The Best Life Insurance Companies

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Best Life Insurance Company Reviews

Discover the top Life Insurance companies in the US 🇺🇸

Learn how to Protect your families financial future. Find the best Life Insurance policy for your unique needs.

Disclaimer: The information provided is known to be accurate, reliable and honest. We may be compensated if you use products or services based on our expert recommendations. This does not influence the reviews on this website.

A life insurance policy is a contract between an insurance company and a policyholder in which the policyholder pays regular premiums and, in exchange, the insurer pays a death benefit to the policy’s beneficiaries when the insured dies. 

The best life insurance companies can help you secure enough coverage to replace your income, settle debts, or cover expenses your family will face, like paying for your children’s education or caring for aging parents.

The Best Life Insurance Companies for 2021 🇺🇸

  • Sproutt – Best Overall Life Insurance Company
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Sproutt Review

Rating: 5 out of 5.

🇺🇸 Overall Best Life Insurance Company

Sproutt uses their Quality of Life Index to assesses your lifestyle and provides personalized recommendations to help you lead a healthy lifestyle – which can lower your insurance premium!

Sproutt does an excellent job of simplifying a complex process and matches you with life insurance plans that are most likely to be a good fit for you.

Sproutt is not the life insurance provider, they are experts at finding the best one for your unique lifestyle.

Read Full Sproutt Review

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Highlights

  • ✓ No medical exam
  • ✓ It’s fast and easy
  • ✓ Get insured online or by phone
  • ✓ Quality of Life assessment
  • ✓ AM Best: A Rated
  • ✓ BBB: A Rated

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Choosing the Best Life Insurance Company

Life insurance is an agreement with the insurance company and the policyholder where the insured customer pays scheduled premiums (fees) in exchange for a death benefit payout to the beneficiaries (family).

The best life insurance companies will be affordable to you, and offer enough payout coverage to keep your loved ones financially secure in the event of your passing. The benefit of having life insurance, is that you won’t leave your family with the burden of loss of income, debts, expenses or other financial commitments.

Types of Life Insurance

Choosing a life insurance policy can feel overwhelming for many reasons. It’s a glimpse into your mortality and also brings up fears of not being able to take care of the ones you love.

With all of these thoughts and emotions whirling around in your head, it’s nice to take a step back to get a birds-eye view of the types of coverage that most life insurance companies offer.

Many factors contribute to the type of insurance that you might want to get: age, income, health, costs, debts.

Below is a quick glance at some of the different types of life insurance:

  • Term – A term life insurance policy offers temporary coverage for a certain amount of time. For example, 5-30 years. Term usually has the lowest cost, as it is best for young and healthy people.
  • Whole – Whole life insurance offers permanent coverage for your ‘whole’ life. It does not expire like a Term life insurance policy. Another key difference is that it has a ‘cash’ value which is kind of like an investment into a tax-deferred savings account. The cash value earns interest at a fixed % rate.
  • Universal. A Universal life insurance policy is permanent and also has a ‘cash’ value like a Whole policy. Universal life insurance is more flexible with the payout amounts and costs because you can change those terms without getting a whole new policy.
  • Indexed – Indexed life insurance is a variant of Universal life insurance (permanent) where the cash value of the policy is invested into a market index, like the S&P 500.
  • Guaranteed issue – Guaranteed life insurance is just as it sounds: It’s a permanent policy were you are guaranteed to be approved no matter what your lifestyle or situation is. No medical exam required. The coverage amounts do tend to be smaller.
  • Final expense/burialFinal expense insurance, sometimes called burial insurance, is designed to cover the end of life expense associated with your death: the funeral, cremation, medical care.

Life Insurance Terms You Should Know

These are some of the words you’ll here often when you’re looking for a life insurance policy.

  • Face value – The face value is the payout amount that you’re family (beneficiaries) would get if you were to pass away.
  • Death benefit – The death benefit is another way to call the face value of a life insurance policy.
  • Cash Value – The cash value is a word used to describe permanent life insurance plans. The cash value is like a tax-deferred savings/investment account.
  • Riders – A rider is additional benefits that get added on top of your life insurance policy. For example, accidental death benefits or spousal / child coverage.

Why Do You Need Life Insurance?

Life insurance is a safety net to protect the financial future of your family. A Life insurance plan can cover any liabilities and debts that you carry, so that the financial burden is not passed down to your loved ones. Here are some situations where a life insurance plan can add peace of mind:

  • You are the breadwinner in the household
  • You are married, have a partner or family members who rely on you in part or in whole
  • You carry debts; credit, car loans, mortgage
  • You have little savings to cover your families basic needs
  • Funeral expenses are not cheap!
  • You want peace of mind
  • Accidents happen

How Much Life Insurance Do You Need?

The amount of life insurance coverage you need depends on many things:

  • Your family situation
  • Your health
  • Your age
  • Years until retirment
  • Your debts
  • Your current living expenses

The general rule of thumb is to get 10x your yearly salary in life insurance coverage.

So how much life insurance do you need? You have to consider a situation where your income stops and your family is left to fend for themselves. How long can your loved ones comfortably survive if you were to pass? Are you the main provider?

It is recommended to have 10x your annual salary in life insurance coverage. In the situation where you have large debts, car payments, a mortgage, you would want the payout to be able to settle those debts.

Here is a basic example of how to think about calculating the amount of life insurance:

AmountMultiplierTotal
Annual salary$50,00010x$500,000
Mortgage$250,000$250,000
Car loan$20,000$20,000
Credit card debt$10,000$10,000
Student loan$30,000$30,000
Life Insurance Coverage$810,000
Quick way to calculate how much life insurance coverage you need

The above example is a good starting point in figuring out how much your beneficiaries might need to cover any financial obligations after you pass. Every situation is unique, so we suggest talking to a life insurance company to understand the options that are available to you.

How to Choose the Best Life Insurance

The best life insurance plan is one that covers all of your families financial needs if you were to pass away. Once you figure that out, you want to decide whether you want Term or Whole (lifetime or permanent) coverage.

If you prefer a lower cost, Term life insurance might suit your needs better. It all comes down to affordability for you.

If you want the ability for your policy to increase in cash value over time, then consider a Whole life insurance policy. This will come at an extra cost, but it is up to you to weigh the pros and cons and to see how much you can afford at this time.

To choose the best life insurance policy, consider the following:

  • Step 1: Choose a term or permanent policy.
  • Step 2: Calculate how much coverage you need and for how long.
  • Step 3: Speak to a life insurance professional or…
  • Step 4: Compare quotes from different life insurance companies online

We suggest talking to a few life insurance companies and getting more than 1 quote, so that you can compare.

Final thoughts

We hope that you have found this section of our site useful. Thinking about life insurance and the weight of your financial burden is not a simple matter.

Fortunately, we’ve done a lot of the thinking for you.

Do your own research, understand where you are financially, reach out to any of the professionals mentioned on our site!