Best Legit Life Insurance: If you want to learn more about the best life insurance companies in the country, read to the end. (Source: Freepik.com)Life insurance is one of the most important financial decisions you can make for yourself and your loved ones.
It can provide peace of mind, protection, and income replacement in the event of your death.
But how do you choose the best life insurance company for your needs?
What are the different types of life insurance policies available?
In this article, we will answer these questions and more, compare some of the best life insurance companies in the USA, and help you find the one that suits your goals and budget.
Understanding Life Insurance Needs
One of the most common questions people have about life insurance is how much they need.
The answer is not the same for everyone, as it depends on various factors, such as your age, health, family responsibilities, financial obligations, and future goals.
Life insurance is not a one-size-fits-all product but a personalized solution that can help you protect your loved ones and achieve your financial goals.
Therefore, it is important to understand your life insurance needs and tailor your coverage accordingly.
Factors to consider when determining your life insurance needs
Here are some of the main factors to consider and how they affect your life insurance needs:
- Age: Age is the most important factor in determining your premium cost. The younger you are, the lower your payments. Gender is also a key factor in life insurance costs, as women generally live longer than men.
- Health: Life insurance underwriting typically involves a medical exam where crucial health metrics like height, weight, blood pressure, and cholesterol are assessed. These factors significantly influence your mortality and morbidity risks, directly impacting your insurance premiums. Smoking elevates health risks, leading insurers to charge higher rates for smokers due to increased vulnerability to various health issues
- Financial obligations: One of the main purposes of life insurance is to provide financial protection for your dependents in case of your death. Therefore, you should consider how much money your family would need to cover their living expenses, debts, education, and other future goals.
- Type of policy: Term life insurance offers straightforward coverage for set periods, commonly 10, 20, or 30 years, making it a budget-friendly choice without cash value or investment features. Whole life insurance spans your lifetime, accumulating cash value over time and providing options for borrowing or withdrawals. Universal life insurance, akin to whole life but with added flexibility in premium payments, death benefits, and cash value, offers tailored options.
The best legit life insurance companies in the USA
1. Pacific Life
Pacific Life is the best company for variable universal life insurance, according to Forbes.
Variable universal life insurance is a type of permanent life insurance that allows you to invest your cash value in various subaccounts, such as stocks, bonds, or mutual funds.
Pacific Life offers a wide range of investment options, flexible premium payments, and riders to customize your policy.
Pacific Life has an A+ (superior) rating from AM Best, indicating its strong financial strength and ability to pay claims.
2. Penn Mutual
Penn Mutual is the best company for old people.
The company offers term, whole, guaranteed universal, variable universal, and indexed universal life insurance policies.
Penn Mutual has a lenient underwriting process for older applicants and does not require a medical exam for most policies.
It also has a high customer satisfaction rating and an A+ (superior) rating from AM Best.
3. Protective
Protective is the best company for universal life insurance.
It offers term, whole, guaranteed universal, variable universal, and fixed-rate universal life insurance policies.
Protective has a low-cost universal life insurance policy called Protective Advantage Choice UL, which offers a guaranteed death benefit up to age 12 and a cash value that can be accessed through loans or withdrawals.
The company has an A+ (superior) rating from AM Best.
4. AIG
AIG is the best company for recreational marijuana users.
The company offers term, whole, guaranteed universal, and indexed universal life insurance policies.
AIG has a liberal underwriting policy for marijuana users and may offer non-smokers rates for occasional or moderate use.
It has an A (excellent) rating from AM Best.
5. Mutual of Omaha
Mutual of Omaha is the best company for Gen X and Millennials.
The company offers term, whole, universal, and indexed universal life insurance policies.
Mutual of Omaha has a fast and easy online application process and a no-exam term life insurance policy called Term Life Express, which offers coverage up to $300,000 for applicants aged 18 to 65.
Mutual of Omaha also has a high customer satisfaction rating and an A+ (superior) rating from AM Best.
6. Transamerica
Transamerica is the best company for reliable policy illustrations.
Policy illustrations are projections of how a life insurance policy will perform over time, based on certain assumptions and variables.
Transamerica offers term, whole, universal, variable universal, and indexed universal life insurance policies.
The company has a transparent and accurate policy illustration system that shows the potential outcomes of different scenarios, such as changes in interest rates, premiums, or withdrawals.
Transamerica has an A (excellent) rating from AM Best.
7. John Hancock
John Hancock is the best company for celebratory cigar use.
They offer term, whole, universal, variable universal, and indexed universal life insurance policies.
John Hancock has a generous underwriting policy for cigar smokers and may offer non-smoker rates for occasional or moderate use.
The company also has a wellness program called Vitality, which rewards policyholders for healthy behaviors such as exercising, eating well, and getting check-ups.
John Hancock has an A+ (superior) rating from AM Best.
