Best life insurance companies: Expert-rated in 2023
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 12:02 a.m. UTC Nov. 27, 2023
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If you’re shopping for the best life insurance, consider Protective and Pacific Life. Both companies receive 5 stars in our best life insurance companies rating based on rates, historical performance, coverage options and customer complaint levels.
The best life insurance companies of 2023
- Protective: Best life insurance company
- Pacific Life: Great for retirement planning
- Corebridge Financial: Great for customizable term lengths
- Penn Mutual: Great for historic portfolio performance
- MassMutual: Great for financial strength
- Lincoln Financial: Great for survivorship life insurance
- Transamerica: Best for living benefits
- Symetra Life: Best term life insurance
Why trust our insurance experts
Our team of experts evaluates hundreds of insurance products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 28 insurers evaluated.
- 1,837 rates reviewed.
- 5 levels of fact checking.
Ethos
Top-rated life insurance companies
Protective
Pacific Life
Corebridge Financial
Penn Mutual
MassMutual
Lincoln Financial
Transamerica
Symetra Life
Compare the best life insurance company quotes
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.
| Life insurance company | Our rating | AM Best financial strength rating | LEARN MORE | ||
|---|---|---|---|---|---|
| Protective | 5.0 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Pacific Life | 5.0 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Corebridge Financial (Formerly AIG) | 4.5 stars | A (Excellent) | Compare Rates | Compare quotes offered by participating partners | |
| Penn Mutual | 4.5 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| MassMutual | 4.0 stars | A++ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Lincoln Financial | 4.0 stars | A (Excellent) | Compare Rates | Compare quotes offered by participating partners | |
| Transamerica | 4.0 stars | A (Excellent) | Compare Rates | Compare quotes offered by participating partners | |
| Symetra | 4.0 stars | A (Excellent) | Compare Rates | Compare quotes offered by participating partners |
Methodology
To determine the best life insurance companies, our life insurance experts evaluated 25 of the top life insurance companies that offer coverage in the United States.
Each life insurance company included in our evaluation had the opportunity to earn up to 100 points, based on the following factors:
Term life insurance rates: 35 points. Since term life insurance is often the most affordable coverage option, we evaluated rates for both 30- and 40-year-old males and females, for term lengths of 10, 20 and 30 years and coverage amounts of $250,000, $500,000, $1 million and $2 million.
Cost competitiveness of cash value policies: 15 points. Most permanent life insurance policies have a cash value component, but not all are created equal. We looked at internal policy costs, such as administrative fees and policy charges, to determine the competitiveness of permanent life policies offered by insurance companies in our review.
Historical performance: 15 points. The growth of cash value policies depends on several factors, including the historic performance of an insurance company’s investments. Our analysis took into account this metric to determine how an insurance company’s performance and therefore cash growth potential compared to others.
Complaints: 10 points. The customer experience is an important factor when identifying the best life insurance companies. To determine which life insurance companies offer the best service, we analyzed complaints submitted to the National Association of Insurance Commissioners.
Reliability of policy illustrations: 10 points. Permanent life insurance companies should provide an illustration to show how the cash value is projected to grow over time. We evaluated the accuracy of each insurer’s policy illustration to determine which companies provided the most reliable outlooks.
Financial strength: 5 points. There are four major rating agencies — AM Best, Fitch, Moody’s and Standard and Poor’s — that evaluate an insurer’s financial strength, a factor that indicates an insurer’s ability to pay out a claim years from now. We considered these life insurance company ratings to account for the likelihood an insurance company is able to claim obligations.
Access to cash value: 5 points. Cash value policies grow at different rates, and we factored the liquidity of a cash value policy into our analysis. Some policies have a cash value that grows faster in the early years. Others have slower cash value growth in the early years, and policyholders must wait a significant period of time before having access to a sizable cash value.
Term life conversion availability: 5 points. Some life insurance organizations allow policyholders to convert their term coverage to a permanent life insurance policy. We factored this in to help those considering term life insurance policies identify companies that provide this option.
To determine the top-rated life insurance companies, we used data provided by Veralytic, an independent publisher of life insurance research and analytics, and AccuQuote, a national online insurance agency.
