The Top 7 Best Whole Life Insurance Companies of 2024
Our team reviewed the best life insurance companies nationwide and selected the following options for applicants seeking whole life policies.
- Nationwide: Best for whole life insurance
- TruStage: Best for online whole life insurance
- New York Life: Best for cash value policies
- State Farm : Best for customer satisfaction
- MassMutual: Best for permanent life insurance
- Penn Mutual: Best for custom coverage
- Northwestern Mutual: Best for a personalized experience
| Company | Best For | Monthly Cost | A.M. Best | Visit Site |
|---|---|---|---|---|
| Best for whole life insurance | $21-$46 | A+ | Learn More |
| Best for online whole life insurance | N/A | A+ | Explore Plans |
| Best for cash value policies | N/A | A++ | Learn More |
| Best for customer satisfaction | N/A | A++ | Learn More |
| Best for permanent life insurance | $21-$51 | A++ | Learn More |
| Best for custom coverage | $18-$42 | A+ | Learn More |
| Best for permanent life insurance | $20-$37 | A++ |
| Company | A.M. Best | Best For | Monthly Cost | Visit Site |
|---|---|---|---|---|
| A+ | Best for whole life insurance | $21-$46 | Learn More |
| A+ | Best for online whole life insurance | N/A | Explore Plans |
| A++ | Best for cash value policies | N/A | Learn More |
| A++ | Best for customer satisfaction | N/A | Learn More |
| A++ | Best for permanent life insurance | $21-$51 | Learn More |
| A+ | Best for custom coverage | $18-$42 | Learn More |
| A++ | Best for permanent life insurance | $20-$37 |
No results were found.
We based cost data on life insurance quotes collected for 35- and 45-year-old men and women without a history of tobacco use seeking $250,000 in coverage.
Best Whole Life Insurance Companies Reviewed:
Nationwide
Best for whole life insurance
4.7
Coverage: 4.7/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 4.6/5
Our Review
A.M. BestA+Exam requiredNo*Maximum Issue Age80
Why We Picked Nationwide
Why We Picked Nationwide
We chose Nationwide as the best whole life insurance provider because it offers two coverage options, financial stability and one of the highest customer satisfaction ratings on our list. The 20-Pay Whole Life option allows you to pay off your policy in 20 years and accumulate cash value faster. This policy may benefit people in their peak earning years looking to reduce future expenses as they approach retirement. The Whole Life 100 option lets you pay a smaller, fixed premium until you turn 100 years old, when premiums stop. Customers on a tighter budget who don’t minder slower cash value growth might prefer this plan. Forty percent of Nationwide customers who responded to our February 2024 survey of 1,000 policyholders purchased whole life coverage, more than any other type of policy.
Highlights:
- Offers flexibility with two payment options – you can pay premiums up to age 100 or for 20 years
- Accelerated underwriting offers the chance for applicants aged 18 to 50 to get up to $5 million in whole life coverage without taking a medical exam
- Simplified Whole Life policy is ideal for customers who want to avoid a medical exam and cover final expenses with lower coverage amounts
Our Ratings
The table below provides a more detailed look at how Nationwide performed in our 2024 life insurance study. You can also see how Nationwide compares to average scores for other whole life providers.
Red Flags
- Must talk to an agent for a quote and apply for coverage, a potential drawback for digital-savvy customers
- Doesn’t have a live chat feature for customers to reach support
- Must purchase Nationwide auto or home insurance to apply for a Simplified Whole Life plan
Coverage and Riders
Policy Options:
- Whole Life 100 policy premiums remain the same overall and stop when the policyholder turns 100 years old.
- 20-Pay Whole Life features fixed premiums the policyholder must pay for 20 years, but coverage lasts for your entire life.
- Simplified Whole Life offers small policy amounts of $10,000 to $50,000 to current Nationwide auto or homeowner insurance customers or their family members.
