Why you should research companies before you buy life insurance
Just because a life insurance company has A+ ratings doesn’t necessarily make it best for your personal situation. Your age, health, build, and financial history all play an important role in selecting the right company.
For example, Mutual of Omaha is an exceptional life insurance provider. Their experience dates back to 1909, and their customer service is terrific. But if you are young and healthy, their term life insurance isn’t worth the cost. In that case, Banner or Sagicor would be a better option.
The opposite is true as well. If you are a senior, Haven life or Bestow isn’t a great option. They have good reviews and pricing, but they mainly focus on term life insurance. In that case, Mutual of Omaha or AIG is a much better choice.
Best life insurance companies of 2021
The following list is our pick of the best life insurance providers by category. We have helped over 52,000 individuals on their quest to find the right life insurance in 2020 alone. We chose these companies based on our vast experience.
- Sagicor: Best for affordable no medical exam term
- Banner: Lowest price on term
- Foresters: Best for low credit scores
- Prudential: Best for people with health conditions
- Protective: Best for whole life insurance for under age 50
- Haven Life: Offers a convenient online-only approach
- Mutual of Omaha: Best for final expense
- AIG: Best for guaranteed issue
- Lincoln: Offers exceptional customer service
- John Hancock: Gives discounts if you are healthy & active
Best price for term life insurance without an exam: Sagicor
Is Sagicor the best choice for you?
If you are between ages 18 and 65, you’ll be able to get up to $1million in coverage. And without a medical exam. If you don’t mind a medical exam, you can get up to $10 million in life insurance coverage instead.
Their application process is extremely streamlined and fast. The application is taken over the phone and signed digitally. Combined with very competitive rates makes Sagicor one of the most popular choices for no medical exam life insurance.
|Sagicor Pros||Sagicor Cons|
|Best pricing on term life insurance without a physical||Sagicor does not offer whole life insurance|
|Great term life insurance and universal life insurance products||People with serious health conditions won’t qualify|
|Simple application that can be completed online|
Learn more about Sagicor
Lowest price on term life insurance: Banner
Banner is a great company that we love for its exceptional pricing. The application isn’t as short as we’d like to see, though. Be prepared to spend about 30 minutes on paperwork.
Is Banner the right company for you?
Banner shines when it comes to their universal life and term life insurance pricing. If you are healthy, life insurance prices don’t get much lower than with Banner. Additionally, if you have a credit score of 700 or more, Banner will likely waive the need for a medical examination.
Banner has been providing customers with life insurance for over 180 years, but their application feels dated. If that’s not a problem for you, Banner is an excellent option.
|Banner Pros||Banner Cons|
|Exceptional term life insurance rates||A medical exam is required unless you are healthy and have a credit score of 700+|
|180+ years of experience|
Learn more about Banner
Best for low credit scores: Foresters
Foresters does not qualify you based on your financial history. That makes it a go-to insurance provider for people with low credit scores or bankruptcy.
Is Foresters your best option?
If your credit score isn’t the best, you could have a tough time qualifying for many insurance providers. But since Foresters doesn’t qualify you based on your financial history, having a low credit score won’t be held against you.
The same is true health-wise. If you have some mild health conditions or aren’t in the best shape physically, Foresters won’t penalize you as much as others. On the flip side, if you are in great shape, both physically and financially, Foresters may not be your best option.
The company has a streamlined application process. Most individuals receive an approval decision within 15 minutes.
As a customer, Forester will provide you with additional benefits. Such benefits include discounted legal services, grants, and scholarships.
|Foresters Pros||Foresters Cons|
|Experience that spans over three centuries||If you are healthy, both physically and financially, there are cheaper alternatives|
|It focuses on insurance for the average working family and includes many benefits for free|
|Access to exclusive member benefits when you become a customer|
|No financial or credit history checks. Great for those with low credit scores|
Learn more about Foresters
Best for people with health conditions: Prudential
Prudential is a well-respected company. They are a great option for people who would have a tough time qualifying with other life insurance providers.
Is Prudential the right choice for you?
If your health isn’t the best, but you want term life insurance, Prudential is a great option.
