Best Whole Life Insurance Companies in 2022
Quick Facts
The best company for whole life insurance depends on your situation, but New York Life, Nationwide, and Northwestern Mutual are excellent options
New York Life and Nationwide are the best life insurance companies for customization and multiple policy options
Northwestern Mutual is the best company for those who need high coverage limits with affordable rates
Although it’s not the best option for everyone, whole life policies offer permanent life insurance coverage that accumulates cash value as you make payments. It’s not the cheapest type of life insurance, but the savings component is often worth the hefty price tag.
Researching your options is integral when looking for the best whole life company. While many sell quality products, the best company for you depends on your unique situation and needs.
Start your search by looking for life insurance companies with better ratings than others. When it comes to whole life insurance, State Farm, MassMutual, New York Life, and Nationwide often top the list of best life insurance companies.
Of course, you might find better coverage with a different company. Explore your options for whole life insurance below, then compare quotes with as many companies as possible to find the best whole life insurance policy for you.
What are the best whole life insurance companies?
Comparing life insurance companies is essential to buying life insurance. A great way to compare companies is by looking at A.M. Best ratings.
A.M. Best ranks companies on their financial strength, which is especially important for your long-term investment in whole life insurance coverage. Companies with strong financial stability will be able to pay any future claim your beneficiary needs to make.
You can also look at J.D. Power’s customer satisfaction study or ratings from the Better Business Bureau (BBB) to get a sense of how a company treats its customers.
However, the best company for your needs depends on your situation. You’ll find that some companies offer much better coverage and rates than others. Comparing companies is vital to find the perfect fit for your situation.
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Which companies have the best whole life insurance policies?
Insurance companies look at a variety of factors to craft your whole life insurance quotes. While they all typically look at the same things, companies put different emphases on certain aspects, meaning you can see vastly different rates.
Additionally, companies specialize in selling different types of whole life insurance. For example, AARP isn’t the company for you if you’re looking for a policy with a lot of customization options. You’re better off with New York Life or Nationwide.
While there are dozens of insurers to choose from, the life insurance companies below tend to outperform the competition for specific needs:
MassMutual — Best for cash value accumulation
State Farm — Best for customer satisfaction
Guardian — Best for people living with HIV
AARP — Best for no-exam insurance
New York Life — Best for customization options
Northwestern Mutual — Best for high coverage limits
Penn Mutual — Best for dividends
Mutual of Omaha — Best for burial insurance
Nationwide — Best for product variety
As you can see, each company specializes in providing coverage for different needs. That’s why we recommend researching your options before signing up for a policy to ensure you’re shopping at the right place.
MassMutual Whole Life Insurance
Best for: Cash value accumulation
Available whole life policies: Whole Life 100, Whole Life 65, Whole Life 10/15/20-Pay, and Whole Life High Early Cash Value
Founded in 1851, MassMutual is one of the market’s highest-rated overall life insurance companies. MassMutual offers excellent dividend options for whole life insurance and sells to people up to 90 years old.
MassMutual has several add-ons available for its whole life policies, including a waiver of premium, terminal illness accelerated death benefit, long-term care, and a chronic illness option. Coupled with an A.M. Best rating of A++ and an A- from the BBB, MassMutual is a solid choice for whole life insurance.
While MassMutual policyholders praise its customer service and dividend opportunities, you’ll need to speak with a representative to learn more about your coverage options and apply for a policy.
State Farm Whole Life Insurance
Best for: Customer satisfaction
Available whole life policies: Whole life, Limited Pay Whole Life, and Single Premium Whole Life
Although it’s famous for its auto policies, State Farm’s life insurance is one of the best-rated products on the market. Rates tend to be higher than competitors — especially for term life plans — but customers report high levels of satisfaction with whole life insurance from State Farm.
State Farm has several add-ons available for its whole life plans, including select term to add someone to your policy, waiver of premium if you become disabled, and guaranteed insurability if you ever want to increase your coverage. Check with a representative to see which add-ons are available with the policy you’re looking for.
State Farm is one of the few life insurance companies to maintain an A++ with A.M. Best for its financial strength. It also has an A+ from the BBB. Although it has hundreds of complaints on the site, they are primarily for its car insurance.
Whole life insurance customers enjoy the potential to earn dividends, but many are disappointed that State Farm does not include free living benefits in any of its policies.
Guardian Whole Life Insurance
Best for: People living with HIV
Available whole life policies: Whole Life
Guardian has been selling life insurance since 1860 and is one of the few companies with whole life policies for people over 90. Coupled with the opportunity for dividends and high coverage limits, Guardian is a popular choice for whole life insurance.
Guardian has several add-ons available for whole life plans, one of the most unique being its paid-up additions (PUAs). PUAs allow you to buy small packets of life insurance to increase your policy coverage slowly.
A.M. Best gives Guardian a superb rating of A++, and it has an A+ from the BBB. There are surprisingly few complaints about Guardian, considering it’s one of the largest insurance companies in America.
While its customer satisfaction levels aren’t quite as high as some competitors, people love Guardian for consistently paying dividends and offering no-exam policies with high coverage limits.
AARP Whole Life Insurance
Best for: No-exam whole life insurance
Available whole life policies: Final Expense Whole Life
While it’s not for everyone, AARP might be your best choice if you need no medical exam life insurance and meet a few criteria. You have to be a member to qualify for coverage, but AARP makes it easy to apply online.
Unfortunately, AARP has low coverage limits and a minuscule number of add-ons. It also only offers one rider for its whole life policy. The terminal illness accelerated death benefit allows you to access your death benefit if you’re diagnosed with 24 months or fewer to live.