Maximum coverage: $5 million or more (Must speak with an agent to apply for coverage over $5 million)
Minimum coverage: $10,000
Riders:
- Chronic illness
- Critical illness
- Terminal illness
- Accidental death benefit
- Children’s term insurance
- Guaranteed insurability benefit
- Owner’s waiver of premium death or disability benefit
- Premium waiver
Availability: 50 states
TruStage
Best for online whole life insurance
4.3
Coverage: 3.8/5
Riders: 4.4/5
Availability and Ease of Use: 4.7/5
Brand Trust: 3.1/5
Our Review
AM Best ratingA* Exam requiredNo Maximum issue age85
Why We Picked TruStage
Why We Picked TruStage
TruStage earned our pick as the best online whole life provider for offering an all-digital application process. The company lets you get a quote online and apply from your electronic device for an instant decision. Offering between 5,000 and $100,000 in coverage, TruStage’s standard whole life plan can benefit customers who want smaller coverage amounts quickly.
Highlights:
- Whole life policies don’t require a medical exam and frequently offer instant decisions
- Customers who need help with the application can fill out a form to request a call from an agent or call the company directly
- Guaranteed Acceptance Whole Life policy can benefit applicants between 45 and 80 years old who have health conditions
Our Ratings
The table below provides more details on how TruStage performed in our 2024 life insurance study. You can also see how TruStage compares to average scores for other whole life providers.
Red Flags
- Limits whole life coverage to $100,000, a lower maximum than most competitors
- Coverage doesn’t start immediately; policies have a 30-day waiting period after approval
- Does not offer riders — unlike many competitors — which restricts the ability to customize coverage
Coverage and Riders
Policy Options:
- Whole Life offers between $5,000 and $100,000 to applicants aged 18 to 85. The plan doesn’t require a medical exam and often gives instant decisions. TruStage makes underwriting decisions based on answers to health questions and medical information reviewed in national databases.
- Guaranteed Acceptance Whole Life offers from $2,000 to $25,000 in death benefits to people between the ages of 45 and 80. Applicants cannot be denied coverage for health reasons. Like most guaranteed issue policies, this plan has a graded death benefit, which serves as a waiting period for full coverage. Beneficiaries receive only a return of paid premiums plus 10% if the insured person dies a non-accidental death within the first two years.
Maximum coverage: $100,000
Minimum coverage: $2,000
Riders: None
Availability: 49 states (excludes New York)
New York Life
Best for cash value policies
4.0
Coverage: 4.7/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 4.6/5
Our Review
A.M. BestA++ Exam requiredNo Maximum Issue Age85
Why We Picked New York Life
Why We Picked New York Life
New York Life earned a spot on our list for offering multiple whole life insurance options. The Secure Wealth Plus plan helps customers maximize their retirement savings by paying off premiums in only 10 years as they accumulate tax-free cash value to supplement their income. Secure Wealth Plus also offers an expedited application process that typically takes 24 to 48 hours, compared to four to eight weeks with traditional underwriting. The company’s Custom Whole Life lets you pay off your policy premiums in as little as five years, helping customers with high net worth start accumulating cash value faster.
Highlights:
- Has paid dividends to whole life policyholders every year for 170 years, including a record $2.2 billion projected for 2024
- Lets you pay up your whole life policy in as little as five years, helping accumulate cash value faster than a typical whole life plan
- Offers a Secure Wealth Plus plan with early cash value build-up and a quick underwriting process
Our Ratings
In the table below, we’ve provided a more detailed breakdown of how New York Life scored in our 2024 life insurance study. You’ll also see the average scores of all 34 providers in our most recent study to make it easy to compare.
*The NAIC complaint index uses a ratio of 1.0 as the baseline for the industry, with lower scores representing fewer complaints than the average for a company of that size. Companies with scores higher than 1.0 indicate more complaints than average.
Red Flags
- Must contact an agent to purchase a whole life policy or receive a quote
- Does not have information about coverage limits on its website
- Does not list age limits for whole life plans on its website
Coverage and Riders
Policy Options:
- The standard whole life insurance policy provides guaranteed insurance coverage and lets you build cash value over time.
- The custom whole life policy lets you choose the number of premium-paying years, maximizing cash value accumulation.
- The Secure Wealth Plus plan provides a streamlined underwriting process with application approval within 48 hours and an early cash value build-up.
