For many, securing a life insurance policy may not be at the top of the to-do list. However, a life insurance policy is a fundamental way for family-oriented individuals to secure a future for their loved ones. It is important to look for an insurance company that caters to your needs when looking for a life insurance policy. Here we will look at the best insurance companies to choose from. But before we get into that, let’s first take a quick refresher on what life insurance is and how it works.
Life insurance is a contract between you and an insurance company. In exchange for regular payments (known as premiums), the insurance company agrees to pay a lump sum of money to your beneficiaries in the event of your death. When you purchase a life insurance policy, you will need to decide how much coverage you want and for how long. The two main types of life insurance are term life insurance and permanent life insurance/
Term life insurance usually lasts between 10-30 years, and if you’re still alive at the end of the term, your coverage expires with no payout. Many people opt for term life insurance if they have young children, and want to make sure that their children have what they need to be financially stable through childhood in the event of an early parental death. It is common for younger people to let their life insurance lapse after their children become adults. Permanent life insurance, on the other hand, is a policy that you can have until your death, provided you continue to make payments on it. Most permanent life insurance policies also include a savings account component, that you can contribute to in a tax deferred way, and borrow from if necessary.
The amount of coverage you need will depend on many factors, including your age, your health, your lifestyle, and your financial obligations. Once you have decided on the amount of coverage you need, you will need to choose a payment plan. Now, let’s look at some of the best life insurance companies to keep an eye on in 2022.
Bestow (Best for Fast Life Insurance)
Bestow insurance is known best for not requiring a prior medical examination. In addition, the life insurance company issues term life insurance faster and in a more straightforward way than other companies. Bestow allows individuals to make applications for life insurance online without visiting a doctor for a medical examination. The application will ask for simple personal information, medical history, lifestyle, and hobbies. The process takes about ten minutes, and after that, you will receive a quote based on the answers provided.
While standard no-exam policies offer up to $500,000 coverage, Bestow offers its policyholders up to $1.5 million term life coverage. The company also provides policyholders with a 30-day guarantee, where a policyholder will receive a full refund if they cancel their policy within 30 days from the date of issuance.
However, while Bestow’s competitors may provide whole, universal, or variable life insurance, Bestow only provides term life insurance. The insurance policy does not have rider options, which means that individuals can not add persons to their existing insurance policy. If you’re looking for term life insurance to cover minor children in the event of an accident, you’ll want to look elsewhere if you anticipate marrying or having more children before your term is up.
Lincoln Financial Insurance (Best for Seniors)
Lincoln Financial Insurance, headquartered in Radnor, Pennsylvania, was granted permission to use former President Abraham Lincoln’s son’s name in 1905. Notably, the company still uses President Lincoln’s image as its logo. The insurance company is best known for catering to high-risk applicants, including older adults. The company provides term and permanent life insurance policies. The policies also include a survivorship life insurance policy that insures a married couple and issues a payout after the demise of the second partner.
Lincoln Financial Insurance offers insurance terms for 10,15, 20 or 30 years. Additionally, the policy has multiple rider options. This means that individuals can add other members to their existing policies. Moreover, the insurance policy does not require a medical examination for the prequalification of policyholders. The drawback of the company’s life insurance policies is that the permanent policies are pretty expensive, and the company provides minimal tools and assistance online.
Nationwide Life Insurance (Best for Whole Life Insurance)
In a 2021 study by J.D Power, Nationwide Life Insurance took second place for U.S. Individual Life Insurance companies. Nationwide is a major insurer with a high rating for customer service and financial stability. Founded in 1925, the company offers eight different policies with various forms of term, permanent, and variable life insurance. The maximum coverage for term life insurance is $100,000 to $50 million. The term life policies range from 10 to 40 years. The company gives policyholders the option of bundling their policies together, which reduces the cost of premiums.
Although individuals can request a quote online, you have to speak to a representative or insurance broker before finalizing any insurance applications. This is applicable for universal, whole, or variable universal life policies. Nationwide Life Insurance has a set of benefits for policyholders. The company offers a wide range of insurance options with multiple rider options available. Its insurance policies also allow individuals to easily convert their term policies into permanent life insurance. However, Nationwide Life Insurance policies require a prequalification in the form of a medical examination and do not provide a guaranteed approval for insurance.
Mutual of Omaha (Best for Indexed Universal Life Insurance)
Mutual of Omaha is the go-to option for individuals with a medical history or age that bars them from accessing affordable coverage from other insurers. Headquartered in Omaha, Nebraska, the company has high financial strength ratings, high-interest gains, and a competitive internal policy for its universal life insurance policies. Mutual of Omaha offers a wide range of coverage options for applicants up to 85 years.
It offers 11 life insurance plans with the variation on permanent, term, and variable policies. Applicants looking to take out an insurance policy can explore their options online or through independent brokers. Depending on someone’s policy, the insurer offers a wide range of riders for its life insurance policies, meaning that you can customize and individualize your policy. Mutual of Omaha does not offer dividends. Moreover, individuals who purchase a policy online may be limited in terms of coverage options.
Protective (Best for Universal Life Insurance)
Established in 1907, Protective Insurance is best known for having one of the most affordable life term insurance policies on the market. The insurer offers permanent and term life insurance with coverage of up to $50 million. Unlike other insurance companies that cap terms at 30 years, Protective provides 40-year term policies to interested policyholders. Additionally, it also offers annuities to protect retirement income and a wide range of riders that vary with the type of policy. However, Protective has a below-average rating on J.D.Power’s overall customer satisfaction rating index, so you’ll want to make sure that they offer exactly what you’re looking for if you decide to go with Protective.