A type of permanent life insurance, whole life insurance guarantees the insured person is covered as long as premiums are paid. This type of policy also guarantees a specific death benefit and offers a savings component called the cash value portion of your policy.
Whole life insurance provides significant benefits compared with other types of life insurance, but it also costs more. As a result, it’s crucial you pick the policy that best suits your needs.
Our Best Whole Life Insurance Companies of 2022
New York Life
Northwestern Mutual
AIG
State Farm
Nationwide
New York Life:
New York Life ties for No. 1 in our rating of whole life insurance companies. One of the oldest insurers, founded in 1845, this company has an A++ AM Best ranking meaning it’s rated highly for its financial strength.
Policyholders can customize both the coverage amount and payment schedule, and your coverage is guaranteed as long as you pay premiums.
To further customize your policy, you can choose riders such as disability waiver of premium, accidental death benefit, chronic care, and the living benefits option.
You can also purchase paid-up additions, where you can keep your policy without making premiums for a certain amount of time once you’ve built up a sizable amount of cash value.
Northwestern Mutual:
Northwestern Mutual ties for the No. 1 spot for the best whole insurance companies rating. Like New York Life, you’ll need to purchase a policy through an agent.
The company’s website also isn’t that forthcoming in details about policies, though it shouldn’t be that big of a deal if you prefer to work with a professional.
This insurance company has also earned high rankings from AM Best with an A++ rating. It expects to pay out a total of $6.5 billion in dividends to its policyholders in 2022.
Available death benefit coverage amounts start at $50,000, and you can choose premium payment periods anywhere from 15 to 25 years, or up to 65 or 100 years old.
AIG:
AIG ranks slightly below both New York Life and Northwestern Mutual and received an A rating from AM Best. Where it stands out from the first two companies is that you can receive online quotes, but you’ll still need to go through an agent to finalize your policy.
Plus, depending on the policy you choose, you may not have to go through a medical exam, which will speed up the application process.
If you’re between 50 and 80 years old, AIG guarantees your application acceptance for its Guaranteed Whole Life Insurance policy.
State Farm:
State Farm is tied with AIG in the third spot in our whole life insurance rating. One perk with this insurance company is you can receive a quote and purchase a policy online or through its network of dedicated agents.
Plus, you can choose from different options to pay your premiums either monthly, quarterly, semi-annually, or annually and may even receive multiline discounts if you purchase multiple State Farm insurance policies.
Nationwide :
Ranked fifth on our list of the best whole life insurance policies and ninth overall, Nationwide has an A+ AM Best rating.
Policyholders can choose from two payment options, either fixed premiums for 20 years or until you turn 100 years old.
Though Nationwide doesn’t offer as many rider options compared to other carriers in our rating, you can choose from common ones such as chronic illness, accidental death, premium waiver, and guaranteed insurability riders.
You’ll also get guaranteed level premiums with coverage amounts starting at $10,000.
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