Maximum coverage: Vary by age and risk class
Minimum coverage: $25,000
Riders:
- Living benefit
- Disability waiver of premium
- Chronic care
- Accidental death benefit
- Option to purchase paid-up additions
Availability: 50 states
State Farm
Best for customer satisfaction
4.6
Coverage: 4.7/5
Riders: 4.4/5
Availability and Ease of Use: 3.9/5
Brand Trust: 4.9/5
Our Review
A.M. BestA++ Exam requiredNo* Maximum Issue Age80
Why We Picked State Farm
Why We Picked State Farm
State Farm made our list for combining strong customer service, as indicated by third-party rating entities J.D. Power and the National Association of Insurance Commissioners (NAIC), with the flexibility afforded by four whole life policies. The company also offers a fifth policy to New York customers only. State Farm’s Limited Pay option could benefit a child, who could have a paid-up policy entering adulthood with significant cash value to access for major purchases. When we surveyed 1,000 policyholders in February 2024, 13% of respondents reported purchasing coverage from State Farm — a higher number than for any other provider.
Highlights:
- Offers the option to pay whole life premiums over your lifetime, or pay up your policy in 10, 15 or 20 years with the Limited Pay Life option.
- Guaranteed issue final expense plan offers whole life coverage to customers with health conditions who might not qualify for traditional whole life.
- Finished first in customer satisfaction in the 2023 J.D. Power customer satisfaction study and has a lower-than-average 0.37 complaint index with the NAIC.
Our Ratings
See a more detailed look at how State Farm scored in our 2024 life insurance study in the table below. You’ll also find average scores from all 34 providers in our most recent study to compare with State Farm’s scores.
*The NAIC complaint index uses a ratio of 1.0 as the baseline for the industry, with lower scores representing fewer complaints than the average for a company of that size. Companies with scores higher than 1.0 indicate more complaints than average.
Red Flags
- Requires you to contact an agent for quote for whole life quotes other than the guaranteed issue final expense plan
- Does not offer a guaranteed issue final expense policy in New York
- Offers fewer riders than competitors such as MassMutual
Coverage and Cost
Policy Options:
- Whole life is a traditional policy that guarantees lifetime coverage, level premiums to age 100, cash value accumulation and offers dividends.
- Limited pay life insurance lets you choose the duration of your premium payments, from 10, 15 or 20 years.
- Single premium life insurance offers lifelong coverage with only one premium payment and a minimum coverage amount of $15,000. Coverage is available for applicants up to 80 years old.
- Guaranteed issue final expense insurance offers up to $15,000 in coverage for individuals between the ages of 45 to 80. However, this policy is not available in New York.
- The $10,000 whole life policy is for applicants in New York looking for final expense coverage. Coverage is only available for people ages 50 through 75.
Maximum coverage: Varies based on the applicant
Minimum coverage: $10,000
Riders:
- Waiver of premium for disability
- Accidental death
- Select term
- Children’s term
- Accelerated death benefits
- Guaranteed insurability option
- Payor insurance
Availability: 48 states (excludes Massachusetts and Rhode Island)
MassMutual
Best for permanent life insurance
4.7
Coverage: 4.7/5
Riders: 5/5
Availability and Ease of Use: 4.7/5
Brand Trust: 4.6/5
Our Review
A.M. BestA++ Exam requiredNo Maximum Issue Age90
Why We Picked MassMutual
Why We Picked MassMutual
MassMutual earned a spot in our review by offering eight pay periods for whole life plans. You can pay up your policy in eight years, which may benefit high-earning customers who want to reduce future expenses and accelerate cash value growth. The company offers additional value by paying investment dividends to policyholders. Additionally, MassMutual offers accelerated underwriting to help applicants obtain coverage in a day or two compared to weeks that traditional underwriting can take.Though dividends aren’t guaranteed, the company has paid out every year since 1869. Among respondents to our February 2024 survey of 1,000 policyholders nationwide, 29% of MassMutual customers purchased whole life coverage.
Highlights:
- Whole life policies have paid dividends every year since 1869, offering financial value to policyholders.
- Express Path fluidless underwriting program allows up to $1 million in no-exam coverage to applicants between 17 and 50 years old.
