Are you looking for the best whole life insurance providers for your family’s future? You’re in the right place! Our team has checked out 34 life insurance companies and looked at over 60,000 quotes1. We found the top whole life insurance companies across the country.
We looked at 19 factors to score these companies. These included their financial strength, how happy customers are, and what their policies offer1. After all that, we made a list of the best whole life insurance companies. They offer great coverage, cash value growth, and protection for life: Nationwide, New York Life, State Farm, MassMutual, Penn Mutual, Northwestern Mutual, and Guardian Life1.
Key Takeaways
- Our expert review analyzed 34 life insurance companies and 60,000+ quotes1
- Top-rated whole life insurers include Nationwide, New York Life, State Farm, and more1
- Whole life insurance offers lifelong protection and cash value growth2
- Policies can include living benefits and dividend payouts2
- Premiums are typically higher than term life, but provide long-term value1
What is Whole Life Insurance?
Whole life insurance is a kind of permanent life insurance that covers you for your whole life. It also offers a guaranteed death benefit if you keep paying premiums3. Unlike term life insurance, which only covers a certain time, whole life insurance covers you for your entire life4.
Whole Life vs. Term Life Insurance
Whole life and term life insurance differ in how long they cover you. Term life insurance covers you for a set time, like 1 to 30 years4. Whole life insurance, on the other hand, covers you for your whole life4. It also has a cash value component that grows without taxes, which you can use for loans or withdrawals4.
Benefits of Whole Life Insurance
Whole life insurance has many benefits. It has guaranteed premiums that won’t go up, tax-deferred cash value growth, and you can use the cash value for loans or withdrawals4. It also offers death benefit protection for your whole life, giving your loved ones financial security4.
Whole life insurance usually costs more than term life insurance. But for people between 25 and 50, it’s a good choice if you want permanent, lifelong coverage and to grow cash value4.
“Whole life insurance provides lifelong coverage, death benefit protection, and cash value accumulation.”4
How Does Whole Life Insurance Work?
Whole life insurance is a special financial product. It combines life insurance with a cash value part. A part of each premium goes to the cash value, which grows at a set rate5. This cash value can be used for loans or withdrawals, offering flexibility and tax-deferred growth6.
Cash Value Growth
The cash value in whole life insurance earns interest, often on a tax-deferred basis6. It grows most when you’re young but slows down as you get older due to higher risks6. You can use this cash value for policy loans, which have lower interest rates than other loans6.
Living Benefits
Whole life insurance also has living benefits. For example, you can get the death benefit early if you have a terminal illness5. Insurers may offer extra riders, like accidental death and waiver of premium riders, to protect the death benefit in certain situations6. These benefits can help you financially if you face unexpected health issues.
In summary, whole life insurance is a versatile financial tool. It combines life insurance with a cash value part. The cash value grows tax-deferred and can be used for loans or withdrawals. Plus, it offers living benefits for when you need them567.
Death Benefit and Dividends
Whole life insurance policies give a guaranteed death benefit to the named beneficiaries when someone passes away8. This benefit is different from the cash value in the policy. Policies from mutual insurance companies might also offer dividends, which are refunds of extra premiums paid by policyholders9. These dividends can be cash, used for premiums, or invested for more coverage.
Some top whole life insurance companies have paid dividends every year for over a hundred years8. A policy from 2005 showed growing annual dividends, adding up to $196,822 over 19 years8. The best dividend-paying policies come from companies that meet certain standards, like offering non-direct recognition and a Comdex Ranking of 95 or higher8.
Mutual insurance companies are the top choice for whole life insurance, paying dividends to policyholders9. They invest premium money and make profits, then share these as dividends with policyholders9. Dividends in whole life insurance are tax-free and not guaranteed but are often paid by companies with over 100 years of participating whole life insurance9.
High-cash-value, low-commission policies often put at least 50% of premiums into a Paid-Up Additions Rider, boosting cash value growth8. This is different from indexed universal life and universal life policies, which might not live up to their promises. This shows the benefits and guarantees of whole life insurance8.
