When it comes to buying insurance, it is good to have options. And knowing who the best life insurance companies are provides you with the insight you need to try and get the best rates.
Some things you need to be aware of when considering the different life insurance companies.
- Financial Strength
- Policies Offered
- Underwriting Criteria
The primary ratings agencies that provide financial strength ratings to the different life insurance carriers are A.M. Best Company, Standard and Poor’s, Fitch Ratings and Moody’s.
In addition, the Comdex Ranking is also used, which offers a ranking from 1 to 100 based on how each of the different rating agencies scores a life insurance company.
The companies with the highest ratings are typically going to be the insurance companies you want to choose.
The following table shows a list of life insurance companies in order of financial strength.
|Company||A.M. Best||S&P||Moody's||Fitch||COMDEX Ranking|
|New York Life||A++||AA+||Aaa||AAA||100|
|State Life Insurance Company||A+||AA-||96|
|Mutual of Omaha||A+||AA-||A1||90|
There are different types of life insurance policies. The two main insurance policies offered are term life and permanent life insurance.
Term Life Insurance
Term life is offered in a few different ways, such as convertible term, level term life, annual renewable term and decreasing term life insurance.
In addition, there are different terms available, such as 5 year, 10, 15, 20, 25 and 30 year terms.
Different term life riders are available such as return of premium, waiver of premium and terminal illness riders.
The Best Term Life Insurance Companies Are:
Permanent Life Insurance
Permanent life insurance is offered in two different products, whole life vs universal life. Not all life insurance carriers provide each type of permanent insurance coverage.
Whole Life Insurance
Traditional dividend paying whole life insurance coverage is the more stable insurance product. It offers guaranteed cash value, guaranteed level premiums and guaranteed death benefit protection.
The Best Dividend Paying Whole Life Insurance Companies Are:
- American United Life
- Lafayette Life
- New York Life
- Northwestern Mutual
- Ohio National
- Penn Mutual
- Security Mutual
Universal life is a permanent life insurance policy offering more flexibility, allowing you to make different premium payments depending on your current ability. Universal life insurance coverage is available in a few different options.
Guaranteed Universal Life
Guaranteed universal life provides a return offered by the insurance company. It is guaranteed based on the criteria that you meet your minimum insurance premium payment. As long as you pay the minimum insurance premiums required, your universal life policy will remain in force.
The Best Guaranteed Universal Life Companies Are:
Indexed Universal Life
Indexed universal life offers indexing tied to the stock market so that your policy can experience potentially higher returns than with whole life.
The IUL index is linked to the stock market but does not directly participate in the stock market.
The IUL insurance policy provides some safety in that there is a floor available which limits potential losses from poor stock market performance.
The Best Indexed Universal Life Companies Are:
Variable Universal Life
Variable life insurance offers many subaccounts, like mutual funds, that allow you to participate in the stock market.
The pros and cons of variable universal life are that you can participate in the gains of the stock market and experience huge growth in your policy’s cash value.
Alternatively, your VUL insurance policy can experience huge losses when the market goes south.
The Best Variable Life Insurance Companies Are:
Long-Term Care and Chronic Illness Riders
Additionally, certain companies offer long-term care and chronic illness riders. If you desire certain living benefits attached to your permanent life insurance policy, then knowing which life insurer offers the best living benefit riders is a must.
Different insurance companies have different life insurance underwriting criteria. This is important to know because one company may illustrate better than another company, but due to more restrictive medical exam underwriting, as well as how that life insurer views a specific pre-existing medical condition, that company may not offer the best rate class you thought you would qualify for.
As a result, you get a lower rate class than the alternative life insurance company. The lower rate class may affect your policy’s performance.
In hindsight, you realize you should have applied with the other life insurer that had more favorable underwriting criteria for your health profile and any pre-existing conditions and you may have received a better rate class than the company that illustrated better.
This is just one example of why knowing which life insurance company is best (for you) is essential. That is, which company will offer you the best rate class, not necessarily look the best on paper. That way you do not end up paying higher premiums than necessary.
Finally, another underwriting factor to consider is whether you should take an exam or choose no medical exam life insurance. Many of the top whole life and universal life companies offer programs that allow you to bypass the life insurance blood test all together.
Comprehensive List of Life Insurance Carriers
- AAA Life Insurance
- AARP Life Review
- AIG American General Life Insurance Company Review
- Allianz Life Review
- American Amicable Review
- AETNA American Continental Insurance Company Review
- American Equity Investment Life Insurance Company Review
- American Home Life Insurance Review
- American National Review
- American United Life Review
- Ameritas Review
- Assurity Life Insurance Review
- AXA Equitable Life Insurance Company Review
- Baltimore Life Review
- Banner Life Insurance Review
- Brighthouse Financial Review
- Colonial Penn Review
- Foresters Financial Review
- Gerber Grow-Up Plan Review
- Genworth Life Insurance Company Review
- Globe Life Review
- Great American Life Insurance Company Review
- Guardian Life Insurance Review
- John Hancock Life Insurance Review
- Knights of Columbus Life Insurance Review
- Lafayette Life Insurance Review
- Liberty Bankers Life Review
- Lincoln Financial Group Review
- Mass Mutual Review
- MetLife Whole Life Review
- Midland National Review
- Minnesota Life Insurance Company Review
- Mutual of Omaha Life Insurance Review
- Mutual of Omaha Long-Term Care Insurance Review
- Mutual Trust Life Insurance Company Review
- Nassau Re – Phoenix Life Insurance Company Review
- National Life Group Review
- Nationwide Life Insurance Review
- New York Life Review
- North American Company Review
- Northwestern Mutual Review
- Ohio National Review
- Pacific Life Insurance Company Review
- Penn Mutual Review
- Primerica Life Insurance Review
- Principal Financial Life Insurance Review
- Prosperity Life Review
- Protective Life Insurance Review
- Prudential Life Insurance Review
- Royal Neighbors Review
- Sagicor Life Insurance Company Review
- SBLI Life Insurance Review
- Security Mutual Life Review
- Sentinel Security Life
- State Farm Whole Life Review
- State Life Insurance Company Review
- Symetra Life Insurance Company Review
- Thrivent Life Review
- Transamerica Life Insurance Company Review
- United Home Life Review
- USAA Life Insurance Review
- Voya Life Insurance Company Review