Best life insurance companies of March 2024 (2024)

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The best life insurance company of 2024 is Protective, based on our analysis of rates, historical performance, coverage options and customer complaint levels. Pacific Life also gets 5 stars in our rating.

The best life insurance companies of 2024

• Protective: Best life insurance company.
• Pacific Life: Best for universal life insurance.
• Corebridge Financial: Best for historic portfolio performance.
• Transamerica: Best for living benefits.
• Symetra: Best for term life insurance.
• Penn Mutual: Good for whole life insurance.

Top-rated life insurance companies of 2024

Compare the best life insurance companies

To help you compare life insurance companies and choose the best one for your budget and needs, our team of experts analyzed several key factors, including each life insurance company’s product offerings, life insurance rates, historical performance and financial strength.

How we choose the best life insurance companies

To choose the best life insurance companies, we analyze over 9,000 life insurance policies and 38 million data points. Our evaluation of policies takes into account several key factors, including rates, internal fees and charges, the insurer’s historical performance, policy illustration reliability, financial strength and customer complaints.

Best term life insurance companies of 2024

If you’re shopping for term coverage, be sure to get quotes from Symetra and Pacific Life. Both insurers offer term life insurance products that earn 5 stars in our rating of the best term life insurance companies.

Best whole life insurance companies of 2024

State Farm earns the highest rating in our analysis of the best whole life insurance companies, but getting quotes from any of the insurers in the table below can help you jump start your search and find a whole life policy that meets your needs and budget.

Best no-exam life insurance companies of 2024

If you’re looking for the best companies for life insurance but would prefer to skip a medical exam, consider Banner Life and Lincoln Financial. Both top our analysis of the best no-exam life insurance companies.

Cheapest life insurance companies of 2024

Shopping around for life insurance can help you find an affordable policy that meets your needs. If you’re looking for good life insurance companies that offer affordable coverage, consider a policy from one of the insurers that earned a spot in our cheapest life insurance companies rating.

Average cost of a $250,000, 20-year term life insurance policy, by company

How much does life insurance cost?

The average rate for an individual of average health buying a $250,000, 20-year term life insurance policy is:

• $217 per year, or $18 per month at age 25.
• $246 per year, or $21 per month at age 35.
• $483 per year, or $40 per month at age 45.
• $1,106 per year, or $92 per month at age 55.
• $3,473 per year, or $289 per month at age 65.

In general, men pay more for life insurance than women, and you’ll also pay more for life insurance policies with a higher coverage amount. The tables below provide an overview of the average cost of term life insurance for females and males by age and coverage amount.

Average annual cost of a term life insurance policy for a female by age

The following quotes reflect the average annual rate for a $250,000 20-year term life insurance policy and a $500,000 20-year term life insurance policy for women of average health.

_{Average life insurance rates are based on the three lowest term life insurance quotes found online.}

Average annual cost of a term life insurance policy for a male by age

The following quotes reflect the average annual rate for a $250,000 20-year term life insurance policy and a $500,000 20-year term life insurance policy for males in average health.

_{Average life insurance rates are based on the three lowest term life insurance quotes found online.}

If you’re considering permanent life insurance, you’ll typically pay more for coverage than a term life insurance policy. The table below provides the average cost of coverage for a whole life insurance policy or universal life insurance policy based on gender, age and coverage amount.

Average annual cost of whole life insurance by age

Average annual cost of universal life insurance by age

Factors that affect your life insurance costs

The cost of life insurance varies by person. How much you pay for life insurance depends on several factors, including:

• Your age and gender.
• Type of policy you choose.
• Smoking status.
• Height and weight.
• Your health (past and current).
• Prescription history.
• Family medical history.
• Driving record.
• Criminal record.
• Occupation and hobbies.

How to choose the best life insurance company

When shopping for life insurance, here are a few factors that can help you narrow down your options.

• Policy and product availability. Companies can sell both term and permanent life insurance policies, but product availability varies. Some companies may sell multiple types of life insurance while others may specialize in one or two types. Even when multiple companies sell the same product, things like term lengths, life insurance riders, and eligibility criteria can vary. The best life insurance policy and insurer offers products with the features you need.
• Financial strength. Companies like AM Best, Standard & Poor’s and Moody’s assess the creditworthiness of insurers, applying letter grades to insurers based on their financial strength.Life insurance providers are evaluated on several factors, including their balance sheet, enterprise risk management (ERM) and operating performance. Top life insurance companies generally receive A or higher grades, such as A++ (Superior), which means they are more likely to be able to pay out your policy’s death benefit to your life insurance beneficiaries.
• Cost. We recommend you get at least three life insurance quotes before making your decision. The cost of life insurance isn’t limited to the face value of your premium, however.Life insurance premiums also include fees and internal costs. If you’re shopping for permanent life insurance, those fees can impact how your cash value account grows over time. A good life insurance company can provide you with a schedule of those fees.

Do I need life insurance?

