Top 10 Best Whole Life Insurance Companies

The name says it all: whole life. Unlike some types of life insurance policies– which offer limited coverage–whole life insurance delivers permanent lifetime coverage at fixed rates. As long as you pay premiums on time, whole life insurance can offer peace of mind.

Here is our list of the 10 best whole life companies* and the features that make these companies appealing:

  • American National – Living benefits rider
  • Assurity – Three-tiered whole life policies
  • AXA Equitable – Living benefits rider
  • Foresters – 100+ years of paying dividends
  • Gerber – No medical exam; no questions asked
  • Guardian – A variety of special policy riders
  • MassMutual – Potential dividend earnings
  • New York Life – Customizable policies
  • SBLI – An array of whole life policy choices
  • United of Omaha – Affordable whole life insurance

*As of October 19, 2018  

What to Look for in Whole Life Insurance

If whole life insurance meets the needs of you and your loved ones, here is our full list of the top 10 whole life insurance companies based on our findings as of October, 2018. The companies are listed in alphabetical order, but there is no single “best” whole life insurance company. As you will see, each company offers unique policy features.

American National

A.M. Best Rating[1]: A

In 2018, American National introduced its Signature Whole Life insurance policy, which offers a guaranteed lifetime death benefit, and, at no additional cost, a living benefits rider. If the policyholder is diagnosed with a terminal illness, serious injury, or debilitating medical condition, this rider enables them to tap into the face value of policies sooner. This option can help offset immediate medical costs that otherwise might be passed on to loved ones.

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Assurity

A.M. Best Rating: A-

Assurity made our list because of its three-tiered Simplified Whole Life policies.  None of the policies require a medical exam to qualify, and all three offer a “final expense” component. More importantly, each tier (Level Death Benefit, Graded Death Benefit, and Modified Death) provides a different amount of coverage (ranging from $5,000–$50,000) depending on what the policyholder can afford.

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AXA Equitable

A.M. Best Rating: A

AXA offers its Equitable Interest Sensitive Whole Life policy, which may appeal to consumers who view their insurance policy as an investment. This policy provides permanent coverage with fixed premiums—while guaranteeing 2% cash value growth YoY (provided you don’t borrow against the policy). Additional interest may accrue beyond the 2% minimum, which only enhances the policy’s cash value. Also, like American National, AXA offers a living benefits rider at no additional cost.

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Foresters

A.M. Best Rating: A

Like other whole life policies, Foresters Advantage Plus Whole Life enables policyholders to accumulate cash reserves over the life of the policy; however, Advantage Plus customers may also receive dividends based on Foresters’ annual profitability. Policyholders can apply dividends to premium payments, additional insurance coverage, or ask for cash distributions. Although dividends are never guaranteed, the company boasts a “long, proud history of paying dividends” since 1874.

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Gerber

A.M. Best Rating: A

Gerber made our list due to its Guaranteed Life whole life insurance policy, which offers coverage with no medical exam and no questions asked. However, coverage amounts range from only $5,000–$25,000, meaning the policy may not may not meet the needs of someone hoping to provide for a growing family. However, it may work for consumers seeking a reliable whole life policy at an affordable price.

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Guardian

A.M. Best Rating: A++

Guardian’s whole life insurance offers fixed-premium, permanent coverage. The policy accumulates cash value that you can borrow against for any reason. Like Foresters, Guardian offers dividends to policyholders based on company profits, and Guardian has consistently made dividend payments to policyholders dating back to 1868. Guardian also offers special riders that enable policyholders to access cash from their policies in the event of a terminal illness or disability.

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MassMutual

A.M. Best Rating: A++

MassMutual is one of two companies included on this list that has earned A.M. Best’s highest “A++” rating, which reflects “superior financial stability” according the ranking agency. So, if your goal is to purchase whole life to serve as an asset, MassMutual is worthy of serious consideration. Like other companies mentioned on this list, MassMutual also offers performance-based dividends to policyholders, which it has regularly paid since the 19th century. Additionally, MassMutual requires no medical exam during its application process.

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New York Life

A.M. Best Rating: A++

In addition to earning A.M. Best’s A++ rating, which reflects a solid financial foundation, New York Life is also the largest life insurance company operating in the US. As such, the company’s Custom Whole Life insurance policy may appeal to consumers looking for a provider with a solid financial track record. And, as the name Custom Whole Life suggests, the policy can be modified to meet a policyholder’s needs. For instance, you can agree to an aggressive premium schedule that enables you to pay off the policy sooner to maximize its cash value.

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SBLI

A.M. Best Rating: A

SBLI offers a variety of whole life policies, including Continuous Payment, which helps reduce the costs of premiums by spreading them out over a longer period. SBLI’s Limited Payment Whole Life allows you to make limited payments for 10 years, 15 years, 20 years or until you are age 65. You can also purchase a Single Premium Payment Whole Life, which offers lifetime coverage in exchange for a one-time payment. The company also offers Whole Life for Children policies in coverage amounts ranging from $10,000–$1,000,000. The premiums for the Whole Life for Children policies never increase, and they remains intact regardless of any health problems that may arise during the child’s life.

