Best Life Insurance Companies: Best Term, Whole, and No-Exam for May 2024
Established best life insurance companies and up-and-coming “insurtechs” that offer policies on the Internet make up the diverse and competitive life insurance industry in the United States.
We considered consumer feedback, financial stability, and the number of complaints each life insurance provider received to compile our top picks. Additionally, we analyzed the available policies and the methods for purchasing coverage.
After reviewing 28 different life insurance providers, we have settled on Pacific Life as the top pick. Price, policies, coverage, riders, application procedure, customer happiness, financial stability, and the firm’s strength were among the essential criteria we studied and analyzed while selecting a life insurance provider.
Methods By Which We Selected The Best Life Insurance Companies
A company’s capacity to pay future claims is indicated by its financial strength ratings, which NerdWallet calculates by weighting customer experience and complaint index scores for individual life insurance.
Website transparency, which examines the depth of online policy data, and ease of communication are part of the consumer experience category. Using a modified 5-point scale, we determined each insurer’s rating.
Please remember that these ratings are only a starting point and that getting your best rate will require research and comparison shopping. Reviews are not NerdWallet’s source of income.
How to Choose Between Term and Whole Life Insurance and What They Mean
The beneficiaries of either policy are free to use the money for anything they choose, including paying off debt, covering living expenses, or paying for a funeral. If your coverage requirements are different, one form of life insurance might work better than the other.
A Comparison between Term and Whole Life Insurance
Here is a brief explanation of the operation of both term life and whole life insurance to help you better understand the distinction between the two.
Protecting Oneself With Term Life Insurance
- Term life insurance is straightforward: you choose a policy term (often 10, 20, or 30 years), and the insurance company pays you a sum if you pass away within that time. Your beneficiaries will not be paid if you outlast the policy’s term.
- Most policies are level-term life, which means that both the death benefit and the premiums will be fixed for the duration of the policy. A distinct and uncommon option is a decreasing term life policy. Life insurance premiums remain constant during the term, but the death benefit decreases as the policy matures.
- Your term life insurance policy’s duration should correspond to the amount you protect. A new parent may choose a 20-year coverage to protect themselves financially until their child stops relying on them. Since most businesses offer term life insurance, you can quickly discover and compare life insurance rates online.
Permanent Life Coverage
- Although it usually costs more than term life, whole life is the most prevalent form of permanent life insurance. This is because most policies provide coverage that becomes effective later, typically around 90, 100, or even 120 years old.
- A cash value is another feature of whole life insurance. The cash value accumulates when you pay your premiums and can increase with time. Your policy’s cash value can be used to borrow money or even surrendered for cash once you’ve accumulated enough.
- Whole life insurance is more involved than term life but easier to understand than permanent policies. The cash value and the premiums are guaranteed to grow at a fixed rate. While the death benefit is also assured, avoiding taking out loans or withdrawing cash from the value is essential without repaying it. Your insurer will deduct any outstanding loans or withdrawals from the final death benefit distributed to your beneficiaries, even though you are not obligated to repay them.
- You can receive dividends according to the company’s financial performance with many whole life insurance policies that are “participating” policies. Among the many possible uses for dividends is to increase your policy’s cash value.
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Whole Life vs. Term Insurance Premiums
Term life insurance is frequently the most budget-friendly option due to its transient nature and lack of financial value. However, because the policy can accrue capital value and provide coverage for the policyholder’s whole life, whole-life premiums tend to be significantly higher. The difference between whole life and term insurance premiums is seen below.
Go With a Term Life Policy If You Want.
- Looking for a limited-duration policy. Suppose you have substantial financial responsibilities, like paying a mortgage or raising children, and you pass away while still working. In that case, term life insurance can help cover those costs.
- Am looking for the cheapest insurance possible. Term life insurance typically has the lowest premiums, particularly for young, healthy policyholders.
- If you wish to afford permanent life insurance but can no longer afford it, You can change your term life insurance to permanent coverage. Not all insurance companies allow conversion, and the timeframe for conversion varies.
- I am not interested in building up the cash value of my life insurance policy. If you want to save the money you would have spent on whole-life insurance and use it toward something else, consider getting a term life policy instead.
Select The Full Life Option If:
- You should be able to pay the more expensive premiums quickly. You should ensure you can afford whole life insurance because it is a lifetime commitment. Your insurance coverage may expire if you are late with your premium payments.
- Wish you had lifelong coverage. Upon your passing, the death benefit of a whole life insurance policy is usually paid out. Instead of going via your estate, the money from your life insurance policy will go straight to the people you’ve designated as beneficiaries.
- Need assistance throughout one’s life, such as a disabled child. A child’s future care can be secured with the help of a trust funded by life insurance. Before setting up a trust, it is advisable to consult with a lawyer.
- I aim for a life insurance policy to provide a steady cash stream. Whole life insurance policies have a cash value that grows at an insurer-guaranteed rate.
