Best Life Insurance in Illinois for 2024 (Check Out the Top 10 Companies)
State Farm, Banner Life and MassMutual offers the best life insurance in Illinois with term policy rate starting at $25/month. This expert guide helps Illinois residents find the best life insurance options.
We explore the key factors to consider when choosing a policy, including premiums and providers. We'll also answer important questions, such as "What is a term life insurance policy and what does it cover?"
| Company | Rank | Bundling Discount | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
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#1 | 17% | B | Costumer Service | State Farm |
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#2 | 7% | A+ | Competitive Rates | Banner Life |
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#3 | 6% | A++ | Mutual Ownership | MassMutual |
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#4 | 10% | A+ | Permanent Insurance | Lincoln |
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#5 | 5% | A+ | Long-Term Coverage | Pacific Life |
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#6 | 11% | A++ | Customizable Policies | Guardian Life |
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#7 | 4% | A+ | Flexible Underwriting | Mutual of Omaha |
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#8 | 10% | A+ | Premium Discounts | John Hancock |
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#9 | 6% | A+ | Online Presence | Transamerica |
 |
#10 | 20% | A+ | Vanishing Deductible | Nationwide |
This article outlines the top life insurance companies in Illinois, helping you make an informed decision to secure your family's future with the right coverage. If you need life insurance coverage, enter your ZIP code into our free tool to save time and money.
What You Should Know
- State Farm stands out with the highest AM Best rating of A++
- Discover how bundling home, auto, and life insurance can save up to 25%
- Understand the benefits of term and whole life insurance policies and affordability
#1 – State Farm: Best for Customer Service
Pros
- Multi-Policy Bundle: State Farm insurance gives Illinois residents a whopping 17% discount through its bundling program.
- Extensive Coverage: The company offers five comprehensive discount plans for Illinois families, including life insurance coverage.
- Premium Accessibility: State Farm has competitive pricing in Illinois at a $30 monthly term life insurance rate.
Cons
- Limited Health Incentives: State Farm's basic health-related discounts don't compete with the level of competitors' discounts for Illinois life insurance customers.
- Rating Concerns: The company's A.M. Best's B rating may also reflect a concern regarding the guarantee of Illinois life insurance policies.
#2 – Banner Life: Best for Competitive Rates
Pros
- Affordable Premiums: Banner Life is the cheapest life insurance company in Illinois, taking the lead in the market with the lowest available $25 monthly term life rate.
- Term Conversion Incentives: The company allows Illinois policyholders to convert term policies without additional medical exams (Read More: The Best No Medical Exam Life Insurance Options).
- Strong Rating: Banner Life's A+ A.M. Best rating reflects strong financial stability for Illinois insurance customers.
Cons
- Limited Bundling: The company's low 7% bundling discount is insufficient for life insurance customers in Illinois.
- Basic Wellness Programs: Banner Life provides fewer health incentives compared to other Illinois life insurance carriers.
#3 – MassMutual: Best for Mutual Ownership
Pros
- Ownership Benefits: Illinois policyholders receive direct dividend payments through MassMutual's mutual ownership structure for life insurance.
- Premium Planning: The company offers extensive discounts in financial planning that assist with managing Illinois life insurance costs.
- Highest Rating: MassMutual A++ A.M. Best rating gives Illinois customer the best possible protection of their cash.
Cons
- Largest Fees: Among all providers of life insurance in Illinois, the $30 per month fee MassMutual charges is the biggest.
- Minimal Bundling: MassMutual's 6% bundling discount ranks below average for Illinois life insurance policies.
#4 – Lincoln Financial: Best for Permanent Insurance
Pros
- Permanent Insurance Options: The company in Illinois offers a variety of permanent life insurance products, including whole and universal life policies.
- Policy Benefits: Does staying loyal to an insurance company pay off? Yes, loyal customers in Illinois get exclusive permanent life insurance loyalty-saving rewards.
- Marijuana Users: Best life insurance for marijuana users in Illinois is Lincoln Financial due to its accommodating underwriting policies and favorable rates for marijuana users.
Cons
- Fewer Family Options: The company offers fewer family-based discounts than competitors, and its term life insurance is relatively pricey at $32/month for Illinois residents.
- Complex Conversion: Lincoln Financial company has stiff requirements on converting Illinois term policies into permanent coverage.
#5 – Pacific Life: Best for Long-Term Coverage
Pros
- Affordable Coverage: Pacific Life provides Illinois residents with competitive $28 monthly term life insurance rates.
- Term Transitions: The organization helps the people of Illinois make transitions from term life policies to permanent ones (Read More: What Happens If You Outlive Your Term Life Insurance?).
- Rating Strength: Pacific Life enjoys an A+ A.M. Best rating, implying high stability for Illinois policyholders.
Cons
- Minimal Bundling: The company's 5% bundling discount is still one of the lowest around in Illinois' insurance scene.
- Basic Rewards: Pacific Life's wellness program doesn't really offer many benefits for Illinois life insurance customers.
