It’s very common for consumers to not check the ratings of a life insurance company before they actually purchase their life insurance policy. They don’t even think of comparing the best life insurance companies before they make a buying decision.
If you’re planning on paying for a policy for the next 20 or 30 years, don’t you want to know how strong the ratings are for the life insurance company you’re handing your money to? One would think so.
- Banner Life
- Voya Financial
- Mutual of Omaha
- New York Life
Yet people don’t do it. It doesn’t take much time to do some research and find out how solid the insurance company is. A simple Google search will yield you a wealth of information.
These are only a few of the companies out there, but we want to make buying life insurance as quick as possible.
Top Ten Life Insurance Companies in the United States
I will be honest, any list of the “best” life insurance companies is going to be a bit subjective. While each company on this list is a top level and has great financial and customer service ratings, there are simply too many life insurance companies that are in consideration for this list for there not to be a reasonable variance between opinions.
Also, if you run a set of life insurance quotes and the least expensive company on the list does not show up on this list, then that should not exclude them from your consideration. All the companies that are a part of our life insurance quotes are top rated by the life insurance ratings agencies. That being said, our team here at LifeInsuranceByJeff.com sat down and came up with this list of companies for the United States.
HavenLife has made a big splash in the life insurance marketplace in a very short period of time. While they are still considered a startup company they are fully backed by MassMutual which has over 150 years of history in the insurance industry.
What makes HavenLife unique is that they offer instant coverage without a medical exam. To qualify you do have to be in good health, but even if you do not qualify instantly you can still go through the normal underwriting policy to receive coverage. You can only get term life insurance through HavenLife and they make it faster and the least amount of hassle of any company in the life insurance market.
You will probably see Banner Life show up in many lists of top life insurance carriers. They are considered the top company to get coverage for anyone who is classified as high risk.
Banner has done considerable work learning how to best insure and rate individuals with any medical conditions or high risk occupations/activities. This is especially true of anyone that is older. Banner offers term life insurance for people up to 95 years of age. Compare that to most companies, which cut off term life insurance and 65 or 75 and you can see why they are so well thought of in the senior community.
The company has been around for almost 80 years and has a stellar track record at taking care of its clients. With top grades from all the ratings agencies, you cannot go wrong with Banner Life if they show up as the best value for your dollars. Learn more in our review of Banner Life.
AIG is one of the largest life insurance companies in the world. This allows them to offer lower rates to people who are on the edge of pushing into a more expensive rate class. This means if you are little overweight you may get better rates with AIG than with other carriers.
AIG has a strong reputation when it comes to financial ratings. They receive at least an A rating from all four of the insurance ratings companies. You can learn more about the company in our AIG life insurance review.
Prudential is one of the most well known insurance companies in the USA. Along with being a highly rated company and over 100 years old, they have made a name for themselves for offering the best rates for those who use chewing tobacco. This is because they do not rate chewing tobacco users in the same class as smokers. This means chewing tobacco users can save thousands of dollars over the life of the policy.
Just like the other companies on the list, Prudential receives at least an A rating from all four major ratings agencies. Learn more in our Prudential life insurance company review.
MetLife has one of the most recognizable mascots in Snoopy. They offer pretty much every type of life insurance product in the market.
MetLife is considered one of the top providers in the world with more than 140 years of history and no less than a AA- rating from all the top insurance rating companies. Get all the details about this top company in our MetLife review.
Voya was recently known as ING Life insurance until it was spun off by its parent company. They serve approximately 13 million individuals and business clients. Their policies include term, whole, universal, and survivorship policies.
Their ratings are all A- or higher and have over $519 billion in total assets under management. You can learn more in our Voya review.
Mutual of Omaha
Mutual of Omaha has been serving the life insurance market for more than 100 years and they are great at offering top rates on life insurance policies for seniors.
They have an impeccable set of ratings and a great reputation for customer service and paying off claims.
Genworth has been doing business since 1871 and sells insurance in more than 25 countries across the globe.
New York Life is one of the most well known life insurance companies and has a stellar reputation of working with employer provided plans.
The company has been around for more than 170 years and receives top ratings from all four carriers, including A++ and AAA from Finch. Learn more in our review of New York Life Insurance.