Why some companies didn’t make the cut
Of the 25 insurance companies we evaluated, only eight made our list of the best life insurance companies. Companies with high policy rates, growth-prohibitive internal costs or a poor historic performance were less likely to make our list. The same is true for companies that did not provide reliable policy illustrations for permanent life insurance policies or had a high number of consumer complaints.
Best term life insurance companies of November 2023
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.
| Term life insurance company | Term life insurance rating | Life insurance coverage amounts Top-scoring policy | AM Best financial rating | LEARN MORE | ||
|---|---|---|---|---|---|---|
| Symetra | 5.0 stars | $100,000 to $3 million | A+ (Excellent) | Compare Rates | ||
| Pacific Life | 5.0 stars | $50,000 minimum | A+ (Superior) | Compare Rates | ||
| Protective | 4.5 stars | $100,000 minimum | A+ (Superior) | Compare Rates | ||
| Haven Life | 4.5 stars | $100,000 to $3 million | A++ (Superior) | Compare Rates | ||
| Penn Mutual | 4.5 stars | $250,000 minimum | A+ (Superior) | Compare Rates | ||
| Banner Life | 4.0 stars | $100,000 to $65 million | A+ (Superior) | Compare Rates | ||
| Corebridge Financial | 4.0 stars | $100,000 to $41 million | A (Excellent) | Compare Rates | ||
| Transamerica | 4.0 stars | $25,000 minimum | A (Excellent) | Compare Rates | ||
| Midland National | 4.0 stars | $100,000 minimum | A+ (Superior) | Compare Rates |
Best whole life insurance companies of November 2023
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.
| Whole life insurance company | Whole life insurance rating | AM Best financial strength rating | LEARN MORE | ||
|---|---|---|---|---|---|
| State Farm | 5.0 stars | A++ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Northwest Mutual | 4.5 stars | A++ (Superior) | Compare Rates | Compare quotes offered by participating partners | |
| Ohio National | 4.5 stars | A (Excellent) | Compare Rates | Compare quotes offered by participating partners | |
| Penn Mutual | 3.5 stars | A+ (Superior) | Compare Rates | Compare quotes offered by participating partners |
Best no-exam life insurance companies of November 2023
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.
| No-exam life insurance company | No-exam life insurance rating | Median time to approval | LEARN MORE | ||
|---|---|---|---|---|---|
| Banner Life | 5.0 stars | 8 days | Compare Rates | Compare quotes offered by participating partners | |
| Lincoln Financial | 5.0 stars | 5 days | Compare Rates | Compare quotes offered by participating partners | |
| Brighthouse | 4.0 stars | Same day | Compare Rates | Compare quotes offered by participating partners | |
| Transamerica | 4.0 stars | 12 days | Compare Rates | Compare quotes offered by participating partners | |
| Ethos | 4.0 stars | Instant | Compare Rates | Compare quotes offered by participating partners | |
| SBLI | 4.0 stars | 29 days | Compare Rates | Compare quotes offered by participating partners |
Cheapest life insurance companies of November 2023
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
| Cheapest life insurance company | Female, age 30 | Male, age 30 | LEARN MORE | ||
|---|---|---|---|---|---|
| Haven Life | $130 | $150 | Compare Rates | Compare quotes offered by participating partners | |
| Banner Life | $129 | $146 | Compare Rates | Compare quotes offered by participating partners | |
| Protective | $129 | $146 | Compare Rates | Compare quotes offered by participating partners | |
| Corebridge Financial | $130 | $147 | Compare Rates | Compare quotes offered by participating partners | |
| Pacific Life | $130 | $147 | Compare Rates | Compare quotes offered by participating partners | |
| Symetra | $130 | $147 | Compare Rates | Compare quotes offered by participating partners | |
| Transamerica | $130 | $148 | Compare Rates | Compare quotes offered by participating partners | |
| Penn Mutual | $131 | $148 | Compare Rates | Compare quotes offered by participating partners |
What is life insurance?
Life insurance is a product designed to provide financial protection to your loved ones when you pass away. A life insurance policy pays out a death benefit to the beneficiary when the policyholder dies.
The death benefit can be spent in any way the beneficiary chooses. They may choose to use the money to cover mortgage payments, tuition or everyday expenses such as utilities and groceries.