Possible Substitutes For Whole And Term Life Insurance
Other permanent life insurance options to consider if you require coverage for the rest of your life but would prefer more customization than whole life offers:
- Universal life insurance.
- Second is Variable universal life insurance
- and the third one is variable life insurance (VUL) policies.
- Universal life insurance with an index.
The features and costs of these choices can change based on the coverage you choose and how well your cash flow does. This can result in significant cost reductions or unforeseen costs.
An excellent initial step is to talk with a fee-only life insurance expert about your specific requirements.
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May 2024: The Eleven Top Life Insurance Companies (Term, Whole, and No-Exam)
Thanks to their substantial no-exam policies, muscular financial strength, high customer satisfaction ratings, and the three free-living benefit riders included with most plans, Nationwide is the finest life insurance company overall.
To compile our life insurance ratings, we compared 88 different providers over 55 different dimensions, including policy features and kinds, affordability, financial stability, application simplicity, client happiness, and overall cost.
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Nationwide
The grade a corporation receives reflects its capacity to meet its financial commitments and pay its claims.A+
Is a credit card processor: Yes
The Reasons for Our Selection
We recommend Nationwide because of their generous no-exam requirements, excellent financials, happy clients, and three living perks included with most policies.
The Benefits
- Very healthy applicants can get life insurance without taking an exam.
- The low index of NAIC complaints
- Included in most policies are living benefits
- Permits the use of credit cards
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THE BEST LIFESPAN Protective
AM’s Top Pick: AM An insurance company’s letter grade can range from “A++” to “D,” according to Best, a credit rating organization. The grade a corporation receives reflects its capacity to meet its financial commitments and pay its claims. Yes, we do take credit cards. Yes
The Reasons for Our Selection
Our research showed that Protective’s term life insurance policies were the most reasonably priced (tied with Banner) and offered unusually long terms (up to 40 years). Thus, we ranked them as the best option.
The Benefits
- Among 91 companies, we have the lowest pricing along with Banner.
- Includes a term period of up to forty years
- Permits the use of credit cards
- Coverage is available without the need for a medical exam
Downsides
Finished the life insurance assessment by J.D. Power ranked 18th out of 22 firms regarding client satisfaction.
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Top-Rated Life Insurance with a Convertible Term MassMutual
The grade a corporation receives reflects its capacity to meet its financial commitments and pay its claims. Very good
Do not take credit cards.
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The Reasons for Our Selection
MassMutual stands out from the competition because its term policies are convertible to any permanent policy type. This company offers a package with minimal complaints, strong financial health, and a history of annual dividend payments dating back to 1869.
Pros:
- Consistently gets top marks for fiscal soundness.
- Extensive track record of successful returns
- Relative to its size, there are a few concerns.
- Flexible choices for converting terms
Downsides
- There are a small number of free accelerated benefit riders.
- Does not take payments made by credit card
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HIGHEST QUALITY RETURN ON INVESTMENT Mutual of Omaha
The grade a corporation receives reflects its capacity to meet its financial commitments and pay its claims.A+
Is a credit card processor: Yes
The Reasons for Our Selection
Our research indicates that Mutual of Omaha provides the best ROP term life insurance policies. Two of its best features are the variety of riders and the inclusion of two or more living benefits in most policies.
The Benefits
- Various plans that offer life insurance
- Extensive selection of riders
- Issue options with a guarantee
- Refund for the remaining premium period
Downsides
- Term policy applications are not currently available online.
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Guardian
The grade a corporation receives reflects its capacity to meet its financial commitments and pay its claims. Very good
Will Take Credit Cards: Sure
The Reasons for Our Selection
Guardian has an A++ (Superior) rating for financial strength, pays dividends to qualifying policyholders, and has a deficient number of customer complaints.
The Benefits
- The low index of NAIC complaints
- Earns a perfect score in terms of financial security
- You can get profits from whole-life policies.
Downsides
- Applying and submitting claims online is currently unavailable.
- No credit card processing at this time.
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OPTIMAL FOR US ARMY -USAA
The grade a corporation receives reflects its capacity to meet its financial commitments and pay its claims. Very good
Is a credit card processor: No
Find Out Why We Picked It
The United States Army Mutual Aid (USAA) program provides coverage during wartime. It pays out in the event of a service-related injury.
The Benefits
- Advantages for those with profound injuries
- Expand your term coverage options without sitting for a new test
- A++ AM term conversion rider included. Highest praise
Downsides
- declines all forms of payment
- There are limited possibilities for no-exam coverage.
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The Penn Mutual Insurance Company
The grade a corporation receives reflects its capacity to meet its financial commitments and pay its claims.A+
Is a credit card processor: Yes
The Reasons for Our Selection
With a history of dividend payments stretching over 175 years, Penn Mutual now provides the most excellent no-medical-exam life insurance coverage maximum we’ve seen, up to $7.5 million, to qualified applicants.
