9 Best Life Insurance Companies of February 2022 – Waco Tribune-Herald
Best No-Exam Insurance
Bestow
Our Partner
Company Highlight:
Full online process
Term Coverage:
10-year, 15-year, 20-year, 25-year, 30-year
Death Benefit:
$50,000 to $1.5 million
AM Best Rating:
A+
Policies Offered:
Term
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Best Guaranteed Coverage
Ethos
Our Partner
Company Highlight:
A whole life insurance policy is available for those between 65-85 years of age
Term Coverage:
10-year, 15-year, 20-year, 30-year
Death Benefit:
$20,000 to $2 million
AM Best Rating:
A
Policies Offered:
Term, Whole
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Best Online Broker
Policygenius
Our Partner
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Best Term Life Insurance
Haven Life
Our Partner
Company Highlight:
Final quote comes 7-10 days after completing the medical exam
Term Coverage:
10-year, 15-year, 20-year, 25-year or 30-year
Death Benefit:
$100,000 to $3 million
AM Best Rating:
A++
Policies Offered:
Term
See An Estimate
Best for Flexible Coverage
Ladder
Our Partner
Company Highlight:
Premiums start at just $5/month
Term Coverage:
10-, 15-, 20-, 25-, 30- year term
Death Benefit:
$100,000 to $3 million
AM Best Rating:
A++
Policies Offered:
Term, Whole, Universal, Variable Universal
See An Estimate
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If you’re the main provider for your family, and are worried about their financial future if you were to die, a life insurance policy can provide peace of mind.
Life insurance can help your family cover burial expenses, education costs for your children, loss of income or any other financial need.
Below, you’ll find our selection of the best life insurance companies for February 2022. We’ve called out their distinctions, along the various types of policies and premiums they provide.
Our Top Picks for Best Life Insurance Companies
With a Life Insurance policy you can take care of your family the right way.
Should anything happen to you, you’ll want to leave your loved ones a financial nest egg for their wellbeing. Click on your state to find out more.
Best Life Insurance Companies Reviews
Best No-Exam Life Insurance: Bestow
Why we chose it: Bestow issues term life insurance more quickly and easily than most companies, and it offers an unusually high death benefit for policies that do not require a medical examination.
Pros
High coverage (up to $1.5 million) without a medical examOnline application and quick processingTerms range from 10 to 30 yearsLong (30-day) free look period
Cons
No riders availableSells only one type of life insurance, term insuranceMust be less than 60 to qualify for coveragePolicies not available to residents of New York
Bestow is our choice for individuals that want to get life insurance coverage but don’t want to go through the hassle of a medical exam. The company sells simplified issue term insurance policies (and only those), so you can apply online and purchase a policy without visiting a doctor or having tests such as bloodwork done. You can get up to $1.5 million in coverage, which is a higher maximum than for many other no-exam policies.
The company uses your personal information and your answers about your medical history, hobbies and lifestyle to determine your eligibility for life insurance and your rates. Bestow claims you can get a quote and purchase a policy within minutes, all online.
Bestow policies are issued by top-rated insurer North American Company for Life and Health Insurance. Additionally, life insurance from Bestow is now embedded into Lemonade’s app and website. Bestow also offers a comprehensive library of helpful information.
Best Guaranteed Coverage: Ethos
Why we chose it: Ethos stands out for accommodating a wide range of potential applicants, including those who may have struggled to qualify for insurance in the past – such as older individuals. Also, prospective customers can receive a quote within minutes without needing to talk to an insurance agent.
Pros
Sells term and permanent coverageGuaranteed issue policies availableQuotes and application process entirely onlineAccelerated death benefit rider included on most policies
Cons
Little information publicly available about optional ridersLimited permanent life insurance options
Ethos offers three types of underwriting:
Simplified issue: Simplified issue policies require you to answer questions about your health and medical history, but medical exams are not necessary.Guaranteed issue: With guaranteed issue policies, you cannot be denied based on your medical history or health.Fully underwritten: Fully underwritten policies require medical exams and bloodwork.
Ethos uses either simplified issue and fully underwritten methodology for its term policies, and guaranteed issue underwriting for its whole life insurance policies (no company we know of offers term policies with guaranteed coverage).
The guaranteed issue whole life policy is available to individuals between 65 and 85. Applicants can obtain instant approval for up to $25,000 of coverage, regardless of their medical history.
Most include an accelerated death benefit rider that allows policyholders to tap into a portion of their benefits if they’re diagnosed with a terminal illness.
