Top-Ranked Life Insurance Companies in 2021

Life insurance may help to save your family members if you die. Life insurances are in two types such as permanent life insurance and term life insurance.  In this article, we will give information on Top-Ranked Life Insurance Companies in 2021. Life insurance is the cheapest insurance for most people.

Here we have listed the Top Ranked life insurance companies in 2021

We have listed below the top five life insurance for you based on the details of Business Insider Compiled data from 20 different insurance companies. Those five companies are selected based on the criteria such as customer service, financial stability, and asset size rankings, and premium price.

The system used for rankings is given below, under “How we decided the winners”.

Policy genius will help you to find the best life insurance for you by comparing the life  insurance policies to select the best coverage with the best suited prices.

Northwestern Mutual

Northwestern Mutual began in 1857

Advantages:

• Ranked for best customer satisfaction by JD Power
• Huge financial steadiness

Disadvantages:

• Policy should gain from an advisor
• They do not provide an easy method to have a quote online to compare prices
•  Need to take medical exam

Browse Northwestern Mutual’s website for more details

State Farm

State Farm is well known for auto and home insurance, it also provides you with life insurance coverage.

Advantages;

• This life insurance company is only second for Northwestern Mutual.
• They provide the facility to do policy purchase on your own and online both
• No need to take any medical exams
• Discounts offers for the customers who have other policies with state farm.

Disadvantages

State farm provides only 30 years terms for the ones under 45 age

Browse State farm’s website for more information.

Guardian Life

This has a great history like Northwestern Mutual. It began in 1860.

Advantages:

• Top ranked for financial security ratings by A.M.Best
• This takes 4 out of 5 for customer satisfaction
• They have online calculator for premium quotes.

Disadvantages:

• Although the have given you the access for online quote, you will need to contact a agent to purchase policy.

Browse Guardian Life’s website for more details

New York Life

New York Life is famous as the second-largest life insurance company in the US.

Advantages:

• Best in financial steadiness
• 4 out of 5 goes for customer satisfaction
• New York Life’s policies available in nationwide.

Disadvantages

• Here also you need an agent to buy policies
• They don’t provide any online quotes
• They might ask for your medical exam

Browse New York Life’s website for more info

Nationwide

This life insurance is well known for tying its auto homeowners and insurance products.

Advantages

• 4 out of 5 customer satisfactions
• Good financial steadiness rate
• You can find affordable quotes for your sample premium
• They have an online tool to get premium quotes

Disadvantages:

If you are planning to tie all the insurance products Nationwide auto insurance has low marks for customer services even though Nationwide’s life insurance has high customer service marks.

Browse Nationwide’s website for more info.

Top ranked Life Insurance companies according to their customer satisfaction.

Here we have listed the Top Ranked life insurance companies in the US considering the JD Power survey results based on customer rankings.

1. State Farm
2. Globe Life
3. Nationwide
4. Northwestern Mutual
5. Mutual of Omaha
6. New York Life
7. Pacific Life
8. MetLife
9. Principal Financial
10. MassMutual
11. Industry Average
12. Prudential
13. Protective Life
14. Lincoln Financial Group
15. Guardian Life
16. AIG
17. Securian
18. John Hancock
19. Transamerica (AEGON)
20. Equitable
21. Primerica
22. Midland National Life
23. Voya Financial
24. Brighthouse Financial  

Factors you should consider in a life insurance

Difference between Term and Permanent life insurance

The difference between those two life insurances is like renting an apartment (term life) and owning a home (permanent). If you rent a house, you need to pay a lease for a certain term and when it is finished you can renew it but most probably with a rent increase.

Similarly, term insurance will last only for a certain period and when it is finished you and reapply for coverage. But the instalment may lift with your age and your health condition. Thus the term life insurance is most suitable for the people who want to save their loved ones, as it’s cheaper than others.

Unlike the term life insurance permanent life insurance never expired, it has a death benefit for your beneficiaries, which means your loved ones. And also it provides a cash value that you can use during your lifetime. It’s more similar to your permanent life insurance because you have the same right to use it as collateral, thus you can leave it to your family with a legacy. This is the reason why it’s more expensive than term life insurance.

The financial advisor recommends a combination of both. For example, imagine that you have $200,000 in permanent life insurance and term life insurance $300,000 in terms for 20 years, but at the end of the 20 years term life insurance ends while your permanent insurance still has $200,000.

Underwriting Process

Either you select permanent or term life insurance you have to take an underwriting process. This means how your insurance company decide your insurability, considering how much unstable you are and how much to lend you. For that, you may need to get a medical exam of a blood collection and urine sample.

 If you get a fixed income with a limited amount, burial insurance is the best go for you. Also if you are a patient that may prevent traditional coverage, you might want to consider no medical exam life insurance.

 In addition to that, it’s better to take advice from an accountant, estate planner and financial advisor to choose which life insurance is best for you and to consult you about the tax benefits and suggestions. So, it’s better to search more about them taking time before you joined for one as it will be hard to change your coverage later.

