Determining the best health insurance company is no simple task, especially with so many similar insurance products on the market today. There are literally hundreds of insurance companies in America competing for your valuable business and they all sell very similar products (or so it may seem).
As a result, it’s important to evaluate each company based on key performance indicators such as customer satisfaction scores, financial strength, pricing and the depth of their product portfolio. Please consider the following as you begin your search for a health insurance policy that meets your unique, personal needs:
Customer satisfaction scores can help you determine how a company treats its customers. The National Association of Insurance Commissioners website is an excellent resource for consumers interested in learning about an insurer’s reputation with consumers.
Financial strength is an important indicator of an insurance company’s ability to pay claims made by their customers. Ratings agencies such as A.M. Best can help you better understand the financial stability of any insurance company you are considering doing business with. You should avoid doing business with an insurance company that maintains a rating of B or lower.
Pricing is another important factor in your decision making process. With so many insurance products on the market today, you can save a lot of money in the long run by taking the time to research and compare the prices being offered for the same or similar products. RateHub.com is a popular insurance comparison site, but there are many others that can help you compare and contrast insurance rates and policies.
Product selection is another important factor to consider when evaluating your needs. For example, if you know that you’re interested in a specific health insurance policy, you can narrow down your options by focusing on companies that focus specifically on health insurance. Similarly, if you’re interested in a permanent life insurance policy (whole life, universal life, etc.), you may want to consult with your financial planner, as many of these policies include an investment component.
Factoring in each of the items noted above, we have determined that these are the best life and health insurance companies in the United States in 2021.
Northwestern Mutual is the largest life insurance company in the U.S. The company offers a wide range of products, such as term life, universal life and whole life insurance. Universal life policyholders have flexible payment and coverage options, while term life customers have the opportunity to convert their policy to permanent coverage without taking a medical exam.
Guardian offers both term and permanent life insurance policies, including whole life and universal life. One of the perks of Guardian’s universal coverage is the ability to increase or decrease your premiums to fit your needs. The company also offers whole life insurance for individuals living with HIV. Applicants must meet certain eligibility requirements to qualify for coverage, such as being between the ages of 20 and 60 and free from AIDS-defining illnesses.
Haven Life offers term life insurance with accelerated underwriting, a process that uses algorithms and big data to quickly assess your insurability. The entire application process is conducted online and can be completed in about 25 minutes. Coverage amounts can reach as high as $3 million. All of Haven Life’s policies are issued by MassMutual.
Massachusetts Mutual Life Insurance Co., often shortened to MassMutual, is one of the largest life insurers in the country. The company offers a wide range of products, from online term life insurance to variable universal life — a type of permanent policy with flexible premiums and investment opportunities. Other policies include universal life, whole life and standard term life.
USAA offers both permanent and term life insurance specifically designed for military members and their families, and its life insurance products are available to nonmilitary customers as well. USAA policies can be used to supplement the government-provided Service members’ Group Life Insurance, which is automatically issued to eligible military personnel. USAA’s term life insurance policies typically cover you during wartime, including acts of terrorism. Policyholders between 18 and 35 years old can also increase their coverage amount if they get married, buy a house or have a baby.
AARP life insurance policies are available only to the group’s members, but anyone 50 or older can join. One of the company’s biggest draws is its simplified underwriting, which means you don’t have to take a life insurance medical exam to qualify for coverage. Instead, acceptance is based on your application and information about your health. Both term and whole life products are available. All policies are issued by New York Life.
New York Life
New York Life is a mutual company, which means it’s owned by its policyholders. As such, you may be eligible to vote in board elections if you buy certain policies. The company is one of the largest insurers in the U.S. It offers both term and permanent life insurance policies, such as whole life, universal life and variable universal life. One of its whole life policies includes a flexible payment option, allowing you to pay off your premiums early. You can also convert your term life policy to a permanent one if you want lifelong coverage.
When you think of State Farm, you probably think of its auto insurance products, but it also offers a wide range of life insurance policies and riders. For example, its instant life insurance policy is available for people ages 16 to 45, includes $50,000 of coverage and doesn’t require a medical exam. Furthermore, you may be able to convert your term policy to a permanent product when it expires. State Farm’s permanent policies include whole life and universal life insurance.
Started by Illinois farmers, Country Financial sells a broad range of insurance products, including term, whole and universal life. Its term life amounts range from $50,000 to more than $1 million and you can add extras to your policy, such as $50,000 of coverage for a child or a return-of-premium rider. This rider means you get back any paid premiums on a 20- or 30-year policy if you’re still around after it expires. The company’s whole life product gives you five payment options, such as paying your premiums in one lump sum or stretching them out over the length of the policy.
