Best term life insurance companies of October 2023 The same is true for companies that did not provide reliable policy illustrations for permanent life insurance policies or had a high number of consumer complaints. Companies with high policy rates, growth-prohibitive internal costs or a poor historic performance were less likely to make our list. Of the 25 insurance companies we evaluated, only eight made our list of the best life insurance companies. To determine the top-rated life insurance companies, we used data provided by Veralytic, an independent publisher of life insurance research and analytics, and AccuQuote, a national online insurance agency. We factored this in to help those considering term life insurance policies identify companies that provide this option. Some life insurance organizations allow policyholders to convert their term coverage to a permanent life insurance policy. Term life conversion availability: 5 points. Others have slower cash value growth in the early years, and policyholders must wait a significant period of time before having access to a sizable cash value. Some policies have a cash value that grows faster in the early years. Cash value policies grow at different rates, and we factored the liquidity of a cash value policy into our analysis. We considered these life insurance company ratings to account for the likelihood an insurance company is able to claim obligations.Īccess to cash value: 5 points. There are four major rating agencies - AM Best, Fitch, Moody’s and Standard and Poor’s - that evaluate an insurer’s financial strength, a factor that indicates an insurer’s ability to pay out a claim years from now. We evaluated the accuracy of each insurer’s policy illustration to determine which companies provided the most reliable outlooks.įinancial strength: 5 points. Permanent life insurance companies should provide an illustration to show how the cash value is projected to grow over time. Reliability of policy illustrations: 10 points.

To determine which life insurance companies offer the best service, we analyzed complaints submitted to the National Association of Insurance Commissioners. The customer experience is an important factor when identifying the best life insurance companies. Our analysis took into account this metric to determine how an insurance company’s performance and therefore cash growth potential compared to others.Ĭomplaints: 10 points. The growth of cash value policies depends on several factors, including the historic performance of an insurance company’s investments. We looked at internal policy costs, such as administrative fees and policy charges, to determine the competitiveness of permanent life policies offered by insurance companies in our review. Most permanent life insurance policies have a cash value component, but not all are created equal. Since term life insurance is often the most affordable coverage option, we evaluated rates for both 30- and 40-year-old males and females, for term lengths of 10, 20 and 30 years and coverage amounts of $250,000, $500,000, $1 million and $2 million.Ĭost competitiveness of cash value policies: 15 points. To determine the best life insurance companies, our life insurance experts evaluated 25 of the top life insurance companies that offer coverage in the United States.Įach life insurance company included in our evaluation had the opportunity to earn up to 100 points, based on the following factors:

Transamerica term life insurance