When it comes to finding the best life insurance policies, it can be tough to know who to trust. After all, you want to make sure that you are getting the best deal possible and that your family is taken care of in case something happens to you. In this blog post, we will discuss the top life insurance companies in 2022. We will take a look at their prices and what kinds of policies they offer. So, whether you are looking for term life insurance or whole life insurance, we have you covered!
Companies Worth Looking At
- Lincoln Financial – Best for Boomers
- Mutual of Omaha – Best for Indexed Universal Life Insurance
- Pacific Life – Best for Retirement Planning
- Protective – Best for Universal Life Insurance
- Prudential – Best for Senior Life Insurance
- AIG – Best for Recreational Marijuana Use
- Equitable – Best for Variable Universal Life Insurance
- Nationwide – Best for Gen X & Millennials
- Northwestern Mutual – Best for Whole Life Insurance
- Penn Mutual – Best for Estate Planning
- Transamerica – Best for Term Life Insurance
- John Hancock – Best for Celebratory Cigar Use
What is Life Insurance?
Before we get into the best life insurance companies, let’s first take a look at what life insurance is. In short, life insurance is a contract between you and an insurance company. You pay premiums, and in exchange, the insurer agrees to pay a death benefit to your beneficiaries if you die during the term of the policy. There are two main types of life insurance: term life insurance and whole life insurance.
Term life insurance is the most basic form of coverage. It protects for a set period, typically between one and 30 years. If you die during the term, your beneficiaries will receive the death benefit. If you don’t die during the term, the policy expires and you get nothing.
Whole life insurance, on the other hand, covers you for your entire life. As long as you pay your premiums, the policy will remain in force. Whole life policies also have a cash value component, which grows over time and can be accessed through loans or withdrawals.
How to Find The Best Life Insurance Policy
With the wide variety of life insurance policies available, pinpointing the right one can be a challenge for any buyer. Don’t go it alone when trying to find the best life insurance policy. Financial advisors and experienced life insurance agents have the background to help you make the right decision based on your financial goals and budget.
Look at financial strength ratings.
A strong financial strength rating is more than just peace of mind that the company won’t go out of business decades from now. Insurers with greater financial strength can be less likely to need to increase internal policy costs and premiums in response to challenging financial times.
Ratings are available from agencies such as Standard & Poor’s and AM Best and are usually found on insurers’ websites.
Select life insurance as part of a larger financial plan.
A financial advisor can explain the best life insurance options in the context of your larger personal financial goals.
Don’t assume insurers offer competitive pricing for everyone.
Life insurance companies want your business, but they all operate from their playbooks. Premiums can vary wildly and, for cash value policies, cash value growth can be very different among companies and policies.
Be aware that a life insurance quote for a cash value policy may not reflect what you’ll end up paying over the years to keep the policy in force.
Insist that cost disclosure for universal life insurance be included in any proposals.
A life insurance quote reflects what you’ll be billed for, but it doesn’t tell you anything about a policy’s internal costs, such as expenses and fees, and the actual cost of insurance that’s charged within the policy.
Be sure to insist that any universal life insurance illustration includes detailed expense pages or policy accounting pages. Products with a low premium quote could have higher internal costs, which can slow your cash value growth.
Figure out if you want life insurance riders
Life insurance companies generally let you add extra coverage to your policy through life insurance riders. These riders can include benefits you can use while you’re alive, such as accelerated death benefits, long-term care, term life conversion, and waiver of premium if you become disabled.
Adding a rider may increase the cost of life insurance. If you’re interested in expanding coverage through a life insurance rider, ask your life insurance agent to explain the options.
Please reach out with any life insurance questions you may have. Thanks for reading!