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Whole life insurance has long competed against term life insurance policies. Life insurance agents promise lower premiums and higher benefits with term policies, but unfortunately they may leave out the part where you must go through the application process again to make your old term life insurance policy permanent. As such, whole life insurance is often referred to as permanent life insurance. With a term life insurance policy, the benefits will expire if you don’t or can’t convert to a whole life insurance policy at that time.
Whole life insurance offers benefits that don’t expire as long as you make your premium payments. Most policies require a medical exam. Insurance companies also ask questions about your medical history. Whether you’re just buying a small amount of coverage for death benefits or if you want a more comprehensive policy that could offer benefits during your lifetime, you can customize life insurance to meet your needs.
Best whole life insurance policy for customer satisfaction: State Farm
Best for seniors: Prudential
Best for accelerated death benefits: Columbus Life
Best insurance agents: New York Life
Best for military: USAA
Best for people with HIV: Guardian Life
Best for no medical exam: Mutual of Omaha
Best for investing: Allianz
Compare the best whole life insurance companies
Best whole life insurance policy for customer satisfaction: State Farm
State Farm Life Insurance continues to lead the way in customer satisfaction. Customers typically hold auto, home, and other insurance policies with multi-policy discounts. Life insurance agents with State Farm can only quote its company policies. But they have the training to apply all available discounts to be as aggressive as possible with policy premiums.
Like many other companies, State Farm now offers “living benefits” in the event of illness or injury. Whole life insurance options include a single premium, premiums payable to age 100, and premiums payable to an agreed-upon point. Buyers can discuss options with a licensed life insurance agent.
State Farm agents can quote with all applicable discounts and customized benefitsSingle premium plans and premiums payable for a set time are availableLife insurance customers can take out loans from their policy, and State Farm offers living benefits
Best for seniors: Prudential
Prudential Life Insurance is known for its superior financial stability, and its life insurance products are no exception. The Prudential VUL Protector (and the Pruco Life of New Jersey VUL Protector plan) offers specialized life insurance planning for seniors. Premiums are fixed, and Prudential provides a lower risk profile on this plan to minimize potential losses. With less aggressive investments, buyers won’t see the significant gains associated with higher-risk investment vehicles.
Coverage is specialized for senior applicants with a high likelihood of acceptanceLow-risk investment vehicles to minimize lossesFixed premiums over the entirety of your life insurance policy
Best for accelerated death benefits: Columbus Life
Columbus Life remains a top competitor in life insurance overall. More companies now offer accelerated death benefits, sometimes called living benefits. Columbus remains on the cutting edge. Buyers can pull money for immediate medical bills, long-term care, and end-of-life expenses before they pass away. Competitors frequently use a discounted death benefit, which offers confusing data for the average consumer. So it’s hard to know what impact an early withdrawal would have on your death benefit. Columbus simplifies the process with the lien method. It makes it easier for the average life insurance investor to understand the impact of withdrawals on long-term financial planning.
Columbus Life customers enjoy various life insurance plans supplemented with plenty of riders. Base premiums are highly affordable, and riders allow policy customization to find the best life insurance products for each buyer. Some customers choose whole life policies up front, but Columbus Life enables qualified applicants to apply to convert term life insurance policies to whole life policies up to the end of the policy.
Accelerated life insurance benefits available for long-term disability or extreme illnessColumbus uses the lien method instead of the discounted death benefitPlenty of riders available to customize policies
Best insurance agents: New York Life
New York Life offers life insurance policies with payouts going into the millions. Many life insurance plans are designed for investment purposes allowing buyers to withdraw money on a set schedule. Expected payout and penalties are laid out up front, and sales agents are knowledgeable and friendly.
Buyers looking to maintain a significant death benefit for their beneficiaries can take out loans against the life insurance balance. While interest may apply, penalties will not. Qualified New York Life insurance agents can guide you through different life insurance options to find the plan that meets your needs.
Extensively trained insurance agents are there to answer any questions you have about New York LifeHigh-value life insurance plans available for financial planningLoan options to preserve higher death benefits while using existing funds as needed
Best for military: USAA
Eligible military members in the major branches and reserves may qualify for $400,000 in coverage with the servicemember’s group life insurance (SGLI). Due to deployment, traditional life insurance companies may not offer policy options for military members. USAA Life Insurance specializes in serving active duty military members, and it provides additional life insurance options for veterans. USAA underwriters consider factors like age, health, and lifestyle, and medical exams are involved.
Active-duty service members can use it to supplement SGLIAvailable for a diverse range of military members and veteransApplicants may still be required to undergo medical exams
Best for people with HIV: Guardian Life
Due to medical innovations, undetectable cases of HIV are on the rise. The long-term health issues and early deaths of patients with HIV are lower than ever before, but many insurers are still hesitant to issue life insurance policies to HIV patients. Guardian Life Insurance offers unique policies for high-risk groups, including HIV patients.
Applicants should be between 20 and 60 years old and in good health. Guardian Life also requires accepted applicants to be on antiretroviral therapy for a minimum of two years with promising lab results. While an HIV diagnosis is acceptable for Guardian Life insurance policies, applicants cannot have any AIDS-defining illnesses. Because of its thorough underwriting process, Guardian offers generous policies with reasonable premiums for qualified applicants.
Specialized plans available for patients with HIVApplicants must be under the care of an HIV doctor and on retroviral therapy for at least two yearsApplicants cannot have AIDS-defining illnesses
Best for no medical exam: Mutual of Omaha
Mutual of Omaha Life Insurance is known, above all else, for its financial stability. It offers various plans and riders, including no-exam life insurance plans. Some policies are as small as $2,000 for applicants between 50 and 75. Life insurance policies max out at $25,000 for healthy applicants looking to avoid a medical exam.
