Group/Company Name | Direct Premium | Market Share | Cumulative Market Share |
| Metropolitan Grp | $13,356,817,802 | 8.39% | 8.39% |
| Northwestern Mutual Grp | $10,123,987,236 | 6.36% | 14.75% |
| New York Life Grp | $8,822,266,796 | 5.54% | 20.30% |
| Prudential Of America Grp | $8,626,713,484 | 5.42% | 25.72% |
| Lincoln National Grp | $6,731,270,174 | 4.23% | 29.95% |
| Mass Mut Life Insurance Grp | $6,176,244,595 | 3.88% | 33.83% |
| John Hancock Grp | $4,755,478,621 | 2.99% | 36.82% |
| Aegon US Holding Grp | $4,483,371,714 | 2.82% | 39.63% |
| State Farm Grp | $4,232,704,277 | 2.66% | 42.29% |
| Minnesota Mutual Grp | $3,815,847,464 | 2.40% | 44.69% |
| Guardian Life Grp | $3,648,750,442 | 2.29% | 46.98% |
| Aflac Grp | $3,497,523,957 | 2.20% | 49.18% |
| American International Grp | $3,442,793,503 | 2.16% | 51.35% |
| Nationwide Corp Grp | $3,256,740,701 | 2.05% | 53.39% |
| AXA Insurance Grp | $3,062,948,755 | 1.92% | 55.32% |
| Pacific Life Grp | $3,011,194,692 | 1.89% | 57.21% |
| Voya Financial Grp | $2,701,362,877 | 1.70% | 58.91% |
| Hartford Fire & Casualty Grp | $2,475,130,729 | 1.56% | 60.46% |
| Protective Life Insurance Grp | $2,391,646,752 | 1.50% | 61.96% |
| Sammons Enterprises Grp | $2,299,720,792 | 1.45% | 63.41% |
| Primerica Grp | $2,088,362,102 | 1.31% | 64.72% |
| Torchmark Corporation Grp | $2,035,985,367 | 1.28% | 66.00% |
| Unumprovident Corporation Grp | $2,009,462,106 | 1.26% | 67.26% |
| Cigna Health Grp | $2,001,240,284 | 1.26% | 68.52% |
| Genworth Financial Grp | $1,845,455,987 | 1.16% | 69.68% |
| Industry Total | $159,143,429,286 | 100.00% | 100.00% |
WHAT IS MARKET SHARE?
In general, market share is the portion of the overall activity or business within an industry any single company maintains.
For life insurance, it’s the number of premiums (dollars paid by all consumers, businesses, banks or other) for the life insurance in force in the year. In other words, it’s the amount of money the insurance company takes in, which is not the same as death benefit in force on the lives of insured’s, an often confused metric.
WHAT DOES IT MEAN?
Market share, in and of itself, is no measure of success other than size or amounts of dollars taken in. It does not take into consideration debts, reserves, or overall financial strength as indicated by the major credit agencies, A.M. Best, Fitch, Moody’s or Standard & Poor’s.
Life insurance market share data gives us only a bird’s eye view so we can statistically see who took in more premium, not profit. It’s a distinct difference, and shouldn’t be confused.
Most notably, market share is more synonymous with brand recognitionthan anything else. If you’ll note the names in the chart above, there’s a good chance you already know the names, even though they are the identifiers for the holding company, not the insurance carrier.
SO, WHO HAS THE BEST LIFE INSURANCE POLICY FOR YOU?
While we can’t be sure without speaking to you and knowing what your needs and goals are, we can tell you most consumers are the best fit for an affordable term life insurance product. The best life insurance coverage should be there to provide value to your family when they need it most, and it shouldn’t break the bank.
Still have questions? Review our blog or frequently asked questions for more information about how you can secure the best life insurance rates, every time!
You can also get a quote directly on this page, and see your possible rates instantly. You’ll get quotes from more than 50 companies, and it takes less than a minute.
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