With life insurance, individuals pay a premium to an insurance company who promises to pay a death benefit to the insured's beneficiaries if they pass away. While any life insurance provider can be used to execute this contract, the best life insurance companies boast solid financial ratings, a breadth of life insurance coverage options to choose from, and affordable premiums that can fit into nearly any budget.
Before you take the plunge and sign up for life insurance coverage, it helps to know which companies have excellent ratings and reviews, as well as products you may be interested in. We profiled most of the top life insurance companies available today to find the best of the best, and the life insurance providers below made our ranking in several important categories. For more information and to shop life insurance, visit Policygenius.
Best Life Insurance Companies of 2022
- Best Overall: State Farm
- Best Online Experience: Fabric
- Best Term Coverage: Haven Life
- Best Fast Online Coverage: Bestow
- Best Whole Life Coverage: MassMutual
- Best Agent Experience: New York Life
- Best for No Medical Exams: Mutual of Omaha
- Best Coverage for Military: USAA
- Best Final Expense Coverage: Transamerica
- Best Value Life Insurance: AIG
Best Overall: State Farm
Why We Chose It: We chose State Farm as the best life insurance company overall due to their strong ratings and reviews, as well as their top rating for customer satisfaction in J.D. Power's 2020 U.S. Life Insurance Study.
Pros:
- #1 ranked life insurance company for customer satisfaction (J.D. Power, 2020)
- Some policies don't require a medical exam
- Many types of life insurance coverage available
- You can get a free quote online
- Online process for filing and tracking claims
Cons:
- Not available in every state (not in Massachusetts)
State Farm has been in business since 1922, and they have diligently built a solid reputation for offering excellent customer service since then. This provider extends life insurance coverage, but also other insurance, banking, and investment products. In terms of their life insurance offerings, you have the ability to get an online quote, yet you can also work with your agent to customize your policy and premiums.
Several types of permanent life insurance are offered, as well as term life insurance coverage that may or may not require a medical exam. Also note that State Farm has the highest possible rating of A++ for their financial strength from A.M. Best.
Who They're Best For: State Farm is a good choice for individuals who want highly rated life insurance coverage from a trusted provider with excellent customer service ratings.
Visit State Farm to learn more
Best Online Experience: Fabric
Why We Chose It: Fabric stands out due to its intuitive online quoting process, which you can access via the company website or the Fabric mobile app.
Pros:
- Apply online or with the mobile app
- Customizable term coverage available in 10, 15, or 20 year terms
- Strong ratings for financial strength
- You may be offered coverage without a medical exam
Cons:
- Only term life insurance offered
- Just launched in 2017
- Not available in every state
While Fabric isn't a well known player in the life insurance industry, its policies are issued by Vantis Life, a Penn Mutual company that is currently rated A+ for financial strength by A.M. Best. This company focuses on offering term coverage applicants can pursue online or via the Fabric mobile app, which also lets customers monitor policy details and pay their premiums on the go.
Term coverage from Fabric is offered in 10, 15 and 20 year terms, and advertised premiums are on the low end. In fact, Fabric says the average 29-year-old woman in excellent health pays just $14.61 per month for $250,000 in life insurance.
Who They're Best For: Fabric is best for busy people who want to secure term life insurance coverage online or using a mobile app.
Best Term Coverage: Haven Life
Why We Chose It: We chose Haven Life as the best option for term life insurance based on their easy online quoting process, as well as the fact you can apply online and get coverage as soon as the next day.
Pros:
- Get term coverage that may not require a medical exam
- Easy quote process online
- Strong financial ratings
- Owned by MassMutual
Cons:
- Some plans have a maximum coverage amount of $500,000
- No permanent coverage offered
Haven Life is owned by MassMutual, a respected life insurance provider who has been in business since 1851. However, this arm of the company focuses on offering easy term life insurance coverage, with or without a medical exam. Their Haven Term coverage is offered with a death benefit up to $3 million, yet their Haven Simple policies with no medical exam limit death benefits to just $500,000.
We like Haven Life due to their simple online quote process and the fact you can get coverage with no medical exam as soon as the next business day after you apply. MassMutual boasts an A++ rating for financial strength from A.M. Best.
Who They're Best For: Haven Life is an excellent choice for consumers who want to buy term life insurance coverage online without having to go through a medical exam.
Visit Haven Life to learn more.
Best Fast Online Coverage: Bestow
Why We Chose It: Bestow was chosen for our ranking due to their easy online quote process, as well as the fact their coverage is always offered without a medical exam. You can see pricing online in a matter of seconds, and coverage can begin as soon as the next business day.