Life insurance can also be an estate-planning tool and the death benefit can be used to cover end-of-life expenses, such as burial or cremation costs.
Exactly how life insurance works, especially at the policy level, often depends on the type of coverage you choose.
Types of life insurance
Life insurance is typically broken down into two types: term life insurance and permanent life insurance. While shopping for the best life insurance policy, it’s important to understand both options.
What is term life insurance?
Term life insurance allows you to lock in coverage and rates for a specific period of time, also known as a term. When considering term life insurance, it’s helpful to keep the following in mind:
- Terms vary, though they typically range from 10 to 30 years.
- Once the term ends, your policy may expire, automatically renew, or renew at your request, based on your policy agreement.
- May be convertible, meaning you can convert it to a permanent life insurance policy. This can vary by insurer and life insurance product.
- Term life is typically the cheapest type of life insurance available.
- It does not have a cash value component.
What is whole life insurance?
Whole life insurance is a type of permanent life insurance, meaning it will last your lifetime, as long as you pay your premiums.
Whole life insurance policies typically:
- Offer a cash value component with a fixed rate of return.
- Allow you to access the cash value while you are alive.
- Have a guaranteed premium and death benefit.
- Are generally more expensive than term life insurance.
What is universal life insurance?
Universal life insurance is another form of permanent life insurance. Here are some key characteristics of universal life insurance policies.
- Includes three primary types of coverage: index universal, variable universal life and guaranteed universal life insurance.
- Offers a cash value component, the growth of which depends on the type of universal life insurance you choose.
- Flexible premiums or death benefits, depending on the type of coverage you choose.
What is no-exam life insurance?
There are several life insurance plans that allow applicants to skip a medical exam. No-medical exam life insurance policies are generally broken down three types based on how the policy is underwritten:
- Accelerated underwriting. Qualified applicants — often young and healthy — can skip the medical exam. Instead, insurers use data and algorithmic tools to determine eligibility and rates. Rates are similar to those for policies that require medical exxams.
- Guaranteed issue. A form of permanent life insurance that offers a small death benefit — usually $25,000 or less — without a medical exam. Applicants can’t be denied, but eligibility is usually limited to individuals who are 45 or older.
- Simplified issue. A quicker application process that usually requires a health questionnaire. The insurer may also rely on third-party info, such as your prescription drug history, to determine risk and rates. Not everyone is eligible and rates are often higher when compared to those for other products.
Other types of life insurance
Many life insurance companies offer other types of specialized life insurance that may be worth considering depending on your financial circumstances and reason for seeking coverage.
- Burial life insurance, also known as funeral insurance, is whole life insurance designed to cover final expenses, such as funeral costs, cremation and a casket. The death benefit can be used for other, non-burial expenses as well.
- Mortgage life insurance is used to pay off your mortgage if you die while the policy is in force. It has level policy premiums with a term that lasts the duration of your mortgage. Mortgage life insurance coverage decreases as you pay down your balance.
- Survivorship life insurance, also known as second-to-die life insurance, is one life insurance policy that extends coverage to two individuals. The policy only pays out upon the death of the second insured, making it an option for parents who want to leave a child a death benefit after they both have died.
- Supplemental life insurance policies are offered to employees of a business or members of an organization as part of a benefits package. Coverage is usually free or offered at a low rate. Supplemental life insurance usually ends if you leave your job or the member organization.
Life insurance isn’t a one-size-fits-all financial tool. Learn more about the types of life insurance and which one is best structured for your goals.
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 is one that 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.
Who needs 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:
- If you’re a primary wage earner. According to the LIMRA 2022 Insurance Barometer, 44% of families would feel the financial impact of losing the primary wage earner within just six months. Ten percent said they would feel that impact within just one week. 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.
- If 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.
- If 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.
- If 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.
- If you own a business. Consider a life insurance policy to provide financial assistance in a buy/sell or succession plan.
Life insurance need-gaps
Many people can benefit from a life insurance policy, but Americans often aren’t always purchasing any or enough life insurance coverage.
According to the most recent LIMRA Insurance Barometer, 101 million adults in the United States are facing a life insurance need-gap, meaning they don’t have enough life insurance coverage.
- 11% of adults with some life insurance say they need more life insurance.
- 30% say they need life insurance but don’t currently have any.
