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 2023
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 2023 (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? | Med and Non-Med |
| 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 AIG American General 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.
Term Life Insurance Quotes
I believe that when people shop for insurance (or anything else, for that matter) on the Internet, they are looking for a simple, non-intrusive, non-pressure method of doing so.
I strive to treat my prospective clients with the utmost respect and I believe an educated prospect can make the right decision without sales pressure.
Being independent, I represent many highly-rated insurance companies and, because I am not beholden to any one insurance company, my focus is to find the right company and policy for each individual client.
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