Once approved, there is a two-year waiting period for no medical exam life insurance policies with Mutual of Omaha. If policyholders die during those two years, Mutual of Omaha will pay out 110% of the premiums paid to date. The company closes most claims on the same business day for qualifying claims.
No medical exam policies are available, with payouts up to $25,000Available for applicants up to 85 except in New York, where the age limit is 75Two-year waiting period for full benefits
Best for investing: Allianz
Allianz Life offers high-value plans for tax-free payouts and aggressive investments. Many applicants use Allianz life insurance policies to supplement 401(k)s and other retirement investment vehicles. Some estimates suggest qualified applicants could increase their income by up to 20%. In addition, buyers can add riders to customize life insurance plans.
Allianz is among a few companies offering life insurance policies for foreign nationals with H-1B visas.
Million-dollar policy limits for qualified applicantsStrong growth and investment optionsPlans available for foreign nationals with H-1B visas
Best whole life insurance companies ranked by customer satisfaction
J.D Power ranks life insurance companies on a scale of 1,000 by gathering customer reviews. Read on to compare providers based on customer reviews.
Life insurance companyJ.D. Power ranking out of 1,000 pointsState Farm Life Insurance839Life Insurance812Mutual of Omaha Life Insurance801Northwestern Mutual Life794Pacific Life793Nationwide Life Insurance791Guardian Life Insurance787 Metlife Life Insurance786MassMutual Life Insurance780New York Life775Prudential Life Insurance773Advisors Principal Life Insurance772Primerica Life Insurance766Life Insurance764Life Insurance759Securian Life Insurance754Midland National Life Insurance752John Hancock Life Insurance749Life Insurance744Life Insurance741Life Insurance740Life Insurance737
Why trust our recommendations?
Personal Finance Insider explores the ins and outs of whole life insurance policies and companies. We compare premiums, payouts, exclusions, and more.
Whole life insurance plans offer diverse and aggressive options for death benefits, investment plans, and much more. It depends on where you buy and your insurance plan with individual riders. Life insurance gets confusing for the average applicant. We use our existing knowledge and ongoing research to determine what the best life insurance companies offer buyers.
Shopping for life insurance quotes goes in two directions: financial planning or death benefits. Accelerated death benefits, riders, and life insurance types come into play individually. As a result, the whole life insurance policy that works for one person may be different than the best life insurance policy for the next. Personal Finance Insider works to keep insurance reviews up to date and relevant to help consumers make informed decisions.
Our methodology
Life insurance comes in many shapes and forms, and a whole life insurance policy isn’t always the right option. It depends on your goals, your current finances, and other factors. We base our reviews on crucial factors to help consumers determine which life insurance plan is right for them.
Price: The insurance premium often overshadows other factors when generating life insurance quotes. Cheap life insurance has appeal now, but it doesn’t always get you the coverage you need. We look at affordability as part of the bigger picture.Coverage: How much coverage can you qualify for? Will it cover the death benefits you want for family or other beneficiaries? Will it meet your investment goals? Applicants seeking death benefits to cover funeral costs have different expectations than those looking to live comfortably in retirement. We also look at unique products like those for HIV patients, seniors, foreign nationals, and more.Performance: What kind of gains can you expect? We look at the risk profile and average financial gains over the policy’s lifespan.Payouts: A whole life insurance policy will pay out upon death or earlier based on what’s written in the policy documents. We examine the claims process, average processing time, and payment rate.
How to pick the best whole life insurance policy for you
How does life insurance work for the average consumer? With many riders and options available, life insurance options are better than ever. Buyers enjoy more types of life insurance, competitive life insurance rates, and much more.
Insider recommends working with a trusted life insurance agent to make the final decision. Insurance professionals can help you set parameters that make sense for your search and compare prices with benefits. As a result, qualified insurance agents can get consumers affordable pricing and ensure greater customer satisfaction.
Whole life insunrace — frequently asked questions (FAQ)
Is whole life insurance better than term life insurance?
Term life insurance policies are frequently sold as more affordable with higher payouts. The benefits of term life insurance apply for a certain period. As the name suggests, term life insurance has a term after which it expires. Some policies can be converted to whole life insurance plans, but insurance holders have to go through the application process again at that time. Life, by its very nature, is often unexpected. Term policies don’t always allow for unforeseen illnesses or emergencies. If you’re looking to maximize your death benefit, some policies allow buyers to increase the insurance benefit every year they continue to pay premiums.
How much do I need to spend on life insurance?
A bare-bones life insurance policy with no additional riders might be cheap. However, this policy will also have limited coverage, and users may find other holes later. For example, adding extra coverage for disability or missed payments may cost more now. But suitable riders can save you money and protect your investment later on.
How does life insurance work?
Life insurance was initially meant to pay beneficiaries after the applicant’s death. However, buyers can use current life insurance policies for investment purposes, retirement, sudden illness or injury, and more. A life insurance agent can help you set up a plan that meets your needs. Then you pay the agreed-upon premiums. Some policies will institute a waiting period to qualify for full benefits. Then beneficiaries can file a claim after a qualifying event such as death, disability, or retirement.
Do I have to schedule a medical exam for a life insurance policy?
Some of the best life insurance companies sell whole life insurance or term life insurance with no medical exams required. However, insurers may still ask about your medical history and pull other medical records. These policies generally offer lower benefits, and successful applicants are typically younger and healthy. If you do not qualify, a life insurance agent can help you apply for a medical exam life insurance policy.