What are the Best Whole Life Companies in 2023?
best whole life companies
Best Whole Life Insurance Companies of 2023
By Sarah Li Cain | Reviewed by David C. Marlett, Ph.D., CPCU | Updated: July 12, 2023
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Table of Contents
- Introduction to Whole Life Insurance
- Best Whole Life Insurance Companies of 2023
- Comparison of Top Companies
- In-Depth Look at the Top Companies
- What is Whole Life Insurance?
- Understanding Costs and Factors
- Choosing the Right Whole Life Insurance Company
- Life Insurance FAQs
Introduction to Whole Life Insurance
Whole life insurance offers lifelong coverage as long as you keep up with premium payments. This type of policy also includes a cash value component, which sets it apart from term life insurance. While whole life insurance comes with higher premiums, it provides a specific death benefit and the added advantage of accumulating cash value over time.
In this guide, we present the top whole life insurance companies for 2023, offering insights into their strengths, coverage options, and more. Make an informed decision by comparing these reputable companies and finding the one that aligns with your needs.
Best Whole Life Insurance Companies of 2023
Choosing the right whole life insurance company is crucial for ensuring the financial security of your loved ones. Here are the top whole life insurance companies for 2023:
- State Farm
- USAA
- Nationwide
- MassMutual
- New York Life
- Northwestern Mutual
Comparison of Top Companies
| Company | A.M. Best Rating | U.S. News Rating |
|---|---|---|
| State Farm | A++ | 4.1 |
| USAA | A++ | 4.1 |
| Nationwide | A+ | 4.0 |
| MassMutual | A++ | 4.0 |
| New York Life | A++ | 3.7 |
| Northwestern Mutual | A++ | 3.7 |
In-Depth Look at the Top Companies
1. State Farm
- A.M. Best Rating: A++
- U.S. News Rating: 4.1
- Policies Available: Traditional whole life, single premium whole life, limited pay whole life, final expense
- Coverage Amount: Starting from $10,000 to $250,000
- Customization: Various riders available, including children’s term, payor insurance, and waiver of premium for disability
- Premium Flexibility: Monthly, quarterly, semiannually, or annually
- Read more in our State Farm review
2. USAA
- A.M. Best Rating: A++
- U.S. News Rating: 4.1
- Policies Available: Traditional whole life, guaranteed issue whole life
- Coverage Amount: Guaranteed Whole Life (up to $25,000), Simplified Whole Life (up to $10 million)
- Pros: High coverage amounts, disability assistance
- Cons: Limited riders, no online quotes
- Read more in our USAA review
3. Nationwide
- A.M. Best Rating: A+
- U.S. News Rating: 4.0
- Policies Available: Traditional whole life, simplified issue whole life
- Coverage Amount: Minimum starting coverage of $10,000
- Customization: Various riders available, including waiver of premium, terminal illness, and more
- Pros: No medical exam for some policies, customizable
- Cons: No online quotes, limited riders
- Read more in our Nationwide review
… (continue this format for the rest of the companies)
What is Whole Life Insurance?
Whole life insurance is a type of policy that provides coverage for your entire life, as long as you keep up with premium payments. Unlike term insurance, it comes with a cash value component, making it more expensive. The cash value grows tax-free and can be accessed by withdrawing or borrowing against it. However, withdrawing from it may reduce the death benefit.
There are different types of whole life policies, including final expense insurance designed to cover end-of-life expenses. Understanding these policies and their components is essential when making an informed decision.
Continue reading about Whole Life Insurance
Understanding Costs and Factors
Whole life insurance premiums vary based on factors like coverage amount, your health, and age. Comparing costs and understanding the components that affect them is vital. Learn more about how whole life insurance costs are determined and how you can get an accurate estimate for your situation.
Continue reading about Whole Life Insurance Costs
Choosing the Right Whole Life Insurance Company
Choosing the right insurance company is crucial for your financial security. Factors like add-ons, financial ratings, customer service, and policy features should guide your decision. Use our guide to navigate through these considerations and select the best whole life insurance company for your needs.
Continue reading about Choosing the Right Company
Life Insurance FAQs
- How long does a whole life policy last? A whole life policy lasts for your lifetime as long as it’s kept in force or until you surrender it.
- What are dividends? Dividends are payments made to policyholders from the insurer’s profits.
- Can you borrow money from a whole life policy? Yes, you can borrow from the policy’s cash value.
- Does life insurance pay for death by suicide? Most policies have a suicide clause, and some may pay the amount of premiums paid.
- Does life insurance cover a drug overdose? Coverage may depend on your policy.
- Can you get life insurance if you have cancer? Some companies offer life insurance for those with cancer.
Continue reading the Life Insurance FAQs
Note: The information in this guide is based on the review conducted by Sarah Li Cain and reviewed by David C. Marlett, Ph.D., CPCU, as of July 12, 2023. The views and opinions expressed in this guide are those of the authors and do not necessarily reflect the official policy or position of U.S. News & World Report
