Best Whole Life Insurance Companies
If you’re looking for a whole life insurance policy that builds cash value over time, we’ve analyzed the top insurance companies to help you make an informed decision. Our experts focused on financially strong insurers with low customer complaints and key features like riders, dividend potential, and coverage amounts.
Top Picks
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Guardian: Best for applicants with health conditions. Guardian offers diverse whole life products, including coverage for people living with HIV Benefits. It has an exceptional financial strength rating and has paid dividends every year since 1868.
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MassMutual: Best for cash value growth. MassMutual offers a range of whole life policies with cash value growth at a set interest rate of 3%. The company supports online claims and has a low complaint ratio.
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Northwestern Mutual: Best for blended term. Northwestern Mutual’s whole life policy offers flexible coverage starting at $50,000, with the option to blend term life for lower premiums. The company has a strong financial strength rating and consistently pays dividends.
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Thrivent: Best for social responsibility. Thrivent is a fraternal benefit organization that sells term and permanent life insurance to Christian consumers. It offers whole life policies with various payment options and may pay dividends to participating policyholders.
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New York Life: Best for rider options. New York Life offers three whole life policies with customizable payment options and a variety of life insurance riders. The company has an exceptional financial strength rating and plans to pay $2.5 billion in dividends in 2025.
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Penn Mutual: Best for a long history of dividends. Penn Mutual offers two individual whole life policies and a joint life insurance policy. The company has a strong financial strength rating and expects to pay $265 million in dividends in 2025.
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AARP: Best for smaller coverage amounts. AARP offers whole life insurance policies with no medical exams required for members. Coverage is available to members ages 50 to 80 and spouses ages 45 to 80.
Key Considerations
When choosing a whole life insurance company, consider the following factors:
- Financial Strength: Look for companies with high financial strength ratings, such as A+ or A++ from AM Best.
- Policy Options: Choose a company that offers a range of policy options to suit your needs.
- Riders and Customization: Consider companies that offer customizable riders to enhance your coverage.
- Dividend Potential: Mutual companies may pay dividends to policyholders based on their financial performance.
- Customer Complaints: Research companies with low complaint ratios to ensure a smooth customer experience.
How to Find the Best Whole Life Insurance Company
- Calculate Your Coverage Needs: Determine how much coverage you need based on your expenses and financial goals.
- Consider Mutual Companies: Mutual companies may offer dividends to policyholders.
- Evaluate Riders and Customization Options: Choose a company that offers relevant riders to enhance your coverage.
- Compare Quotes: Compare life insurance quotes from multiple insurers to find the best rate.
- Check Financial Strength Ratings: Ensure the company has a strong financial strength rating to pay claims in the future.
By considering these factors and top picks, you can find the best whole life insurance company for your needs. Compare customized life insurance quotes from our partners to get started.
Frequently Asked Questions
Is Whole Life Insurance Worth It?
It depends on your needs and financial situation. If you can afford the higher premiums and want to build cash value, whole life insurance might be worth the investment.
How Much is Whole Life Insurance?
The typical cost of a $500,000 whole life insurance policy for a healthy, nonsmoking 40-year-old is $6,408 a year for men and $5,654 a year for women.
What is Modified Whole Life Insurance?
Modified whole life insurance offers lower premiums for the first few years, followed by increased premiums.
By understanding your options and choosing the right whole life insurance company, you can ensure financial security for your loved ones.
