Best Life Insurance Companies for 2023.
You need enough life insurance to cover your obligations after you’re gone. Start by looking at your existing financial needs and resources.
Below is the list of Best Life Insurance Companies for 2023.
- Best Overall: – Nationwide
- Best Convertible Term Life Insurance: – MassMutual
- Best Buying Experience: – Haven Life
- Best Term Life Insurance: – Protective
- Best Life Insurance With Living Benefits: – Mutual of Omaha
- Fewest Complaints: – Guardian
- Best for Military Members: – USAA
- Great for Dividends and No-Medical Exam Life Insurance: – Penn Mutual
- Tied for Cheapest Term: – Banner
- Best for Customer Satisfaction: – State Farm Life Insurance
- Best Whole Life Insurance: – New York Life
- Best for Financial Stability: – Northwestern Mutual
How Does Life Insurance Work?
Life insurance is a contract between a policyowner and an insurance company. In exchange for premium payments, an insurance company will pay a death benefit to your beneficiaries if you pass away while the policy is in force. The money is received tax-free, and beneficiaries can use it for whatever purpose they choose.
How To Choose the Best Life Insurance Company
To choose the best life insurance company, consider financial strength, customer complaints, customer satisfaction, available policy types, available and included riders, and ease of application. Then, collect quotes among your top picks. Doing this homework will ensure you choose a company that offers a policy that suits your needs and will be there when your family needs it.
Consider these factors when choosing your life insurance company:
Check AM Best ratings for financial stability. A++ and A+ ratings are considered “superior,” while A and A- are considered “excellent.” Other agencies also rate insurance companies, including Moody’s, Fitch, Standard & Poor’s, and Demotech.
The National Association of Insurance Commissioners (NAIC) uses customer complaints to create the NAIC complaint index, which indicates whether a company received more or fewer complaints than expected, based on its market share. An index lower than 1 indicates the company received fewer complaints than expected, while a number over 1 means it got more than expected. The higher the index, the more customers complain, and vice versa.
Not all companies are ranked for customer satisfaction, but check sources like J.D. Power’s 2022 U.S. Individual Life Insurance and Individual Annuities studies to see if companies you’re considering are. At a glance, you can see how a company ranks compared to others when it comes to customer satisfaction.
Available Policy Types
If you know which type of insurance you need, make sure each company you’re considering offers it. But note that a whole life policy with one company can be very different from a whole life policy with another. Though policies between companies might have the same name, each company tries to make its product stand out. Make sure their efforts suit your needs.
Available and Included Riders
This is a major way that same-named policies can differ. For example, a universal life policy with one company might include a generous accelerated death benefit rider at no cost, while a UL policy with another company may not. Or a term policy with one company may allow you to convert it to permanent coverage, while a term policy with another company may not. Research riders to know what you’re paying for.
Ease of Application
Sometimes the biggest barrier to getting a life insurance policy is the application process. And often, it’s better to get some coverage in place—especially if you have dependents—than it is to find the absolute best coverage you can. If you’re too busy for an exam, look for companies that don’t require one.
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