10 Best Life Insurance Companies in 2025 (Check Out the Top Providers)
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The best life insurance companies are State Farm, AIG, and Prudential. State Farm stands out as the best life insurance company for its excellent customer service and competitive rates starting at just $18/month.
AIG excels with extensive coverage options, while Prudential is trusted for its long-standing industry reputation. Whether you’re looking for customizable policies, wellness benefits, or reliable financial protection, our guide has everything you need to know about applying for life insurance.
| Insurance Company | Rank | Term Policy | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 |
#1 | $18 | A | Customer Service | State Farm |
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#2 | $20 | B | Extensive Coverage | AIG |
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#3 | $21 | A+ | Diverse Options | Prudential |
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#4 | $22 | A+ | Wellness Benefits | John Hancock |
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#5 | $22 | A+ | Retirement Planning | Pacific Life |
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#6 | $23 | A+ | Whole Life Rates | Mutual of Omaha |
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#7 | $24 | A+ | Reliable Support | Lincoln Financial |
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#8 | $25 | A++ | Policy Flexibility | Northwestern Mutual |
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#9 | $28 | A++ | Member Benefits | MassMutual |
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#10 | $30 | A++ | Longstanding Trust | New York Life |
Keep reading to compare rates from the best life insurance companies in the U.S. You can get free quotes for life insurance right now by entering your ZIP code into our tool.
What You Should Know
- State Farm leads with $18/month premiums and rider customization
- Prudential is an industry leader with an A+ A.M. Best rating and over 150 years of experience
- Choose between term life or whole life insurance based on your financial needs
#1 – State Farm: Top Overall Pick
Pros
- Great Service: As per our State Farm review, it is known for providing excellent customer support for life insurance.
- Low Rates: Term life insurance policies start at $18/month, making coverage affordable.
- Policy Bundles: Customers can save up to 17% by bundling life insurance with other policies.
Cons
- Limited Coverage Options: Some specialized life insurance plans may not be available in all states.
- Higher Add-On Costs: Adding extra coverage will raise monthly State Farm life insurance payments.
#2 – AIG: Best for Extensive Coverage
Pros
- Wide Coverage: Read our AIG review to compare the many types of life insurance plans it offers.
- Custom Plans: AIG offers a range of coverage amounts, riders, and policy types you can customize based on your needs.
- Affordable Rates: AIG term life insurance starts at $20/month, cheaper than most companies.
Cons
- Long Process: Getting approved for life insurance with AIG can take time.
- Lower Rating: A.M. Best rated AIG lower than some competitors.
#3 – Prudential: Best for Diverse Options
Pros
- Many Options: Based on our Prudential review, it has several life insurance plans to fit different life stages.
- Good Rates: Term policies start at $21/month, offering balanced coverage for many budgets.
- Strong Financial Backing: Prudential has a top rating from A.M. Best for long-term stability.
Cons
- Higher Costs for Whole Life: Prudential whole life insurance can be pricey.
- Online Tools: Its life insurance website and online tools could be easier to use.
#4 – John Hancock: Best for Wellness Benefits
Pros
- Health Rewards: With its Vitality Program, it's one of the best life insurance companies that offer discounts for being healthy.
- Fair Rates: Term policies start at $22/month, making coverage affordable for most families.
- Reliable Company: John Hancock has a top A+ rating for financial strength from A.M. Best.
Cons
- Health Tracking Required: You may need to track your health to get rewards through the John Hancock Vitality Program.
- Increased Rates: Monthly life insurance rates may be higher if you don't qualify for or participate in the Vitality Program.
#5 – Pacific Life: Best for Retirement Planning
Pros
- Retirement Focus: Pacific Life has the best life insurance that generates immediate cash value.
- Affordable Rates: Pacific Life insurance rates are competitive at $22/month for term policies and $148/month for whole life.
- Strong Company: It has a solid financial rating for long-term reliability.
Cons
- Few Policy Types: Pacific Life whole life insurance is limited to universal, indexed universal, and variable universal policies.
- Approval Delays: Getting approved can take longer than average.
#6 – Mutual of Omaha: Best Whole Life Insurance Rates
Pros
- Budget-Friendly: Monthly whole life insurance rates start at $125/month, the cheapest on this list.
- Good Discounts: Save money by bundling Mutual of Omaha life insurance with other policies.
- Reliable Help: Mutual of Omaha is a customer's choice top-ranked insurance company for its service.
Cons
- Basic Online Tools: Managing life insurance online could be simpler.
- Higher Rates for Older People: Mutual of Omaha life insurance rates stop being competitive for older applicants.
#7 – Lincoln Financial: Best for Reliable Support
Pros
- Few Customer Complaints: Lincoln Financial receives far fewer complaints than other life insurance companies.