- Millennials (47%) and Gen Z (49%) are among the age demographic with the highest life insurance need-gap.
- The life insurance need-gap is the highest among adults with annual household income under $50,000.
- Women (44%) as well as individuals who identify as Hispanic (49%) or Black (49%) are also among the demographics with the highest life insurance need-gap.
What prevents someone from purchasing a life insurance policy or a policy with enough coverage? The same survey indicates that three reasons dominate among the uninsured or underinsured:
- Cost, with some expressing that it’s too expensive.
- Other financial priorities.
- Purchasing concerns, such as not knowing how much or what type of coverage to buy.
How to choose the best type of life insurance
To decide which type of life insurance is right for you, ask yourself the following questions.
Do I need permanent or term life insurance?
If you want life insurance coverage for a limited period of time, such as until you pay off your mortgage or your children are grown, a term life policy may be a good option. Since term is cheaper than permanent life insurance, the same may be true if you’re on a tight budget.
How much life insurance does my family need?
Your current income and the length of time your family will need financial support impact how large of a death benefit you’ll need. Also factor in any expenses you want covered — like school tuition, mortgage payments or end-of-life expenses — into the equation.
Not sure how much life insurance to buy? These 7 factors will help you decide how much life insurance you need.
What is my budget?
Think about what you can reasonably afford to pay in monthly premiums. If you have a limited budget, term life coverage tends to be significantly cheaper than whole life coverage.
If you’re more financially comfortable and have longer-term goals, such as wanting to build cash value for your retirement, permanent life insurance may be a better choice.
How much does life insurance cost?
The average rate for a healthy individual buying a $250,000, 20-year term life insurance policy is:
- $152 per year at age 30.
- $209 per year at age 40.
- $446 per year at age 50.
- $1,155 per year at age 60.
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.
The following quotes reflect the average annual rate for a $550,000 20-year term life insurance policy for women. Females in average health pay an average of 50% more for life insurance than those who are in 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 $500,000 20-year term life insurance policy for men. On average, males in average health pay an average of 55% more for life insurance than those 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.
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 circumstances, 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.
Glossary of life insurance terms
Beneficiary
The person or entity who receives the death benefit of a life insurance claim. There can be more than one life insurance beneficiary — common options include a spouse, partner, child or grandchild. You can also choose a trust, estate or organization as your beneficiary.
Cash value
A savings or investment account that is commonly offered with permanent life insurance policies, such as whole life or universal life insurance. The cash value of a life insurance policy can grow over time and be accessed while you’re alive.
Death benefit
A death benefit is the amount of money that will be paid out by a life insurance company after a claim. The death benefit is paid out to the beneficiary or beneficiaries named in the policy.
Dividend
A portion of a life insurance company’s earnings that are distributed to some permanent life insurance policyowners as a partial return of premiums. Dividends are dependent on the company’s earnings.
Riders
Riders are add-on features that you can use to customize or enhance your life insurance policy. Some policies come with riders that are built into the policy at no extra charge, but often you have to pay extra to add a rider.
Underwriting
Life insurance underwriting is the process insurers use to analyze the risk associated with an applicant. It is also used to determine eligibility and premiums, or how much you’ll pay for life insurance.
More life insurance ratings
- Best term life insurance
- Best whole life insurance
- Best no exam life insurance
- Best life insurance for seniors
A 30-year-old healthy male can expect to pay an average of $20 a month, or about $245 a year for a 20-year, $500,000 term life insurance policy, based on our analysis of rates.
A 30-year-old healthy female buying a policy with the same life insurance coverage amount and term length may pay approximately $17 a month, or about $204 a year.
Life insurance rates vary by coverage type and amount as well as factors like your age, gender, health, habits and hobbies.
For instance, a healthy 60-year-old female shopping for senior life insurance will pay an average of $1,777 a year for a 20-year, $500,000 term life insurance policy. A male of the same age, health and life insurance coverage amount will pay an average of $2,533 per year.
Comparing multiple life insurance quotes can help you find the most affordable life insurance policy.
Protective and Pacific Life each receive a 5.0-star rating — the highest score available — in our expert analysis of life insurance companies.
But life insurance companies are not one-size-fits-all, and you may find that another insurer is best suited for your needs, budget and coverage preferences.
