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Top 10 Best Life Insurance Companies for 2017

Posted by Life Insurance Basics, Life insurance Planning, Top ListsNo Comments

A little more than a year ago, we compiled our list of the Top 10 Best Life Insurance Companies.  Many things have changed in the industry since then.  Rates have changed and new products have come to the market.  Because of these changes, we decided to offer an updated list of the Top 10 Best Life Insurance Companies for 2017. Our list considers a number of different factors such as rates, underwriting strengths, product features, product offerings and financial strength.  Keep in mind that each company has its own particular strengths, so our list below is in no particular order.


1. Principal Financial

Principal Financial didn’t even make our list year, but a lot has changed since then.  Principal Financial has been around for over 100 years.  The company manages about $619 billion in assets is A+ rated by Standard and Poor’s.  Principal Financial offers life insurance, disability insurance, annuities and other retirement solutions.

Pros

  • Principal financial lowered its term rates last year and has become one of the more competitive carriers in the industry.
  • Through Principal’s Accelerated Underwriting Program, you may qualify for up to $1,000,000 of life insurance with no medical exam. If you qualify, you still pay fully underwritten rates.
  • The company offers solid underwriting, especially for those with certain medical issues.
  • Principal offers a wide array of life insurance products.

Cons

  • The only negative is that Principal Financial is not the least expensive policy on the market, but they usually rank in the top 5 or 10 for lowest rates.

 

2. Pacific Life

Nothing has really changed with Pacific Life since we published our last list.  Pacific Life is over 140 years old.  You’ve probably seen their commercials on television.  The company is A+ rated by A.M. Best and has roughly $150 billion in assets under management.

Pros

  • Pacific Life is usually in the top 5 in terms of rates for their term life product.
  • The company has an easy application process.
  • Pacific Life has an excellent range of life insurance products. Its indexed universal life product is arguably the best on the market.
  • The company great rates for younger applicants.

Cons

  • Pacific Life does not offer competitive rates for those with moderate health issues.

 

3. Protective Life

Protective life has been one of the strongest companies in the industry for some time.  The company has been around for over 100 years and has an A+ rating from A.M. Best.  It offers some of the lowest rates in the industry and will most likely be a permanent fixture on our future top 10 lists.

Pros

  • Protective almost always ranks in the top 5 for rates.
  • The company’s Custom Choice UL product allows policyholders the opportunity to keep level premiums after the term period has ended by simply lowering the coverage each year.
  • Treated cholesterol and blood pressure qualify for best health class and the company offers a unisex build chart which is favorable to women.

Cons

  • Not as aggressive as other companies when it comes to underwriting riskier applicants, especially tobacco users and smokers.

 

4. John Hancock

John Hancock made our honorable mention list last year, but much has changed since then.  John Hancock lowered its term life insurance rates to become one of the most competitive in the industry.  Its Vitality product is one of the most innovative to hit the market in years.  John Hancock has been around since the 1800’s and boasts an A+ rating from A.M. Best.

Pros

  • The company lowered its term life insurance rates. John Hancock almost always land in the top 10, especially for larger face amounts of $1,000,000 or more.
  • John Hancock’s Vitality product offers the opportunity to lower your rates each year, earn travel reward, gift certificates and more for living a healthy lifestyle. You even get a free FitBIt to track your progress.
  • The company is competitive when underwriting certain impairments such as depression and tobacco use as well as cancer and diabetes in older applicants. It may even underwrite some applicants with HIV.
  • Strong portfolio of term and permanent life insurance products.

Cons

  • Not as competitive as other companies on coverage of $1,000,000 or less.

 

5. Savings Bank Life Insurance of Massachusetts (SBLI)

SBLI has dubbed itself the “No Nonsense Life Insurance Company”.  SBLI does an excellent job of simplifying the process of buying life insurance for consumers.  SBLI has been around for over 100 years and has an A (excellent) rating from A.M. Best.  SBLI recently introduced an excellent accelerated underwriting process for their term product which is fully underwritten and offers quick approval time and rates that are competitive.

Pros

  • A faster and more convenient and less invasive term product that offers up to $500,000 of coverage with no in-home visit required. The application process is simple. Read our review of SBLI’s Accelerated Underwriting Term Life Insurance product.
  • The company offers competitive term rates that usually places it in the top 10.

Cons

  • Limited product offerings.
  • Not as competitive as other companies when underwriting applicants with health impairments.

 

6. United of Omaha

United of Omaha has been around for almost 100 years.  It is owned by Mutual of Omaha.  It has an excellent reputation in the industry and carries an A+ rating with A.M. Best.  The company offers many different types of insurance such as long-term care insurance, disability insurance, annuities and more.

Pros

  • The company offers competitive rates that usually land it in the top 10 for most ages and face amounts.
  • United of Omaha’s Term Life Answers Product includes an unemployment waiver of premium rider that will pay premiums for 6 months if you become unemployed and collect state benefits.
  • Solid underwriting for applicants who have mild to moderate health issues.
  • United of Omaha’s Fit Program allows up to 2 table credits if you exhibit certain positive medical or lifestyle habits.

Cons

  • If price is a major driver in your decision, other companies offer better rates.

