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Top 10 Best Life Insurance Companies

According to Termlifeanswers.com

At Term Life Answers, we have access to over 40 of the top life insurance companies in the industry.  Over time we have isolated our top 10 life insurance companies based on a number of different factors such as policy cost, features, underwriting requirements, products offerings and financial strength.  If you are trying to find the best life insurance coverage, we suggest you start with our list.  Here is our list of the top 10 best life insurance companies and the benefits and drawbacks to doing business with each.

Top 10 Best Life Insurance Companies

Here are the top 10 best life insurance companies that we would suggest to our clients in most cases.  Since each company may have its own particular strength, this list is in no particular order.

  1. Protective Life

Protective Life has been around for more than 100 years and has an A+ rating from A.M. Best.  The company has over $770 billion of life insurance in force and over $70 billion in assets as of 2013.   The company was built on the values “Do the Right Thing, Serve People, Build Trust and Simplify Everything”.  The company offers one of the most innovative term products on the market today in its Custom Choice UL product.

Benefits

  • Once of the most competitively priced term products on the market today.
  • Custom Choice UL allows you to keep your premiums level well after your term period is over. The company simply decreases your death benefit each year.
  • Custom Choice UL is convertible to Protective’s most competitive permanent products.
  • Treated cholesterol and blood pressure can qualify for best health class.
  • Unisex build chart which can be favorable to women.

Drawbacks

  • The company does not offer competitive rates for tobacco users.
  • Overall, not as aggressive in underwriting as some other carriers.
  1. American General (AIG)

American General has been around for over 160 years.  It is known for its low rates on life insurance and its innovative Select-a-Term and Secure Lifetime GUL II products.  The company is A rated by A.M. Best and has paid out $38 billion in claims in the last 5 years.

Benefits

  • Almost always in the top 5 for term life insurance rates.
  • Select-a-Term product allows you to choose a specific term length of 15-30 years.
  • Secure Lifetime GUL II product is one of the lowest priced GUL products. Not only does it guarantee coverage to age 121, but it also builds cash value like no other GUL we have ever seen and offers living benefits with its Asset Protector feature.
  • More liberal than most other companies in underwriting riskier applicants.

Drawbacks

  • Term conversion feature only offers conversion to any permanent product within the first 5 years at which point it becomes more restrictive.
  1. Pacific Life

Pacific Life has been around for more than 145 years and offers life insurance, annuities and mutual funds.  The company is A+ rated by A.M. Best.  Pacific Life has become much more competitive in the term life insurance market and its indexed universal life products are an excellent choice for those looking for a permanent coverage option.

Benefits

  • Competitively priced premiums that are among the lowest in the industry.
  • Generous term conversion feature that allows policyholder to convert to any available permanent product at time of conversion.
  • A wide array of high quality life insurance products to choose from.

Drawbacks

  • Not as aggressive as other companies in underwriting applicants with health issues.
  1. Banner Life

Most people don’t recognize the name Banner Life, but it is one of our top life insurance companies for a couple of reasons.  Banner Life offers some of the most competitive rates on term life insurance in the industry.  Banner Life’s parent company Legal and General Group has been around for more than 175 years.  The company has an A+ rating from A.M. Best and ranked number 5 in issued coverage in the U.S. in 2014.

Benefits

  • Offers some of the most competitive term rates in the industry.
  • Table rates based off of ‘Standard Plus’ not ‘Standard’ like most other companies which could offer the potential for lower rates on riskier applicants.
  • Liberal on underwriting for diabetics, anxiety and other medical issues.

Drawbacks

  • Underwriting turnaround time can take longer than most other companies.
  • Limited conversion opportunities in terms of permanent products offered.
  1. Prudential

Prudential is one of the largest life insurers in the world with roughly $3.5 trillion of life insurance coverage in force worldwide.  The company has been around for nearly 140 years and is a household name in the life insurance business.  Prudential is A+ rated by A.M. Best and offers a wide array of life insurance products.

Benefits

  • Prudential is one of the best at underwriting higher risk applicants whether it is a health impairment or lifestyle risk such as smoking or DUI’s.
  • The company is liberal with marijuana smokers and smokeless tobacco users.
  • The company offers a very generous conversion feature for its term policy where it allows conversion to ANY of its permanent products.
  • The company offers a wide array of term and permanent products to choose from.