In addition to their health forgiveness, you can extend your term life policy once it ends. You can do so up to age 95. Why is that important, you may ask?
Well, term life insurance has a predefined policy end date. Most people get term life insurance for 20 years. But once those 20 years are up, and you are still alive, the policy comes to an end. If you still want life insurance, you’ll have to re-apply and go through the entire process once again. With Prudential, that’s not the case.
In addition to having the option to extend the policy, you can also convert your term policy into a whole life insurance policy. And you can do so without having to undergo a medical examination, guaranteed.
The forgiveness and flexibility that Prudential offers are what truly sets it apart from its competitors.
|Prudential Pros||Prudential Cons|
|Prudential’s term life insurance policy can be extended once the term ends||A medical exam is required|
|In addition to be able to extend, you also have the option to convert your term policy into a permanent policy|
Learn more about Prudential
Best inexpensive permanent life insurance under age 50: Protective
Protective offers a hybrid term life insurance product. You can continue to extend the policy, as well as change the coverage amount.
Is Protective the best life insurance company for you?
It depends. There are better products from other companies available for people who simply want life insurance for 10, 20, or 30 years. But, if you want flexibility, Protective is unique.
Protective’s hybrid product allows you to get a term life insurance policy for, say, 20 years. Then, you can continue to extend the policy. As you continue to extend the policy, the coverage will decrease without the need for a new medical exam.
Eventually, the policy will act as a whole life policy, with a maximum of $10,000. While the product is unique and very convenient, some may prefer the simplicity of a standard term policy instead.
|Protective Pros||Protective Cons|
|Provides a unique product that allows you to extend a term policy past the original term||Most of Protective’s products require a medical exam|
|Has a strong company foundation, both moral and financial|
Learn more about Protective
Best for an online-only approach: Haven life
We love them for their low rates and their online application. Haven Life is an excellent choice for those who want to avoid agents.
Is Haven Life best for you?
It depends. Haven Life offers an online approach. There is no paperwork involved, and you qualify online. But an online-only system usually translates itself to a lengthy questionnaire.
Also, not having to undergo a medical examination is not guaranteed. Depending on your answers and your public records, Haven may request a medical exam after all.
Haven Life is an excellent option if you want to avoid life insurance agents, want a DIY approach, and want term life insurance.
If you have health conditions or a low credit score, there are better alternatives. Since Haven only offers term life insurance, a denial could leave you stranded. Other companies often recommend a different product if you don’t qualify for term.
|Haven Life Pros||Haven Life Cons|
|It offers an online, agentless approach||Products are limited to just term life insurance|
|Great rates on term life insurance||If you aren’t very healthy, a medical exam is likely required|
|Those in good health can enjoy an instant approval|
Learn more about Haven Life
Best life insurance company overall: Mutual of Omaha
Their Term Life Express product offers instant approval without a medical exam. But we feel Mutual of Omaha really shines with their final expense life insurance product.
Is Mutual of Omaha the right company for you?
Mutual of Omaha is a company with a strong financial background. Their experience dates back to 1909, which has translated itself to superior customer service.
But, Mutual of Omaha isn’t the cheapest option for life insurance. Are they worth the cost? We think so. Their products often include riders for free. Other insurance companies can be more affordable but charge you an additional fee for these riders.
We like Mutual of Omaha’s product called Living Promise. It’s a whole life insurance policy, which is a popular choice for seniors. If you are between ages 45 and 85, you’ll be able to get $2,000 – $40,000 in coverage. Since this is a whole life policy, you don’t have to worry about renewing terms or policy end dates.
|Mutual of Omaha Pros||Mutual of Omaha Cons|
|Exceptional financial history and customer support||Mutual of Omaha is not the cheapest or fastest company|
|100+ years of experience||There are cheaper and better options for term life insurance|
|Great company for final expense life insurance|
|Mutual of Omaha’s products often include free riders|
|If you seek under $350,000 in coverage, you could qualify for their express-issue term life insurance product|
Learn more about Mutual of Omaha
Best for guaranteed acceptance: AIG
AIG is one of the world’s largest insurance companies, and their rates are among the best in any category. But we like their guaranteed acceptance product the most.