Best Online Broker: Policygenius
Why we chose it: As a comprehensive online life insurance marketplace, Policygenius offers one-stop access to both term and whole life policies from a wide range of partners. Unlike some other comparison sites, this one pledges not to sell your information to third parties.
Pros
Quickly and easily compare quotes from multiple insurersAgents don’t work on commission, the company saysMultiple types of insurance available
Cons
Online quotes are not available for all providersTakes more time than some other options to get a final price
Policygenius takes the top spot as the best comparison tool and broker for its satisfying provision of one-stop shopping from a range of insurers. Policygenius’s partners include such names as AIG, Banner Life, Brighthouse, John Hancock, Lincoln Financial, Mutual of Omaha, Pacific Life, Principal, Protective, Prudential, SBLI and Transamerica.
This online marketplace also offers an extensive library of educational resources for those new to life insurance, including recommendations for life insurance for people who suffer from depression and diabetes. Coupled with its broad range of coverage options such as term or permanent coverage policies, these resources make Policygenius a standout option for comparing life insurance quotes.
If you need help choosing the right policy or coverage amount, PolicyGenius’ agents can give you personalized assistance. They are paid by salary rather than commission, the company says, so they aren’t incentivized to oversell or to direct you to certain products that may earn them a higher commission.
Best for Term Life Insurance: Haven Life
Why we chose it: Haven Life provides an unusually wide range of term life insurance options, including plans with especially high death benefits. Its plans also come with additional perks such as online services to create a will.
Pros
Offers two types of term policies: Haven Term and Simplified IssueHaven Simplified Issue doesn’t require a medical examUp to $3 million in term coverageHaven Term includes Haven Plus with perks and discounts
Cons
Medical exams required for over $500,000 of coverageSimplified issue policy not available in CA, DE, SD, ND or NYHaven Plus not available in FL, NY, ND, SD, and WAPolicies cannot replace another life insurance policy
Haven Life gets our nod for the best term insurance coverage because of its impressive array (10-, 15-, 20-, 25- and 30-year) of policy terms, along with coverage amounts that range from $100,000 to $3 million.
Haven Life offers two types of term life insurance policies: Haven Term and Haven Simple. Haven Term includes Haven Life Plus, a rider that provides access to an online service to develop a will or trust, fitness and sleep tracking apps and an online storage vault for important documents.
Applicants who are younger than 64 can get up to $3 million of coverage through Haven Term. Haven Simple is only available for applicants aged 20-55 and includes the Accelerated Death Benefit rider.
Best for Flexible Coverage: Ladder
Why we chose it: True to its name, Ladder’s appeal is in its adjustability. As your needs change, you can increase or decrease your coverage. Also, its premiums start at only $5 a month, so you can purchase a policy even if you’re on a tight budget.
Pros
Term coverage can be adjusted over time$100,000 to $8 million in term coverage available30-day free look period, rather than the 10-day normNo medical exams for most
Cons
Plans limited to people between 20 and 60Only term coverage is availableNo optional riders
Despite writing only term policies for relatively young applicants, Ladder is the best flexible insurance option we’ve found. It uses a simple three-step online application and offers affordable policies that start at $5/month. The company also doesn’t charge any cancellation fees, which means you can cancel your coverage any time, with no strings attached.
Another appealing feature for Ladder is that, unlike other insurers, it allows policyholders to change their coverage amount online at any time — with corresponding changes in premiums, of course. This perk can help policyholders maintain an affordable policy at all times, and might be especially attractive to those worried about possible changes in their financial circumstances down the road.
Best for Customer Satisfaction and Stability: State Farm
Why we chose it: If a satisfying consumer experience is paramount for you, State Farm should be a leading option. It has an excellent reputation for customer service, along with an outstanding record for financial stability.
Pros
Top-ranked company for customer satisfactionLow number of customer complaintsMultiple policy optionsSimplified-issue (no exam) policies available
Cons
Online quotes not available for all policy optionsMost policies require medical examsNo discounts if bundled with homeowners or auto insurance
State Farm is a leading insurance company, and our pick for the best insurer for customer satisfaction and reliability. In 2021, it was ranked by J.D. Power as the top life insurance company based on consumer responses. It beat out 21 other life insurance companies based on its product offerings, communication, pricing and customer interactions.
The company has an A++ (superior) rating from AM Best — the highest rating possible — indicating that it’s very financially stable. And, State Farm received fewer complaints than is expected for a company of its size.
State Farm sells term, whole and universal life insurance policies. Although most of its plans require medical exams, it does have some simplified-issue options.
Best for Permanent Life Insurance: New York Life
Why we chose it: New York Life insurance options include both term and permanent life insurance policies, and its term policies include a conversion option if you decide you want permanent coverage later on. It also underwrites AARP’s life insurance program.
