Our evaluation of the life insurance market in the U.S. reveals a blend of well-established insurers and emerging “insurtechs” that provide policies online. We utilized criteria such as customer grievances, consumer satisfaction, financial stability, policy options, and coverage purchase options to compile a list of the most outstanding life insurance firms.
Consequently, the following are the top life insurance companies for 2023, as determined by our analysis.
Our picks for the best life insurance companies in March 2023:
Each of the life insurance companies mentioned below received a 5-star rating. With numerous insurers vying for your patronage and often peddling comparable products, it is wise to compare life insurance quotes from multiple providers before selecting one.
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Best life insurance companies:
MassMutual:
MassMutual, also known as Massachusetts Mutual Life Insurance Co., is among the largest life insurance companies in the United States, having been established in 1851.
Its product line includes a broad spectrum of options, ranging from term life to variable universal life insurance, a permanent policy that offers flexible premiums and investment prospects.
As a mutual firm, it is partially owned by its policyholders and distributes dividends to eligible members. Its dividend payout for 2023 is its largest ever, amounting to nearly $1.9 billion.
Haven Life:
Haven Life provides term life insurance with accelerated underwriting, a procedure that employs algorithms and data to promptly determine your eligibility.
The complete application process is conducted online and can be accomplished in approximately 25 minutes, according to the company. Despite specializing in a single type of life insurance, Haven offers alternatives for its clients.
You may select a policy that provides coverage ranging from $25,000 to $3 million and a term duration ranging from five to 30 years, depending on your preference.
MassMutual issues Haven Life’s policies, and despite its size, it received fewer customer grievances than expected.
Guardian Life:
Guardian, established in 1860, has been providing dividend payments to qualified policyholders since 1868.
The company’s dividend payout for 2023 is a record-breaking $1.26 billion.
Guardian received considerably fewer grievances from state regulators than anticipated, given its size. In addition to life insurance, the firm offers a diverse selection of products, including dental, vision, and cancer insurance.
Northwestern Mutual:
Northwestern Mutual, established in 1857, is presently the largest vendor of individual life insurance in the United States, as per the most recent figures from S&P Global Market Intelligence.
Universal life policyholders have the option of choosing flexible payment and coverage alternatives, while term life clients may convert their policy to permanent coverage without having to undergo a medical examination.
The company is set to distribute $6.8 billion in dividends to eligible policyholders in 2023. Northwestern Mutual’s size did not result in the anticipated number of complaints to state regulators, indicating that it is a dependable option for customers.
New York Life:
New York Life is a mutual firm, which implies that its policyholders own it. Therefore, if you have held a permanent policy for over a year and are receiving dividends, you may be eligible to vote in board elections.
The company is one of the biggest life insurance firms in the United States and received fewer grievances from state regulators than anticipated, given its size. It earned an average rating in J.D. Power’s 2022 life insurance customer satisfaction survey.
One of its whole life insurance policies includes a flexible payment option that allows you to pay off your premiums ahead of time. New York Life is expected to distribute $2 billion in 2023.
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Pacific Life:
Pacific Life has been in business for more than 150 years. It has drawn significantly fewer complaints than expected for a company of its size over the past three years. Among Pacific Life’s range of policies is the company’s indexed universal life insurance.
These policies typically grow investments based on stock market indexes like the S&P 500.
They also have a guaranteed floor, which means your life insurance cash value won’t fall below a certain value if the stock market dives.
State Farm:
State Farm is primarily associated with its automobile insurance policies. However, it also offers a good selection of life insurance policies, such as return-of-premium life insurance, which offers a refund of the premiums paid into the policy if the policyholder outlives the term.
State Farm’s whole life policy has a single premium option, and it offers a final expense policy that can help cover funeral costs.
In the J.D. Power 2022 U.S. Life Insurance Study for customer satisfaction, State Farm took the top spot among 22 companies, and it has consistently been at the top of the list in recent years, reflecting its positive standing among policyholders.
USAA:
USAA was established in 1922 with the aim of offering life insurance to active military members and veterans. However, it now provides coverage to non-military personnel as well.
USAA’s policies can be utilized to supplement the government-provided Servicemembers’ Group Life Insurance, which is automatically given to qualified military personnel.
Policyholders aged 18 to 35 may have the opportunity to boost their coverage amount if they get married, purchase a house, or have a child.
Check Out: a compiled list of the top auto insurance companies for 2023.
How to choose the best life insurance company:
Look at customer satisfaction scores:
Evaluating other customers’ experiences can assist you in making a decision about whether or not to work with a company. The National Association of Insurance Commissioners website provides insight into an insurer’s reputation by displaying complaints filed with state regulators.
Based on three years of data from the NAIC, all of the companies mentioned above have received fewer complaints to state regulators than expected for insurers of their size.
Consider financial strength:
Investigating the financial stability of life insurance companies is crucial because you need assurance that the insurer will be capable of paying out claims in the future.
AppsIvY evaluations of insurers incorporate financial strength ratings, which are given weight in the final score. If you require more information about life insurance providers, consider consulting a rating agency such as AM Best.
We advise focusing on insurers with an AM Best rating of A- or higher.
That’s all.