Transamerica began operations more than 100 year ago and offers term life insurance for people up to 58 years old. They have grown into a big time financial and insurance provider and have ratings of at least AA- from all the ratings agencies. You can learn more about them in our Transamerica review.
Other Life Insurance Company’s To Consider
- AARP Senior Life Insurance Review
- Fidelity Life Association Insurance Company Review
- Assurity Life Insurance Company Review
- Family Life Insurance Company Review
- Monumental Life Insurance Company Review
- United Home Life Insurance Company Review
- Globe Life Insurance Review
- Forester’s Life Insurance Company Review
- Jackson National Life Insurance Company Review
- Lincoln General Life Insurance Company Review
- Guaranteed Trust Life Insurance Company Review
- Gerber Life Insurance Company Review
- SBLI Life Insurance Company Review
- Principal Life Insurance Company Review
- John Hancock Life Insurance Company Review
- Prudential Life Insurance Company Review
- Lincoln Financial Insurance Company Review
- Protective Life Insurance Company Review
In addition to these individual company reviews above, you should know advantages and disadvantages to using other brokers, like SelectQuote, as well. You may have heard of them from the radio or other advertisements, but they may not be your best choice.
Best Life Insurance Companies
When you’re looking for the best life insurance company, there are several factors that you should look at, and it can be an overwhelming search to get the best policy. When you’re investing in life insurance, you need to do the proper about of research.
The list that I’ve compiled isn’t necessarily “the best life insurance companies for EVERYONE.” These are only a list of some of the best insurance companies for most people. These companies tend to be at the top of the list for most people, but everyone is different and everyone has different life insurance needs, which means that these companies might not be the best choices for you.
The Top Life Insurance Companies – By Category
There are more than 850 life insurance companies in the United States. Finding the best insurance company for your needs can be difficult.
There are several factors to consider:
- customer service
- and much more
No life insurance company is perfect for everyone. It can be overwhelming when you begin your search.
While people who are in good health can pretty much use the form on this page and find a good match, people who are “high risk” can have troubles.
To help everyone, we put together this list of common categories and matched the companies that we have had the easiest time getting clients approved.
Our Pick: Mutual of Omaha
Headquarters: Omaha, Nebraska.
With over 3.5 million individual product customers in 2014, Mutual of Omaha is one of the most well-known and respected insurance companies in the field. Founded in 1909 they have had a few years to become good at what they do.
Through the last 100 years Mutual of Omaha has developed policies that work well for most elderly customers. Mutual of Omaha is an excellent place to start for seniors to look for life insurance. If you are between the ages of 45 – 85 seeking life insurance coverage, you cannot be rejected. You will not have to take a medical exam or answer ANY medical questions and they can’t reduce any of your benefits due to your health or age.
Our Pick: Genworth
Headquarters: Richmond, Virginia.
Genworth is considered to be the leader in providing life insurance for customers that are typically classified as “overweight”. Their policies have a generous view on what is considered to be “overweight” or “obese.” Their liberal standards are important in receiving a preferred plus rating in the underwriting of the policies, which leads to lower monthly premiums. With Genworth applicants are allowed a few more pounds before being considered overweight for their height.
Another reason to choose Genworth is their customer service. In 2013 Genworth won the DALBAR Life & Long Term Care Service for customer service award. Learn more about this company at our Genworth Trust Life Insurance Company Review.
Category: 5 – Year Term
Our Pick:Minnesota Life
Headquarters: St. Paul, Minnesota.
Minnesota Life boasts an impressive $1 trillion in life insurance protection and is highly rated from all independent agencies. They are also one of the few life insurance companies that offer a 5- year term policy. These types of policies are great for short-term coverage and can help you save money with their lower premiums. A 5-year term policy is popular among young married couples who want to cover death expenses and can’t afford a higher coverage.
Category: Universal Life
Our Pick: Protective Life
Headquarters: Birmingham, Alabama
Protective Life is becoming known as the best life insurance company for Universal Life policies. Universal Life policies are relatively new to the insurance industry. These policies are created to last throughout your life as opposed to a term policy. Protective Life’s Universal Life policies offer several ways for you to customize the plan to fit your needs. They allow you to adjust coverage amounts and premiums of the plan and make changes to the savings portion of the account. Protective Life has competitive prices compared to other companies that offer Universal Life policies.