#6 – Guardian Life: Best for Customizable Policies
Pros
- Wellness Benefits: Guardian Life rewards Illinois customers with an extensive range of wellness program incentives.
- Disability Coverage: The company provides an option that allows you to save on disability riders for life insurance policies in Illinois.
- Strong Rating: Guardian Life's A++ A.M. Best rating means superb protection for Illinois policy beneficiaries.
Cons
- Premium Costs: The $33 monthly rate exceeds many competitors' prices in the Illinois insurance market. (Read More: Best Online Insurance Marketplaces).
- Complex Options: Illinois customers may find Guardian Life's multiple rider selections overwhelmingly complicated.
#7 – Mutual of Omaha: Best for Flexible Underwriting
Pros
- Flexible Underwriting: Mutual of Omaha provides flexible underwriting policies, accommodating a wider range of health conditions for Illinois residents.
- Health Flexibility: Mutual of Omaha has reduced its health underwriting requirements in Illinois for applicants who desire life insurance (Read More: How To Find Affordable Health Insurance).
- Planning Support: In Illinois, life insurance policyholders gain significant savings by using thorough financial planning services.
Cons
- Limited Bundling: The company's 4% discount for bundling services is the smallest compared to all life insurance companies in Illinois.
- Basic Benefits: Despite offering term life insurance at $30/month, Mutual of Omaha provides fewer premium discount options than other Illinois carriers, making it a pricier option.
#8 – John Hancock: Best for Premium Discounts
Pros
- Vitality Program: In Illinois, customers discover a unique road to John Hancock's rewards for life insurance through living well.For more details, see our page titled "Get Discounts From These Life Insurance Companies for Being Healthy".
- Family Focus: The company has different family protection plans to cater to the life insurance needs in Illinois.
- Multiple Savings: Illinois residents can combine a 10% discount with other health-related savings.
Cons
- Premium Range: John Hancock's $31 monthly price is higher than the average Illinois life insurance prices.
- Program Complexity: The company's complex vitality program confuse a lot of the policyholders in Illinois.
#9 – Transamerica: Best for Online Presence
Pros
- Digital Access: Transamerica is particularly outstanding with its advanced online experience in managing Illinois life insurance portfolios (Read More: Digital life insurance companies that offer online quotes).
- Competitive Rate: This company offers term coverage to Illinois residents at a relatively attractive $27 monthly rate.
- Accelerated Benefits: Illinois policyholders can take advantage of special rider options in Transamerica's life insurance programs.
Cons
- Limited Bundling: Transamerica's 6% bundling discount falls below average for Illinois life insurance policies.
- Basic Wellness: The company provides fewer health-related incentives than most Illinois insurance market competitors.
#10 – Nationwide: Best for Vanishing Deductible
Pros
- Best Bundling: The best bundling discount in life insurance is available at 20% to the buyer at Nationwide for Illinois buyers.
- Program Benefits: The company offers numerous incentives to the people of Illinois, who have life insurance and health programs.
- Vanishing Deductible: Nationwide offers a vanishing deductible program, which can lower out-of-pocket costs over time, benefiting long-term Illinois policyholders.
Cons
- Premium Costs: Nationwide's $29 monthly rate matches the highest prices in the Illinois insurance market.
- Complex Structure: Many Illinois applicants find Nationwide's vanishing deductible program difficult to understand.
Life Insurance Rates in Illinois: Comparing Term vs. Whole Life Policies
The table shows monthly premiums for term and whole life insurance policies from the best life insurance companies in Illinois. This pricing structure illustrates the diverse range of options available to consumers in Illinois, catering to various budgetary needs and insurance preferences.
Average life insurance rates in Illinois range from $25 per month for term policies at Banner Life to $35 at MassMutual, with whole life insurance premiums starting at $180 per month.
| Insurance Company | Term Policy | Whole Policy |
|---|---|---|
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$25 | $180 |
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$33 | $215 |
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$31 | $210 |
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$32 | $210 |
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$35 | $220 |
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$30 | $205 |
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$29 | $190 |
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$28 | $195 |
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$30 | $200 |
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$27 | $185 |
If you're wondering, "How is life insurance different in Illinois?" and "How much does life insurance cost?" the rates reflect factors like state-specific health demographics and local insurance regulations.
What type of life insurance is best? Term life insurance is generally more affordable, while whole life insurance tends to be more expensive due to its lifelong coverage and benefits.
