Fortunately for consumers, the life insurance industry in the United States is super competitive. Most consumers understand that competition will drive down pricing and boost customer services.
Although the life insurance industry went through a considerable rise in mortality rates in 2020 and 2021, it appears that those increases are falling back to some type of normalcy and most life insurers did not knee-jerk their rates when claims went up.
According to the Insurance Information Institute, there were over 900 life and health insurance companies operating in the U.S. in 2021 and we have seen the list of direct writers (no outside agents) growing as well.
This is a very good thing for consumers! The competition is heating up year over year and a $500,000 term policy typically costs about the same as a large pizza.
Knowing this, the question that is typically asked of every agent or broker is: “Which are the Best Life Insurance Companies?” In this article, we’ll endeavor to answer that question to help you develop a short list before you go on your shopping adventure.
How We Picked the Best Life Insurance Companies for 2024
First, we must state the obvious. To separate the best life insurers from the mediocre ones, we needed to develop a list of attributes to measure each company by. Let’s be clear, however, the lowest rate is not always at the top of our list.
If price is your only concern, you can run quotes on almost every broker’s website and just pick the lowest rates. If you do this, you will need to research the research on your chosen company pretty much on your own.
This is because instant quote raters that you find online do not provide the following information that you should be aware of BEFORE you complete your application:
- How long has the company been in business?
- What are the company's financial ratings?
- How many product types do they offer?
- How many optional riders are available?
- How is their customer service?
- What are the pros and cons to consider?
Finally, it’s important to understand that although most life insurance agencies represent most of the highly-rated life insurance companies, many of them have a go-to or shortlist that they place the majority of their business with. Additionally, each year many insurance brokers prune their portfolio of insurance companies for various reasons with customer complaints being one of the primary reasons.
For this reason, we’ve decided to offer a list of the top five life insurance companies for 2024 (in no particular order)
Rating Category What we Found
Years in Business 100+
Financial Ratings A.M. Best A+
S&P AA-
Fitch A+
Moody’s
Products Offered Term
Universal Life
Indexed Universal Life
Variable Universal Life
Survivorship UL
Whole Life
Riders Offered Accidental Death Benefit
Accelerated Death Benefit
Waiver of Premium
Disability Income Rider
Guaranteed Insurability Rider
Children’s Term Rider
Term Insurance Rider
Medical Exam Required? Exam and No-Exam
Customer Service Rating Outstanding
Pros Offers Term up to 40 years
Complete portfolio of permanent insurance products.
Cons Did not score as well as expected in J.D. Power overall customer satisfaction survey
Read our full Protective Life Review
Rating Category What we Found
Years in Business Since 1868
Financial Ratings A.M. Best A+
S&P A+
Fitch A+
Moody’s A1
Products Offered Term Life Insurance
Whole Life Insurance
Universal Life
Indexed Universal Life
Variable Universal Life
Riders Offered Accidental Death Benefit
Terminal Illness Rider
Waiver of Charges
Optional Term Rider
Annual Renewable Term Rider
Children’s Term Rider
Medical Exam Required? Exam and No Exam
Customer Service Rating Outstanding
Pros Complete portfolio of insurance products
Ranked above average in JD Power customer satisfaction survey
Cons Some products not available in New York
Read our full Pacific Life Review
Rating Category What we Found
Years in Business Since 1983
Financial Ratings A.M. Best A+
S&P Global AA-
Fitch AA-
Products Offered Term Life
Universal Life
Life Step Universal Life
Riders Offered Accelerate Death Benefit (included)
Conversion (included)
Children’s Term Rider
Stacking Term Rider
Medical Exam Required? Exam and No Exam
Customer Service Rating Superior
Pros Term coverage up to 40 years
Accelerated Death Benefit Included
Very Competitive Rates
Cons Riders not available in every state
Read our full Banner Life Review
Rating Category What we Found
Years in Business Since 1905
Financial Ratings A.M. Best A+
S&P Global AA-
Fitch A+
Moody’s A1
Products Offered Term Life
Universal Life 4 Types)
Indexed Universal Life (4 types)
Riders Offered Accelerate Death Benefit
Critical Illness Rider
Long-term Care Rider
Disability Waiver of Premium
Supplemental term (insured)
Supplemental Term (other insured)
Children’s Term Insurance Rider
Medical Exam Required? Exam and No Exam
Customer Service Rating Outstanding
Pros Very Competitive Rates
No medical exam for some applicants
Very competitive rates
Cons No whole life products
Same-day decisions not provided
Read our full Lincoln Financial Group Review
Rating Category What we Found
Years in Business 100+
Financial Ratings A.M. Best A
S&P Global A+
Fitch A+
Moody’s A2
Products Offered Term Life
Whole Life Insurance
Universal Life
Variable Universal Life
Final Expense Whole Life
Riders Offered Accelerate Death Benefit
Chronic Illness Rider
Long-term Care Rider
Child Benefit Rider
Waiver of Premium
Accidental Benefit Rider
Medical Exam Required? Exam and No Exam
Customer Service Rating Superior
Pros Up to $2 million face amount – no exam
Same day decision
Term up to 30 years
Cons Lower customer Satisfaction Rating
Read our full Corebridge Financial Review
In Conclusion
With so many life insurance companies to choose from, it certainly makes good financial sense to get the information you need from an experienced and reputable insurance professional.
We encourage you to contact us at 866-868-0099 during normal business hours or contact us through our website 24/7.
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Last Updated on September 12, 2024 by Richard Reich