 

7. American General Life Insurance (AIG)

AIG was founded in the 1800’s.  The company is one of the largest insurers in the country.  AIG offers a wide range of insurance and annuity products.  It has an A rating from A.M. Best.

Pros

  • AIG offers some of the most competitive rates in the industry.
  • The company offers a Select-a-Term product that allows you to choose a specific term length of 15 to 30 years.
  • AIG has added a 35 year term policy to its product line.
  • AIG’s Lifetime GUL III product is one of the lowest priced guaranteed universal life products on the market. It offers lifetime guarantees for coverage to age 121 and offers return of premiums at various stages throughout the policy.
  • The company updated its conversion policy to allow conversion to any of their permanent policy within a certain period.
  • The company is aggressive in underwriting applicants with health issues.

Cons

  • The one issue with term conversion is that AIG restricts the permanent policies available when converted later in the term.

 

 8. Prudential

Prudential has been a household name for many years.  Prudential has over $3 trillion of life insurance in force.  That makes the company one of the largest insurers in the world. Prudential has been around for 140 years and is A+ rated by A.M. Best.

Pros

  • Prudential is probably the best at underwriting high risk applicants whether it is health or lifestyle impairments. The company is especially aggressive at underwriting applicants with DUIs, tobacco users, marijuana users and those with elevated liver functions, prostate cancer and sleep apnea to name a few.
  • The company offers a generous conversion privilege on its Term Elite and Term Essential product, allowing you to convert to any of its permanent products.
  • Prudential’s term products come standard with a Living Needs Benefit Rider that allows you to accelerate your death benefit if you become terminally ill or have qualifying nursing home expenses.
  • The company has many life insurance products to choose from.
  • Prudential’s WorkLife 65 is an excellent product that comes with a Built-in Waiver of Premium Benefit for Disability and Unemployment.

Cons

  • Prudential doesn’t always fall within the top 10 in terms of premiums. Their coverage is a bit more expensive than some of the other companies out there, but might be right for riskier applicants.

 

9. Banner Life

Although many people have never heard of Banner Life, its parent company, Legal and General Group, has been in business since the 1800’s.  Banner’s rates are competitively priced and  usually fall within the top 10 of all companies.

Pros

  • Banner offers competitive rates for term coverage.
  • The company is somewhat liberal on underwriting high risk applicants.
  • The company’s table ratings are based off of ‘Standard Plus’ not ‘Standard’ like most other companies. This is an excellent feature for riskier applicants.

Cons

  • The company does not offer many permanent coverage options when it comes to term conversion

 

10. Lincoln Financial Group 

Lincoln did not make our list last year, but the company lowered its rates to become one of the most competitive in the industry. Lincoln has been around for over 100 years and is rated A+ by A.M. Best for financial strength. It offers a wide range of life insurance products.

Pros

  • Lincoln’s underwriting strengths include impairments such prostate cancer, high blood pressure and depression.
  • The company also offers liberal guidelines for build and family history.
  • Lincoln’s competitive term life insurance rates usually place the company in top 5 or 10 for most ages and face amounts.
  • The company offers a wide range of life insurance products to choose from.

Cons

  • The only issue with Lincoln Financial is that there are cheaper options in some cases. Other than that, Lincoln will usually be a contender in most cases.

Honorable Mention:  American National Co (ANICO), Nationwide, Lincoln Financial Group, Sagicor

American National Co (ANICO) – Anico is a solid company that offers up to $250,000 of life insurance coverage with no medical exam.  ANICO’s term life insurance also comes with terminal illness, chronic illness and critical illness riders at no additional charge.  ANICO’s term life insurance is a bit more expensive than other companies, but with these additional riders included, makes it a great value.

Nationwide – Everyone knows Nationwide from its catchy jingle, “Nationwide is on Your Side”. The company has been around for about 85 years and boasts a A+ rating from A.M. Best.  Nationwide is usually in the top 5 or 10 in terms of rates.  The company offers many different types of life insurance products.  Nationwide’s underwriting strengths include a generous build chart and no tobacco use after only 1 year will qualify for ‘Preferred Nontobacco’ rates (most other carriers require 2-3 years).

Sagicor – Sagicor made our list last year and is still a solid option for non-medical coverage.  It was very difficult to leave them off of our list this year.  Unfortunately, other companies have started to become more aggressive and competitive in the non-medical life insurance area. Sagicor has been around for over 60 years and is A- rated by A.M. Best.  Sagicor not only offers term life insurance but universal life, whole life and annuities.  Sagicor’s Sage Term product offers up to $500,000 of coverage with no exam and instant approval.  This is up from $400,000 last year.  The application process is simple and can be completed entirely online.

Removed from the List:

Genworth – Genworth exited the life insurance market in 2016.  It is really too bad considering the company offered competitive rates and somewhat aggressive underwriting.

Transamerica – We decided to remove Transmerica from our list this year.  We still like Transamerica’s Trendsetter LB policy, which comes standard with a living benefit rider.  Having said that, we feel that Transamerica’s has become less competitive overall with regards to rates versus value.

Met-Life – The life insurance arm of Met-Life is now called Brighthouse Financial.  We removed Met-Life from our list simply because other companies have become more competitive in terms of rates.  We still feel that it is a quality company and should deserve consideration if you are looking for coverage.