Term life insurance offers coverage for a specific period, while whole life insurance provides coverage for your entire life, as long as you keep up with the premium payments. While whole life policies are more expensive, they offer a financial legacy for loved ones and can grow tax-deferred. They also build cash value and may earn dividends you can use while you’re alive.
Here are some leading companies in the whole life insurance market:
Best Whole Life Insurance Companies
Here’s a look at some of the top companies offering whole life insurance, each excelling in a specific area:
Best for Couples: MassMutual
MassMutual Life Insurance Learn More
Cost: The best way to estimate your costs is to request a quote Online quote for term policy: No
Policy highlights: MassMutual offers several whole life insurance options, including a survivorship policy, as well as universal and variable life insurance products.
Pros
- Variety of term and permanent policies
- High customer satisfaction rankings
Cons
- Online quotes are not available
- Policies must be purchased through an agent
Who’s This For? MassMutual’s survivorship policy is ideal for couples planning their estate. The policy covers both partners and pays out after the second death. Premiums are lower than two individual policies, while still retaining the cash value component.
Policies: Term, whole, universal, variable universal
Standout benefits: Whole life policyholders are eligible for dividends, which MassMutual has paid annually since 1869. In 2025, they are set distribute a record $2.5 billion.
Best for Dividends: Northwestern Mutual
Northwestern Mutual Life Insurance Learn More Cost: The best way to estimate your costs is to request a quote. Online quote for term policy: No
Policy highlights: Northwestern Mutual has five term, whole life, and universal life policies. They have paid dividends to eligible policyholders annually since 1872.
Pros
- Highly rated for customer satisfaction
- Has paid dividends annually since 1872
- Standalone long-term-care policy and rider available.
Cons
- Can’t buy policies online
- All policies require a medical exam
- Customer service not available on weekends
Who’s This For? Northwestern Mutual announced an $8.2 billion dividend dispersal for 2025, projected to be the industry’s largest-ever payout. Eligible policyholders can use that money to increase their plan’s value, pay premiums, or take as cash.
Policies: Term, whole, universal, variable universal, annuities, disability insurance
Standout benefit: Whole life riders include a long-term-care benefit, a waiver of premium, and an additional purchase benefit that lets you buy more coverage at certain ages or life milestones, regardless of your health status.
Best for Burial Insurance: Ethos
Ethos Life Insurance Learn More
Cost: The best way to estimate your costs is to request a quote Online quote for term policy: Yes
Policy highlights: Ethos offers term and permanent policies from top providers such as Ameritas, TruStage, Mutual of Omaha, CMFG, and Legal & General America. Many policies include will and estate planning tools.
Pros
- No medical exam
- Guaranteed acceptance option
- Instant coverage
- 100% online application
Cons
- Limited customization
- Whole life policies only available to adults 66 to 85
- Not available in New York
Who’s this for? Available to policyholders between 66 and 85, Ethos’ whole life plan is a great option for covering the cost of a funeral, legal bills and other end-of-life expenses you don’t want to burden your loved ones with. The $30,000 coverage limit is more generous than many final expense policies.
Policies: Term and whole life underwritten by Ameritas, TruStage, Mutual of Omaha, CMFG, and Legal & General America
Standout benefits: Ethos offers no-medical-exam life insurance.
Best for Living Benefits: Guardian
Guardian Life Insurance Learn More
Cost: The best way to estimate your costs is to request a quote App available: Yes
Policy highlights: Guardian offers a variety of policies, including term, whole, and universal. Term life insurance can be converted into whole or universal life policies.
Pros
- Has paid dividends since 1868
- Whole life insurance policies up to age 90
- Available in all 50 states
Cons
- Can’t get rate quotes or apply online
- Customer service not available 24/7
- Doesn’t offer auto or home insurance
Who’s this for? While many insurers charge for an accelerated death benefit, it comes standard with Guardian’s whole life policies. If you’re diagnosed with a chronic or terminal illness, you have access to policy benefits to help pay for your care.
Policies: Term, whole, universal, joint life insurance, disability insurance
Standout benefits: While many insurers cap whole life policies at age 75 or 80, Guardian approves seniors up to age 90. Guardian has paid dividends to eligible policyholders every year since 1868, with a record $1.6 billion payout for 2025.
Best for Payment Options: State Farm
State Farm Life Insurance Learn More
Cost: The best way to estimate your costs is to request a quote Online quote for term policy: Yes
Policy highlights: State Farm offers nearly a dozen term, whole, and universal life insurance products, including survivorship and no-medical exam plans.