- Allows whole life customers to pay off policies in as few as eight years, facilitating faster cash accumulation.
- MassMutual policyholders filed just two complaints to state insurance departments out of nearly $8.8 billion in premiums issued by the company.
Our Ratings
For a more granular look at how MassMutual fared in our 2024 life insurance study, see the table below. To help you compare more easily, we’ve also included the average scores of all providers in our latest study.
*The NAIC complaint index uses a ratio of 1.0 as the baseline for the industry, with lower scores representing fewer complaints than the average for a company of that size. Companies with scores higher than 1.0 indicate more complaints than average.
Red Flags
- Must speak to a financial professional to sign up for a policy
- Does not offer much information regarding whole life coverage on its website
- Lists a maximum of $1 million in no-exam whole life coverage, less than competitor Penn Mutual, which offers $10 million
Coverage and Riders
Policy Options:
- Whole Life 100 is the lowest premium whole life policy, with level premiums payable to age 100. Offers the option to increase your death benefit.
- Whole Life 65 offers level premiums payable to age 65, after which the policy is guaranteed to be paid up. You have the option to increase your death benefit.
- Whole Life 8/10/12/15/20 Pay builds cash value quicker because premiums are paid up sooner. These policies can be good for grandparents to purchase for grandchildren because the policies will be paid off before early adulthood.
- Whole Life High Early Cash Value is designed for businesses to insure key employees and executives.
Maximum coverage: Varies based on the applicant
Minimum coverage: $25,000
Riders:
- Life insurance supplement rider
- Renewable term rider
- Waiver of premium rider
- Additional life insurance rider
- Planned additional life insurance rider
- Long-term care rider
- Accelerated death benefit for terminal illness rider
- Transfer of insured rider
- Yearly term purchase rider
Availability: 50 states
Penn Mutual
Best for custom coverage
4.4
Coverage: 3.8/5
Riders: 4.4/5
Availability and Ease of Use: 4.7/5
Brand Trust: 3.1/5
A.M. BestA+Exam requiredNo Maximum Issue Age85
Why We Picked Penn Mutual
Why We Picked Penn Mutual
Penn Mutual made our list of top whole life insurance providers for offering up to $10 million in no-exam coverage and 15 optional riders, more than any company we reviewed. You can add riders to help you pay for medical expenses if you develop a severe medical condition. Additionally, Penn Mutual allows you to pay off your premiums in as few as five years, which could help policyholders who can afford to pay larger premiums and help accumulate cash value in their policy more quickly.
Highlights:
- Customers aged 65 and younger can apply for up to $10 million in whole life coverage without a medical exam
- Offers a survivorship whole life policy — joint coverage that some spouses may consider for estate planning purposes
- Received 97% fewer customer complaints than expected for a company of its size according to the NAIC
- Offers up to 15 optional riders for its whole life plans, more than any competitor we researched
Our Ratings
The table below gives a more in-depth look at how Penn Mutual performed in our most recent life insurance study. We’ve also included the average scores from all providers in our 2024 study for comparison purposes.
*The NAIC complaint index uses a ratio of 1.0 as the baseline for the industry, with lower scores representing fewer complaints than the average for a company of that size. Companies with scores higher than 1.0 indicate more complaints than average.
Red Flags
- J.D. Power did not profile the company in its 2023 study
- Required to purchase a policy through an agent
- No-exam policies not available to New York residents
Coverage and Riders
Policy Options:
- Guaranteed Whole Life II comes with several rider options, a customizable premium-paying duration and coverage up to age 121.
- Protection Whole Life also offers lifelong coverage, fixed premiums and a guaranteed cash value accumulation, but is a potentially more affordable option.
- Survivorship Whole Life provides coverage for two people, cash value accumulation, rider options and lower rates than individual policies.
