Best Life Insurance Companies with Living Benefits

Best Life Insurance Companies with Living Benefits

Investopedia has evaluated various life insurance companies that offer living benefits, which allow policyholders to access their death benefit while still alive in case of serious illnesses. The top companies include Nationwide, Columbus, Assurity, and Penn Mutual.

Best Overall: Nationwide

Nationwide stands out for its comprehensive living benefits and wide range of policy options. Most of its term and permanent life policies include three living benefits at no extra cost. The company offers various policy types, no maximum coverage amounts, and a strong financial strength rating.

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Pros:

• Three living benefits included with most policies
• Long-term care rider available
• Many policies with living benefits don’t require medical exams
• No max coverage amount for term, whole, and universal life policies

Cons:

• Some restrictions on chronic and critical illness riders
• No dividends on whole life policies
• Low maximum age limit for term policy applicants

Best for Term Life Insurance: Columbus

Columbus Life Insurance Company offers competitive term life insurance rates, especially for applicants aged 55 and above. Its term policies include accelerated death benefits and can be converted to permanent insurance without additional health underwriting.

Pros:

• Low term insurance costs, especially for applicants 55+
• Comprehensive living benefit rider included with all policies
• No maximum coverage amount for term insurance

Cons:

• No whole life insurance
• No variable or variable universal life insurance
• No long-term care rider or disability income rider

Best for Whole Life: Assurity

Assurity offers whole life insurance policies with living benefits at no extra cost. Its Whole Life Protect and Whole Life Perform+ products provide accelerated death benefits for terminal, chronic, or critical illness diagnoses.

Pros:

• Three living benefits available at no extra cost for whole life policies
• Policies with living benefits may not require a medical exam
• High age and coverage limits for whole life applicants

Cons:

• No long-term care rider
• Main whole life policies not sold in California and New York State

Best for Customer Satisfaction: Penn Mutual

Penn Mutual is known for its excellent customer satisfaction record. It offers permanent life insurance policies with living benefits, including terminal and chronic illness riders at no extra cost.

Pros:

• One of the best insurer customer complaint records
• Terminal and chronic illness riders included at no cost with all permanent life policies
• Large no-exam policies with living benefits

Cons:

• No living benefits for term policies
• Relatively low coverage limits
• No critical illness, disability income, or long-term care riders

Investopedia’s evaluation is based on comprehensive research of 45 life insurance companies, considering factors such as riders, policy types, customer satisfaction, application features, cost, and financial stability.