Category: No Medical Exam
Our Pick: American National Insurance Company (ANICO)
Headquarters: Galveston, Texas.
The Moody family established ANICO in 1905, and the family still plays an active role in the company. ANICO was named to Forbe’s “100 Most Trustworthy Companies” list in 2009.
ANICO offers a wide variety of products and policies, but they specialize in policies that don’t require a medical exam or health questions. They offer several different policies with varying coverage amounts, premiums, and terms. Their Legacy Whole Life insures people ages 50 – 80 and is guaranteed approval with a fixed premium. These policies are great for people who need life insurance immediately, or do not have the time to go through a medical exam. In most cases you can be approved with a policy in less than 20 minutes with ANICO.
The premiums are going to be higher when a medical exam is not required. They also have tighter limits on the amount you can be insured for. You also must be careful of a two year graded death benefit. Which means that if the insured person dies within the first two years of the policy, the company will pay 110% of premiums paid, but not the payout of the policy.
Category: Cancer Survivors
Our Pick: Prudential
Headquarters: Newark, New Jersey.
Prudential is famous for covering several “high-risk” groups that most other insurance companies won’t. With an estimated 14 million cancer survivors in the United States, Prudential has become one of the leaders in providing life insurance for cancer survivors.
Although your premium will be higher, Prudential offers great rates for cancer survivors. The type of cancer and the length of remission will play a huge part in the premium and coverage amount they offer.
Category: Tobacco Users
Our Pick: Banner Life
Headquarters: Frederick, Maryland.
Banner Life is an excellent company for almost any type of policy, but especially for tobacco users. Most life insurance companies don’t specify between the types of tobaccos when underwriting a policy. Banner Life is different. They offer “preferred tobacco” and “standard tobacco” depending on the type and frequency. Banner Life has become specialists in life insurance policies for smokers and tobacco users for lower rates.
Yes, you are still going to be paying a higher premium than someone that does not use tobacco, but Banner will help you get a lower price than almost all other companies.
Our Pick: American General
Headquarters: New York, New York.
In the early 2000’s American General became a part of the larger and well-known American International Group (AIG). American General insures more than 88 million consumers worldwide, but we chose them because of the excellence in serving the diabetic community.
American General is great at serving several groups of “high-risk” applicants, but specifically those seeking life insurance with type 2 diabetes. Once again, anyone with diabetes is going to pay more than someone without it, but American General will help give you a lower premium.
With American General you can also take advantage of their accelerated death benefit rider that lets you receive some of the benefits while you are alive.
Identify the Safest Life Insurance Companies, First and Foremost
If you want to find out some information about your potential insurance company, here’s a few things you’ll want to consider.
First, check to see if your state has what is called a “insurance guaranty fund“.
At this time I’m not aware of any states who don’t have this fund, so you should be in the clear. If you’re not sure, be sure to check your Insurance State Commissioner’s resource page for your state.
What the guaranty fund covers is if something did happen to your insurance company, and it became insolvent. The state fund would kick in and pay the life insurance death benefit.
But, for this to happen, verify the caps on payout limits are large enough to take care of your life insurance policy. If you are purchasing some sort of policy which has a cash value build up, make sure the increasing amount is covered, too.
This a last resort option, of course, as the process can be a bear. Don’t expect a quick turnaround on getting your money.
The second place you can get information is visiting A.M. Best (note: Fitch, Moody’s and S&P also rank insurance companies, but more on this below). A. M. Best is one of the most recognized companies who rates the financial strength of all the different life insurance companies currently in business.
How long have they been around?
In fact, they’ve been around over 100 years, so they are definitely considered the leader in this space.
If your company is rated A, A+, or A++, it’s on solid ground. If your company is rated B or worse, it’s time to move on.
Below you’ll find more about A.M. Best’s rating scale.
How Do A.M. Best Insurance Ratings Scale Work, Exactly?
When you’re looking for the best company, one important thing to consider is their A.M Best rating.
Here’s how the A.M. Best insurance ratings scale works, in a nutshell:
- A++, A+, A, and A- these are the highest ratings a company can get. If you find a company in this category, you don’t have to worry about their financial stability.
- B++, B+, B, and B- this is the next highest category. These companies still have a great financial foundation and you don’t have to worry about these companies going bankrupt.
