When it comes to finding the best life insurance companies, there are a lot of factors to consider. Do you want a term life or whole life? What are the rates offered by different companies? We have compiled a list of the 10 best life insurance companies for both term and whole life policies, so you can find the right company for your needs.
Which Life Insurance is the Best?
You see…
Every life insurance company is going to have its own unique underwriting guidelines when determining who they will and won’t insure in addition to determining what PRICE someone might have to pay for such coverage as well.
So…
While one insurance company may be ideal for someone in their early 30s that’s in great shape, that same insurance company may be a terrible option for another person in their late 40’s just recently diagnosed with type 2 diabetes.
For this reason…
We wanted to provide our readers with our Top 10 Life Insurance Companies list along with some valuable information about each so that you may begin narrowing down which company might be right for you.
Our online quote will also provide you with instant quotes for you to review.
This way you can get a basic idea about how much your insurance would cost were you able to qualify at the rate you selected.
Lastly, we should note that we have purposely chosen to list these companies in alphabetical order since we believe that each of them would make a fine choice for the right applicant.
Whole & Term Companies
- AIG
- ANICO
- Banner
- Brighthouse Financial
- Equitable
- Guardian Life
- John Hancock
- Lincoln Financial
- MassMutual
- Mutual of Omaha
How They Determine Your Rates
Mortality and Interest Rates
The two most important factors used to determine insurance premium rates are mortality and interest rates.
Mortality focuses on the life expectancy of an insured – essentially, the lower the life expectancy, the higher the insurance premium.
The interest rate earned by the insurance company on the premiums it receives also plays into the rate-making process.
Another factor that is considered is the expense of running the insurance company, including administrative costs, office rent, etc.
Insurance companies take these factors into account to come up with an estimate as to how much they are likely to pay in claims in any given year and how much they should charge in the form of life insurance premiums to those purchasing policies.
Your Health and Lifestyle
Insurance companies also consider your physical condition and your lifestyle when pricing a policy.
If you are in good shape it will help you get the lowest possible life insurance premium rates.
Your health rate will fall into one of these categories:
- Preferred Plus
- Preferred
- Standard Plus
- Standard
- Substandard/Table Rated
A Couple Other Things They Consider
Your lifestyle
Lifestyle choices, such as tobacco use, or engaging in a dangerous hobby, also affects your life insurance rates.
Oddly enough, riding a motorcycle does not typically affect your rate class, unless you engage in motocross racing.
Your Age
Along with your health at the start of the policy, your age is the other major determinant of your life insurance cost.
Remember that your health is only measured once – at the start of the policy. If you suffer health issues after that they do not impact your premiums, unless your policy expires and you want to purchase a new one or you want to upgrade your policy.
For this reason, some policies offer automatic upgrade options, which enable you to add coverage without having to requalify via a health exam.
An insurance company will take your age, health, and lifestyle into account and then project how likely you are to die within a certain period to determine what your health rate class and policy premiums will be.
Accordingly, the younger and healthier you are when buying insurance, the lower your rates will be.
Other factors insurers consider include your driving record and credit score. Bad credit, such as a recent bankruptcy, traffic violations, or accidents for which you are at fault, can all negatively impact your rate class.
Bottom Line
There are a lot of different factors that go into determining your life insurance rates. The best way to find the most affordable policy is to compare quotes from multiple insurers. Comparing quotes is quick and easy, and it can help you save a significant amount of money on your coverage. Get started today and see how much you could be saving.