Pros
Multiple term, whole and universal life plans availableSeveral optional riders can be added to policiesHighly rated companyPotential to earn dividends
Cons
Must work with an agentNo online quotes available
While it also sells term life insurance, New York Life is an especially good choice for those seeking a permanent life insurance policy – which will be more costly but accumulate a cash value in addition to its death benefit. The company offers multiple permanent options, including whole, universal and variable universal life insurance plans. It also has several optional riders you can add to plans to customize your coverage.
New York Life has a strong reputation, and, because it’s a mutual insurance company, its policyholders own part of the company’s shares. Depending on the type of policy you have, you may be eligible to receive dividends.
However, New York Life doesn’t allow customers to get quotes online. For details on its policies and rates, you have to work with an agent.
Best for Bundling Discounts: Nationwide
Why we chose it: It’s relatively rare to get a break on your life insurance rates by bundling it with other types of coverage a company offers, but Nationwide offers such discounts. It writes term, whole life and universal policies, and has strong ratings for customer satisfaction and financial stability.
Pros
Discounts available when bundled with homeowners or auto insuranceMultiple insurance plans and optional riders
Cons
All policies require medical examsMost policies must be purchased through agents
Nationwide is a leading insurance company that is well-regarded by third parties like AM Best, which rates financial stability, and J.D. Power, which scores customer satisfaction. It offers multiple life insurance options, including term, whole and universal life coverage. It also has several optional riders you can use to adjust your policy to your needs.
Although Nationwide’s policies usually have to be purchased through an agent, the company does have a major perk over other companies: it offers a multi-policy discount when you bundle life insurance with homeowners and auto insurance, making your premiums more affordable.
Best for Policy Customization: Northwestern Mutual
Why we chose it: Insurance riders allow you to get coverage for loved ones, access your benefits under special circumstances or even waive your premiums if you become ill. Northwestern Mutual has more optional riders available than most insurers, allowing you to customize your policy as you like.
Pros
Lengthy list of optional ridersMultiple policy optionsPotential to earn dividendsHighly rated by third parties
Cons
Policies must be purchased through agentsMedical exams required for mostLimited online quote tools
Like most insurers, Northwestern Mutual offers a broad range of life insurance types, including term, whole, universal and variable universal life insurance. Its distinction in its long list of riders that, when added to your policy, allow you to extend and customize your coverage to meet your unique needs.
As a mutual company, Northwestern Mutual also pays dividends to policyholders. If you purchase insurance through the company, you could be eligible for annual dividend payments.
Northwestern Mutual is a reputable company that is usually listed at the top of industry rankings. It was third out of 21 companies in the J.D. Power 2021 U.S. Individual Life Insurance Study, and it’s historically received fewer complaints than is typical for a company of its size.
Other life insurance companies we considered
Lemonade
Lemonade is not part of our top insurers because of its limited insurance offerings. It also lacks information about riders and policies on its website.
Pros
Premiums start from $9/moCompletely online applicationFull refund if you cancel within the first 30 days
Cons
Only people aged 18-60 can applyTerm life is not available in NYIf you have heart disease or cancer it’s unlikely that you’ll be approved by this insurer
Sproutt
Sproutt didn’t make it into our main list because its Quality of Life underwriting has very specific qualifications, indicating that its policies target a narrow and specific audience. Also, the company’s website lacks information about insurance coverage, riders and term options.
Pros
Options available for those who identify as non-binaryUses technology to match people with the right policy coverageUses Quality of Life Index to underwrite policies
Cons
No phone assistance over the weekendCoverage may be denied if you’re in poor health or have a high BMINo-exam policies may be denied if you’ve filed for bankruptcy
Health IQ
Broker Health IQ is not part of our main list, in part because its online service is more limited than some, and its website offers less detailed information than is the norm, too. (We note, though, that the company partners with over 25 national insurers, including Prudential, Mutual of Omaha, and Transamerica, and terms, policies and riders depend on the provider the customer selects.)
Pros
Compare rates from 30 different carriersLicensed agents guide you through the processOffers membership rewards program
Cons
Online quotes require that users agree to calls from agentsMust have a healthy lifestyle or pass a quiz to qualify for better rates
MassMutual
MassMutual is not part of our main list because even though it has a wide selection of life insurance policies, its policies have few or no optional riders.
