Investopedia’s experts have identified the top whole life insurance companies for February 2025 after a comprehensive review of 45 companies, evaluating 70 criteria related to product offerings, financial strength, customer service, and more.
Best Whole Life Insurance Companies for February 2025
- Best Overall: Lafayette
- Best for Financial Stability, Customer Satisfaction, High-Issue Age Policies, and Dividends: MassMutual
- Best for Burial Insurance and Living Benefits: Nationwide
- Best for Small Policies: Transamerica
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Best Overall: Lafayette
Lafayette receives the top rating for its superior financial strength, a range of whole life policy options, and excellent customer service. The company also offers living benefit riders, which allow policyholders to access benefits if they become seriously ill.
Why Lafayette Stands Out:
- Financial Strength: Lafayette holds a high financial strength rating, indicating a solid ability to meet its obligations.
- Policy Flexibility: Offers a variety of whole life policies, including a final expense policy, with a low $3,000 minimum coverage amount and no maximum limit. The company also offers no-exam policies.
- Customer Service: Possesses a strong record of customer satisfaction.
- Dividend History: Has consistently paid annual dividends to whole life policyholders since 1905.
Key Features:
- Coverage Amounts: Coverage as low as $3,000, with no cap.
- Riders: Includes chronic illness, critical illness, and terminal illness living benefit riders at no extra cost. A child term rider is also available.
- Limitations: Doesn’t sell policies in New York and doesn’t offer online quotes or applications. There is an age limit of 85 for whole life products.
Founded in 1905 and owned by Western & Southern Financial Group, Lafayette offers a combination of financial stability, policy choice, and strong customer service.
Best for Financial Stability, Customer Satisfaction, High-Issue Age Policies, and Dividends: MassMutual
MassMutual stands out for its exceptional financial strength, high customer satisfaction, and impressive dividend rates. The company also has the highest issue age among reviewed companies, making it a strong choice for older applicants.
Why MassMutual Excels:
- Financial Strength: Receives the highest financial strength rating (A++) from AM Best.
- Customer Satisfaction: Consistently receives high marks for customer satisfaction, with the lowest rate of customer complaints among whole-life providers the Investopedia team evaluated, based on the National Association of Insurance Commissioners (NAIC) complaint index.
- Dividend Rate: Offers a high 6.1% dividend interest rate.
- Issue Age: Allows applicants up to age 90.
Key Features:
- Financial Strength: Holds the highest possible financial strength rating.
- Customer Satisfaction: Excellent customer satisfaction ratings.
- Dividend Rate: Top dividend interest rate amongst researched companies.
- Issue Age: Applicants up to age 90 are eligible.
- Medical Exam: All policy applications require a medical exam.
MassMutual is a top contender, leading in financial strength and customer satisfaction with the best dividend rates in the industry.
Best for Burial Insurance and Living Benefits: Nationwide
Nationwide is a standout choice for burial insurance, also known as final expense insurance, and living benefit riders. The company offers flexibility, including no minimum age requirement and same-day approvals for some applicants.
Why Nationwide is a Top Choice:
- Burial Insurance: Offers up to $50,000 in coverage with no medical exam.
- Living Benefits: Includes three living benefits at no extra cost, offering financial support if the policyholder becomes critically, chronically, or terminally ill.
- Customer Satisfaction: Receives high customer satisfaction ratings.
Key Features:
- Burial Insurance Flexibility: No minimum age with a relatively short graded benefit period.
- Living Benefits: Includes terminal illness, chronic illness, and critical illness riders at no cost for many policies.
- Children’s Rider: A child term rider is available for kids up to age 22.
- Dividend Rate: Does not offer dividends.
Nationwide’s focus on burial insurance, living benefits, and strong customer service makes it a versatile option.
Best for Small Policies: Transamerica
Transamerica is recognized for offering small, affordable policies, especially in the burial insurance segment. Its starting coverage amount of $1,000 makes it an accessible option for those seeking to cover final expenses or minor debts.
Why Transamerica is Recommended:
- Small Policy Availability: Offers coverage amounts as low as $1,000.
- Application Ease: Possesses a no-medical-exam policy.
- Application Ease: Allows you to start a claim online.
- Coverage Range: Policies range from $1,000 to $50,000.
Key Features:
- Affordability: Coverage available in amounts as low as $1,000.
- Medical Exam: Offers no-medical-exam policies.
- Application Process: Allows you to start a claim online.
While Transamerica may have a higher number of customer complaints than expected, its low minimum coverage makes it a viable option for some.
Methodology
The rankings are based on weeks of analysis by Investopedia experts, gathering data from 45 companies on criteria like financial stability, customer satisfaction, coverage options, and cost. The data was weighted based on factors like policy features, riders, financial stability, customer satisfaction, and online service features. The research was conducted between May 20 and July 3, 2024.
Investopedia adheres to strict editorial standards, relying on primary sources like white papers, government data, and interviews with industry experts to deliver unbiased and accurate information.
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