Best Life Insurance Companies of 2024 | Insure.com (2024)

Receiving high scores in multiple categories, it’s no surprise MassMutual tops the list of the best life insurance companies to choose from in 2024. The insurer came out on top with a 4.54 out of 5-stars rating.

MassMutual also received high scores from third-party rating companies AM Best and the NAIC. The insurer also received the third-highest J.D. power score of 809/1,000 of any other insurer we ranked.

MassMutual’s average annual premiums of $333 are almost 8% cheaper than the industry average of $358.

Pacific Life came in second place, trailing closely behind MassMutual with a 4.52 out of 5-star rating.

Of the insurers ranked and for which we were also able to obtain rate data, Pacific Life is one of the most affordable — tying with Penn Mutual — costing almost 28% less than the industry average. Insure.com data shows that the average annual premium for a 35-year-old purchasing $500,000 in coverage from Pacific Life for a 20-year-term is $280, compared to the industry average of $358.

Of the insurers ranked, Pacific Life tied Northwestern Mutual with the best score – 0.03 – from the National Association of Insurance Commissioners, which tracks customer complaints.

State Farm received a 4.51 star rating out of 5. The insurance company scored well for ease of service and customer satisfaction.

Of the insurers ranked, State Farm customers gave it high marks for its policy offerings and trustworthiness. It received the highest customer satisfaction rating of 843/1,000 from J.D. Power, above the average of 790. It also received high scores from third-party rating agencies. AM Best gives State Farm a score of A++, while it received an NAIC score of 0.33

Northwestern Mutual received a 4.50-star rating out of 5, receiving high scores for its policy offerings. The insurer tied with Pacific Life for the lowest NAIC score of 0.03 compared to the other carriers we ranked. Additionally, 100% of policyholders surveyed by Insure.com said they would renew their Northwestern Mutual policy.

The insurer also received an A++ score from AM Best and a J.D. Power customer satisfaction rating of 790/1,000, meeting the industry average score of 790. While Northwestern Mutual scored highly in many categories, it doesn’t offer the most affordable rates — the insurer’s average annual premiums are about 20% more than the industry average.

New York Life received a 4.49 star rating out of 5, tying for fifth place with Penn Mutual.

The company’s customers rate it highly for its ease of service and its policy offerings. The insurer received an A++ rating from AM Best and high marks from NAIC, which tracks customer complaints. Insure.com data shows that the company’s average annual premiums were on par with the industry average of $358. New York Life’s average annual premium came to $357.

Penn Mutual ranks fifth with a 4.49 out of 5-star rating, tying with New York Life. The insurer ranked highly in every category — customer satisfaction, ease of service, policy offerings, and trustworthiness.

Penn Mutual is tied with Pacific Life for premium affordability. With average annual premiums of $280, Penn Mutual’s premiums are well below the industry average of $358.

John Hanco*ck received a 4.37 out of 5-star rating.

The insurer scored well for policy offerings and renewals, receiving a 97% score for the latter. However, its average annual premiums were well above the industry average of $358. Insure.com data shows that a policy from John Hanco*ck costs an average of $415 a year.

John Hanco*ck received an A+ rating from AM Best. It was rated highly by NAIC, which tracks customer complaints. Its J.D. Power score of 782 is just slightly below the industry average of 790.

Lincoln Financial received 4.30 out of 5 stars. The insurer performed well in ease of service and, of the companies we ranked, had the second-highest customer satisfaction score. It also earned an excellent NAIC score of .38.

Lincoln Financial’s average annual premium of $297 is lower than the industry average of $358, making Lincoln Financial a solid choice for affordable premiums.

Ranking ninth on the Insure.com list of Best Life Insurance Companies is Guardian Life. The insurer received a 4.29 out of 5-star rating and earned a high rating of A++ from third-party rating agency AM Best. While Guardian Life received a J.D. Power score of 784/1,000 — slightly below the industry average of 790 — its NAIC score of 0.07 was one of the best of the insurers ranked.

The insurer received a relatively high score for policy renewal, with 87% of customers surveyed saying they would renew their Guardian Life policy.

Mutual of Omaha received 4.11 out of 5 stars, coming in 10th place. The insurer received high marks for policy renewal, with 93% of customers saying they would renew their policy. Additionally, it received an A+ score from AM Best and a score of 805/1,000 from J.D. Power, which is higher than the industry average of 790.

Mutual of Omaha’s average annual premiums of $353 are slightly lower than the industry average of $358.

Gerber Life received 4.01 out of 5 stars, tying it on the ranking with Amica. The insurer received an A from third-party rating agency AM Best and a score of 1.23 from the NAIC, which tracks customer complaints.