Pros
Young and/or healthy applicants may not need a medical examOffer two whole life policies with long term care ridersDirect Term life insurance can be purchased immediately online
Cons
No conversion options for some policiesYou can only earn dividends with a whole life insurance policyFew or no policy riders
Guardian Life
Guardian Life didn’t make it to our main list because of its below-average JD Power rating and the limited riders available for its policies.
Pros
Online quotes and account managementPolicies available for people with HIV
Cons
Must apply (and cancel) through an agentDoesn’t offer no-exam (guaranteed issue) policiesTerm life options are basic
USAA
USAA isn’t part of our main list because it’s only available for military members and their families. Though it isn’t included in JD Power’s latest study of customer satisfaction or rated by rating agencies, the company has a strong record in this regard, including favorable complaints records with insurance regulators.
Pros
Military members can get coverage during warOffer survivor supportHigh cap on the value of their policies
Cons
Medical exam required for all policiesSome policies unavailable in New York
Mutual of Omaha
Mutual of Omaha didn’t make our list because its premiums are higher than industry norms for applicants who are healthy and/or older. Application and processing times are also slower than those of some other insurance providers.
Pros
Offers online quotesAffordable underwriting for health conditions, including cancerOffers a whole life insurance policy for children
Cons
Policies for individuals in good health are pricier than averageMust apply to discover whether a medical exam is requiredSparse website resourcesNew York residents have limited options
Liberty Mutual
Liberty Mutual is not part of our main list, in part because other companies on our main list provide more detailed information about policies and offer a larger array of term insurance options.
Pros
Immediate online approval for Passport Term (simplified issue insurance)Continuing coverage once the term ends
Cons
Monthly premiums are higher than averageNo detailed information about policies on the website
A proper life insurance policy will protect your loved ones from the unexpected.
No time like the present to get on the estate planning path. Do it right with life insurance and take care of your family. Click below for more information.
Life Insurance Guide
We created this life insurance guide to answer questions related to life insurance, its different policy types, and policy options to help you select the best life insurance policy.
What is life insurance?
Life insurance is a contract between a policyholder and an insurer, in which the latter guarantees to pay a sum of money to the life insurance beneficiary upon his or her death. This sum of money, known as the death benefit, is funded by premium payments made by the insured throughout their lifetime.
How does life insurance work?
Life insurance is meant to protect dependents and loved ones from financial hardship upon the death of a primary breadwinner. Yet, life insurance is not exclusively available for adults and the elderly. Many companies also offer life insurance for children, which can cover any expenses in the case of death, help with future insurability and provide economic support through the cash value component of the policy.
At its most basic, life insurance has two main components, a death benefit and a premium.
The death benefit, also called the face value, refers to the lump sum of money the insurer agrees to pay out to named beneficiaries upon the policyholder’s death.Premiums are payments made by the policyholder to the insurer in exchange for the policy. Life insurance premiums are determined by the insured’s projected life expectancy. High-risk individuals, or those who purchase larger death benefit amounts or a permanent life insurance policy, generally pay higher premiums.
Permanent and whole life insurance policies also include a cash value component that can serve two functions:
As a savings account in which cash accumulates on a tax-deferred basis, and which the insured can usually access during their lifetime. Some policies may restrict withdrawals, depending on how the withdrawn money will be used.As a way to cover the policy’s premiums or to purchase additional coverage.
It’s important to note that the cash value is a living benefit that stays with the insurance company when the policyholder dies. Any outstanding loans against it will reduce the policy’s death benefit.
What are the different types of life insurance?
The different types of life insurance are:
Term life insurance: This lasts for a predetermined period (commonly 10, 15 or 20 years), and then it expiresWhole life insurance: A policy that covers the insured for the duration of their life as long as the premiums are paid. It includes a guaranteed cash value component, and fixed monthly premiumsUniversal life insurance: Similar to whole life, this protects the insured for the duration and their life as long as premiums are paid, and it includes a cash value component. The cash value component in this policy is not guaranteed and it will fluctuate with the market
No-exam life insurance allows you to get the coverage you need without leaving the comfort of your own home.
Getting quality term life insurance shouldn’t be a hassle. Skip the doctor’s appointment and get the coverage you need today! Just click below to get a free quote.
What is the difference between term, whole and universal life insurance policies?
Term LifeWhole LifeUniversal LifeThere are two main types: level term and convertible termThere are four main types of universal life insurance: traditional or non-guaranteed, indexed, and variable lifeThere are four main types: traditional or non-guaranteed, indexed and variable lifeThe death benefit is paid to your designated beneficiaries as a lump sum, in installments or as an annuityPolicyholders can access the savings component during their lifetime and receive annual dividend payments on the policyPremium payments and cash value influence the value of the policy. It doesn’t receive annual dividend paymentsA lump sum payout means that your beneficiary receives the whole benefit at once. To annuitize, the payment is spread out into fixed installmentsPolicyholders can make payments over the premium and accumulate moreAllows policyholders to increase or decrease the death benefit amount, within limits
Both whole and universal are considered permanent life insurance policies, meaning they can last a person’s lifetime.