The death benefit and dividend payouts are key reasons why whole life insurance is valuable. By knowing these, policyholders can make better choices and get the most from their coverage8109.
Key Factors in Whole Life Premiums
Whole life insurance premiums depend on several factors. These include the applicant’s age, gender, health, and lifestyle. Knowing these can help people pick the right whole life insurance policy for their needs and budget.
Age and Gender
Younger people usually pay less for whole life insurance than older ones. This is because they are less likely to die, so the cost is spread out over a longer time11. For instance, a healthy 30-year-old woman might pay about $180 a month, or $2,160 a year, for a $250,000 policy. A healthy 30-year-old man might pay around $201 a month, or $2,412 a year12.
But, the cost can go up a lot as you get older. A 40-year-old woman might pay about $262 a month, and a 40-year-old man might pay $293 a month12.
Health and Lifestyle
Your health and lifestyle can also affect the cost of whole life insurance. If you have health issues like heart disease or diabetes, you might pay more or even have exclusions on your policy. If you enjoy risky hobbies like skydiving or rock climbing, you could pay more too because you’re more likely to get hurt12.
Insurance companies look at your health and lifestyle to figure out how much risk you are. By being honest about your health and activities, you can get accurate and fair quotes for whole life insurance12.
In summary, many factors affect whole life insurance premiums. Age, gender, health, and lifestyle are big ones. Knowing these can help people choose the right policy for their needs and budget1112.
Our Methodology for Evaluating Companies
To find the best whole life insurance companies, our experts looked for those that are financially strong and have few customer complaints13. We checked key features like the chance to earn dividends, riders available, and coverage amounts13. Our scoring looked at how customers feel, the company’s financial health, and complaint data to give a full view of the best whole life insurance providers13.
We looked at data from 91 life insurance companies13. For each company, we checked 55 different points13. 32% of the score came from how easy it was to apply and use their online services13. 29% came from the types of policies and riders they offer13. And 15% came from the types of coverage they provide13. We also looked at how diverse their products are and how long term life coverage can be13. Each company got a score from 0 to 5, with 5 being the best13.
We used both our own research and expert advice to make sure our evaluation was complete14. We looked at over 9,000 life insurance policies and 38 million data points to find the top providers14. By combining our research with industry data, we made a detailed list of the best whole life insurance companies14.
Our top picks include Guardian Life, MassMutual, Northwestern Mutual, New York Life, and State Farm15. These companies did well in financial strength, customer happiness, and the variety of their products15. For example, Guardian got a high J.D. Power Score and an AM Best Financial Strength Rating of A++15. MassMutual and Northwestern Mutual were praised for their leading whole life insurance policies15.
We use a detailed, multi-faceted approach to give our readers a trustworthy and fair look at the top whole life insurance companies13. This way, our advice is based on a deep look at each company’s financial health, customer satisfaction, and the quality of their whole life insurance131415.
Guardian Life: Best for Applicants Living with HIV
Finding affordable life insurance if you live with HIV can be tough. But Guardian Life Insurance Company is a top choice for those in need. They offer coverage that meets the special needs of people with HIV16.
Guardian Life gives life insurance to people who see a specialist and are on ART treatment. To get coverage, you need 6 months of ART, an undetectable viral load, a certain CD4 count, and no recent substance abuse16.
Guardian Life also has other insurance options, like survivorship insurance and policies that pay dividends. They’ve been paying dividends every year since 18681718.
The 2020 Insurance Barometer Study shows life insurance ownership has dropped over the years17. But Guardian Life stands out by offering coverage to HIV-positive individuals. Their wide range of products and strong finances make them a leader in the industry18.
“Guardian Life Insurance is reputable according to NerdWallet.”17
As of December 31, 2022, Guardian Life had assets of $76.0 billion and liabilities of $67.2 billion. They had a surplus of $8.8 billion18. This shows they are financially strong, which is important for people with HIV looking for insurance.
Guardian Life’s Board of Directors decides on annual dividends. These are based on things like death rates, costs, and investment results. Their history of paying dividends shows they are careful with money and focus on customers1718.
