If you’re considering your financial picture for the rest of 2023, make sure to consider our list of the 10 Best Life Insurance Companies for 2023. The essence of having life insurance is to have the peace of mind of knowing your loved ones will be taken care of financially if you pass away.
Life insurance purchasers have many choices depending on their financial goals and budgets. To help you locate the best life insurance companies, we undertook meticulous research to that effect that yielded the results you will discover in this article.
About Life Insurance
Life insurance can substitute lost income, cover funeral expenses and medical bills, or pay ongoing costs like a mortgage while your estate is sorted out. Anyways costs and benefits vary widely, depending on the company you go with, the riders that are included, and the type of policy you are bound by.
Term life insurance is often the easiest to purchase: If you’re healthy and younger, you could secure a policy online in minutes. But if you desire a permanent policy, are older, or are in poor health, be ready to speak to an agent and for a longer application process; that may include a medical exam.
Best Life Insurance Companies
To select the most reasonable life insurance companies, we evaluated dozens of life insurance providers in the following classifications: policy types and attributes (21%), financial stability (17%), application process (16%), customer satisfaction (15%), customer service (14%), riders and living benefits (9%), and expenses (8%).
Life insurance is an essential financial product that provides financial security to your loved ones in case of your untimely demise. With so many alternatives available in the market, it can be overwhelming to choose the best life insurance company for your needs. In this piece, we will discuss the top life insurance companies in the market.
- Prudential Life Insurance Company: Prudential is a highly reputable and trustworthy insurance company that has been in operation for over 140 years. They offer an assortment of life insurance policies including term life insurance, universal life insurance, and variable universal life insurance. They also provide a variety of riders such as accidental death benefits and long-term care.
- MetLife: This company is one of the biggest insurance companies in the world and has been in business for more than 150 years. They offer a range of life insurance policies including term life insurance, whole life insurance, and universal life insurance. They also give riders such as critical illness and accidental death benefits.
- Northwestern Mutual: This is another highly-rated insurance company that has been in business for about 160 years. They offer a rich variation of life insurance policies including term life insurance, whole life insurance, as well as universal life insurance. They also offer riders such as disability income and long-term care.
- New York Life Insurance Company: New York Life is a famous insurance company that has been in business for over 175 years. They offer a variety of life insurance policies including term life insurance, whole life insurance, and universal life insurance. They also offer riders such as long-term care and chronic care.
- State Farm Life Insurance Company: State Farm is a highly reputable insurance company that has been in business for over 100 years. They offer a variety of life insurance policies including term life insurance, whole life insurance, and universal life insurance. They also offer riders such as accidental death benefits and children’s terms.
- MassMutual Life Insurance Company: MassMutual is a highly-rated insurance company that has been in business for over 160 years. They offer a variety of life insurance policies including term life insurance, whole life insurance, and universal life insurance. They also offer riders such as long-term care and disability income.
- Mutual of Omaha Life Insurance Company: Mutual of Omaha is a highly reputable insurance company that has been in business for over 100 years. They offer a variety of life insurance policies including term life insurance, whole life insurance, and universal life insurance. They also offer riders such as accidental death benefits and children’s terms.
- Transamerica Life Insurance Company: Transamerica is a highly-rated insurance company that has been in business for over 100 years. They offer a variety of life insurance policies including term life insurance, whole life insurance, and universal life insurance. They also offer riders such as critical illness and long-term care.
- Principal Life Insurance Company: Principal is a highly reputable insurance company that has been in business for over 140 years. They offer a variety of life insurance policies including term life insurance, whole life insurance, and universal life insurance. They also offer riders such as disability income and accidental death benefits.
- AIG Life Insurance Company: AIG is a highly-rated insurance company that has been in business for over 100 years. They offer a variety of life insurance policies including term life insurance, whole life insurance, and universal life insurance. They also offer riders such as accidental death benefits and chronic care.
Benefits of Life Insurance
Life Insurance Payouts Are Tax-Free
If you have a life insurance policy and die while it is active, your beneficiaries will receive a lump sum death benefit. Life insurance payouts are not taxable income, and your beneficiaries are not required to report the money when they file their tax returns.
Your Dependents Won’t Have to Worry About Living Expenses
Many experts suggest having life insurance that’s equal to seven to 10 times your annual income. If you have a policy (or policies) of that size, the individuals who depend on your income shouldn’t have to worry about their living expenses or other major costs. For example, your insurance policy could cover the expenses of your children’s college education, and they won’t need to take out student loans.
Life Insurance Can Cover Final Expenses
As of 2021, the national median cost of a funeral that included viewing and burial was $7,848. Due to the fact that many Americans do not have enough savings to cover even a $400 emergency expense, having to pay for a funeral can be a significant financial burden.
If you have a life insurance policy, your beneficiaries can use the money to cover your burial expenses without having to dip into their own savings or take out a loan. Some insurance companies provide final expense policies. These policies provide limited coverage and have low monthly premiums.
You Can Get Coverage for Chronic and Terminal Illnesses
Many life insurance companies provide endorsements, also known as riders, that you can add to your policy to supplement or modify your coverage. Under certain conditions, an accelerated benefits rider allows you to access some or all of your death benefits.
Some policies, for example, allow you to use your death benefit while you’re still alive to pay for your care or other expenses if you’ve been diagnosed with a terminal illness and are expected to live less than 12 months.
Policies Can Supplement Your Retirement Savings
If you buy a whole, universal, or variable life insurance policy, it can accumulate cash value in addition to providing death benefits. As the cash value builds up over time, you can use it to cover expenses, such as purchasing a car or making a down payment on a home. You can also utilize it if you need to during your retirement years.
However, conventional retirement accounts like a 401(k) or an IRA shouldn’t be replaced by a life insurance policy. Additionally, cash-value life insurance is significantly more expensive than term life insurance, which only provides a death benefit and has no savings component.
Take Home
When choosing a life insurance company, it’s important to do your research and compare policies from different providers. Look for a company with a strong financial rating and a good reputation in the industry. Consider your own needs and the needs of your family when choosing a policy, and make sure to ask questions and get help from a licensed insurance agent if needed