Maximum coverage: $65 million
Minimum coverage: $50,000
Riders:
- Children’s term insurance
- Policy split option
- Flexible protection
- Chronic illness accelerated benefit
- Estate preservation term insurance
- Overloan protection
- Accelerated death benefit
- Accidental death benefit
- Guaranteed purchase option
- Disability waiver of premium
- Enhanced disability waiver of premium
- Enhanced permanent paid-up additions
- Accelerated permanent paid-up additions
- Supplemental exchange
- Surrender value enhancement
Availability: 50 states
Northwestern Mutual
Best for a personalized experience
4.3
Coverage: 3.5/5
Riders: 3.75/5
Availability and Ease of Use: 4.2/5
Brand Trust: 5/5
Our Review
A.M. BestA++ Exam requiredYes Maximum Issue Age85
Why We Picked Northwestern Mutual
Why We Picked Northwestern Mutual
We chose Northwestern Mutual as the best for a personalized experience because it has over 6,400 financial advisors nationwide to assist with your coverage needs. You can match with an advisor instantly after answering a few questions using the company’s online tool or you can search for a specific advisor. The company also lets you select how long you’ll pay premiums on a whole life policy. Budget-conscious customers may pay lower premiums by selecting the 90 Life plan, whereas investment-focused policyholders can ensure fastest cash accumulation by opting to pay off their policy in 10 years.
Highlights:
- Expected to pay out a record $7.3 billion in dividends to policyholders in 2024.
- Company advisors help applicants find the ideal policy by evaluating income, debts, financial obligations and goals.
- Had much lower-than-average one customer complaint per billion dollars in annual premiums issued in 2023, according to the NAIC.
- Customers in peak earning years can pay up policies in 10 years to reduce future expenses.
Our Ratings
See how Northwestern Mutual performed in our 2024 life insurance study in greater detail in the table below. You can also see the average scores for all 34 providers in our most recent study to make it easy to compare.
*The NAIC complaint index uses a ratio of 1.0 as the baseline for the industry, with lower scores representing fewer complaints than the average for a company of that size. Companies with scores higher than 1.0 indicate more complaints than average.
Red Flags
- Limited number of riders available compared to some other companies
- Must contact an advisor for a quote, a drawback for those who prefer an all-digital process
- Website offers few whole life policy specifics, a con for shoppers who prefer to have before speaking with an advisor
Coverage and Riders
Policy Options:
- 65 Life allows you to make level premiums until age 65, after which the policy is paid up and your coverage remains in place.
- 90 Life offers the lowest premiums of any Northwestern Mutual Whole Life policy we’ve reviewed. You pay premiums until age 90, after which your death benefit stays in place.
- Limited Pay Life lets you choose to pay premiums for 10 to 30 years before your policy is paid up.
Maximum coverage: Varies based on the applicant
Minimum coverage: $25,000
Riders:
- Waiver of premium
- Additional purchase benefit
- Long-term care benefit riders
Availability: 50 states
How We Ranked Whole Life Insurance Providers
To select our list of top whole life insurance companies, we first looked at providers that earned at least a 4 out of 5 star rating in our comprehensive methodology. Then, we analyzed details such as policy variety, rider and death benefit options, and dividend performance.
We created our list of the top whole life insurance providers to serve as a starting point for those interested in buying coverage. Because whole life insurance involves significant costs and coverage for your entire life, we recommend consulting a licensed professional to examine your needs and budget before purchasing a policy.
How Much Does Whole Life Insurance Cost?
Whole life insurance policies cost significantly more than term life insurance and rates can vary depending on many individualized factors. Going through the whole application and underwriting process is generally the best way to get an accurate estimate of your rate.
Use the calculator below to get an estimate for the cost of your whole life insurance.
Factors That Affect the Cost of Whole Life Insurance
Life insurance companies don’t just look at the amount of coverage when setting whole life insurance premiums. Providers underwrite policies based on factors about the individual applicant, such as their age, gender, health and other potential risk factors. Here are common considerations carriers take when underwriting whole life insurance policies:
- Age: As you get older, life insurance companies increase rates because you’re at a greater risk of experiencing serious health problems. Most companies set maximum age issue limits between 75 and 90 years old for whole life policies.
- Gender: Women have a longer life expectancy than men and generally pay less for life insurance as a result.
- Health: Your health is a major factor in your whole life insurance premiums. Providers may ask you about your medical history or request that you take a medical exam to determine your risk level.