For HIV-positive individuals seeking life insurance, Guardian Life is a top choice. Their specialized coverage and strong finances make them stand out161718.
MassMutual: Best for Cash Value Growth
MassMutual is a top choice for whole life insurance because of its great cash value growth. Its policies have a guaranteed cash value growth rate of 3.75%19. This means your money grows steadily over time. Plus, as a mutual company, MassMutual gives dividends to its policyholders. It aims to give out a record $2.2 billion in 202419.
MassMutual’s whole life insurance lets you customize your policy with riders. You can add riders for long-term care or chronic illness to fit your needs19. The company is known for excellent customer service, ranking 7th in customer satisfaction in the 2021 J.D. Power U.S. Individual Life Insurance Study20.
The cash value in a MassMutual policy grows without any guarantees and is tax-deferred19. This means you won’t pay taxes on gains until you take out more than you put in. This can be a big plus for building funds for retirement or other big goals.
MassMutual offers a great mix of cash value growth, dividend payments, customization, and online claims support19. It’s a top pick for those wanting a strong and flexible whole life insurance option.
Northwestern Mutual: Best for Blended Coverage
Northwestern Mutual is a top choice for life insurance, thanks to its tailored approach. They offer a mix of term and whole life coverage to fit each client’s needs21. Their financial advisors work with clients to design plans that meet their financial goals21.
One big plus of Northwestern Mutual’s whole life insurance is the guaranteed death benefit for life21. Plus, the premiums stay the same, giving policyholders predictable costs21.
These policies also let you build cash value over time, which you can use for things like bills, college, or retirement21. Plus, the company often pays dividends to its policyholders, with plans to pay out $7.3 billion in 20242122.
Northwestern Mutual is financially rock-solid, with top ratings from major agencies22. This financial strength and performance make it the best life insurance company for consumer experience in 20232122.
For those looking for a tailored life insurance solution, Northwestern Mutual stands out. Its blend of coverage, financial strength, and dividend history makes it a great choice2122.
Other companies like Ameritas, Foresters Financial, Guardian Life, Lafayette Life, and MassMutual also offer whole life insurance23. But Northwestern Mutual’s unique approach and solid track record make it the best choice for blended coverage212223.
New York Life: Best for Rider Options
New York Life is a top choice for whole life insurance because of its many optional riders. These riders add valuable benefits to policies, making them fit the specific needs of each person24.
The Disability Waiver of Premium rider pays for policy premiums if the policyholder becomes disabled24. The Chronic Care rider lets policyholders use part of the death benefit for long-term care costs24.
The Living Benefit rider is very useful for those with terminal illnesses. It lets them use part of the death benefit for treatment and care24. The Option to Purchase Paid-Up Additions rider increases the cash value and death benefit with extra payments24.
The Accidental Death Benefit rider adds more to the death benefit if death happens by accident, but it ends at age 7024. With these riders and New York Life’s history of reliable benefits, their whole life insurance is a great choice for those wanting full coverage and flexibility24.
| Rider Type | Description | Additional Cost |
|---|---|---|
| Disability Waiver of Premium | Pays premiums during a policyholder’s disability | Yes |
| Chronic Care | Allows access to a portion of the death benefit for long-term care costs | Yes |
| Living Benefit | Enables terminally ill policyholders to use a portion of the death benefit for treatment or care | Yes, upon exercising the rider |
| Option to Purchase Paid-Up Additions | Allows for additional premium payments to increase cash value and death benefit | Yes, at the time of payment |
| Accidental Death Benefit | Provides an additional death benefit in cases of accidental death | Yes, monthly charge until age 70 |
New York Life also offers a range of permanent life insurance products. These include Whole Life Insurance, Custom Whole Life Insurance, and Secure Wealth Plus24. They cater to different financial goals and needs. Whether it’s for protecting loved ones, building wealth, or getting living benefits, New York Life has solutions that offer the coverage and flexibility people need24.
State Farm: Best for Customer Satisfaction
State Farm is a top choice for whole life insurance, known for making customers very happy2526. J.D. Power says State Farm is the top life insurance company for customer satisfaction, with fewer complaints than others26. This is backed by a strong financial rating of A++ from A.M. Best, showing it can pay out policy benefits reliably26.
