The life insurance market in the U.S. is highly competitive, with a mix of long-standing insurers and newer "insurtechs" that sell policies online. To help you navigate this crowded market, we have compiled a list of the best life insurance companies for 2024 based on factors such as customer complaints data, consumer experience, financial strength, types of policies offered, and ease of purchasing coverage.
NerdWallet’s best life insurance companies for August 2024
MassMutual
- Rating: 5.0
- Overview: Massachusetts Mutual Life Insurance Co., or MassMutual, is one of the largest life insurers in the country. Founded in 1851, it offers a wide range of products, from term life to variable universal life insurance. MassMutual is a mutual life insurance company, meaning it’s owned in part by its policyholders and pays out dividends to qualifying members. Its 2024 dividend payout is set to be the highest yet at almost $2.2 billion.
Guardian Life
- Rating: 5.0
- Overview: Guardian was founded in 1860 and has paid life insurance dividends to its eligible policyholders since 1868. The company is set to pay out $1.4 billion in dividends in 2024, the largest sum in the company’s history. Guardian is known for making life insurance accessible for people living with certain health conditions, like HIV.
Northwestern Mutual
- Rating: 5.0
- Overview: Northwestern Mutual is the largest seller of individual life insurance in the United States. The company offers term and permanent life insurance policies, with universal life policyholders having flexible payment and coverage options. Northwestern Mutual received fewer complaints to state regulators than expected for a company of its size, making it a trustworthy choice for shoppers.
New York Life
- Rating: 5.0
- Overview: New York Life is a mutual company, owned by its policyholders. The company offers a variety of term and permanent life insurance policies, with a focus on high coverage amounts. New York Life drew fewer complaints to state regulators than expected for a company of its size and ranked above average in customer satisfaction studies.
Pacific Life
- Rating: 5.0
- Overview: Pacific Life has been in business for over 150 years and offers a broad range of permanent life insurance policies. The company is known for providing detailed and easy-to-digest information about each type of policy on its website. Pacific Life drew significantly fewer complaints than expected to state regulators for a company of its size.
State Farm
- Rating: 5.0
- Overview: State Farm topped the list in J.D. Power’s 2023 U.S. Life Insurance Study for customer satisfaction. The company offers highly customizable term, whole, and universal policies. State Farm has consistently ranked first in customer satisfaction studies, making it a top choice for those seeking excellent customer service.
- AARP
- Rating: 5.0
- Overview: AARP’s Life Insurance Program offers coverage to its members in all 50 states and Washington, D.C. The policies are underwritten by New York Life, one of the biggest life insurance companies in the U.S. AARP offers life insurance without the need for a medical exam, making it a convenient option for older applicants.
How to choose the best life insurance company
Look at customer satisfaction scores: Consider the experiences of other customers to gauge an insurer’s reputation. Look for companies with fewer complaints to state regulators than expected for insurers of their size.
Consider financial strength: Ensure the company has the financial stability to pay claims in the future. Look for insurers with an AM Best rating of A- or better.
Evaluate the policy options: Choose a company that offers the type of coverage you need, whether it’s term, whole, or universal life insurance.
- Get prices from a handful of companies: Compare quotes from multiple insurers to find the best rate for the coverage you need.
In conclusion, finding the right life insurance company is crucial to ensure financial security for you and your loved ones. By considering factors such as customer satisfaction, financial strength, policy options, and pricing, you can make an informed decision when choosing a life insurance provider. Remember to compare quotes from multiple companies to find the best coverage at the most competitive rate.