Pros:
- Online quote process
- No medical exams
- Coverage amounts up to $1.5 million available
- Underwritten by A+ carrier
Cons:
- Online term coverage offered
- Only available for adults up to age 60
- No riders available to add on your policy
While Bestow was only founded in 2016, this company offers policies that are underwritten by North American Company for Life and Health Insurance, an A+ carrier according to A.M. Best. This provider does not offer any permanent life insurance coverage options. Instead, they have an unwavering focus on offering term life insurance coverage that's as simple and attainable as possible.
Term life insurance through Bestow never requires a medical exam, and coverage is available in amounts from $50,000 to $1.5 million. You can also customize the length of your term policy in 5-year increments with a maximum of 30 years.
Who They're Best For: Bestow is best for individuals who want access to quick and easy term coverage without any hassles or stress.
Visit Bestow to learn more.Best Whole Life Coverage: MassMutual
Why We Chose It: MassMutual's whole life insurance product is popular due to its guaranteed premiums, cash value growth, and the fact you may earn dividends each year as a policyholder.
Pros:
- Strong ratings for financial strength
- Various coverage types available, including term and permanent life insurance
- Whole life coverage comes with potential to earn dividends
Cons:
- No easy online quote process
MassMutual has been around since 1851, so they have been in operation longer than most competitors in this space. Still, this company features the highest possible rating (A++) for financial strength from A.M. Best, as well as above average ratings for customer service in J.D. Power's 2020 U.S. Life Insurance Study.
While MassMutual offers term life insurance, universal life, and variable universal life, they are known for their whole life policies that typically pay dividends. On the downside, you may need to work with a MassMutual agent to get a quote for a policy.
Who They're Best For: MassMutual is an excellent life insurance company to work with if you want solid coverage from a highly-rated provider, and especially if you're in the market for whole life insurance.
Visit MassMutual to learn more.
Best Agent Experience: New York Life
Why We Chose It: New York Life has been offering life insurance and other financial products since 1845. They offer policies through highly-trained agents who are known for offering excellent customer service.
Pros:
- Long company history beginning in 1845
- Above average ratings for customer service in J.D. Power's 2020 U.S. Life Insurance Study
- Major types of life insurance offered
Cons:
- No easy online quote process
New York Life has been in business since 1845, and they use an agent model that lets customers work with someone they trust. They also have solid ratings and reviews, including the 6th ranking for customer service in J.D. Power's 2020 U.S. Life Insurance Study. In terms of financial strength, New York Life boasts an A++ rating from A.M. Best.
When it comes to their life insurance coverage, New York Life offers term policies, whole life insurance, universal life insurance, and variable universal life insurance.
Who They're Best For: New York Life is best for consumers who want to build a relationship with a trusted agent and advisor.
Visit New York Life to learn more.
Best for No Medical Exams: Mutual of Omaha
Why We Chose It: Mutual of Omaha offers several term and whole life options without a medical exam. They also have an easy online quote process that makes it easy to compare pricing.
Pros:
- Easy online quote process
- Term and whole life coverage with no medical exam available
- Strong ratings for customer service and financial strength
Cons:
- Complex coverage options require you to work with an agent to get a quote
Mutual of Omaha has been in operation since 1909, when it was known as Mutual Benefit Health & Accident Association. Since then, they have grown by leaps and bounds to offer various financial products like life insurance, long-term care insurance, annuities, and more.
We like the fact you can apply for coverage that doesn't require a medical exam, and that Mutual of Omaha makes getting a life insurance quote online a breeze. Note that Mutual of Omaha offers term life insurance coverage, whole life, universal life insurance, and accidental death insurance. This company earned the 5th spot for customer service in J.D. Power's 2020 U.S. Life Insurance Study, and they have an A+ rating for financial strength from A.M. Best.
Who They're Best For: Mutual of Omaha is worth considering if you're looking for term or whole life coverage without a medical exam, and if you prefer to work with a reputable company with strong ratings for financial strength.
Visit Mutual of Omaha to learn more.
Best Coverage for Military: USAA
Why We Chose It: If you're in the military, USAA life insurance products offer flexible coverage options with strong ratings and reviews. However, USAA life insurance, health insurance, and retirement products are available to the public.