State Farm also offers a variety of whole life insurance options26. Customers can choose from standard, limited pay, single premium, or guaranteed issue final expense insurance26. They can save up to 17% by combining life insurance with other State Farm policies like auto or homeowners insurance26.
State Farm shows it cares about customers by paying dividends. In 2023, it gave out $725 million to policyholders, up from $603 million the year before26. It also offers a quick approval term life policy for up to $50,000 for people under 5026.
Forbes Advisor named State Farm the best whole life insurance company, proving it’s focused on customers27. With great products, prices, and service, State Farm is a top pick for whole life insurance2526.
State Farm shines with its focus on customer happiness, financial strength, and flexible policies252627.
best whole life insurance companies
Whole life insurance is a key way to protect your loved ones financially for the long term. We looked at 34 top life insurance companies1 to find the best ones. They offer great coverage, are financially strong, and have innovative features.
We checked 19 key factors1 to pick the best whole life insurance providers. The top companies are Nationwide, New York Life, State Farm, MassMutual, Penn Mutual, Northwestern Mutual, and Guardian Life.
Each company has its own benefits and features for different needs. For example, Guardian Life28 is known for its strong finances and making customers happy. It also offers special coverage for people with HIV. MassMutual28 is great for growing cash value, has low complaints, and pays high dividends to its customers.
These top companies offer a mix of financial security, comprehensive coverage, and personalized features for everyone’s needs1.
When picking the best whole life insurance, think about your age, health, and lifestyle. These things affect your premiums and policy options1. By looking at your needs and comparing these companies, you can find the right insurance for you and your family.
“Whole life insurance offers a unique combination of guaranteed death benefits, fixed premiums, and the potential for cash value growth – making it an attractive option for those seeking long-term financial protection.”
Looking to protect your family, grow your wealth, or get living benefits? The top whole life insurance companies we found are ready to offer you the coverage and security you need12829.
AARP: Best for Smaller Coverage Amounts
AARP is a well-known non-profit that offers whole life insurance for older adults. These policies are made for seniors, starting with coverage as low as $2,50030. What makes AARP stand out is it doesn’t need a medical exam, making it easier for more people to get30.
Policy Options and Features
AARP’s whole life insurance has many customizable options. You can add riders for terminal illness or long-term care, giving extra financial help when you need it30.
Also, AARP’s policies have guaranteed rates that won’t go up, giving seniors predictable monthly costs30. This is great for older adults wanting to plan their finances without worrying about premium increases.
Not all AARP insurance is available everywhere, and how you apply can vary30. Seniors should check what’s available in their state for a smooth application process.
In short, AARP’s whole life insurance is made for seniors. It offers flexible options and doesn’t require a medical exam. This makes it easier for older adults to protect their financial future30.
It’s smart for seniors to look at different insurance options to find the best deal for their needs31. Independent agencies can help seniors find the right policies at good prices31.
When is Whole Life Insurance Worth It?
Whole life insurance is great for people with ongoing financial duties, like caring for dependents or building an estate32. It offers a guaranteed death benefit and lets cash value grow without taxes, making it key for a solid financial plan32. But, it’s not always the top pick, especially for those with small financial needs or short-term goals33.
Whole life insurance stands out for its lifelong coverage and guaranteed payout to loved ones after the policyholder passes away33. The cash value can grow without taxes, offering a way to borrow or add to retirement income33. Yet, it’s important to look at the downsides, like higher premiums and the chance it might not beat other investment choices32.
It’s a good choice for those planning their estate or wanting to secure their dependents’ future33. The guaranteed death benefit can cover ongoing costs, like caring for a child with special needs or supporting a spouse’s long-term care33. Plus, the cash value can help with donations or passing on wealth to the next generation32.
Before picking whole life insurance, weigh the benefits like tax-free cash value and policy loans against the higher costs and possible lower returns versus other investments32. Those seeking high returns, with a high-risk tolerance, or needing quick cash might not find it suitable for their financial plans333234.
