Do you want to know which are the top 5 best life insurance in the USA? So, this article interests you. First, life insurance is a type of policy that can be both temporary and permanent and provides benefits to the insured’s family when a death occurs. Therefore, as long as insurance premiums (annual installments) are paid, you will be able to obtain cash securities and even be eligible to receive dividends (in life) with some companies. Remember that, in this portal, we make the process of buying life insurance much faster and easier. So, read on to learn about the best insurance companies and their respective life policies this year.
What is a Life Policy in the USA?
Life insurance is a policy that offers protection to your family in the event of death. On the other hand, these policies offer the option of generating cash values (money for accrued interest); A very useful tool that people often use as financial help either to maintain their home or to provide education for their children. Currently, there are several types of life insurance policies, and the choice of each of them will depend exclusively on your needs and the level of protection you can afford.
Why Should You Get Life Insurance in the USA?
Life insurance is currently considered one of the most useful policies when it comes to granting protection to your family, at least in case of sudden death or illness. On the other hand, providing financial resources that guarantee a stable standard of living for the relatives of the insured will make a difference when it comes to avoiding future financial difficulties. On the other hand, there are many reasons why you should get life insurance, among them we have:
- Save money by accumulating cash values.
- Guarantee special coverage for children and the possibility of obtaining exclusive savings for them and their future education.
- Life insurance can be used as collateral for your mortgage.
- If you are looking to do estate planning or need a tax shelter.
- Life insurance provides security in many of these situations.
Types of Life Coverage in the U.S.A.
Before knowing the 5 best life insurance in the USA; It is necessary to inquire a little more about what types of life policies exist and how they differ between them. First of all, you should know that there are two main types of life insurance: term and permanent. On the other hand, what we know as permanent life insurance is sometimes also called “whole life insurance or whole life insurance”; In this insurance are various subcategories, including traditional whole life, universal life, variable life, and variable universal life.
Important: Policies that cover individual life insurance are often different than life policies issued exclusively for households. So, the following information focuses on life insurance sold to a specific person.
Term Life Insurance
This is the cheapest and simplest policy that we can find in life insurance. Its operation is quite simple, insurance pays only if death occurs during the term of the policy, which is usually from 1 to 30 years. It is important to mention that most term policies do not have exclusive benefits.
Permanent Life Policy “Full” or “Lifetime”
Whole or permanent life insurance is a complete policy where you will get various benefits in life such as the accumulation of cash values and the possibility of requesting loans when you need them. Also, with this policy, your relatives will be able to collect compensation when your death occurs, either unexpectedly or due to a terminal or chronic illness. Currently, there are three main types of permanent life insurance which are:
- Traditional Permanent Policy
- Universal Life Insurance
- Variable Universal Life Policy
How Much Does a Life Policy Cost in the USA?
The cost of life insurance varies depending on the type of insurance you choose. That is, the permanent life policy is usually the most expensive coverage because users pay premiums for death benefits while contributing to increasing the cash value of their policy. However, each particular case may be different and it is important that you consult with your financial advisor at all times.
There are some important considerations about the final cost of life insurance in the USA such as:
- Starting at age 30, the average American pays $100 a month for $100,000 of permanent life coverage.
- People who buy additional policies after the age of 50 tend to pay higher premiums.
- On the other hand, your health status and the type of plan offered by the issuing company, as well as cash value options and riders, will affect the final price of your life policy.
Here are some reference facts about the value of premiums in the USA depending on your age and the coverage you choose when looking for permanent life insurance:
|Age of the insured||Minimum coverage ($100,000)j||Medium protection (250,000)||Comprehensive Coverage ($500,000)|
Is Life Insurance Worth Buying in the U.S.A.?
Life insurance will always be a smart decision when it comes to protecting your family and ensuring their financial stability. Certainly, there are different types of life insurance that can add or subtract particular benefits depending on the case. However, it is mandatory that you have a backup that guarantees peace of mind to your relatives in case of sudden deaths or illness. Similarly, most users who purchase life policies enjoy other living benefits such as cash value savings. Remember that these savings can be used when you need them; therefore, they are usually a great help when you are facing financial difficulty.
Top 5 Life Insurance in the USA
In this count, we show you the 5 best companies that sell life insurance in the USA. It is important to mention that, this selection was possible thanks to the thousands of user reviews on portals such as NerdWallet, TrustPilot, and Consumer Affairs.
|Northwestern Mutual||Receive dividend benefits||4.5/5|
|State Farm||Combine different life policies||4.9/5|
|New York Life||Overall Benefits||5/5|
|Mass Mutual||Receive cash securities (interest payments)||5/5|
|Guardian Life||Estate and inheritance planning||5/5|
Important: Please note that not all life insurance companies are currently accepting insurance applications due to the COVID-19 pandemic. Therefore, it is always important to check the current status of the issuer you choose.