Pros:
- Easy online quote process
- Strong ratings for financial strength
- No military or membership requirement for life insurance products
Cons:
- More benefits for military members
While most USAA products are geared to military members, retired military, and their family members, life insurance products are available to anyone who applies and gets approved. USAA makes it easy to get an online quote for coverage, and they offer term coverage and permanent coverage options that can suit anyone's needs and budget constraints.
USAA also has an A++rating for financial strength from A.M. Best. In terms of benefits for military members, USAA promises discounts and special incentives for its members across all of its financial products.
Who They're Best For: USAA life insurance is available to the public, yet military members who belong to USAA can access special perks and discounts.
Best Final Expense Coverage: Transamerica
Why We Chose It: While Transamerica offers popular life insurance options like term life insurance and whole life, they also offer a final expense coverage plan with a guaranteed death benefit and no medical exams.
Pros:
- Strong ratings for financial strength
- Final Expense Solution Portfolio offers whole life coverage with no medical exam and a guaranteed death benefit
- Term and whole life policies available
Cons:
- Below average ratings for customer service (J.D. Power, 2020)
Transamerica has been in business since 1904, and they currently have an A rating for financial strength from A.M. Best. However, they performed below average in J.D. Power's 2020 U.S. Life Insurance Study, where it earned the 18th spot out of 23 life insurance companies profiled.
While Transamerica offers term coverage, whole life insurance, and indexed universal life insurance, we believe it stands out for its final expense coverage. This whole life policy offers a guaranteed death benefit up to $50,000 with no medical exam required, and applicants can get coverage online with automated underwriting.
Who They're Best For: Transamerica final expense insurance is ideal for individuals who want to make sure their funeral and final expenses are covered no matter what.
Visit Transamerica to learn more.
Best Value Life Insurance: AIG
Why We Chose It: AIG promises affordable term life insurance coverage with advertised rates as low as $12.50 per month for a 40-year-old woman who purchases a policy with a $250,000 death benefit.
Pros:
- Easy online quote process
- Strong ratings for financial strength
- Low advertised rates for term coverage
Cons:
- Below average ratings for customer service (J.D. Power, 2020)
American International Group (AIG) was founded in 1919, and it has since grown to become a major provider of life insurance, annuities, and other financial products. They also report an A rating for financial strength from A.M. Best, although this company scored below average for customer service satisfaction in J.D. Power's 2020 U.S. Life Insurance Study.
We chose AIG for our ranking due to their low advertised rates, which include premiums as low as $12.50 per month for a 40-year-old woman who purchases a policy with a $250,000 death benefit. Fortunately, AIG makes it easy to get a free quote online so you can shop around and compare.
Who They're Best For: AIG is a good option for consumers who want to easily get a free quote for inexpensive term life insurance coverage.
Methodology
To find the best life insurance companies of 2022, we looked at providers based on factors like financial strength ratings using AM Best and rankings in J.D. Power's 2020 U.S. Life Insurance Study. We gave preference to companies that specialize in life insurance products, as well as those that make it easy to get a quote or apply for a policy online. Other factors like price, ability to get coverage without a medical exam, and types of life insurance offered were taken into account.
How to Choose the Best Life Insurance Company
If you're in the market for life insurance, there are quite a few factors to keep in mind. For example, you'll want to make sure you know which type of coverage you want, whether you prefer term life insurance or permanent coverage. You'll also want to decide how much life insurance you need, and whether you want to purchase coverage riders that take special circumstances into account.
Once you know what you're looking for, compare the best life insurance companies based on these factors:
- Ratings: Financial strength ratings from third parties like A.M. Best should be considered since they show companies have the stability and financial resources to pay claims.
- Customer Service Rankings: Customer service ratings and reviews can help you avoid companies that fall short in this category.
- Customer Experience: Decide whether you want to work with a life insurance agent or buy coverage entirely online.
- Cost: Compare premiums across at least three life insurance companies to ensure you're not overpaying for the coverage you need.
Frequently Asked Questions (FAQ)
What type of life insurance should I purchase?
The right type of life insurance varies from person to person. Some individuals only need term coverage that lasts for their working years, yet others prefer permanent coverage with a death benefit that lasts until the day they die.
What does life insurance typically cover?
Life insurance proceeds are paid out to beneficiaries who get to decide how the money is used. However, life insurance is typically used to pay off debts, cover final expenses, and provide replacement income in the event of an untimely death.
How much will my life insurance policy cost?
Life insurance premiums can vary widely in terms of cost. Factors that can impact your overall costs for a policy include the type of life insurance coverage you're buying, your age, your health, and more.