How to Choose a Whole Life Policy
When picking a whole life insurance policy, think about how much coverage you need. This depends on your financial duties and who depends on you35. For a $250,000 policy, premiums can be between $140.37 and $228.33 for a 30-year-old man in good health35. For a 40-year-old man, it’s $180.81 to $340.00, and for a 50-year-old, it’s $280.62 to $519.83 in the 19808 zip code35. Look into riders and add-ons like accelerated death benefits and long-term care coverage to make the policy fit your needs.
Coverage Amount
Choosing the right whole life insurance coverage amount is key. Think about your income now and in the future, your debts, and how many depend on you1. By looking at these, you can pick a policy that protects your loved ones well1.
Riders and Add-Ons
Adding riders and add-ons to your whole life insurance policy can boost its benefits. Options include accelerated death benefits for terminal illnesses and long-term care coverage for healthcare costs1. Some policies let you link cash value to market performance for higher returns1.
Getting advice from a trusted financial advisor helps pick the right whole life insurance plan for your future28. Companies like MassMutual and State Farm might charge more because they pay dividends35. Nationwide, a leader since 1925, is a top choice for whole life insurance35.
“Choosing the right whole life insurance policy is critical for protecting your family’s financial future. Work with a professional to assess your needs and customize a plan that fits your unique situation.”
Think about the coverage amount and riders and add-ons to pick a whole life insurance policy that meets your needs35281.
Conclusion
We’ve looked deeply into the whole life insurance market to find the best providers. They offer great coverage, cash value growth, and financial security36. Guardian Life has special policies for people with certain needs, and MassMutual is great for growing cash value37.
Looking for lifelong protection, extra retirement savings, or a way to leave a legacy? These top whole life insurance companies can help you reach your financial goals38. They focus on making customers happy, being financially stable, and offering new policy features. This means they give you the coverage and peace of mind you need.
We’ve reviewed the whole life insurance market to find the best companies and what they offer. If you need whole life insurance for your family, to grow your wealth, or to leave a legacy, this guide is a great resource. It can help you make a smart choice and get the right coverage for your financial goals.
FAQ
What is whole life insurance?
What are the key benefits of whole life insurance?
How does the cash value in a whole life insurance policy grow?
What is the death benefit in a whole life insurance policy?
Do whole life insurance policies pay dividends?
What factors affect the cost of whole life insurance premiums?
How did your team evaluate the best whole life insurance companies?
What makes Guardian Life stand out for whole life insurance?
What makes MassMutual a top choice for cash value growth?
Why is Northwestern Mutual a good option for blended coverage?
What makes New York Life stand out for rider options?
Why is State Farm a top choice for customer satisfaction?
What makes AARP’s whole life insurance stand out?
When is whole life insurance worth it?
What should I consider when choosing a whole life insurance policy?
Source Links
- The 7 Best Whole Life Insurance Companies (2024) – https://www.marketwatch.com/guides/life-insurance/best-whole-life-insurance/
- 3 Best Whole Life Insurance Companies Of 2024 – https://www.forbes.com/advisor/life-insurance/best-whole-life-insurance/
- Best Whole Life Insurance Companies – https://www.usnews.com/insurance/life-insurance/best-whole-life-insurance
- Is Whole Life Insurance a Good Investment? Evaluating the Pros and Cons – https://www.marketwatch.com/guides/life-insurance/best-whole-life-insurance/is-whole-life-insurance-a-good-investment/
- What Is Whole Life Insurance, And How Does It Work? – NerdWallet – https://www.nerdwallet.com/article/insurance/whole-life-insurance