- C++ and C+ there are only two ratings in the C category. These companies tend to offer very straightforward coverage with no additions. This is when you should do a lot of research with these companies, you’ll start to enter the gray area.
- D buyers beware of any company in this category. These are the carriers who don’t meet the requires of A.M. Best. I highly recommend not buying a plan from any company below a C.
If you don’t know where to look to get up to date ratings and reviews of all the best life insurance companies, look no further. In the table below, you will see a comprehensive list of all the life insurance companies.
Moody’s Ratings Explanations
As mentioned above, Moody’s is another rating agency who monitors the creditworthiness of an insurance company. Here’s what their table look like:
|AAA||Extremely Strong||Very unlikely to be affected by adverse economic conditions.|
|AA||Very Strong||Not significantly vulnerable to adverse economic conditions.|
|A||Strong||Low expectation for interruption of payments.|
|BBB||Good||May be affected by adverse economic conditions.|
|BB||Moderately Weak||Contractual obligations are now vulnerable.|
|B||Weak||Significant risk for interruption of payments.
|CCC||Very Weak||Strong likelihood for interruption of payments.|
|CC||Extremely Weak||Interruption of payments is probable.|
|C||Distressed||Interruption of payments is imminent.|
You’ll see it looks and feels a lot like A.M. Best’s, which is helpful to you so you can compare apples to apples as best you can.
Types of Life Insurance
Aside from deciding which insurance company is going to be best for you, another vital decision that you will be forced to make is which types of plan is best for you. There are several different kinds of coverage that each have different pros and cons. It’s important that you decide which kind of life insurance plan is going to fit your needs.
Term Life Insurance
The first kind, and the most common type, is a term life insurance policy. These are the traditional forms of life insurance protection that you can purchase. When you buy a term plan, it comes with an expiration date, and once that date has passed, you will no longer have insurance coverage. If you want to have life insurance, you will need to purchase a new plan. Because these are only temporary forms of coverage, they are going to be much more affordable than other options.
Whole Life Insurance
The next type of coverage is whole life insurance. As you can guess from the name, whole life insurance policies are a permanent type of coverage. These plans are never going to expire. As long as you pay the monthly premiums for the plan, you will have life insurance protection. These are an excellent option for anyone that doesn’t want to worry about having to reapply for coverage in the future, but that advantage is going to come at a higher price.
One of the unique advantages of whole life insurance coverage is that it builds cash value inside of the plan. The longer that you have the plan, the more value that’s inside of them. You can use this cash value to pay the monthly premiums for the plan or to secure a loan.
Universal Life Insurance
There are several other subtypes of universal life insurance plans that you can choose from: guaranteed universal life insurance, variable life insurance, and indexed universal life insurance. All of these plans are pretty similar, but there are a few unique distinctions that set them apart.
Guaranteed universal life insurance will give you lower premiums versus some other permanent coverage, and they also have flexible premiums. You can change your premiums (within reason), as your finances change.
Indexed Universal Life
Indexed universal life insurance is very similar, but it gives you the chance to get higher cash value investment options. The cash value component of the plan will be indexed to the market. There is a guaranteed floor, which means that regardless of how poorly the market is doing, you’ll still get a guaranteed return.
Variable Universal Life
Variable universal life insurance is going to give you the least amount of flexibility in how much you can change your premiums, but it will also give you the highest cap on how much growth you can get from the cash value. On the flip side, they also have the chance of getting the least amount of return as well.
No Exam Life Insurance
One unique type of life insurance coverage is no exam policy. No exam policies let you get life insurance protection without being required to take the medical exam. These plans don’t work for everyone, but it’s something that you should be aware of when you’re looking for the best plan. With these plans, you’ll be able to get insurance protection much faster, but they are going to be notably more expensive than a plan that requires a medical exam.
Each person and policy is different. Make sure you receive several quotes for diabetic life insurance before deciding on a plan that works for you. All of these companies are financially stable; you shouldn’t have any concerns about these companies paying out for the policy. Each state has it’s own “insurance guaranty fund”, which would help you recover your insurance pay out if an insurance company became insolvent.
To get a free analysis of quotes from the best life insurance companies, use the form on this page or call us at 8888-836-7071. We are here to help you get the cheapest term quote from the best insurance companies.