Compare Life Insurance Companies for 2023
We provide a detailed analysis of some of the top-recommended life insurance companies for this year, so you can easily select your policy.
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Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Choosing your life insurance policy can be one of the most important decisions you make. You need to evaluate not only the cost of your coverage, but also if the policy will help you meet your financial obligations after death, cover your funeral costs, mortgage, etc. Your life insurance has an important job to do, so your options must be carefully considered before you make your choice.
A good life insurance policy meets your needs in every category, and finding the right coverage doesn't have to be difficult. With our team of expert independent insurance agents, we developed a proprietary scoring system to create a list of the best-rated life insurance companies out there. Now would be a great time to consider whole life insurance at a very reasonable price with protection that lasts your entire life. Explore our list of the 8 best life insurance companies now.
The Best Life Insurance Companies of 2023
| Our best-rated life insurance companies: | Star Rating |
| Nationwide |
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| New York Life |
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| Lincoln Financial |
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| USAA |
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| Mutual of Omaha |
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| Northwestern Mutual |
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| John Hancock |
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| Principal Financial |
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How We Score Life Insurance Companies
We wanted to develop a score that reflects what you, the consumer, are looking for. You want a life insurance company that’s easy to talk to, keeps their promises, and values their customers. That’s why we ranked over 200 companies in each of these areas:
- Accessibility measures how easy each company is to work with. Companies with 24/7 claims reporting, a strong social media presence, and extended hours (beyond the boring old 9-to-5) scored higher.
- Strength measures whether a company trusts its reputation to speak for itself. Companies that work with independent agents (putting themselves up against fair competition), have high financial security ratings, and have spent more than 20 years in business rank higher.
- Service measures how happy the company’s customers are with their service. We aggregated rankings from around the web to get a snapshot of which companies are going above and beyond.
Understanding the Scores for Each Life Insurance Company
We wanted to recognize the companies going above and beyond, not just the ones failing to meet the mark. 5 points (stars) are possible in each area, for a total of 15 points. Here’s what each rating means in each area:
- 1 star: Average
- 2 stars: Above Average
- 3 stars: Excellent
- 4 stars: Superior
- 5 stars: Perfect! This life insurance company earns the Trusted Choice Seal of Approval.
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Get to Know Our List of the Top 8 Life Insurance Companies
1. Nationwide Life Insurance
Our first runner-up for a top life insurance company is Nationwide. Their superior online services, size, and stability pushed them into the number one spot. Nationwide offers a full suite of financial planning services. They also have an excellent rating of "A+" by both AM Best and the BBB and great financial strength.
Nationwide has been in the insurance industry since 1925, just shy of the century mark. The carrier offers term, universal, whole, and variable life insurance policies. Nationwide also ranked second-highest in J.D. Power's recent customer satisfaction survey. We also love that the carrier offers a living benefits perk on top of most of its life insurance coverages.
2. New York Life Insurance
Our second-runner up for top life insurance carriers is New York Life, which dates all the way back to 1845. New York Life currently holds AM Best's highest possible rating of an "A++." Customer reviews of the carrier are also overwhelmingly positive.
New York Life offers all types of life insurance coverage, including, term, whole, universal, and variable. The carrier also offers individual disability insurance and long-term care coverage, providing customers with even more options. The insurance company also has a ton of coverage in force, and reportedly will pay out $1.9 billion in dividends this year.
3. Lincoln Financial Life Insurance
Our third runner-up for a top life insurance company is Lincoln Financial, which has an "A+" or "superior" rating from AM Best and an "A-" rating from the Better Business Bureau (BBB). Lincoln Financial has been around for more than a century, having first been founded in 1905.
Lincoln Financial offers term life insurance, permanent life insurance, and no-exam life insurance policies. Offering a coverage option for customers with no medical exam required opens potential access to life insurance to a myriad of folks who wouldn't have had it before.
The carrier also offers annuities, workplace benefits, and retirement planning services in addition to life insurance coverage. We also love that Lincoln Financial allows customers to apply for term life insurance coverage quickly, either online or by phone.
4. USAA Life Insurance
USAA earned one of our top spots partially due to its exceptional financial strength and stability, with an "A++" rating from AM Best, the highest possible. The insurance company's net worth surpassed $35 billion just a few years ago. The carrier also has an "A-" from the BBB and high ratings by Standard & Poor's and Moody's. USAA also consistently ranks highly in terms of customer service.
USAA offers both term and permanent life insurance coverages. The carrier also offers a no-exam coverage option that's accessible to a wide range of customers. Further, while most of USAA's insurance policies are only offered to active military members, veterans, or their family members, its life insurance products are available to anyone in the US. We also loved their option that allows customers to add life insurance coverage after a major life event.
5. Mutual of Omaha Life Insurance
Mutual of Omaha has been in the industry since 1909 and has an "A+" or "superior" rating from AM Best and an "A+" rating and accreditation from the BBB as well. The carrier made our top 8 list of life insurance company picks thanks to their wide range of coverage options and perks.