Gerber Life received the highest score for policy renewal, with 100% of customers saying they would renew their Gerber Life policies. Northwestern Mutual, Lincoln Financial, and State Farm also received scores of 100% in this category.

Amica received 4.01 out of 5 stars, tying with Gerber Life. The insurer received high scores from third-party rating agencies, with AM Best giving Amica a score of A+, while NAIC gave Amica a score of 0.63.

The multi-line company is best for people who also need other types of insurance coverage, such as home and auto.

AAA ties with Allstate for 14th place, with 3.87 out of 5 stars. The company received an A score from AM Best and an NAIC score of 1.05. With a 90% score for policy renewals, most AAA customers say they’ll renew their coverage. Customers give it high marks for trustworthiness.

Policy premiums from AAA are well above the industry average. Insure.com data shows that AAA customers pay $440 for average annual premiums, while the industry average is $358.

Prudential tied with Brighthouse for 16th place, receiving 3.84 out of 5 stars. Prudential’s average annual premiums of $353 are slightly below the industry average of $358. The insurer’s customers give it a high customer satisfaction rating and most – 97% of customers – plan to renew their coverage.

The insurer received an A+ rating from AM Best and a score of 779/1,000 from J.D. Power, just 11 points below the industry average of 790.

Customer satisfaction is an important indication of the type of experience policyholders have with the insurer.

Pacific Life came out on top for customer satisfaction, with Lincoln Financial and Penn Mutual following close behind.

No one wants a life insurance policy that isn’t easy to use.

When it comes to ease of service, Pacific Life again came out on top and Penn Mutual placed second. New York Life came in third place.

A variety of policy options makes it easier to get the coverage you need. Allstate took the lead in this category. Penn Mutual, State Farm, and John Hanco*ck followed.

Trust is the foundation of any relationship — even the one between an insurer and a policyholder. Penn Mutual came out on top, with 84% of customers finding the insurer trustworthy. State Farm and Pacific Life followed.

When a policyholder plans to stick with their insurance company, you can assume they’re pretty happy with the insurer. Most of the life insurance companies surveyed by Insure.com had high renewal rates.

Four insurers tied in this category – Gerber Life, Lincoln Financial, Northwestern Mutual and State Farm – with all the customers we surveyed saying they would renew their policies.

How much life insurance costs

Term life insurance is a good policy option for most people because it is usually the most straightforward and affordable. To determine how much life insurance costs, Insure.com analyzed premiums collected by data provider Compulife. We evaluated rates for 35-year-old non-smokers purchasing $500,000 in coverage for a 20-year term. Here, we expanded our analysis beyond just the companies we ranked.

Among all the insurers with available rate data and of those companies ranked, Pacific Life and Penn Mutual came out on top as the most affordable insurers, offering coverage for $280 annually on average. Pacific Life and Penn Mutual’s average annual premium is almost 28% more affordable than the industry average of $358, according to Insure.com data.

How much life insurance do you need?

Most people should get at least 10 to 15 times their annual income in life insurance coverage. However, every person’s life insurance needs are different and there are multiple factors that determine the exact amount of coverage you should get.

You can use the DIME method to determine a more precise number. Using this method, you tally up the following:

• The amount of debt you owe
• The amount of income you earn multiplied by the number of years you’d be providing that income
• The remaining balance on your mortgage
• The cost of education that you would be paying for

A potential buyer should also assess how their death would impact their loved ones financially:

• Does your family rely on your income to pay for living expenses?
• What other assets/financial resources are available to them?
• Does anyone else depend on you financially?
• How will your family pay final expenses after your death?

How to shop for life insurance and find a life insurance company that’s right for you

• Set your budget: Figure out how much life insurance coverage you can afford and stick to that amount when buying a policy, even if the coverage amount is lower than your needs. If you get a policy that is too expensive and can’t pay for it down the line, you may end up canceling your coverage and having no coverage at all.
• Determine how much life insurance you need: Figure out how much coverage you need. This will help you look for insurers that offer the amount you need at the lowest possible price.
• Research insurers: Compare quotes, riders, types of coverage offered and costs.
• Gather quotes: Figure out how much each insurer would charge you for your profile.

Final thoughts on the best life insurance companies

The best life insurance company for you depends on your life insurance needs, budget and unique personal profile. While our guide is a great place to start, to find the best policy you should shop around and compare quotes from at least three insurers. Some insurers may offer you higher rates for your needs, while others may offer you competitive coverage. Compare rates to make sure you aren’t paying more for coverage than necessary.

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