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If you’re looking to treat your life insurance policy as a cash asset, you might be in the market for a whole life insurance policy. Along with providing a payout to your loved ones when you die, these policies build cash value over time at a set interest rate.
To create this list of the best whole life insurance companies, our experts focused on financially strong insurers with low levels of customer complaints. We then honed in on important features of whole life insurance policies, such as riders, the potential to earn dividends and the amount of coverage you can buy.
» MORE: Whole life insurance definition
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» MORE: How does whole life insurance work?
The best whole life insurance companies of March 2024
Guardian | 5.0 NerdWallet rating |
MassMutual | 5.0 NerdWallet rating |
Northwestern Mutual | 5.0 NerdWallet rating |
New York Life | 5.0 NerdWallet rating |
State Farm | 5.0 NerdWallet rating |
AARP | 5.0 NerdWallet rating |
NerdWallet rates insurers at the company level, not the policy level. This means our star rating reflects the company as a whole, and not its whole life insurance policies specifically. | |
How we ranked the top life insurers
NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.
These ratings are a guide, but we encourage you to shop around and compare life insurance quotes from several companies to find the best rate for you. NerdWallet does not receive compensation for any reviews.
How we review life insurance companies
In our life insurance reviews, our editorial team considers the customer and the insurer. These are some of the factors we take into account:
Policies offered. There are many types of life insurance on the market, and they fall into three key categories:
Term life insurance offers temporary coverage and a guaranteed payout if the policyholder dies during the term.
Permanent life insurance typically lasts a lifetime and builds cash value that can be borrowed against in the future.
No-exam life insurance issues coverage without the need for a medical exam.
Financial strength. We use AM Best ratings to confirm an insurer’s long-term financial stability and ability to pay claims. For life insurance, NerdWallet typically recommends considering insurers with ratings of A- or higher. Here’s the breakdown:
Exceptional: A+, A++.
Strong: A-, A.
Moderate: B, B+.
Complaints. These ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. The best life insurance companies have fewer than the expected number of complaints.
Buy online. This indicates whether an insurer allows you to apply for and buy a policy completely online.
Dive deeper: Ratings methodology for life insurance
» MORE: Best life insurance companies
Best whole life insurance policies for 2024
Learn more about each company in our list by reading the brief summaries below and checking out the NerdWallet review links.
Jump to:
Guardian: Best for applicants living with HIV
MassMutual: Best for cash value growth
Northwestern Mutual: Best for blended term
New York Life: Best for rider options
State Farm Life: Best for customer satisfaction
AARP: Best for smaller coverage amounts
Best for applicants living with HIV 5.0 NerdWallet rating Bottom line: Guardian has a diverse lineup of whole life products, including life insurance for people living with HIV. on Nerdwallet Financial strength rating Exceptional Online purchase No NAIC complaints Far fewer than expected Policies offered Term & permanent Best for applicants living with HIV on Nerdwallet 5.0 NerdWallet rating Bottom line: Guardian has a diverse lineup of whole life products, including life insurance for people living with HIV. Financial strength rating Exceptional Online purchase No NAIC complaints Far fewer than expected Policies offered Term & permanent
Guardian Life
Guardian Life
Company overview: With Guardian’s whole life coverage, you can choose a policy with level premiums, or a “limited payment” policy that allows you to pay off your policy in 10, 15 or 20 years. After that, no premiums are required to keep your coverage. You can choose from a range of riders, such as a disability waiver of premium, long-term care and an index participation feature — or IPF — rider. The IPF rider allows you to link a portion of your cash value to the performance of the S&P 500 Price Return Index, and any profits are paid out in dividends.
The company also offers life insurance for people living with HIV. To qualify for these term and whole life policies, you must prove you’re under a specialist’s care and successfully receiving antiretroviral therapy.
While Guardian doesn’t guarantee dividends, it has paid them out to its permanent policyholders every year since 1868, and will pay $1.4 billion in 2024, the highest payout in the company’s history.
Guardian whole life insurance policy details
Policy options: Life Paid Up at 121, Life Paid Up at 99, Life Paid Up at 95, Life Paid Up at 65, 10 Pay Whole Life, 15 Pay Whole Life, 20 Pay Whole Life, EstateGuard.
Eligibility age range: 0 to 90 (varies by policy).
Minimum coverage amount: $25,000.
Maximum coverage amount: Unlimited.
State availability: All states.
Potential to earn dividends: Yes.