Mutual of Omaha offers whole, term, and universal life insurance policies. Many of the carrier's life insurance coverage options also offer living benefits for policyholders. The insurance company's guaranteed issue coverage option allows customers who have preexisting illnesses to be granted coverage when many other carriers would have denied their applications. Mutual of Omaha also offers several riders to help enhance coverage further.
6. Northwestern Mutual Life Insurance
Northwestern Mutual is our sixth-highest choice for quality life insurance carriers, which was founded in 1859. The carrier has excellent financial strength and stability, with the highest available "A++" rating from AM Best and an "A+" from the BBB.
Northwestern Mutual offers term life, whole life, universal life, and variable universal life insurance coverage. The insurance company scored highly on J.D. Power's recent customer satisfaction survey, and consistently receives positive customer reviews across the board. We were also impressed by the fact that Northwestern Mutual pays out consistent dividends to qualifying life insurance customers.
7. John Hancock Life Insurance
John Hancock was first founded in 1862. The carrier specializes in life insurance and boasts a superior "A+" rating from AM Best. Having been around for more than a century and a half, the carrier has demonstrated continuous solid financial strength.
John Hancock offers term and whole life insurance, as well as final expense life insurance policies and what they call "Aspire" coverage, which is life insurance for people with preexisting diabetes. The carrier offers guaranteed acceptance on some of its coverage options as well. John Hancock offers a Vitality rewards program, which gives customers up to 15% savings in annual life insurance premiums, along with other benefits.
8. Principal Financial Life Insurance
This insurance company has an excellent rating of "A+" by both the BBB and AM Best. U.S. News & World Report also named the insurance company on their "Top Life Insurance Companies" list in 2020.
Principal Financial offers term and permanent life insurance, as well as retirement planning services, estate planning services, irrevocable life insurance trusts, and disability income insurance, providing customers with many important and beneficial options. Principal Financial is also a Fortune 500 company, has $701 billion in assets under management, and has a huge customer base of more than 32 million worldwide.
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How to Choose the Best Life Insurance Company & Policy
With several life insurance options to choose from, you might not be sure where to begin looking. Before you start shopping for life insurance, consider what you need the policy to do for you. Will you need the policy to be in force for just a set number of years, or for the rest of your life? What is the main purpose of your life insurance? To help pay off outstanding debts after you pass, or something else?
Next, you'll want to carefully select your life insurance company by considering customer reviews and official ratings, as well as their rates. An independent insurance agent can provide you with several quotes from different life insurance companies together in one place. But you can also start by considering:
Coverage options
The best life insurance policy for you must be chosen by considering what you need the coverage for and how long you'll need it. Term life policies can be more affordable because they're only active for a set number of years, while permanent life insurance lasts your whole life. Permanent or whole life insurance policies often offer more perks than term policies as well, such as cash value that accrues over time.
Carrier ratings and customer reviews
Don't choose your life insurance company before checking its official ratings through organizations like the Better Business Bureau, which can show you how well they're holding true to their coverage promises. Also, take the time to browse customer reviews online before entrusting your coverage to a carrier. Your independent insurance agent is also familiar with the top-rated and reviewed life insurance companies in your area.
Update your coverage often
Your coverage needs are bound to change over time, especially with a permanent life insurance policy. Make sure to frequently review your current coverage needs so you can shop around for a new policy if necessary. Your independent insurance agent can also help you review your coverage annually and help you determine if you could be saving money somewhere else.
An independent insurance agent can help you find the best whole life insurance policy or other kind of life insurance that's right for you.
Frequently Asked Life Insurance Questions
When it comes to which life insurance policy is best for you, you'll have to determine what your goals for coverage are. Term life insurance is an affordable option but only provides coverage for a set period of time. Term life can pay out a death benefit to a person of choice if the policyholder dies within that time frame. Whole life insurance has higher premiums and is in force for the policyholder's entire life, and also comes with a savings account that accrues cash value over time.
Our comprehensive review found that the best life insurance on the market comes from Nationwide Life Insurance. In its nearly 100 years of experience in the insurance industry, Nationwide has certainly had plenty of time to perfect its coverage offerings and customer service practices. The carrier has excellent ratings of "A+" from both AM Best and the BBB. Nationwide offers term, universal, whole, and variable life insurance policies, so there's an option for life insurance customers of any kind.
Several studies have found Nationwide to have some of the cheapest rates for life insurance on the market. Nationwide is one of the best life insurance companies because of their "A+" rating by AM best, superb customer reviews, many discount options, and coverage options. Nationwide also offers a full suite of financial planning services to go along with your life insurance policy.
Our experts cite Nationwide Life Insurance as the number one life insurance company in the US due to its coverage options, strong financial strength and stability, customer ratings, and extensive history in the insurance industry. With options for term, whole, variable, and universal life insurance, Nationwide truly provides coverage for everyone. Nationwide is also known for its affordable rates and consistently excellent financial strength, meaning customers can rely on the carrier to provide reliable coverage throughout their policy's lifespan.
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The Benefits of an Independent Agent
Independent insurance agents are here for you. They are not bound by any one company, so they can help you find the right life insurance match, no matter what company provides it.
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