- Pre-existing or chronic conditions: When you apply for life insurance, you’ll have to disclose chronic illnesses such as diabetes, heart disease, cancer or sexually transmitted diseases. If you are affected by pre-existing conditions, you may be placed in a higher-risk pool at a greater cost or even excluded from coverage.
- Lifestyle: If you engage in smoking, excessive drinking or other unhealthy lifestyle behaviors, it may negatively impact your premiums.
- Dangerous hobbies: Some activities put you at an increased risk of death. Dangerous hobbies such as skydiving, skiing or rock climbing increase your beneficiary’s likelihood of filing a claim against your policy and, therefore, your premiums.
- Driving record: If your driving record includes accidents, DWI or DUI citations, claims or tickets, your whole life insurance policy cost may increase.
- Location: Companies use regional mortality rates and life expectancy data to factor geographical risk into your life insurance rates.
How Does Whole Life Insurance Work?
Whole life insurance is a type of permanent life insurance protection that offers guaranteed investment growth and pays a death benefit to beneficiaries no matter when the insured person dies, as long as premiums are paid. Beneficiaries can use the funds from the insured’s life insurance payment to pay for funeral expenses, accumulated debt or any other purpose.
When is whole life insurance a better choice than a term life insurance policy?
Generally, whole life [insurance] makes more sense as part of an estate or legacy plan. Because whole life policies have a tax-advantaged cash component that accumulates over time, it can also be an appealing choice for people looking for a vehicle to save for future needs, either as a supplement to qualified retirement plans or for future generations.
Whole life insurance policies build cash value, which the policyholder can access through withdrawals and policy loans. Every time you pay a premium, your life insurance company will allocate a portion into an account you can withdraw from or take out a loan while still alive. The cash value is guaranteed to grow tax-deferred at a specified rate. According to industry association LIMRA, formerly the Life Insurance Marketing and Research Association, whole life is the most popular form of life insurance, representing 39% of sales in 2023.
Whole Life Insurance Riders
Life insurance riders add extra coverage to a standard life insurance policy for an additional fee. For people who want increased peace of mind surrounding unexpected events, adding riders can supplement the value of their whole life policy. Here are some of the most common life insurance riders:
- Child rider: Pays a benefit if the policyholder’s child passes away, and may suit parents looking to cover their children without purchasing an additional plan.
- Accidental death: Pays out an extra death benefit to your loved ones if you die in an accident.
- Long-term care: Allows you to access a portion of your death benefit to help pay for care at home or in a facility, filling in gaps that health insurance or Medicare does not cover.
- Waiver of premium: Waives premiums and allows your policy to remain active if you suffer a qualifying critical illness or injury.
What Are the Disadvantages of Whole Life Insurance?
The higher cost of whole life insurance compared to term life insurance is one of its major disadvantages, in addition to the following:
- High cost: Whole life can be as much as 17 times more expensive than term life policies, according to Policygenius.
- Slow initial cash growth: The cash value portion of a whole life policy typically tends to accumulate slowly within the first few years before accelerating in later years.
- Penalties for accessing cash value: If you want to borrow against your cash value while still alive, you are charged interest for taking out loans and could pay taxes on withdrawals depending on the amount.
Is Whole Life Insurance Worth It?
Whole life insurance guarantees a death benefit so long as you pay the policy premiums, and it accumulates cash value as a living benefit that you can withdraw or borrow against. However, it’s substantially more expensive than term life insurance. So, is whole life insurance worth it?
Ask an Expert
Graham Ray,
Licensed insurance agent and writer
You might find whole life insurance worth it if you want permanent coverage, have maxed out your retirement accounts or like the guaranteed cash accumulation that whole life plans offer. Another scenario in which a whole life policy might fit is if you have lifelong dependents — for instance, a disabled spouse or child who will need financial protection for their entire life.
Permanent life insurance lasts for your entire life — as long as you pay the policy’s premiums. It also accumulates cash value, which the policyholder can access before they die. This additional investment component can make whole life policies a smart choice if you want to supplement your retirement funds or have complex financial obligations.