How determine the amount of the coverage?

Traditionally the best method to do this is taking the life insurance worth 10 times your annual income. For example, if your income is $75,000 a year, you would receive $750,000 worth of coverage.

 Nevertheless, some experts recommend it to be a low estimate. Especially if you want this insurance to pay your child’s college fees or to cover the mortgage of your home if you have one. Some people decide to take million in coverage.

Anyhow you may prefer to get as much life insurance as you can which afford you each month.  If it’s hard to pay your premium payments, this would be too much for you.

How to find the best cost?

Same as the other forms of insurance, term life policies have many factors which affect you’re the amount you pay for your coverage.  Your monthly premium depends on your age, location, and the coverage amount. the company you choose may consider all these factors differently, with different prices for every company and each policy.

To get the best life insurance, compare the quotes of different insurance companies. It will be easy with some companies as some doesn’t give access to online quotes. It’s better to compare 4 or 5 quotes to find the best go for you which may save few dollars each month for your premium. As you’ll pay for about 20 or 30 years, that savings will add up.

How we select the winners?

Business insiders get the information from 20 companies from S&P Global, JD Power and the insurer’s own sites.  We select the best 5 out of the factors like financial steadiness ratings, customer satisfaction and the size of the company based on market share. If available Business Insiders also collected sample instalments. In addition to that, we don’t add to the list the companies who do not provide individual life insurance or did not have at least 3 out of 5 in customer satisfaction.

Below are the factors we considered:

Customer Satisfaction

The JD Power 2019 US life insurance customer satisfaction survey is the basement of this category.  JD Power collected the information on Customer’s satisfaction with the application process, communication and the interaction with the company, product offerings, cost, and statements.

 Financial Steadiness ratings

Some companies and agencies rated the insurance based on the stability and the appearance of the insurance companies. They are Moody’s, A.M. Best and Fitch ratings. Business Insider collected data of ratings for each life insurance company from A.M Best.

Size of the financial company based on the market share.

Based on the details of the National Association of Insurance Commissioners Business Insiders collected data about the biggest company by market share.

Sample Instalments

this was collected from the insurance’s websites.  For this each used the same sample person having a 35 years old, single, non-smoking female, lives in Illinois, with the same height and the weight and good health. The sample instalments were determined based on a $250,000 policy with a 30-year term.

Frequently asked questions

Why do you trust our suggestions?

Personal Finance Insider’s mission is to provide a helping hand for smart people to make the best decision with their money. Best is sometimes subjective, so even we provide you with the limitation in addition to highlighting the advantages of a financial product and account. We make it easy for you to choose the best life insurance, by contrasting and comparing the features and gives you the best products so you don’t have to spend time on this.

Do I need life insurance?

If you have any dependants on you such as your children, parents, on-working spouse, or ageing parents it’s better to have life insurance. And if you don’t have any dependants but have any debt or own a business it’s better to consider this.

What is average amount of a life insurance for a month?

The price of your coverage may differ according to your company, policy, and policyholder. According to the data of Policygenius, a healthy 35years old man may have to pay $49 per month for a 20 years term life insurance policy.

But many factors such as your health condition, hobbies, gender, age and the cost of coverage will determine the price of life insurance.

Which is the best life insurance for me ?

Most people prefer term life insurance for 10 or 30 years.  This is best for families with young people, people with debts and people with mortgages. As the policy will expire in term life insurance, it will expire after the debts are completed or when your children are grown. This insurance cost between $20 and $40 per month, and it depends on your health and the age when you start this.

Permanent life insurance is not like term life insurance. It doesn’t expire and in addition to that, it gives you a cash value and a death benefit. So you can use this cash value in your lifetime, improve your wealth or leave a legacy. There are few types of permanent life insurance.

They are Whole life, universal life, and variable life. This is much expensive than term life insurance, but it is guaranteed to pay after your death and has a cash value.

For young families, term life insurance is enough as it can have for an affordable amount. If you don’t have an idea about the life insurance suits your family, it’s better to consult a financial planner.

How to obtain a life insurance?

 There are few methods to obtain one after deciding how much coverage and what form of policy you want.

 You can seek policies via insurance companies directly or from online agencies which are partnered with the main companies. Online agencies will let you neglect the need for an in-person insurance agent thus it will often provide the space to have the quote and purchase your own policy fully online.

 If you follow the traditional way: then you can contact the company directly and they will assign you an agent. Like some of the companies above, you need to work with an agent to get the policy. They will help to connect with you an agent or list of agents in your area.

 If your company doesn’t need an agent, you can simply carry on with the application process by yourself. More to that after the completion of some questions regarding your health history, hobbies and travel plans, you may be asked to take a medical exam. But some companies have changed their medical exam policy due to the COVID 19. You can talk with your insurer to have a medical exam that you are comfortable with.

After completing this process and being approved by the insurer you will get your final monthly payment. And from there onwards you are starting your payments for your policy and have your coverage in place. It is necessary to contact a financial advisor regarding your financial status and to decide which insurance is best suited for you.

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