Top 10 Best Life Insurance Companies

According to Archstoneinsurance.com

At ArchstoneInsurance.com, we have access to over 40 of the top life insurance companies in the industry. Although we consider all of these companies quality insurers, over time we have isolated our list of top 10 best life insurance companies.  We considered a number of different factors such as cost, underwriting strengths, product features, product offerings and financial strength.  Below is a list our list of top 10 best life insurance companies and the pros and cons to working with each.  Keep in mind that each company has its own particular strengths, so our list below is in no particular order. 

Top 10 Best Life Insurance Companies

1. Protective Life

Protective Life has been around for more than 100 years and has an A+ rating from A.M. Best.  The company has over $760 billion of life insurance in force as of 2014.   The company prides itself on providing easy to understand products at some of the lowest rates in the industry.  Its Custom Choice UL product is one of the most innovative term products on the market today.

Pros

• Almost always in the top 5 for lowest rates in most age groups.
• Custom Choice UL product allows you to keep your premiums level well after your term period has ended. Your death benefit will simply decrease each year you choose to keep your policy in force.
• Custom Choice UL is convertible to Protective’s most competitive permanent products.
• Treated cholesterol and blood pressure can qualify for best health class and the company offers a unisex build chart which can be favorable to women.

Cons

• Offers some of the highest rates for tobacco users.
• Not as aggressive with riskier applicants as many other companies.

2. American General (AIG)

American General was founded in 1850. The company offers a wide range of life insurance and annuity products.    It is known for its innovative Select-a-Term and Secure Lifetime GUL II products and offers some of the lowest rates in the industry.  The company is A rated by A.M. Best and has paid out $38 billion in claims in the last 5 years.

Pros

• Consistently offers some of the lowest rates in the industry.
• Select-a-Term product allows you to choose a specific term length of 15-30 years.
• Secure Lifetime GUL II product is one of the lowest priced GUL products. It offers guaranteed coverage to age 121, builds cash value like no other GUL we have ever seen and offers living benefits with its Asset Protector feature.
• The company is aggressive in underwriting riskier applicants.

Cons

• Term conversion feature only offers conversion to any permanent product within the first 5 years at which point it becomes more restrictive.

3. Pacific Life

Pacific Life was founded more than 145 years ago and offers a wide range of products such as life insurance, annuities and mutual funds.  It is A+ rated by A.M. Best and had $137 billion in assets at the end of 2014.  Pacific life offers some of the lowest rates on term life insurance and offers indexed universal life products that are some of the best in the industry.

Pros

• Recently lowered rates for term coverage that have put it in the top 5 for many different age groups.
• Allows policyholders to convert to any available permanent product at time of conversion which most companies do not allow.
• A wide array of high quality life insurance products to choose from.

Cons

• Not as aggressive as other companies in underwriting applicants with health issues.

4. Banner Life

Although not a household name, Banner Life is a highly respected insurer in the industry. Its parent company, Legal and General Group, has been around since the 1800’s.  Banner is another company that is usually in the top 5 in terms of the lowest term rates on the market.  The company has an A+ rating from A.M. Best and ranked #5 in coverage issued in the U.S. for 2014.

Pros

• Offers some of the most competitive rates for term life insurance in the industry.
• Table rates are based off of ‘Standard Plus’ not ‘Standard’ like most other companies. This is an excellent feature for riskier applicants.
• Liberal on underwriting for diabetics, anxiety and other medical issues.

Cons

• Due to its low rates and high demand for coverage, underwriting turnaround time can take longer than most other companies.
• Limited conversion opportunities in terms of permanent products offered.

5. Prudential

Prudential has roughly $3.5 trillion dollars of life insurance in force throughout the world.  The company has been around for 139 years and is one of the largest financial institutions worldwide.  Prudential is A+ rates by A.M. Best and offers a wide selection of quality insurance products.

Pros

• Prudential is arguable the best insurance company at underwriting higher risk applicants. They excel at underwriting many different health impairments and lifestyle risks such as smoking and DUI’s.
• The company offers liberal underwriting for marijuana smokers and smokeless tobacco users.
• The company’s Term Elite and Term Essential products can be converted to ANY of its permanent products.
• The company offers a wide array of term and permanent products to choose from.

Cons

• Although Prudential’s term rates are a bit higher than some other companies out there, we feel that its conversion feature and aggressive underwriting make it worthwhile choice in many cases, especially for higher risk applicants.

6. Transamerica

Located in San Francisco, Transamerica has been around for almost 100 years.  It offers a wide range of insurance products including term, permanent, final expense and long term care coverage.  It is A+ rated by A.M. Best and had over $1 trillion of life insurance in force as of 2014.