To find the best life insurance company for you, compare life insurance quotes from at least three insurers. Don’t just compare rates, though. Make it a point to compare life insurance reviews, available features and benefits and each company’s financial strength rating.
The primary difference between term and whole life insurance is how long coverage lasts. A term life insurance policy lasts for a specific period of time, such as 20 or 30 years, during which the rates are locked in. Whole life insurance is a type of permanent coverage that will last your lifetime and typically include a cash value that you can tap into while you’re alive.
Term life insurance may be a better choice if you want financial protection for a certain period of time, such as until you pay off your mortgage or your child graduates school. It’s also a good option if you want to purchase life insurance but are on a limited budget.
Whole life insurance is better if you want coverage that lasts a lifetime and you don’t want to have to worry about renewing a life insurance policy — which often means paying a higher rate. Whole life insurance may also be a better option if you want a life insurance policy that includes a cash value component.
Term and whole life insurance policies accounted for 86% of life insurance sales in the first three quarters of 2022, according to recent data released by LIMRA.
- Term life insurance is often the most affordable option for buyers, making it a popular choice among individuals and families who want to protect their loved ones but want to stay within their budget.
- Whole life insurance is often more expensive, but it’s a straightforward popular choice among people who are looking for permanent coverage.
Yes, some life insurance policies pay dividends. Whole life insurance is the most common type of life insurance that offers dividends.
Dividends in life insurance act as a partial return of premium feature. The life insurance company invests a portion of your premium payments. If the company makes successful investments and keeps operating expenses low, a portion of the surplus is returned to you as a dividend payment.
If you want a life insurance policy that returns dividends, look for a “participating” instead of a “non-participating” policy, as non-participating policies don’t issue dividends.
There is no time limit by which you need to file a life insurance claim. However, it’s important to keep in mind that life insurance companies can’t keep death benefits indefinitely.
According to the Insurance Information Institute (Triple-I), unclaimed life insurance benefits will be turned over to the state after a set number of years, based on the unclaimed property laws in the state in which the policy was issued.
If you are the beneficiary of a life insurance policy that has been turned over to the state as unclaimed property, you can typically search the state’s unclaimed property database, typically found on the state’s treasury department. You can also visit the National Association of Unclaimed Property Administrators (NAUPA) website to get started.
A life insurance policy may not cover deaths under the following circumstances:
- Cause of death is homicide and the beneficiary was involved.
- Insured dies by suicide within the first few years of opening the policy.
- Insured dies after their term life insurance policy has expired.
- Insured dies after a lapse in their life insurance premium payments.
- Insured dies during the contestability period and it’s determined the insured lied on their application.
Coverage and exclusions can vary by life insurance company, so it’s important to thoroughly read your policy and contact your insurer if you have questions regarding your coverage.
Yes, you can buy life insurance on someone else, but only if they know about and consent to the purchase. People commonly purchase policies for their:
- Spouses or ex-spouses to replace income, alimony or child support when that person dies.
- Child or grandchild, to ensure their insurability down the road, even if they develop a health condition, and to provide a jump start on cash value accumulation.
- Parents, to cover end-of-life expenses or other bills you may inherit upon their passing.
- Siblings, particularly if they care for a parent or other dependent for whom you will be responsible should they pass.
- Business partner, as part of a buy-sell agreement.
Shopping for coverage? How life insurance works
Yes, you can get a life insurance policy without a medical exam.
Some no-exam life insurance policies, such as those that use accelerated underwriting, are available with instant or quick decisions and offer rates and coverage limits similar to traditional life insurance policies.
Other no-exam life insurance policies, like guaranteed issue life insurance, are generally more expensive but you can’t be turned down. These policies are typically best suited for individuals who have had trouble getting coverage due to their age or health.
Based on our analysis, the following are the best life insurance companies in the United States. Each receives 5.0 stars in its category, the highest score available:
- Best life insurance companies: Protective and Pacific Life
- Best term life insurance companies: Pacific Life and Symetra
- Best whole life insurance companies: State Farm
- Best no-exam life insurance companies: Banner Life and Lincoln Financial
- Best life insurance companies for seniors: Protective and Penn Mutual
Editor’s Note: This article contains updated information from previously published stories:
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