Pacific Life was founded in 1868 and offers a wide range of term and permanent products, including term life, universal life, indexed universal life and variable universal life insurance. In fact, Pacific Life is a top seller of indexed universal life insurance, which grows investments based on stock market indexes like the S&P 500. Pacific Life’s policy has a guaranteed floor, which means your life insurance cash value won’t go below a certain value if the stock market dives.
Similar to other mutual companies, Penn Mutual is owned by its policyholders, which means customers who purchase whole life insurance can receive dividends when the company performs well. Founded in 1847, Penn Mutual sells both term and permanent life insurance. One of the perks of buying Penn Mutual’s Guaranteed Convertible Term policy is the option to convert it to permanent coverage without needing to provide proof of good health.
Chartered in 1969, Amica Life Insurance Company sells term and whole life policies in all U.S. states except Hawaii. Its term life policy comes in 10-, 15-, 20-, 25- and 30-year terms and can be converted to a whole life policy regardless of changes to your health. In addition, healthy applicants may not need to take a medical exam to qualify for coverage. Amica’s whole life policy ranges from $25,000 to $1 million and includes a terminal illness rider free of charge. This rider allows you to withdraw part of the death benefit early if you become terminally ill.
Auto-Owners’ 48,000 licensed agents offer a range of insurance products across 26 states. Its life insurance products include term, whole and universal life, as well as long-term care policies. For term policies, you can choose among 10-, 20- or 30-year term lengths. The company’s whole life insurance covers you until you’re 110 and has flexible payment options. Multiple family members can be insured under Auto-Owners’ universal policy, which can then be converted to an individual policy if needed.
Principal Financial offers both term and permanent life insurance, including survivorship insurance, which is a type of life insurance for married couples. The company’s term life policies come in a variety of lengths, ranging from one to 30 years. In addition, you can convert your term life policy to permanent coverage without providing additional proof of good health.
RiverSource is an affiliate of Ameriprise Financial and sells both term and permanent life insurance to individuals. Its term life products are available in 10-, 15-, 20- and 30-year options, and premiums are guaranteed to stay the same for the length of the policy. RiverSource also offers an extensive range of permanent life insurance policies including universal, indexed universal and variable universal for anyone looking for coverage with an investment component.
Banner life insurance is sold under the Legal & General brand and is available in Washington, D.C., and all states except New York. If you’re looking for coverage in New York, check out the company’s sister brand, William Penn. Banner’s product list includes term life and universal life, as well as a range of life insurance riders, such as children’s term coverage and a waiver of premium if you become totally disabled. While many insurers cap their term limits at around 30 years, Banner offers 35- and 40-year options.
Ethos life insurance policies are issued by Banner, under the Legal & General brand, and AAA Life Insurance Company. The company says its speedy online application process for term life policies means you can apply for coverage in about 10 minutes. If you have any questions about your application, you can reach out to representatives by phone or email. Ethos’ whole life policy is issued by AAA Life Insurance and guarantees coverage in minutes if you’re between 65 and 85, regardless of your health. All policies include an accelerated death benefit, which allows you to take part of the death benefit early if you’re diagnosed with a terminal illness.
John Hancock is the U.S. division of Canada-based Manulife Financial Corp. It offers both term and permanent policies, as well as specific coverage for people with diabetes. One of the benefits of buying a life insurance policy through John Hancock is its Vitality Program. Policyholders get access to fitness and nutritional information through an app, as well as discounts and rewards for adopting healthy habits.
Lincoln Financial Group
Lincoln Financial offers both term and permanent life insurance, including universal, variable universal and indexed universal policies. If you’re looking for quick coverage, the company’s TermAccel life product might be of interest. Coverage can be purchased after completing a short phone interview, and a medical exam may not be required. Fun fact: In 1905, the company got permission to use the former president’s name and image from Robert Todd Lincoln, the son of Abraham Lincoln.
Nationwide is typically known for car insurance, so you may be surprised to learn it also offers a full range of life insurance products, such as term life, whole life, variable life and universal life. The company’s term life policies are available in 10-, 15-, 20- or 30-year increments, with the option to convert to a permanent policy if you want lifelong coverage. Nationwide term life products also include level premiums, which means they won’t increase over time. And if you want to extend your term life coverage, renewal options are available.
Prudential offers both term and universal life insurance products with options to customize coverage to fit your needs. For example, the company allows you to tailor your term policy with riders that cover accidental deaths, terminal illnesses and disabilities. Plus, Prudential offers multiple types of permanent life insurance products, with varying degrees of investment opportunities.
Securian Financial, previously known as Minnesota Life Insurance Co., sells term and permanent life insurance policies, including whole and universal life. The company’s whole life policy provides a fixed premium and guaranteed death benefit, while its universal life insurance policy allows you to modify your premium and coverage amounts as your needs change. Depending on the type of term policy you buy, you may be able to convert your coverage to permanent insurance even if you have a chronic illness.