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United of Omaha

A.M. Best Rating: A+

A subsidiary of Mutual of Omaha, United of Omaha offers its A Living Promise Whole Life policy, which requires no exam and comes in two varieties: Level and Graded, both of which are affordable when compared to other whole life plans. Level Benefit is for people between the ages 45–85 and offers coverage ranging from $2,000–$40,000. It also offers accelerated benefits if a terminal illness is diagnosed. Graded Benefit is a more affordable plan, available for those between 45 and 80; however, if an accidental death occurs in the first two years, beneficiaries will receive only the amount that was paid into the plan plus 10%.

Read Review

So, Is Whole Life Insurance Right for You?

As we said in our introduction, whole life insurance offers coverage that can last a lifetime, a guaranteed payout and fixed premiums. Whole life insurance can also serve as an investment, earning tax-deferred interest throughout the life of the policy. Additionally, you can borrow against the policy by taking out a life insurance loan. And, when you do die, in most cases beneficiaries receive their settlements tax free.

But, despite these benefits, whole life insurance may not be for everyone. Whole life costs more than a term life insurance. And, if you are looking at whole life as an investment, you should know there are more effective and affordable investment options out there than purchasing a whole life policy.

If you want permanent life insurance that includes guaranteed cash value growth, along with guaranteed fixed premiums, and a guaranteed death benefit, but consider both the pros and the cons:

Pros

  • Lifetime coverage
  • Guaranteed fixed premiums and death benefit
  • Cash value growth
  • Tax-deferred compounding growth

Cons

  • Higher cost than term life
  • Potentially taxable dividends
  • Long-term commitment

Still Unsure about Whole Life Insurance?

Whole life can be an expensive investment. If you are seeking a more affordable way to protect your loved ones, you may want to consider term life insurance. Unlike whole life, term life provides coverage for certain periods of time (most commonly 10–30 years). And although it lacks the investment appeal that whole life offers, the reduced premiums may mean more money in your pocket to apply to your own investment strategy.

Want to know more? Give us a call at 1-888-234-8376. Our licensed agents are available to answer any questions you have about your life insurance options.

 

 

[1] A.M. Best’s financial rating scale is the following: A++ (Superior), A+ (Superior), A (Excellent), A- (Excellent), B++ (Good), B+ (Good), B (Fair), B- (Fair), C++ (Marginal), C+ (Marginal), C (Weak), C- (Weak), and D (Poor). A.M. Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. An FSR is not assigned to specific insurance policies or contracts and does not address any other risk, including, but not limited to, an insurer’s claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. An FSR is not a recommendation to purchase, hold, or terminate any insurance policy, contract. or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser.

18 comments... add one
    • TermLife2Go

      Hi Vicki,

      Thank you for reaching out about a whole life insurance policy. We’ll need some additional information in order to get you an accurate quote. Please call us at: 888-234-8376.

      Thank you!
      TermLife2Go

  1. TUAN A N

    I need to purchase the best whole life insurance for 100K to 200K guarantee cash value, top dividends, and lowest rate.

    • TermLife2Go

      Sounds good Tuan, we’ll have an agent reach out to your shortly so that they can discuss what options may be available to you.

      Thanks,

      TermLife2Go.

  2. David S

    I am looking to maximize the cash value as is touted by infinite banking and bank on yourself. I live in Wisconsin, can you help me with that and can you provide scenarios from different company’s?
    I like the 4% guaranteed rate with the high dividend now that seams like a win win

    • TermLife2Go

      David,

      We will have an agent reach out to you ASAP so that they can go over a few options with you.

      Thanks,

      TermLife2Go.

    • TermLife2Go

      George,

      We’d love to help you out, just give us a call and we’ll see what you can qualify for.

      Thanks,

      TermLife2Go.

  3. Jacqueline S.

    I do want any phone calls only email quotes. I am looking for whole life that builds the best cash value. I am 55 female and single with a 15 year old boy plus older children. Thank you

    • TermLife2Go

      Jacqueline,

      While we can appreciate not wanting to get any calls, you do need to understand that there are a “ton” of factors that will come into play when determining what you will end up having to pay for your insurance.

      Simple things like:
      – Height and weight,
      – Existence of any pre-existing medical conditions,
      – Family medical history,
      – Current prescription medication use.
      – Etc, etc…

      Not to mention, we’re probably need to know how much insurance you were looking for as well before we could even begin looking at what the insurance might cost.

      Perhaps you would feel more comfortable calling us? If so, we’ll do our very best to help you out and if you’re not interested we’ll be sure not to ever give you a call in the future.

      Thanks,

      TermLife2Go.

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