» Read the full review: Guardian life insurance
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Best for cash value growth 5.0 NerdWallet rating Bottom line: MassMutual has a string of whole life policies to choose from, some of which earn cash value at a set interest rate of 3.75%. on Nerdwallet Online purchase Yes NAIC complaints Far fewer than expected Policies offered Term, permanent & no-exam Best for cash value growth on Nerdwallet 5.0 NerdWallet rating Bottom line: MassMutual has a string of whole life policies to choose from, some of which earn cash value at a set interest rate of 3.75%. Financial strength rating Exceptional Online purchase Yes NAIC complaints Far fewer than expected Policies offered Term, permanent & no-exam
MassMutual
MassMutual
Company overview: Depending on your policy, you might be able to customize your coverage with various riders. These include a long-term care rider, chronic illness rider and a yearly term purchase rider, which allows you to direct your dividend payments toward a term life insurance policy.
As a permanent policyholder, you’re eligible to receive dividends based on the insurer’s profits. MassMutual estimates it will pay out almost $2.2 billion to its permanent policyholders in 2024.
MassMutual whole life policies details
Policy options: Whole Life 100, Whole Life 65, Whole Life 8/10/12/15/20 Pay, Whole Life HECV.
Eligibility age range: 0 to 90 (varies by policy).
Minimum coverage amount: $25,000, or $100,000 for HECV — a policy designed for businesses.
Maximum coverage amount: Unlimited.
State availability: All states.
Potential to earn dividends: Yes.
» Read the full review: MassMutual life insurance
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Best for blended term 5.0 NerdWallet rating Bottom line: Northwestern Mutual sells one whole life policy with flexible coverage starting at $50,000, and the option to blend term life for cheaper coverage. on Nerdwallet Financial strength rating Exceptional Online purchase No NAIC complaints Far fewer than expected Policies offered Term & permanent Best for blended term on Nerdwallet 5.0 NerdWallet rating Bottom line: Northwestern Mutual sells one whole life policy with flexible coverage starting at $50,000, and the option to blend term life for cheaper coverage. Financial strength rating Exceptional Online purchase No NAIC complaints Far fewer than expected Policies offered Term & permanent
Northwestern Mutual
Northwestern Mutual
Company overview: Northwestern Mutual’s whole life insurance policy comes with various payment options. You can choose to pay premiums for 10, 15, 20 or 25 years, or until you reach age 65 or 100. Plus, you may have the option to blend term life with your policy to lower the premiums, while maintaining permanent coverage.
To enhance your coverage, you can add riders to your policy, such as an accelerated death benefit that pays out a portion of your payout if you need long-term care. There’s also an additional purchase benefit rider, which lets you increase your coverage at a later date without taking another life insurance medical exam. Northwestern Mutual is a mutual company, one of the largest individual life insurers in the U.S., and it is set to pay out $7.3 billion in dividends to qualifying policyholders in 2024.
Northwestern Mutual whole life insurance policy details
Policy options: Whole Life Plus.
Eligibility age range: 0 to 85.
Minimum coverage amount: $50,000.
Maximum coverage amount: $80 million.
State availability: All states.
Potential to earn dividends: Yes.
» Read the full review: Northwestern Mutual life insurance
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Best for rider options Bottom line: New York Life sells three whole life policies and offers a variety of life insurance riders, as well as customizable payment options. on Nerdwallet Financial strength rating Exceptional Online purchase No NAIC complaints Fewer than expected Policies offered Term & permanent Best for rider options on Nerdwallet 5.0 NerdWallet rating Bottom line: New York Life sells three whole life policies and offers a variety of life insurance riders, as well as customizable payment options. Financial strength rating Exceptional Online purchase No NAIC complaints Fewer than expected Policies offered Term & permanent
New York Life
New York Life
Company overview: New York Life’s custom whole life policy offers flexibility with premium payments. You can opt to pay off your policy in the first few years, or schedule the timing and amount of your payments to suit you.
The insurer also offers a variety of life insurance riders, such as a chronic care rider, waiver of premium rider and accelerated death benefit.
As a mutual company, New York Life plans to pay out $2.2 billion in dividends to its policyholders in 2024.
New York Life whole life policy details
Policy options: Whole Life, Custom Whole Life and Secure Wealth Plus.
Eligibility age range: 0 to 90 (varies by policy).
Minimum coverage amount: $25,000 (for applicants ages 18 and older).
Maximum coverage amount: $100 million.
State availability: All states.
Potential to earn dividends: Yes.
» Read the full review: New York Life insurance
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Best for customer satisfaction 5.0 NerdWallet rating Bottom line: For flexible payment options, it’s worth looking into State Farm’s lineup. Depending on the policy, you may have the option to pay off your coverage in one payment. on Nerdwallet Financial strength rating Exceptional Online purchase No NAIC complaints Fewer than expected Policies offered Term, permanent & no-exam Best for customer satisfaction on Nerdwallet 5.0 NerdWallet rating Bottom line: For flexible payment options, it’s worth looking into State Farm’s lineup. Depending on the policy, you may have the option to pay off your coverage in one payment. Financial strength rating Exceptional Online purchase No NAIC complaints Fewer than expected Policies offered Term, permanent & no-exam
State Farm
State Farm
Company overview: State Farm’s standard whole life policy has level premiums, which means you’ll pay the same amount each month. But if you’d like to adjust when and how much you pay, you can buy a single premium or limited payment policy.