The Benefits
- Solid track record of dividend payments
- Among 91 providers, our high-coverage,
- no-medical-exam life insurance is the fifth most affordable.
- Highest NAIC consumer complaint index level ever
Downsides
- Limited information is available on the website.
- No quotes are displayed there.
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Legal & General’s Cheapest Term Premiums Banner-Banner by Legal & General
The grade a corporation receives reflects its capacity to meet its financial commitments and pay its claims.A+
Do not take credit cards.
The Reasons for Our Selection
Banner offers terms of up to 40 years and has term premiums tied for the lowest with Protective.
The Benefits
- Finished in a price tie with Protective
- Available for terms of 40 years
- Conversion time for generous terms
- You can submit your application online.
- Highest NAIC consumer complaint index level ever
Downsides
- Very few policy options with few riders
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Optimal For The Happiness of Our Clients- State Farm Life Insurance
The grade a corporation receives reflects its capacity to meet its financial commitments and pay its claims.A++ Will Take Your Credit Card: Sure
The Reasons for Our Selection
J.D. Power has ranked life insurance policies sold by State Farm as the most satisfying to policyholders for the previous four years running.
The Benefits
- Exceptional fiscal security
- J. D. Power ranked us #1 in customer service
- Investing in a whole-life policy can pay well.
- Possible savings when purchased in a bundle
Drawbacks
- Rated fourth-worst in terms of cost
- Restrictions on no-exam life insurance coverage
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The Top Life Insurance Policy- New York Life
The grade a corporation receives reflects its capacity to meet its financial commitments and pay its claims. Very good
Do not take credit cards.
The Reasons for Our Selection
According to the latest NAIC data, New York Life has paid dividends to qualified whole-life policyholders annually for the last 169 years, making it the second-largest life insurance firm.
Advantages
- A++ (Excellent) AM Highest praise
- Extensive track record of successful returns
- Applicants as young as 90 years old may be eligible for some insurance.
- A wide range of participants
Downsides
- Accessing all policy information online requires speaking with an agent.
- Prices and forms cannot be accessed online at this time.
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MASSIVE LIFE SURVEY PLANT- Northwestern Mutual
The grade a corporation receives reflects its capacity to meet its financial commitments and pay its claims. Very good
Do not take credit cards.
The Reasons for Our Selection
According to the NAIC, Northwestern Mutual dominates the American life insurance industry by 7.20 percent.
It has existed since 1857, offers a variety of life insurance plans and has excellent financial ratings from several different agencies.
The Benefits
- Top ratings for financial stability
- Prolonged track record of dividend payments
- Prestigious among NAIC complaint indices
- The most prominent insurance provider in the country
Downsides
- To purchase coverage, one must consult with a financial counselor.
- Disappointing digital experience with insufficient policy information
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In Conclusion
Nationwide is a solid choice because it is a financially stable firm offering a variety of plans for which a medical test isn’t always necessary (but getting a medical exam will help you get a better premium). Nationwide may be the best option if you’re looking for a policy that includes three living benefit riders, a unique perk.
Protective is one of the best life insurance companies to look at if you want to purchase term coverage. Even though it outperforms the competition, you should know that its customer satisfaction scores are low.
As for return-of-premium policies, consider looking at Mutual of Omaha and MassMutual for convertible term policies. Another popular choice is Banner, which offers competitive term pricing compared to Protective but has fewer available riders.
Suppose you are looking for whole-life insurance coverage. In that case, we recommend Penn Mutual for its excellent dividends and New York Life, which is our top pick overall.
FAQs
Living Insurance: What Is It And How Does It Work?
By signing a life insurance policy, you commit to paying premiums to the insurer even while you’re still alive. In exchange, the insurance company promises to pay a certain amount to your designated beneficiaries upon your demise.
Is Life Insurance Necessary?
Life insurance isn’t necessary for everyone. Suppose you are self-sufficient and do not have any dependents. In that case, having enough money to cover your final expenses is optional.
Do You Know Any Drawbacks to Life Insurance?
The biggest drawback of life insurance is the premiums. You will also need to allocate monthly funds to cover the premiums your policy would impose. Your lifestyle, age, health, and the amount of coverage you purchase all affect the price. Your insurance will lapse unless you continue to pay.
What will happen to my money if my term life insurance policy expires?
Term life insurance coverage expires after the policyholder’s death. It is available for a set period, known as a term. It is valid for a certain amount of time, say five or twenty years. You will no longer be covered when this period ends. Still, there might be ways to extend your coverage beyond the term’s expiration.
What Are Some Ways to Save Money on Life Insurance?
The type of coverage, your age, and your health at the time of purchasing the policy are the key factors that greatly influence life insurance premiums. Life insurance premiums are determined by the type of coverage, age, and health status at the time of purchase. If you’re looking for life insurance, term policies are more cost-effective than permanent ones. There is a maximum number of years of coverage, but that might be more than enough.
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