Pros

• Transamerica’s Trendsetter LB term is a comprehensive term life insurance product with living benefits that can be used for chronic, critical and terminal illness. It is a great solution for someone looking for more out of their term coverage.
• Unlike most other companies, Transamerica offers term coverage for amounts as low as $25,000, ideal for those looking for a smaller policy.
• The company also offers a no-medical exam option for policies less than $250,000.
• Strong final expense product with level premiums and no waiting period.

Cons

• Not as competitively priced overall for term insurance. Trendsetter LB costs a bit more but added features could be worth it to some.
• The company will take on some riskier applicants but overall is somewhat conservative when it comes to underwriting more moderate health impairments.

7. United of Omaha

United of Omaha was established in 1926 and is owned by Mutual of Omaha.  The company is one of the most respected life insurance companies in the industry and is financially sound with an A+ rating from A.M. Best.  It offers a wide range of quality life insurance products and efficient underwriting.

Pros

• United of Omaha is usually in the top 10 for term life insurance rates.
• The Term Life Answers Product includes an unemployment waiver of premium rider that will pay premiums for 6 months if you become unemployed and collect sate benefits.
• Premium rates are based off of your age LAST birthday. Most other companies use age nearest birthday.
• Favorable underwriting for build (unisex build chart) and cholesterol. Family history qualifications apply to death rather than disease (cancer, cardiovascular) occurrence in parents in siblings.
• United of Omaha FIT Program allows up to 2 table credits if you exhibit certain positive medical or lifestyle habits.

Cons

• If cost is the major driver in your decision, there are more competitive rates available.

8. Sagicor Life

You’ve probably never heard of Sagicor Life, but they offer arguably the best no exam life insurance option on the market.  The company has been around for 60 years and is A- rated by A.M. Best.  Sagicor Life offers fully many different types of fully underwritten and no medical exam products as well as annuities.

Pros

• Its no medical term option, Sage Term,  offers up to $400,000 of coverage.
• Simple online application you can fill out with your agent with an instant decision in most cases.
• Competitive rates for no exam coverage.
• Unlike other companies offering no medical exam policies, Sagicor Life offers multiple health class ratings for its no exam product , including ‘Preferred’.

Cons

• Term policies only available in 10, 15 and 20 year durations. There is no 25 or 30 year option.
• No exam coverage is limited to a maximum of $400,000, which might limit those looking for larger policies.

9. Savings Bank Life Insurance of Massachusetts (SBLI)

SBLI considers itself “The No Nonsense Life Insurance Company”.  If you are looking for an inexpensive coverage without a lot of extra features, SBLI might be the right company for you.  The company has been around for more than a century and is A+ rated by A.m. Best.  It offers term, whole life and annuity products.

Pros

• SBLI almost always ranks in the top 10 for the most competitive rates in the industry.
• The company offers a competitive annual renewable term product.
• Great choice for those in excellent health.

Cons

• Limited product offerings.
• There are better underwriting options for those with health impairments.

10. MetLife

Met Life is one of the most respected companies in the insurance industry.  The company offers many different lines of insurance including an excellent line of quality life insurance products.  It’s largest life insurer in the United States based on life insurance in force and is A+ rated by A.M. Best.

Pros

• The company offers a wide range of quality life insurance products to choose from.
• MetLife’s premiums usually land it in the top 10 for best rates.
• The best for underwriting active military personnel. Will underwrite active military personnel (not including military special forces) with orders to serve in trouble spots or areas of combat.

Cons

• Not much to pick on with MetLife except that if cost is the main driver in your decision, there are a few more affordable options.

Honorable Mention

Genworth – Genworth is another company that usually ranks among the top 10 in terms of rates.  The company offers liberal underwriting guidelines, especially for build.  The one main issue with Genworth is the fact that its credit rating has taken a hit lately due to issues with its long-term care division. When it comes to life insurance, your policy is only as good as the financial strength of the company that underwrites it.  Although we feel that the company presents little risk in its ability to pay any life insurance claims, some people might feel more comfortable looking at other companies with better financial ratings.

American National (ANICO) – Solid company that offers non-medical term for coverage less than $250,000.  ANICO offers the most competitive rates in the industry for annual renewable term coverage.

John Hancock – John Hancock is one of the most trusted names in the industry.  The company has been around since 1862 and is A+ rated by A.M. Best.  John Hancock recently and introduced its Vitality Program, which allows policyholders the opportunity to reduce their premiums annually and earn rewards for healthy living.

Which Life Insurance Company is Right for You?

The right company for you will definitely depend on your unique situation.  The good news is that we have access to all of the companies listed in our top 10 and many more.  We can objectively shop your case to find you the best rate and product for your situation from over 40 companies.  If you have any questions, please feel free to call us at 888-687-9444 or email us at info@archstoneagency.com.

About Us

Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients.  We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage.  Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com.