Life insurance is an important part your financial planning and provides financial protection. One of the most basic types of life insurance policies is whole life insurance. There are many types of insurance. How can you decide if whole-life is right for you? How do you determine which whole-life insurance policies are the best?
Bankrate can help to make your whole life insurance decisions easier. Our editorial team has assembled information about the top whole life insurance companies including J.D. To help you find the right company for you, we have compiled information about Power customer satisfaction scores as well as AM Best financial strength ratings.
What is whole-life insurance?
Whole-life insurance provides you with coverage for your entire life as long as the premiums are paid. Your beneficiary or beneficiaries will receive the policy’s death benefit upon your death. Whole life insurance policies may offer death benefits that range from $25,000 to more than $1,000,000.
Living benefits are also available through Whole Life. Your insurance company places a portion of the premium payment into a savings account when you pay it. This money earns interest. This cash value can be used in many ways. You can take out a loan against cash value which you will repay in agreed-upon monthly installments. However, you can withdraw cash value and not pay it back. This will reduce your death benefit. You can also use the cash value if you have sufficient cash value in your policy to pay your premiums.
Whole life insurance is usually more costly because it covers you for a longer time period than term insurance. If you’re looking for a policy that is simple and doesn’t need to be renewed, whole life insurance may be right for you.
The best whole-life insurance companies
One person might not find the best whole life insurance company, as different companies are able to cater to different types and needs. While some insurers are geared towards military personnel, others target those with certain health conditions like heart disease or cancer. You may need to look into additional companies depending on your particular situation. Based on our research, these five companies rank among the top in the industry.
Globe Life has many life insurance products including whole-life. Globe Life is a good choice if you’re concerned about the need for a medical exam when applying for life insurance. Globe Life’s whole-life insurance product doesn’t require a medical exam.
Globe Life’s roots can be traced back to 1900. The company currently has insurance coverage in excess of $82 billion. The 2020 J.D. ranked the company second. With a score 810 out 1000, Power U.S. Life Insurance Study awarded the company second place in 2020 J.D. This means that most customers are satisfied with Globe Life customer service.
All over the country
Nationwide is a good option if you want to manage all your insurance products through one company. Nationwide offers a variety of life insurance products. Nationwide also offers auto insurance, home insurance, and pet insurance among other products.
Nationwide clients have two payment options for whole-life insurance. The Whole Life 100 policy has level premiums like all whole-life insurance policies. However, payments cease when you turn 100. You can pay the same premium for 20 consecutive years with the 20-pay Whole Life option. After that, the policy is considered to be paid and premiums cease.
New York Life
New York Life, unlike many other competitors, is 100% owned by its policyholders. It offers a comprehensive range life insurance products. This includes whole-life, term, and convertible term policies. New York Life is the largest provider of life insurance in America, accounting for more than 6% of the overall market.
New York Life gives policyholders the option to adjust their payment schedule using its Custom Whole Life Insurance option. This option allows you to pay off your policy faster so you don’t have to pay any premiums later.
Northwestern Mutual, like New York Life is owned entirely by its policyholders. It offers a wide variety of whole, term, and universal life policies. The company received an above-industry-average score from J.D. AM Best gave Power an A++ rating for financial strength.
Northwestern Mutual has a website that matches you with a financial adviser. The tool allows you to input your financial goals. This could include saving money for retirement, protecting your family, or growing your investments. It will then pair you with a financial adviser to discuss products that can help meet your goals.
State Farm is a standout in our top 10 list of the best whole-life insurance companies. J.D. Power gave State Farm the highest ranking. J.D. Power also gave State Farm an A++ rating for financial strength from AM Best. State Farm is a great option if you want all your insurance products in one location, just like Nationwide.
State Farm offers three payment options for its whole-life insurance product. You have the option to pay one lump sum or pay lower premiums which will end at 100. Or you can choose to pay for a shorter period of time. If you prefer to conduct your business locally, State Farm may offer licensed agents. Online, you can search for an agent by using the “Find an Agent” tool.
How to choose the right whole-life insurance company
When shopping for whole-life insurance, there are many things you should consider. Financial strength is one of these. What does the financial rating agencies Moody’s and Fitch’s (am Best, Standard & Poor’s) say about a company’s ability pay claims? You can also visit the website of the state insurance commissioner to see how many complaints the company received in the last year.
It is also worth considering the quoted premiums of a company. You may be surprised at the difference in prices between different carriers. Different carriers are designed to offer competitive coverage for different types of insureds. To compare the premiums offered by different companies, it may be worthwhile to get quotes from multiple companies.
Questions frequently asked
What is the difference between whole and term life?
Term insurance does not provide death benefit coverage and is only valid for a limited time. Whole life insurance covers your entire life. It also includes a savings account that accumulates cash value and provides coverage for all of your assets. Whole life insurance is more expensive than term policies because it lasts longer and offers additional benefits.
What are the factors that affect my life insurance premiums?
The price you pay for life insurance depends on several factors. While your age, your health, and the amount you require are the main factors that determine your life insurance premium, other factors like where you live, what you do, and your occupation can also be important. Your life insurance will be cheaper if you’re younger and more healthy.
What amount of life insurance do you need?
The amount of your life insurance death benefit is an individual calculation. You may be able to provide your loved ones with income if your life insurance policy is still in force. Consider your debts, funeral expenses, and whether you wish to leave any financial gifts. The life insurance calculator can help you decide how much coverage you require. To determine the amount of life insurance you need, consult a financial advisor or licensed life insurance agent.