- Whole Life Insurance Definition: How It Works, With Examples – https://www.investopedia.com/terms/w/wholelife.asp
- How Whole Life Insurance Works | Guardian – https://www.guardianlife.com/life-insurance/whole-life/how-it-works
- What is Dividend Paying Whole Life Insurance? – https://www.bankonyourself.com/what-is-dividend-paying-whole-life-insurance
- Top 10 Best Dividend Paying Whole Life Insurance Companies – I&E | Whole Life & Infinite Banking Strategies – https://www.insuranceandestates.com/top-10-best-dividend-paying-whole-life-insurance-companies/
- Dividend paying whole life insurance – https://www.northwesternmutual.com/life-insurance/whole-life-insurance/dividend-paying-whole-life-insurance/
- Best Whole Life Insurance Companies | Bankrate – https://www.bankrate.com/insurance/life-insurance/best-whole-life-insurance/
- Best whole life insurance companies of July 2024 – https://www.usatoday.com/money/blueprint/life-insurance/best-whole-life-insurance/
- Life Insurance Review Methodology – https://www.investopedia.com/life-insurance-review-methodology-5071427
- Best life insurance companies of July 2024 – https://www.usatoday.com/money/blueprint/life-insurance/best-life-insurance-companies/
- Best Life Insurance Companies in 2024 | Bankrate – https://www.bankrate.com/insurance/life-insurance/best-life-insurance-companies/
- Life Insurance for People With HIV: How to Qualify in 2024 – NerdWallet – https://www.nerdwallet.com/article/insurance/hiv-life-insurance
- Life Insurance Companies and Coverage | Guardian – https://www.guardianlife.com/life-insurance/life-insurance-companies
- 14 Questions You Should Ask About Life Insurance | Guardian – https://www.guardianlife.com/life-insurance/questions
- Whole Life Insurance Cash Value Chart – https://www.forbes.com/advisor/life-insurance/whole-life-insurance-cash-value-chart/
- Best Whole Life Insurance | The Motley Fool – https://www.fool.com/the-ascent/insurance/life/best-whole-life-insurance/
- Whole Life Insurance | Northwestern Mutual – https://www.northwesternmutual.com/life-insurance/whole-life-insurance/
- Life Insurance: Get a Quote Today | Northwestern Mutual – https://www.northwesternmutual.com/life-insurance/
- Top 14 Best Whole Life Insurance Companies in the U.S. [2024 Update] – I&E | Whole Life & Infinite Banking Strategies – https://www.insuranceandestates.com/best-whole-life-insurance-companies/
- Whole Life Insurance – https://www.newyorklife.com/products/insurance/whole-life
- 11 Best Term, Whole, and No-Exam Life Insurance Companies for July 2024 – https://www.investopedia.com/best-life-insurance-companies-4845858
- State Farm life insurance review 2024 – https://www.cnbc.com/select/state-farm-life-insurance-review/
- Types of Life Insurance – https://www.statefarm.com/simple-insights/life-insurance/types-of-life-insurance
- 6 Best Whole Life Insurance Companies in July 2024 – NerdWallet – https://www.nerdwallet.com/article/insurance/find-best-whole-life-insurance
- 5 Best Whole Life Insurance Companies – https://money.com/best-whole-life-insurance/
- AARP Permanent Life Insurance from New York Life – https://www.aarp.org/membership/benefits/insurance/aarp-permanent-life-insurance-from-new-york-life/
- AARP Life Insurance Rate Charts By Age (2024 Prices) – https://choicemutual.com/blog/aarp-life-insurance-rates/
- Is Whole Life Insurance A Good Investment? – https://www.forbes.com/advisor/life-insurance/is-whole-life-insurance-a-good-investment/
- Whole Life Insurance | Bankrate – https://www.bankrate.com/insurance/life-insurance/whole-life-insurance/
- What is whole life insurance — and is it worth higher premiums? – https://www.cnbc.com/select/what-is-whole-life-insurance/
- How to Buy Whole Life Insurance – https://www.investopedia.com/how-to-buy-whole-life-insurance-7153006
- The Best Guaranteed Issue Life Insurance Companies (2024) – https://www.marketwatch.com/guides/life-insurance/guaranteed-issue-life-insurance/
- 5 Best Life Insurance Companies for Infinite Banking in 2024 – https://insurancequotes2day.com/blog/best-life-insurance-companies-for-infinite-banking/
- What Is Whole Life Insurance? (2024) – https://www.marketwatch.com/guides/life-insurance/best-whole-life-insurance/what-is-whole-life-insurance/