Pros
- Reasonable rates
- Top-rated for customer service
- Return of premium benefit available
- Term policies can be converted to permanent
Cons
- Policies must be purchased through a State Farm agent
- Doesn’t sell policies in Rhode Island or Massachusetts
- Fewer riders than the competition
- Accelerated death benefit costs extra
Who’s This For? In addition to a traditional whole life policy with premiums paid until age 100, State Farm has a limited pay policy where you contribute for 10, 15, or 20 years. There’s also a single premium whole life that is paid in one lump sum but still has a cash value component.
Policies: Term, whole life, universal, final expense
Standout benefits: Most State Farm term life policies can be converted to whole life, often without a medical exam. The company ranked No. 1 for customer satisfaction in J.D. Power’s 2024 individual life insurance survey. Policies are not available in Massachusetts or Rhode Island.
How Does Whole Life Insurance Work?
Whole life insurance is a type of permanent life insurance with guaranteed payouts, fixed premiums, and death benefits. It has a cash value component that accrues interest that can eventually be used to pay your premiums, borrow against or take out in cash.
The cash value is only accessible while the policyholder is alive, and your beneficiaries will just receive the stated death benefit.
Whole life policies often qualify for dividends, which are a portion of the excess premiums collected that year. They can be taken as cash, used toward your premiums or used to buy more coverage.
Because whole life insurance is more complex than term life, you usually need to work with an agent to enroll.
How Much Does Whole Life Insurance Cost?
The cost of whole life insurance varies based on your age, gender, health status and other factors, the death benefit, and the payment terms you choose.
According to Policygenius, a $500,000 whole life insurance policy for a healthy 30-year-old male averaged $472 a month in 2024 and about $408 a month for a comparable female. Rates are higher for older policyholders: a 50-year-old woman would pay about $920 per month for a $500,000 policy, and a 50-year-old man would be on the hook for $1,081 a month.
Because the terms are shorter, single premium whole life (SPWL) policies are more expensive: A SPWL plan with $500,000 worth of coverage costs $81,513, according to Policygenius. A final expense policy is a cheaper option For a policy with a $20,000 death benefit, a 65-year-old man would pay about $110 per month and a 65-year-old woman would pay about $79 per month.
How to Shop for Whole Life Insurance
Life insurance is a crucial but intricate part of financial planning. Several factors must be considered when reviewing providers.
- Availability: Not all insurers are licensed nationwide or offer the same products everywhere. Make sure the insurer offers the coverage you want.
- Coverage Limits: Consider how much insurance you require. This is especially important for a final expense policy, which may have a benefit that’s too low.
- Riders: Riders, also known as endorsements, let you customize your coverage:
- Accelerated death benefit rider: Early access to your benefits if you’re diagnosed with a chronic or terminal illness.
- Accidental death and dismemberment: Pays a set amount beyond your death benefit if killed or gravely injured in an accident.
- Guaranteed insurability: Allows you to buy coverage at certain milestones (marriage, home purchase, child) without a medical exam.
- Children’s term rider: Works like a level-term policy and lets them purchase a permanent life policy later.
- Dividends: Many whole life policies are eligible for dividends, which can increase coverage or reduce premiums. Some have more consistent dividend payouts than others.
- Customer Service: Selecting good customer service is essential for a policy that lasts a lifetime. Check how companies rank on J.D. Power’s annual individual life insurance survey, complaints filed with the National Association of Insurance Commissioners, and grades from the Better Business Bureau.
- Financial Strength: A.M. Best rates insurance companies on their financial strength: A grade of A, A+, or A++ is a good indicator the company will remain solvent and pay out benefits.
Pros and Cons of Whole Life Insurance
Pros
-Premiums remain fixed. -Stays in effect for your entire life if you keep up with the premiums. -The cash value component grows tax-deferred. -Whole life policies can earn dividends.
Cons
-More expensive than term life -You have no say in how the cash value is invested. -No ability to increase or lower premiums if your income changes.
Whole Life FAQs
- How much is whole life insurance? Because it lasts your entire life, whole life insurance is more expensive than term life. A $500,000 whole life insurance for a healthy 30-year-old male averaged $472 a month in 2024 and about $408 a month for a comparable female.
- What is the difference between term and whole life insurance? The most obvious difference is the length of coverage: term life covers a specific period (usually 10 to 30 years), while whole life stays active throughout your lifetime. Term life is cheaper and doesn’t have a cash value component.
- When can I access the cash value in a whole life policy? Your policy needs time to build adequate cash value, usually two to five years after the policy starts. It can take decades, depending on the amount of your premiums, to see significant accumulation.
- Is whole life insurance worth it? Whole life insurance is more expensive than term life insurance, so it’s not for everyone. However, it can be a great option – especially if you’ve maxed out your retirement accounts and want to save more money tax-free.