If you’re healthy, age 18 to 50 and applying for a policy worth $100,000 to $1 million, State Farm might fast-track your application and issue your policy without the need for a medical exam. If you purely want to cover your own funeral, burial and end-of-life expenses, the insurer offers a final expense policy to applicants ages 45 to 80 (50 to 75 in New York). Policy features aside, State Farm leads J.D. Power’s list of life insurers with the best customer satisfaction.
State Farm whole life insurance policy details
Policy options: Whole Life, Limited Pay Whole Life, Single Premium Whole Life, Final Expense.
Eligibility age range: Varies by policy.
Minimum coverage amount: $10,000 for final expense policy; $15,000 for other whole life policies.
Maximum coverage amount: None for standard whole life policies; $10,000 to $15,000 for the final expense policy, depending on the state.
State availability: All states except Massachusetts.
Potential to earn dividends: Yes.
» Read the full review: State Farm life insurance
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5.0 NerdWallet rating No medical exams are required for life insurance policies through AARP, although you have to be a member to buy one. on Nerdwallet Financial strength rating Exceptional Online purchase No NAIC complaints Fewer than expected Policies offered Term, permanent & no-exam on Nerdwallet 5.0 NerdWallet rating No medical exams are required for life insurance policies through AARP, although you have to be a member to buy one. Financial strength rating Exceptional Online purchase No NAIC complaints Fewer than expected Policies offered Term, permanent & no-exam
AARP
AARP
Company overview: AARP offers coverage to its members and their spouses via their partnership with New York Life, one of the largest life insurance companies in the U.S.
With AARP’s standard whole life insurance policy, members ages 50 to 80 and spouses ages 45 to 80 can apply by answering a few health questions. No medical exam is required. You can buy up to $50,000 in coverage online or request a higher amount by contacting New York Life.
AARP also offers a guaranteed acceptance whole life policy, which skips both the questionnaire and medical exam and issues coverage to members ages 50 to 80 and spouses ages 45 to 80. In New York, the age eligibility is 50 to 75 for both members and spouses. Applicants can buy up to $25,000 in coverage on their own.
AARP whole life policies details
Policy options: Permanent Life Insurance, Guaranteed Life Insurance.
Eligibility age range: 50 to 80 (varies by policy, state and membership status).
Minimum coverage amount: $5,000.
Maximum coverage amount: $25,000 or $50,000, depending on the policy, though higher amounts may be available.
State availability: Depends on policy.
Potential to earn dividends: No.
» Read the full review: AARP life insurance
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Alternatives to the best whole life insurance
Traditional term life insurance is typically sufficient for most people. Term life, which doesn’t build cash value, is much less expensive than whole life insurance. A term life policy lasts a set number of years, and by the time it expires, you may no longer need life insurance.
If you’re certain you want lifelong coverage, you may also want to consider other types of permanent life insurance. Some of the options are:
Universal life insurance, which gives you flexibility to adjust your premiums and death benefit.
Indexed universal life insurance, a type of universal life that’s tied to a stock index such as the S&P 500.
Variable life insurance, which lets you choose how to invest your policy’s cash value.
More about whole life insurance
Learn more about whole life policies before you buy. Here are a few resources to help you understand your options.
Whole life insurance definition
How does whole life insurance work?
The cost of whole life insurance and why it’s so high
Is whole life insurance a good investment?
More about top-rated life insurance companies
Looking for a different type of life insurance policy? Check out NerdWallet’s top picks across these categories:
Best life insurance companies.
Best term life insurance companies.
Best burial life insurance companies.
Best life insurance for seniors.
Best instant life insurance companies.
Best no-medical exam life insurance.
Best return-of-premium life insurance.
Best life insurance for children.
Best accidental death and dismemberment insurance.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2020-2022. To assess how insurers compare with one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsem*nt of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
Frequently asked questions
Is whole life insurance worth it?
It depends on your needs and financial situation. If you can comfortably afford the higher premiums and want to see your life insurance policy grow into a cash asset, whole life insurance might be worth the price tag.
But if you simply want to buy life insurance to give your family a financial safety net when you die, a term life insurance policy is probably sufficient.
How much is whole life insurance?
For a healthy 40-year-old, the typical cost of a $500,000 whole life insurance policy is $6,483 a year, according to average life insurance rates from Quotacy, a life insurance brokerage. To compare, the same applicant might pay $308 a year for a 20-year, $500,000 term life policy.
What is modified whole life insurance?
Modified whole life insurance is a type of whole life insurance that offers lower premiums for the first few years. After that, the premiums go up. During the “modified premium” period, you can’t contribute to your policy’s cash value.