If anyone depends on your income or you want to guarantee a payout to cover your end-of-life costs no matter when you die, whole life insurance is likely worth it. If you have no lifelong dependents, your significant financial obligations (like a mortgage or paying for college) have been met and you have no debt, you may want to reconsider buying whole life insurance
Alternative Types of Permanent Life Insurance
Whole life insurance is a type of permanent life insurance that features level premiums that do not change over time. The cash value of your policy is also guaranteed to grow at a specific annual rate. Like all permanent life insurance policies, whole life insurance lasts for the policyholder’s entire life and pays a death benefit to the plan’s named beneficiaries when the insured person dies.
For people looking for coverage with a lifetime guarantee, it may make sense to look at other options as well. Other permanent products, like universal life and indexed universal life, share the risk more between the carrier and the insured, which can result in lower premiums.
Here are some other types of permanent life insurance that can serve as alternatives to whole life insurance:
- Universal life insurance: Unlike whole life, universal life insurance allows for flexibility in the premium payment amount and death benefit. You can make adjustments — subject to limitations — according to your needs.
- Variable life insurance: This type of coverage features level premiums and allows policyholders to invest their premium payments in a variety of investment options. This investment structure can lead to greater returns — and greater risk — than whole life insurance.
- Variable universal life insurance: A more complex type of plan that combines the features of variable and universal life policies. You can adjust your premium and death benefit and invest in a range of investment options.
- Indexed universal life insurance: This policy invests cash value into an index, such as the Standard and Poor’s 500 or the Nasdaq Composite. These policies provide a guaranteed return and the potential for higher returns from your chosen index.
Select
Best Whole Life Insurance What is Whole Life Insurance? Term vs. Whole Life Insurance Permanent Life Insurance Is Whole Life Insurance a Good Investment? Convert Term to Whole Life Insurance
Frequently Asked Questions About Whole Life Insurance
It is best to buy whole life insurance — or any type of life insurance — as soon as you need it because premiums increase with age. For instance, our cost data shows that average rates can double from age 40 to age 50, and double again from age 50 to 60. Locking in lower rates for whole life insurance when you’re young and healthy ensures your premiums will not increase over your lifetime.
There are a few major differences between whole life insurance and term insurance. Whole life offers lifelong coverage, and term insurance covers you for a finite period of time, known as a term. Whole life insurance also builds cash value and is more expensive.
Whole life insurance aims to provide a guaranteed death benefit for as long as premiums are paid and build cash value that the insured can use before they die. Its higher limits make it good for leaving behind an estate, replacing a lost income or covering lifelong financial obligations or debt.
Yes, whole life insurance has a cash value component. There is less flexibility and potential for growth than universal life cash value, but it features a fixed interest rate and guaranteed growth.
Methodology: Our System for Rating Life Insurance Companies
Our team researches and ranks life insurance companies using an in-depth scoring system that considers the factors most important to consumers like you. Our analysis includes a comprehensive review of each provider we feature based on available coverage, customizability, availability, customer service and company reputation. Here are the factors we take into consideration when rating life insurance providers:
- Brand trust (40%): Life insurance payouts can exceed $100,000 or more, which makes choosing a reputable and trustworthy insurance provider important. To assess brand trust, we use J.D. Power and Associates customer satisfaction surveys, AM Best credit rating scores and the National Association of Insurance Commissioners (NAIC) complaint index. The higher a company scores in each area, the more points it receives.
- Coverage (33%): The more policy options a life insurance company offers, the more opportunities you have to obtain the right coverage for your specific needs. For this reason, we give companies the most points for offering multiple types of life insurance, including various term, permanent and no-exam options.
- Availability and ease of use (19%): Since life insurance coverage options can be complex, we consider the ways a customer can reach a company — and how easy communication is. For this category, we research how many communication channels a company offers for general customer support, claims processing and the application process. Companies earn the most points for offering various ways to interact with an agent, both in-person and online.
- Riders (8%): Companies offering various life insurance riders or endorsem*nts allow policyholders to better customize their coverage. In this category, we determine how many riders a company offers and award the most points to providers with more than 10 options.
We use our rating system to compare and contrast each company against key factors to help us determine the best life insurance companies in the industry. To learn more, read ourfull life insurance methodologyfor reviewing and scoring providers.
AM Best Disclaimer
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