Save Big on Life Insurance Premiums in Illinois With These Discounts
When planting for your financial future with insurance it's essential to consider the variety of discounts offered by different providers to ensure you're maximizing your coverage while minimizing costs.
| Insurance Company | Available Discounts |
|---|---|
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Preferred Health, Non-Tobacco User, Family Coverage, Term Conversion |
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Wellness Program Incentives, Non-Tobacco User Savings, Bundled Policy, Disability Rider Savings |
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Vitality Program Rewards, Non-Smoker, Healthy Lifestyle Incentives, Family Protection |
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Healthy Lifestyle, Non-Tobacco, Multi-Policy, Loyalty Savings |
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Health Status, Non-Smoker, Financial Planning, Family Plan |
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Preferred Health, Non-Smoker, Multi-Policy Savings, Financial Planning |
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Wellness Program, Non-Smoker, Family Plan, Multi-Policy |
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Preferred Health Status, Multi-Policy, Non-Tobacco Savings, Term-to-Permanent Transition |
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Multi-Policy, Non-Smoker, Good Health, Loyalty, Safe Driver |
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Living Well, Tobacco-Free, Accelerated Benefit Rider, Multi-Policy |
The largest life insurance companies in Illinois, such as State Farm, MassMutual and Guardian Life offer discounts for those policyholders who are healthy or non-smokers or bundle multiple policies. If you're looking for the best life insurance for smokers in Illinois, consider providers that specialize in high-risk policies, offer competitive premiums, and have flexible underwriting processes to accommodate smoking-related health risks.
In addition, companies like Pacific Life and Lincoln Financial offer healthy lifestyle and multi-policy savings, which help in making their coverage more affordable. These discounts really help lower the overall cost of life insurance, especially when you factor in family and wellness perks too.
Leading Illinois Life Insurers: Best Benefits
It is critical to choose the right life insurance in Illinois for your family's future. State Farm, Banner Life, and MassMutual are the three top providers, and each one has its own benefits.
State Farm is considered the best overall life insurance company in Illinois, famous for comprehensive coverage and high-quality customer service. The Banner Life company is known for affordability and flexible term policies, while MassMutual is great in terms of diverse policy options and long-term financial planning. For more insights, check out our article, "Everything You Need to Know About Applying for Life Insurance."
If you want to explore your life insurance options, enter your ZIP code in our free tool to get started.
Frequently Asked Questions
What happens if a life insurance company goes bankrupt in Illinois?
If a life insurance company goes bankrupt in Illinois, the Illinois Life and Health Insurance Guaranty Association (ILHIGA) steps in to provide protection for policyholders. ILHIGA may pay claims up to certain limits, ensuring that policyholders are compensated, but coverage amounts may vary depending on the policy type.
Read More: How do insurance companies make money?
Can I cancel my funeral policy and get my money back?
Yes, you can cancel your funeral policy in Illinois and potentially receive a refund. The refund will depend on the terms of the policy, including whether it’s within a "free look" period or if any penalties or administrative fees apply. Be sure to contact your insurance provider for the exact details.
Who is the best life insurance for young adults in Illinois?
The best life insurance for young adults in Illinois includes providers like Banner Life and Transamerica, offering affordable term life policies starting around $25 per month. These companies provide straightforward applications and competitive rates, making them excellent options for healthy young adults seeking coverage.
What is the cash value of a $250,000 life insurance policy?
The cash value of a $250,000 life insurance policy depends on the type of policy you have (e.g., whole life or universal life). If you're wondering "Which type of life insurance policy generates immediate cash value?" Whole life policies generally accumulate cash value over time, which can be borrowed or withdrawn, while term life policies do not have a cash value. Contact your insurer for specifics.
What type of life insurance is the best to get?
The best type of life insurance depends on your personal needs and goals. Term life insurance is ideal for temporary coverage, while whole life and universal life insurance offer permanent coverage with an accumulation of cash value. Assess your situation before making a decision.
Who is the best life insurance for seniors in Illinois?
The best life insurance for seniors in Illinois depends on the individual’s needs, health, and budget. Companies like AARP and State Farm often offer senior-friendly life insurance options. It’s essential to compare rates and coverage to find the best plan for your circumstances.
Discover cheap quotes for life insurance by entering your ZIP code into our free quote comparison tool.
Who is the best whole life insurance in Illinois?
The best whole life insurance in Illinois is MassMutual, known for its strong financial stability and competitive rates. It offers lifelong coverage with cash value growth, making it a reliable choice for those looking for permanent life insurance.
How to find a lost life insurance policy in Illinois?
To find a lost life insurance policy in Illinois, start by contacting your insurance company or agent. You can also check with the Illinois Department of Insurance, or use a life insurance policy locator service, which may help track down old or forgotten policies.
Who is the best beneficiary for life insurance?
The best beneficiary for life insurance is someone who will financially depend on the proceeds, such as a spouse, child, or other close family member. You can also name a trust as a beneficiary to manage the funds for specific purposes.
Read More: Are beneficiaries responsible for debts left by the deceased?
Who is the best guaranteed universal life insurance in Illinois?
The best guaranteed universal life insurance in Illinois is Pacific Life, which offers flexible coverage and premiums that can be customized based on your needs. It provides a reliable death benefit with the option to adjust premiums and death benefits over time.
Who offers the best term life insurance in Illinois?
Among the top 10 companies listed, Banner Life and Transamerica offer some of the best term life insurance options in Illinois. Both companies provide competitive rates starting at $25 per month, making them ideal choices for those seeking affordable, straightforward coverage with flexible terms.
Our quote comparison tool will allow you to shop for affordable life insurance rates from the top companies near you — just enter your ZIP code to get started.