Best Life Insurance Companies in 2021
Life insurance is a crucial part of a financial plan. While it is important to compare quotes, there is more to finding the best life insurance companies for your family's needs.
Rachel H.
Published December 16, 2020.
Choosing the right life insurance company is an essential part of setting up your life insurance policy. When you buy life insurance from a trustworthy company with a history of paying claims promptly, you set up your beneficiaries for a less stressful transition in the event of death.
Hopefully, your loved ones won’t need to make a life insurance claim for many years, so it’s crucial to choose a life insurance company that will stand the test of time.
Buying life insurance on your own, in addition to or instead of the policy offered by your employer, means you won’t lose coverage if you change jobs or get laid off. It also means that it’s up to you to choose a life insurance company that meets your needs.
How are life insurance companies rated?
Life insurance companies are rated by independent companies for their financial strength. You can learn more about a company’s ratings from these agencies:
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Credit rating agency that provides comprehensive information to anyone interested in the creditworthiness of insurance companie |
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leading provider of credit ratings, commentary and research for global capital markets |
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Kroll Bond Rating Agency is a rating agency that provides credit rating services and offers research, analysis, and subscription-based financial strength rating |
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Financial services company that provides investors with credit ratings, risk analysis, and research for stocks, bonds, and government entities |
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Financial services company provides financial strength ratings that may be useful for buyers of insurance, risk managers, and employee benefit administrators |
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Each company uses its own criteria and rating scale, so look for companies that are rated overall as “secure” vs. “vulnerable.” Before you make your final decision, look at a few customer review websites. You can also check with the Insurance Information Institute to see if there are any issues with the company.
Best life insurance company for term policies
Investopedia recently identified New York Life as a top pick for term life insurance policies.
With an A++ rating from AM Best and Standard & Poor’s, New York life offers term policies that you can convert to a permanent life insurance policy later. The company also offers whole life, universal life, and variable universal life policies.
To get a quote, you’ll have to speak with a New York Life financial advisor.
Best life insurance company for affordable premiums
Transamerica started offering life insurance in 1904. They are known for offering some of the best premiums for term life insurance. You can also get final expense life insurance, index universal life insurance, universal life insurance, and whole life insurance from this company.
You can get a free quote for a term policy online. To get quotes for other types of life insurance, you’ll have to speak with a Transamerica representative on the phone.
Best life insurance company for longevity and financial strength
Prudential issued its first life insurance policies 145 years ago. They have solid financial stability ratings with an A+ rating with AMB Best and an AA- rating with Standard & Poor’s.
Prudential offers a large portfolio of insurance products, such as term life insurance, universal life insurance, indexed universal life insurance, and variable universal life insurance with optional riders, including living needs benefits, children’s protection, and accidental death coverage. You can event get a quote online for term life insurance coverage by answering a few basic questions.
There are about 1,000 companies selling life insurance in the United States. Look past an insurance company’s website to learn about its reputation. Many companies focus on the best reports from only a few rating agencies, so you’ll have to conduct your own research to get the full picture of their financial stability and track record for customer service and paying claims.
If you have any questions, your agent will be able to help you choose the right insurance company for you and will walk you through the next step: how to buy life insurance.