Best Life Insurance for a Dividend in the U.S.: Northwestern Mutual
Northwestern Mutual is currently America’s largest insurer of individual life insurance. First, everyone who has an individual policy from this issuer can collect dividends that add to the original and total value of their policy. Among the main features of this company we can find:
- Their history of complaints and grievances is low.
- The company is the winner of the “Best Customer Satisfaction” award given by JD Power in 2019.
- Northwestern Mutual’s financial strength is A+ (Superior) and was awarded by AM Best.
- It has an exclusive combined policy that covers term life insurance with permanent life insurance.
On the other hand, this company issues life policies up to 80 years; All this, depending on the plan you choose. It also offers level payment options for ages 65 to 90.
It is estimated that for this year, Northwestern Mutual will pay a total of $6 billion in dividends to all its beneficiaries. In this way, it surpasses all its competitors within the USA, at least in this specific category. Also, when a beneficiary receives his dividends he can use it in 4 different ways that are:
- Buy additional coverage for your life insurance, so you can increase your benefits in case of death.
- You can use dividends to cover your premium payments.
- Accrue interest by adding it to the cash value of your policy.
- Request to receive your dividends in cash to spend or invest them as you prefer.
Policies Available at Northwestern Mutual
Finally, the types of policies offered by this company are:
- Life policy for singles. Available for term, permanent, and universal living options.
- Second death life insurance. A policy where you insure two people and only pay for the second death.
- Term Life Policy. Available in the short term for 12, 24, 36, and 48 months.
- Variable universal life insurance. With this policy, you will get several benefits when it comes to accumulating cash values and you can almost always get flexible premium prices.
- “CompLife” policy. It’s a combination of permanent life insurance with dividends that increase cash value (which you receive periodically) and benefits in the event of death.
How Much Does Life Insurance Cost with Northwestern Mutual?
Below is the average daily price of permanent life insurance with Northwestern Mutual for average coverage set at $250,000. It is important to mention that these values are obtained from the official website of the issuer when you complete a survey of the policy calculator.
Important: Northwestern Mutual does not offer online quotes. In fact, the policies are completely personalized, so you should talk to a financial advisor or an independent broker or agent in person if you want to buy a policy with this issuer.
Best Life Insurance to Combine Additional Policies in the U.S.: State Farm
State Farm is known for offering life policies with payment terms between 10.15 and 20 years. On the other hand, insurance issuance ages range from 0 to 85 years, depending on the plan. On the other hand, this company also has a single premium life policy service, which allows you to settle your policy in a single payment. Likewise, all the insurances offered by this company have the option of accumulating cash value.
State Farm provides service through local agents and due to the wide range of products it offers, this insurer gives special discounts when you buy life, home, and auto policies at the same time. On the other hand, they have several additional coverages such as:
- Disability premium waiver.
- Additional clauses for accidental death.
- Additional coverages for children and spouses.
- Additional policies to purchase term life insurance without a prior medical examination.
Among the outstanding features of this company, we have:
- It has more than 100 types of policies available and is fully customizable.
- State Farm’s financial strength is A++ (Superior) and was awarded by AM Best.
- This insurer has been in first place for customer satisfaction in JD Power surveys. Currently, it ranks second among the top 25 insurers this year.
- State Farm gives you almost unlimited ways to combine resources to improve your financial security. In this way, it became the favorite insurer of Americans par excellence.
How Much Does Life Coverage Cost with State Farm?
Here’s a quote for average life insurance rates with State Farm:
|Beneficiary years||Term Life Insurance (Men)||Term Life Coverage (Women)||Permanent Life Insurance (Men)||Permanent Life Coverage (Women)|
|25 years||$20/month and $240/year||$17/month and $195/year||$217/mo and $2,489/year||$190/mo and $2,211/year|
|35 years||$23.10/month and $257/year||$28.01/month and $322.01/year||$297.03/month and $3,413.01/year||$260/month and $2,985/year|
|45 years||$40/mo and $460,02/year||$31/month and $350/year||$450/month and $5,177.01/year||$366/month and $4,202.03/year|
Important: The table above shows State Farm life insurance prices for men and women ages 25, 35, and 45 who are in “good health,” and whose weight is within the “healthy” range; In addition, they were selected as “non-smokers” with an average opening of $250,000.