Is AIG the right company for you?
AIG American General Life Insurance has competitively priced products. It is one of the best companies to get a policy with whether you are healthy or not.
Their term and universal life products are competitively priced, and they can insure most applicants. Both term and universal require a medical exam, and the process can take 4 to 8 weeks.
But we believe AIG stands out with its guaranteed acceptance policy. It’s one of the best guaranteed issue policies on the market, and it’s priced very well. You’ll also get the option to set delayed billing and specify the payment date. Additional riders include Chronic Illness Acceleration Benefit and Terminal Illness Benefit.
|AIG Pros||AIG Cons|
|AIG’s financial ratings are among the best of the best||For products that require a medical exam, the entire process typically takes 1-2 months|
|Great guaranteed issue product|
|Competitive pricing on most of their products|
Learn more about AIG
Best for exceptional service: Lincoln Financial
Lincoln has a long history and a full portfolio of products in the insurance and financial industries. Their term product is one of the lowest priced.
Is Lincoln Financial a good option for you?
Lincoln is well known for its full-service financial planning. But regarding their life insurance products, we have found their customer service to be exceptional.
We like their term life insurance products. It is available for people age 18 to 60. Qualifying applicants can skip the medical exam. The application process is simple, easy, and paperless. The underwriting happens automatically, and you will receive a decision on your approval in minutes.
Three years after the policy goes into effect, you can reduce the coverage amount if desired. This is convenient as life changes. You may pay off your mortgage or other debt and simply no longer require as much coverage as you did initially.
|Lincoln Pros||Lincoln Cons|
|Lincoln offers full-service financial planning||Longer time to approval|
|Exceptional customer service||There are more affordable alternatives|
|Up to $1,000,000 in coverage, without a medical exam|
|Good for those with multiple medical conditions|
Learn more about Lincoln
Best for active and healthy individuals: John Hancock
Is John Hancock the best life insurance company for you?
If you live a healthy life, you’ll enjoy life insurance through John Hancock.
John Hancock provides various great life insurance products. But its most innovative product is Vitality Life. It rewards customers for being healthy. Such rewards include discounts on Amazon, savings of up to $120 a month on fresh fruits and vegetables, and a free Fitbit!
But aside from rewards, John Hancock can offer a much higher coverage amount than most companies. If you qualify, you can get coverage up to $65 million. For an even more advanced product, you can add various riders. Riders like Unemployment Protection or Total Disability will provide additional protection.
|John Hancock Pros||Lincoln Cons|
|John Hancock has a unique and innovative approach to life insurance||The cost can outweigh the rewards depending on your health|
|Great term product for healthy, active individuals||There are more affordable alternatives|
|Rewards you for being active|
Learn more about John Hancock
How to weigh life insurance company options
When shopping for life insurance, you will likely come across a life insurance company not mentioned on our list. Does that mean they are unreliable? Not at all. There are over 770 insurers in the United States alone.
But here are some things to look for before you decide to move forward:
Search for the company name followed by “AM Best rating” and “S&P rating”. The AM Best rating is issued based on the company’s financial performance. Financial performance includes financial strength, total debt, credit, and more.
This can be harder as it sounds. Most people don’t review their insurer unless they want to voice their bad experience. Part of this reason is that insurers don’t ask for a review. At True Blue, you can find reviews for many insurers as we do ask people for a company review after they buy.
Riders and policy features
When comparing life insurance rates, you’ll find that rates vary widely. Sometimes, this price difference is due to riders and policy features. Ask if the policy includes special features or riders, as this could make the price difference worth it.
Our methodology for choosing these companies
We prepared this list of the best companies based on our direct experience with them. As a life insurance brokerage, we are not tied to any particular company. Instead, we can speak freely and unbiased.
We help thousands of individuals acquire life insurance every year. This results in a ton of experience with these companies. As a result, we know which companies are better for individual circumstances.
If you’d like to get a consultation with a licensed True Blue agent, we’re here for you! You can call us at 1-866-816-2100, or submit an online request.