If you’re not sure which is best for you, check out our in-depth analysis on term vs whole life insurance.
Life Insurance Glossary
Common life insurance termsUnderwritingInsurance companies use underwriting guidelines to determine how much your policy will cost based on your health and family history, among other factors. They do so by classifying policyholders into risk pools. The higher the risk, the higher the premium.BeneficiaryThe person, organization or charity that receives the life insurance payout (death benefit).RiderCoverage add-ons to your policy at an increased price, such as an accelerated death benefit, chronic illness, long-term care or return of premium.DisclaimerWhen a beneficiary declines to receive or fails to claim the proceeds of a policy. In such cases, the death benefit goes to the remaining beneficiaries. If there are no other beneficiaries, the death benefit goes to the insured’s estate.Death benefitThe amount the beneficiaries receive from a life insurance policy, as long as the insured died when the policy was in effect.Contestability periodThe first two years of your policy. The life insurance company can review your policy during this period of time and refuse to pay a claim if they find out the insured has committed fraud.Cost of Insurance (COI)Part of Universal Life Insurance policies, COI is the minimum premium amount that must be paid to keep the policy active and includes mortality costs, administrative fees, and other expenses.
Latest News on Life Insurance
With so many types of insurance out there, you might be wondering what type of insurance do you really need. If that is the case, our Dollar Scholar writer Julia Glum contacted the Insurance Information Institute’s Mark Friedlander for help. Click on the previous link to learn more.
Did you know that life insurance can provide support in more ways than one? You might be able to use life insurance as collateral for a loan. To learn more about the advantages and disadvantages of collateral assignment, click on the previous link to learn more.
Finally, are you interested in coverage to help reimburse your care needs during the last years of your life? Long-term care insurance can pay for it. Check out our selection of the best long-term care insurance and find out if and when you should purchase one of these policies.
Life Insurance Companies FAQ
How much life insurance do I need?
There’s no such thing as a hard and fast rule for figuring out a price tag on your life insurance needs and peace of mind. Still, a basic starting point is to determine your financial obligations and future and final expenses, and then to subtract any liquid asset you may have.
In any case, it’s a good idea to consider life insurance within a larger financial context. If you can, it’s a good idea to talk over your life insurance needs with a financial advisor.
How does life insurance work?
Life insurance is a policy taken out on your life and paid out in the event of your death, in order to protect those that depend on you financially. The proceeds can serve to pay your final medical expenses or funeral expenses, or be used to set a trust fund for your children’s tuition, in estate planning or to pay off remaining debt and mortgages.
What is the difference between term and whole life insurance?
The main difference between term and whole life insurance is that the former type of policy only lasts for a set period (its term). In contrast, a whole or permanent policy covers a policyholder for (essentially) their entire lifespan.
How much is life insurance per month?
The cost of a life insurance policy will depend on various factors including the type of policy and amount of coverage. The monthly premium will also depend on the applicant’s age, gender, lifestyle, and overall health. According to Haven Life, a 35-year-old non-smoking male, living in NY, in good health, will pay around a $30 monthly premium for a 20-year term life insurance policy with a $500,000 death benefit.
What is the best life insurance?
There’s no one best life insurance policy or company for everybody. Your choices regarding life insurance will depend on your needs and how you plan to use the policy. That said, we selected Northwestern Mutual as our best insurer overall.
A proper life insurance policy will protect your loved ones from the unexpected.
No time like the present to get on the estate planning path. Do it right with life insurance and take care of your family. Click below for more information.
How We Chose the Best Life Insurance Companies
As part of our methodology to come up with our list of top life insurance companies, we looked at:
The ability to pay claims on timeCustomer experience and product offeringsCustomer satisfaction and ratings reported in J.D. Power’s latest U.S. Life Insurance Satisfaction Study, and the A.M. Best financial strength ratingsThe number of complaints regarding their individual life insurance policies, based on National Association of Insurance (NAIC) dataThe selection of insurance plans and related productsSimplicity of underwriting
Summary of Money’s Best Life Insurance Companies of February 2022
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This article originally appeared on Money.com and may contain affiliate links for which Money receives compensation. Opinions expressed in this article are the author’s alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Offers may be subject to change without notice. For more information, read Money’s full disclaimer.
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