Best Overall Life Policy in the U.S.: New York Life
New York Life currently offers three different types of life insurance plans, including a customizable plan. On the other hand, one of the main attractions of this company is that they can issue policies for people over 90 years old. Likewise, all policies are available with level premiums and some of their plans allow access to tax-free cash values. Also, and as with most insurance companies, you can borrow money from your life insurance policy once your cash value accumulates.
Among the outstanding features that make this company one of the 5 best life insurance options in the USA, we have:
- New York Life has paid dividends to eligible policyholders since 1854.
- This insurer has a good reputation for customer service, this fact is backed by JD Power.
- Currently, it has a financial strength rating equal to A++ (Superior); this category was awarded by AM Best.
- It has exclusive benefit plans for unexpected death and chronic diseases.
- New York Life premiums are positioned as “The best compared to 25 other insurers with life policies”
On the other hand, New York Life is a company that is characterized by offering several additional clauses such as:
- Accidental death benefit.
- Additional clause of benefits in life (You will be able to access the collection of the policy before your death if you need money in case of terminal illness).
- Extra Care Rider (Provides a tax-free upfront payment if you have a chronic illness).
Important: New York Life sells its policies through local agents who can provide you with individualized quotes as well as personalized service and advice. Although, it is not possible to make quotes online.
How Much Does Life Insurance Cost with New York Life?
New York Life Insurance boasts a reputation known as “Best Value in the Overall Market,” this title was awarded by J.D. Power earlier this year. However, there is no way to get online quotes or price samples available; Because quotes are individualized and must be obtained only through a local agent.
Best Life Insurance for U.S. Cash Securities: Mass Mutual
MassMutual is an insurance company that offers guaranteed cash securities, dividends, and a guaranteed death benefit. That’s right, with this company, you will find exclusive benefits that make Mass Mutual the best option when it comes to generating cash value.
On the other hand, this company offers additional value-added clauses such as:
- Life insurance rider. (This policy allows you to use the dividends earned to purchase additional coverages on your permanent life policy.)
- Additional death clauses. (With exclusive benefits in life).
- Disability and Long-Term Care Waiver. (Living medical coverage).
Among the outstanding features that make this company one of the 5 best life insurance options in the USA, we have:
- Massachusetts Mutual Life Insurance Company is the fourth largest life insurance provider in the USA.
- MassMutual is the only insurance company that offers free life insurance for low-income individuals.
- This company is characterized by being responsible to its policyholders and offering exclusive dividends to all holders of permanent life policies.
Important: Mass Mutual also has the option to borrow money from the cash value of your life insurance policy. In fact, it is the only insurer to offer a free life insurance policy for children through its LifeBridge program.
How Much Does a Life Policy Cost with Mass Mutual?
It is important to mention that the prices of life policies granted by Mass Mutual are not available online. Therefore, if you want to get a quote you should talk to an agent personally. Currently, this company is ranked number 13 of the 25 insurers with the best price-quality ratio according to JDPower.
Best Life Coverage for Estate Planning in the U.S.: Guardian Life
Guardian Life is one of the oldest life insurance companies in the country, founded in 1860.
Some noteworthy features of this company are:
- Guardian Life has a rating for financial strength of A++ (Superior); score awarded by AM Best.
- Policy issuance ages start at zero and end at age 90.
- Permanent policies offer coverage to people aged 95, 99 and 121.
- Also, this insurer is a good option to consider if you are a smoker or have medical problems.
- This company insures people with HIV.
Important: This company is among the 5 best life insurance in the USA for the dividends it offers; In addition, when such dividends are combined with their high age limits for accumulating cash value, Guardian is crowned as the best choice for estate planning.
How Much Does Life Insurance Cost with Guardian Life?
Although Guardian Life does not offer online quotes for permanent life insurance, we can quote a permanent life policy through a hypothetical example. It is important to mention that, the rates that we show you below, refer to a woman who smokes and with a state of health considered as “good”. Finally, the coverage chosen was $500,000.
Prices of Term Life Policies (Smokers vs Non-Smokers)
First, sample term life insurance prices were established for men and women aged 25, 35, and 45 smoking vs. non-smokers. On the other hand, the coverage chosen was $250,000 over a 20-year term. It is important to remember that, this company does not offer online quotes; therefore, what we show you below is a hypothesis based on the results obtained on the official website of the Guardian.
|Years||Male smoker||Male NOT a smoker||Female smoker||Non-smoking woman|
Important: The information provided to obtain these rates was: Sex, smoking, and age. In fact, the official Guardian website did not request a health declaration, date of birth, age, height, or state of residence.