- Fair Rates: Affordable term life insurance starts at $24/month and whole life is $138/month.
- Financial Stability: It has a strong financial rating for reliable claims handling and death benefit payouts.
Cons
- Financial Advisor Fees: You must work with a financial advisor. Learn about planning your financial future with insurance.
- Slow Approval: Applications may take longer to process than with other companies.
#8 – Northwestern Mutual: Best for Policy Flexibility
Pros
- Custom Policies: You can adjust life insurance coverage at any time to fit your needs. Find out when you need life insurance.
- Competitive Rates: Term policies start at $25/month, offering good value compared to other providers.
- Highly Rated: Northwestern Mutual has the best financial rating on this list of life insurance companies.
Cons
- No Online Quotes: You must work with an agent for detailed quotes.
- Limited Information Online: Northwestern Mutual does not list rider or coverage specifics online.
#9 – MassMutual: Best for Member Benefits
Pros
- Member Benefits: MassMutual policyholders can receive annual dividends.
- Good Starting Rates: Term life insurance starts at $28/month and whole life is $135/month.
- Trusted Company: It has a top A++ rating for financial security from A.M. Best.
Cons
- Rising Premiums: Adding more coverage can increase monthly costs. Learn about modified life insurance.
- Long Application Process: Approval may take longer than expected.
#10 – New York Life: Best for Longstanding Trust
Pros
- Trusted Brand: It's the best life insurance for parents with a long history of reliable service.
- Strong Financial Rating: It has an excellent financial stability rating.
- Whole Life Benefits: Whole life policyholders can vote for board members and earn dividends on their policies.
Cons
- High Starting Costs: New York Life is more expensive than most companies on this list.
- Outdated Tools: Online management features could be improved.
Find the Best Life Insurance Rates for Term and Whole Policies
How much does life insurance cost? When looking for the best life insurance rates, it’s important to compare term and whole life policies. Here’s a look at monthly rates from the best life insurance companies to help you decide:
| Insurance Company | Term Policy | Whole Policy |
|---|---|---|
|
$20 | $155 |
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$22 | $140 |
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$24 | $138 |
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$28 | $135 |
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$23 | $125 |
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$30 | $150 |
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$25 | $145 |
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$22 | $148 |
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$21 | $140 |
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$18 | $160 |
Term life insurance covers you for a set period at lower monthly costs. For affordable term life insurance, State Farm offers the lowest rate at $18/month, with AIG at $20/month and Prudential at $21/month close behind.
Whole life insurance provides lifetime coverage while building cash value, though it’s typically more expensive. If you need cheap whole life insurance, Mutual of Omaha has the best rate at $125/month, while MassMutual and Lincoln Financial provide strong lifetime coverage at $135 and $138/month.
New York Life and Northwestern Mutual are well-known for their reliable service and comprehensive policies, though their whole life rates are higher, ranging from $145 to $150/month.
Comprehensive Life Insurance Policies for Every Stage of Life
Life insurance needs evolve as you navigate different stages of life. Selecting the right life insurance company depends on your goals. Browse our guide on term vs. whole life insurance to decide which policy fits you best.
The best life insurance companies cater to your life changes with tailored coverage options. State Farm is the top choice for term life insurance, offering low premiums starting at $18/month and customizable term lengths ranging from 10 to 30 years.
AIG also excels in term life with its high coverage limits and simplified issue policies, ensuring options for young adults and first-time buyers.
MassMutual and Mutual of Omaha are industry leaders in whole life insurance, providing lifetime coverage with robust cash value growth. MassMutual offers annual dividends that can reduce premiums or increase cash value, while Mutual of Omaha stands out with simplified underwriting and competitive rates starting at $125/month.
How to Qualify for Life Insurance Discounts and Rewards
Many life insurance companies offer discounts that can help lower your monthly payments. Use this table to explore the discounts available:
| Insurance Company | Available Discount |
|---|---|
|
Healthy Lifestyle , No-Smoker , Family History , Loyalty , Online Application |
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Vitality Program , Healthy Lifestyle , No-Smoker , Multi-Policy , Financial Wellness Program |
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Multi-Policy , Healthy Lifestyle , No-Smoker , Electronic Payment , Early Payment |
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No-Smoker , Multi-Policy , Preferred Health , Loyalty , Electronic Payment |
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Multi-Policy , No-Smoker , Healthy Lifestyle , Policy Renewal , Auto-Pay |
|
Multi-Policy , Preferred Health , Loyalty , Long-Term Customer |
|
No-Smoker , Multi-Policy , Healthy Lifestyle , Good Financial Health , Electronic Payment |
|
Healthy Lifestyle , No-Smoker , Vitality Program , Multi-Policy , Auto-Pay |
|
Multi-Policy , No-Smoker , Family History , Online Application , Early Payment |
|
Healthy Lifestyle , No-Smoker , Preferred Health , Multi-Policy , Loyalty |
By meeting certain conditions, you can save money while getting valuable coverage. Here’s how you can qualify for life insurance discounts:
- Stay Healthy: Keeping a healthy lifestyle can lower your insurance costs. Companies like State Farm, AIG, and Pacific Life reward healthy living habits.