Drawbacks

  • Prudential’s term rates are a bit higher than some other companies out there, but its conversion feature and underwriting make it worth it in many cases.
  1. Transamerica

Located in San Francisco, Transamerica has been around for almost 100 years.  The company is A+ rated by A.M. best and has a diverse line of insurance products including term, permanent, final expense and long term care insurance solutions.

Benefits

  • Transamerica offers a term life product named Trendsetter LB. This is a term products with living benefits that can be used for chronic, critical and terminal illness.  It is a great solution for someone looking for comprehensive term coverage.
  • Transamerica offers term coverage for amounts as low as $25,000, ideal for those looking for a smaller policy.
  • The company also offers a no-medical exam option for policies less than $250,000.
  • Excellent company for insuring for foreign nationals.
  • Strong final expense product with level premiums and no waiting period.

Drawbacks

  • Not as competitively priced overall for term insurance. Trendsetter LB costs a bit more but added features could be worth it to some.
  • Somewhat conservative when it comes to underwriting higher risk cases.
  1. United of Omaha

United of Omaha is an affiliate of Mutual of Omaha, one of the most respected insurers in the industry.  Mutual of Omaha has been around almost 100 years and is A+ rated by A.M. Best.  The company offers a wide range of insurance products from life insurance to annuities.

Benefits

  • United of Omaha almost always lands in the top 10 for term life insurance rates.
  • The Term Life Answers Product includes an unemployment waiver of premium rider that will pay premiums for 6 months if you become unemployed and collect sate benefits.
  • Rates are based off of your age on your LAST birthday.
  • Favorable underwriting for such criteria as build (unisex build chart) and cholesterol.  Family history qualifications apply to death in a parent or sibling rather than disease occurrence.
  • United of Omaha’s FIT Program allows up to 2 table credits if you exhibit certain positive medical or lifestyle habits.

Drawbacks

  • If cost is the major driver in your decision, there are more competitive rates available.
  1. Sagicor Life

We decided to add this company for those who are looking for the best no medical exam option.  Although Sagicor Life is not a well-known name, the company has been around for many years.  It is A- rated by A.M. Best and offers a wide range of fully underwritten and no medical exam life insurance products as well as annuities.

Benefits

  • Offers a no medical term option up to $400,000
  • Easy online application you can fill out with your agent with an instant decision in most cases.
  • Favorable rates for no exam coverage.
  • Unlike other companies offering no medical exam policies, Sagicor Life offers multiple health class ratings, including ‘Preferred’,  for its no exam product.

Drawbacks

  • Term policies only available in 10, 15 and 20 year durations.
  • No exam coverage is limited to a maximum of $400,000.
  1. Savings Bank Life Insurance of Massachusetts (SBLI)

SBLI touts itself as “The No Nonsense Life Insurance Company”.  If you are looking for inexpensive coverage without any “bells and whistles”, SBLI could be the right fit.  The company has been around for more than 100 years and is A+ rated by A.m. Best.  It offers term, whole life and annuity products.

Benefits

  • SBLI offers affordable rates that are competitive with most of the top companies in the industry.
  • The company offers a competitive annual renewable term product.
  • Great choice for those in excellent health.

Drawbacks

  • Limited product offerings.
  • There are better underwriting options for those with health impairments.
  1. MetLife

Another household name on our list, MetLife has been around for 140 years.  The company offers a wide range of insurance products including auto, home and life insurance.  The company is A+ rated by A.M. Best and the largest life insurer in the United States based on life insurance in force.

Benefits

  • The company offers a wide range of life insurance products to choose from.
  • Premiums are competitively priced compared to other top companies.
  • Will insure active military personnel (not including military special forces) with orders to serve in trouble spots or areas of combat.

Drawbacks

  • If cost is the main driver in your decision, there are more affordable options.

Honorable Mention

American National (ANICO) – Solid company that offers non-medical term for coverage less than $250,000.  ANICO also offers the most competitive rates in the industry for annual renewable term coverage.

John Hancock – John Hancock is one of the most trusted names in the industry.  The company has been around since 1862 and is A+ rated by A.M. Best.  John Hancock recently and introduced its Vitality Program, which allows policyholders the opportunity to reduce their premiums annually and earn rewards for healthy living.

Which Life Insurance Company is Right for You?

Each life insurance applicant’s situation is unique.  That’s why it is important to work with an independent agency that has access to many different companies.  We have access to all of the companies listed in our top 10 and more.  We help consumers find the best life insurance rates and products to match their individual needs.  If you are looking for the best life insurance rates , give us a call at 877-205-4172 or email us at info@termlifeanswers.