Life insurance is an essential tool for protecting your family and loved ones financially in the event of your death — especially if you have anyone financially dependent on you. For example:

• You’re a primary wage earner. If you’re the primary wage earner in your household, life insurance ensures that your family can still maintain their current lifestyle if something happens to you.
• You’re a stay-at-home spouse. If one partner stays home while the other works, it’s still a good idea to have coverage for the stay-at-home person. If that person were to pass away, the working spouse may have difficulty affording childcare and other services that their partner provided.
• You’re a caregiver. If you provide financial or physical care to a loved one, such as a child, sibling or parent, life insurance can help pay for ongoing care in the event of your death.
• You have debts another person would be responsible for if you die. For instance, your spouse or partner may be on the hook for your mortgage.
• You own a business. Consider a life insurance policy to provide financial assistance in a buy/sell or succession plan.

What does life insurance cover?

As long as the life insurance premiums are paid and the policy is active, life insurance generally covers death as a result of:

• Natural causes, such as from a disease or ailment.
• Accidents and traumatic injuries.
• Homicide (in most cases).
• Suicide (in some cases).

Note that life insurance policies typically include a suicide clause, which states that the insurer will not pay out on the life insurance claim if the death by suicide occurs within the first few years of opening a policy, often two years.

If you or someone you love is contemplating suicide, contact the 988 Suicide and Crisis Lifeline by dialing or texting 988. Help is available 24/7 and the service is free and confidential.

What doesn't life insurance cover?

A life insurance company will typically not pay out a death benefit if any of these are true at the time of the insured’s death:

• The policy has lapsed, such as due to unpaid premiums.
• The policy term has expired and the insured did not renew or convert the policy.
• The beneficiary is under investigation for, or accused of causing the insured’s death.
• The insured died by suicide within the first few years of purchasing the policy.
• The insured died while committing a crime.

Is life insurance worth it?

Life insurance may be worth the investment if any of the following are true.

• You have people who financially depend on you. Financial stability for dependents is one of the leading reasons people purchase a life insurance policy. The proceeds from a life insurance policy can be used to help a surviving spouse, partner or dependents to cover expenses such as mortgage or rent payments, tuition, utilities, groceries and other necessities.
• You want your final expenses covered. The national median cost of a funeral is $7,848, according to the most recent data from the National Funeral Directors Association, and that number can increase as you account for monuments and end-of-life medical expenses. Even a small death benefit, such as that offered by burial insurance, can help your loved ones cover expenses.
• You think your loved ones may need to pay estate taxes. Beneficiaries do not typically have to pay taxes on life insurance death benefits, and that can make a policy useful in managing your estate. If the value of your estate exceeds IRS estate tax limits, your loved ones can use the proceeds to cover the tax bill.
• You are a business owner. If you own or co-own a business, life insurance can play a vital role in your success or continuity plan, such as a buy/sell agreement. It can also be used to equalize inheritances. For instance, if you are leaving the family business to one child, you can leverage a life insurance policy to leave a financial inheritance to another child/children.

Despite the benefits, there are some reasons you may not want to consider a life insurance policy. For example, if your dependents don’t rely on your income, and there are no extenuating circ*mstances, such as a large debt (e.g., a mortgage that will pass to a loved one), estate tax concerns or business succession needs, then a life insurance policy may not be worth it for you.

2024 life insurance trends

When compared to home insurance and car insurance, life insurance is less likely to be vulnerable to major market shifts, like the rising cost of housing or increasing auto repair prices. But here are some trends that may affect your life insurance shopping experience this year.

• Buying life insurance will get easier for many buyers as technology, including AI, expedites the underwriting process.
• Life insurance companies will continue efforts to decrease the coverage need gap, which is highest among women (44%), millennials (47%) and members of Gen Z (49%), black (49%) and hispanic (49%) individuals and households with an annual income less than $50,000 (56%).
• Younger consumers may see more products and processes geared toward their purchasing preferences. Efforts may include embedded products, such as long-term care or financial services, or more opportunities to bundle life insurance with other coverage needs, such as home or car insurance.

Best life insurance FAQs

More life insurance ratings

• Best term life insurance
• Best whole life insurance
• Best no exam life insurance
• Best life insurance for seniors

Editor’s Note:This article contains updated information from previously published stories:

• Here’s why Danica Patrick wants you to get life insurance
• Survey: Gen X seriously short on life insurance
• Don’t dismiss life insurance as too pricey. Here’s how to pick a plan
• Magic Johnson adds life insurance co. to empire
• Older workers may still need life insurance
• How your selfie could affect your life insurance
• Your guide to insuring someone else’s life
• Why free life insurance at work might not be enough
• Does it make sense to have more than one life insurance policy?
• Answer these 5 questions before buying life insurance from your employer
• For Millennials, life insurance can be a bargain not to miss
• Life insurance extras: Which coverage riders are worth the price?
• Your credit history plays a role in setting your life insurance premiums
• How DUIs can wreck your chance to buy life insurance