- Be a Non-Smoker: Non-smokers pay much less for life insurance. Providers like John Hancock, MassMutual, and Northwestern Mutual offer big savings for those who avoid tobacco.
- Bundle Policies: You can save money by combining life insurance with other types of insurance, like auto or home. Lincoln, New York Life, and Mutual of Omaha give multi-policy discounts.
- Stay Loyal: Sticking with the same company can reduce your premiums over time. State Farm and New York Life offer loyalty rewards for long-term customers.
- Join Special Programs: Some companies have special rewards programs. John Hancock’s Vitality Program, for example, gives discounts for living a healthy lifestyle.
Qualifying for life insurance discounts can help you secure great coverage at a lower price. Focus on staying healthy, avoiding tobacco, and bundling policies to maximize savings.
Read More: Top 5 Ways to Save Money on Your Homeowners Insurance Premium
Easy Steps to Compare Life Insurance Quotes Online
Comparing life insurance quotes from online marketplaces for insurance is an easy way to find the best coverage at the lowest price. Start by gathering your personal details like age, gender, health history, and lifestyle habits so companies can provide accurate quotes.
Next, decide the type of life insurance you need, such as term or whole life, and how much coverage you want. Look closely at the quotes and realize that common life insurance claims in your area will impact your quotes. This table breaks down the cost of life insurance claims:
| Claim Type | Portion of Claims | Cost per Claim |
|---|---|---|
| Surrender Benefits | 50% | $34,686,509 |
| Disability Benefits | 19% | $12,838,938 |
| Annuity Benefits | 12% | $8,441,939 |
| Death Benefits | 11% | $7,416,768 |
| Other Benefits | 9% | $5,938,760 |
Comparing monthly costs, coverage amounts, and extra features can help you find affordable life insurance that meets your needs and budget.
Securing the Best Life Insurance for Your Future
The best life insurance companies are State Farm, AIG, and Prudential. State Farm leads with exceptional customer satisfaction, affordable term life policies starting at $18/month, and flexible riders.
Take the time to research the benefits of buying life insurance and compare quotes online to make an informed decision. Free instant life insurance quotes are just a click away. Enter your ZIP code to get started.
Frequently Asked Questions
How can I choose the right type of life insurance?
Choosing the right life insurance depends on your financial goals. Term life is best for temporary needs like paying off debt or covering income loss, while whole life provides lifelong protection with savings potential. You can also find life insurance companies that cover funeral expenses.
What factors affect life insurance premiums?
Premiums depend on factors like age, health, lifestyle, policy type, coverage amount, and term length. Maintaining good health and avoiding risky habits can lower your rates. Enter your ZIP code to find life insurance that doesn’t break the bank.
Can I change my life insurance policy later?
Yes, many policies allow adjustments, like increasing coverage, adding riders, or converting a term policy to whole life. Check your policy terms to see what changes are allowed.
How much life insurance coverage do I need?
A common rule is to have coverage equal to 10-15 times your annual income. Consider debts, living expenses, future education costs, and your family’s long-term financial needs when deciding. Learn more about term life insurance and what it covers.
What happens if I miss a life insurance payment?
Most insurers offer a grace period, usually 30 days, to make missed payments. If you don't pay within this time frame, your policy may lapse, leaving you without coverage.
Can I get life insurance if I have pre-existing conditions?
Yes, there are many life insurance companies that specialize in higher risk. However, your premiums may be higher, and coverage options could be limited based on the severity of the condition.
What are life insurance riders and should I get one?
Riders are optional policy add-ons that provide extra benefits, such as coverage for critical illness, disability, or accidental death. They offer extra protection but increase your premium.
Is life insurance taxable?
In most cases, life insurance payouts to beneficiaries are not taxable. However, if the policyholder's estate exceeds federal tax limits, estate taxes could apply.
How does life insurance work for seniors?
How does age affect life insurance rates? Seniors can still get life insurance, though premiums may be higher due to age. Final expense or guaranteed issue policies are popular options for seniors needing basic coverage.
How long does it take to get life insurance approved?
Approval time varies by insurer and policy type. Simplified issue policies may be approved in days, while fully underwritten policies requiring medical exams can take several weeks.