8. Lincoln Financial
Lincoln Financial is the best company for estate planning, according to Forbes.
The company offers term, whole, universal, variable universal, and indexed universal life insurance policies.
Lincoln Financial has a variety of products and riders that can help policyholders with estate planning, such as survivorship policies, long-term care riders, and accelerated death benefit riders.
It also has a high customer satisfaction rating and an A+ (superior) rating from AM Best.
9. Securian Financial/Minnesota Life
Securian Financial/Minnesota Life is the best company for indexed universal life insurance, according to various sources.
Indexed universal life insurance is a type of permanent life insurance that allows you to link your cash value growth to the performance of a stock market index, such as the S&P 500.
Securian Financial/Minnesota Life offers term, whole, universal, variable universal, and indexed universal life insurance policies.
The company has a wide range of index options, flexible premium payments, and riders to customize your policy.
Securian Financial/Minnesota Life has an A+ (Superior) rating from AM Best
Comparative Analysis of Life Insurance Plans
Coverage Amounts
The coverage amount is the sum of money that the life insurance policy pays to the beneficiary in case of the insured’s death.
The coverage amount depends on the type of policy, the premium, and the underwriting process.
The following table shows the minimum and maximum coverage amounts offered by the top-rated companies for different types of policies.
| Company | Term Life | Whole Life | Universal Life | Variable Universal Life |
|---|---|---|---|---|
| Pacific Life | $50,000–$10 million | $25,000–$10 million | $25,000–$10 million | $100,000 – $10 million |
| Penn Mutual | $100,000 – $10 million | $25,000–$10 million | $100,000 – $10 million | $100,000 – $10 million |
| Protective | $100,000 – $50 million | $50,000–$10 million | $50,000–$10 million | $100,000 – $10 million |
| AIG | $50,000–$10 million | $50,000–$10 million | $50,000–$10 million | $100,000 – $10 million |
| Mutual of Omaha | $25,000–$10 million | $2,000–$10 million | $25,000–$10 million | $100,000 – $10 million |
| Transamerica | $25,000–$10 million | $25,000–$10 million | $25,000–$10 million | $100,000 – $10 million |
| John Hancock | $25,000–$10 million | $25,000–$10 million | $25,000–$10 million | $100,000 – $10 million |
| Lincoln Financial | $100,000 – $10 million | $100,000 – $10 million | $100,000 – $10 million | $100,000 – $10 million |
| Securian Financial/Minnesota Life | $50,000–$10 million | $50,000–$10 million | $50,000–$10 million | $100,000 – $10 million |
Customer Satisfaction Ratings
The customer satisfaction ratings are the scores and reviews that the life insurance customers give to the companies based on their experience and satisfaction.
Customer satisfaction ratings may reflect the quality of the products, services, claims, and communication of the companies.
The following table shows the customer satisfaction ratings of the top-rated companies from different sources.
| Company | AM Best Rating | J.D. Power Score | BBB Rating | Trustpilot Score |
|---|---|---|---|---|
| Pacific Life | A+ | 771/1000 | A+ | 4.3/5 |
| Penn Mutual | A+ | 774/1000 | A+ | 4.5/5 |
| Protective | A+ | 754/1000 | A+ | 4.1/5 |
| AIG | A | 722/1000 | A+ | 3.9/5 |
| Mutual of Omaha | A+ | 789/1000 | A+ | 4.4/5 |
| Transamerica | A | 734/1000 | A+ | 3.7/5 |
| John Hancock | A+ | 739/1000 | A+ | 4.2/5 |
| Lincoln Financial | A+ | 750/1000 | A+ | 3.8/5 |
| Securian Financial/Minnesota Life | A+ | 761/1000 | A+ | 4.0/5 |
Conclusion
Life insurance is more than just a product; it is a vital part of your financial planning.
It can help you secure your financial future and protect your loved ones from the unexpected.
Life insurance can provide peace of mind, income replacement, debt relief, estate planning, and investment opportunities.
However, choosing the best life insurance company and policy for your needs can be challenging, as there are many factors to consider and options to compare.
That is why we have created this article: to help you find the best life insurance plan for you.
We have reviewed the top-rated life insurance companies in the US based on their coverage amounts, premiums, policy features, and customer satisfaction ratings.
Follow our blog page for more engaging and informative articles about insurance and related topics.
I am Evans, an insurance expert with a deep-rooted passion for helping people understand the world of insurance. With about 2 years of experience, I’ve dedicated my career to simplifying complex insurance concepts and providing tailored solutions. I have the knowledge and expertise to guide individuals and businesses in making informed insurance decisions, thanks to my educational background in finance and risk management and my Bachelor’s degree in Insurance and Risk Management from Columbia University. I believe that insurance is not just about policies; it’s about safeguarding dreams and ensuring financial security. I’m committed to sharing my insights and knowledge to empower others to protect what matters most.