New York Life underwrites AARP’s policies, which is good news for AARP members — New York Life is a highly-rated company with an A++ from A.M. Best.
New York Life Whole Life Insurance
Best for: Customization options
Available whole life policies: Whole life, Custom whole life
While New York Life has been in business for 177 years, its most impressive feat is paying dividends for a consecutive 168 years. New York Life is well-known for its whole life insurance, especially for its options for older adults.
While some companies lack add-on options for whole life insurance, New York Life does not have that problem. With over ten add-ons to choose from, you’ll have plenty of opportunities to customize your life insurance to meet your needs.
Customization options aren’t the only thing New York Life insurance has to offer. It has an A++ rating from A.M. Best. It has a slightly worse rating of a B- from the BBB, but it ranks above average for customer satisfaction in J.D. Power’s life insurance study.
New York Life’s whole life policies are sought after because they are available up to 90 years old, and dividends are paid regularly. You need to speak with an agent to get a policy, but New York Life customers usually report satisfaction.
Northwestern Mutual Whole Life Insurance
Best for: High coverage limits
Available whole life policies: Whole Life, Survivorship Whole Life
Northwestern Mutual is one of the country’s largest insurance companies and offers some of the highest coverage amounts for no-exam life insurance. Although it falls short on its online options, Northwestern Mutual is highly regarded due to frequently paying dividends and remaining financially stable.
While Northwestern Mutual doesn’t have the longest list of available add-ons, the ones that are available can dramatically increase the value of your policy. You can buy accelerated death benefits for terminal or chronic illnesses, but Northwestern Mutual does not include them in its policies for free.
Like most of the best whole life insurance companies, Northwestern Mutual has an A++ from A.M. Best. It also ranks third for overall satisfaction in J.D. Power’s customer satisfaction survey.
While Northwestern might not have the most add-ons to choose from, it receives fewer complaints than its competitors.
Penn Mutual Whole Life Insurance
Best for: Dividends
Available whole life policies: Whole Life, Guaranteed Whole Life, Survivorship Whole Life
Although many companies pay dividends to their policyholders, Penn Mutual life insurance has one of the longest consecutive streaks at 174 years. Coupled with low customer complaints and high coverage options, it’s no wonder that people love Penn Mutual.
Penn Mutual offers a variety of add-ons, including accelerated death benefits for chronic or terminal illnesses. Some Penn Mutual plans include these add-ons for free, while others — like accidental death — cost very little.
With a strong A+ from A.M. Best, Penn Mutual offers financial stability comparable to larger insurance companies. It also has an A+ from the BBB and a mere ten complaints with the National Association of Insurance Commissioners (NAIC) for 2021.
Although Penn Mutual struggles with its online options, it’s a good choice for anyone looking for solid dividend payouts, high coverage options for no-exam policies, and excellent customer service.
Mutual of Omaha Whole Life Insurance
Best for: Burial insurance
Available whole life policies: Whole Life, Children’s Whole Life, Guaranteed Whole Life
Mutual of Omaha has had a solid reputation for selling life insurance for the past 113 years. People in good health looking for a lot of coverage will probably find a more suitable company elsewhere, but Mutual of Omaha is an excellent choice when you need to skip the exam.
Most Mutual of Omaha policies include at least two accelerated death benefit add-ons, and the company offers several others that are hard to find.
With an A+ from A.M. Best, Mutual of Omaha has the financial stability to pay your future claims. It also has an A+ from the BBB, though reports show that Mutual of Omaha receives slightly more customer complaints than the average company.
Despite more complaints, Mutual of Omaha is still a good choice if you need no-exam life insurance. That’s especially true if you’re older — Mutual of Omaha offers plans for people up to 85.
Nationwide Whole Life Insurance
Best for: Product variety
Available whole life policies: Whole Life, Whole Life 100, Whole Life 20-Pay, Final Expense
Another company that’s perhaps better known for its car insurance, Nationwide has a fantastic array of life policies to choose from. While it has a great selection of whole life policies, Nationwide offers a range of coverage no matter what you’re looking for.
Nationwide also has an extended list of add-ons, including accelerated death benefits, children’s term, and waiver of premium. You’ll need to speak with a Nationwide representative to see which add-ons are available in your area, but you can expect a wide selection.
Befitting a company as large as Nationwide, A.M. Best gives it an A+. It also has an A+ with the BBB, and customer satisfaction is high.
People love Nationwide because they offer affordable policies to older adults and the children’s term add-on makes it easy for parents to include their families in the same plan. However, all plans are not available to every applicant — only existing policyholders can apply for a final expense policy.
What is whole life insurance?
Whole life — sometimes called permanent life — insurance is a type of policy that covers you for the rest of your life. You need to make continuous monthly payments, but you never need to worry about running out of coverage with whole life insurance.
When you buy a whole life policy, you select a beneficiary to receive a set amount upon your death. Aside from paying your beneficiary, whole life insurance also has a savings component that gradually accumulates cash value. You can use your accumulated cash value as emergency funds, collateral for a loan, or to pay medical expenses.
Whole life policies are generally split into three types of plans based on how you pay for them. These are:
Single premium. In the standard type of whole life insurance, you’ll pay the same amount each month, and your coverage continues until you stop paying.
Limited payment. Your monthly rates will start higher at the beginning of the policy and drop off in later years. This is a good option for people who don’t want to worry about insurance payments during retirement.
Modified premium. Your monthly rates start lower, then gradually raise to a predetermined amount. Modified premium plans are a good choice for young people who want to lock in rates and anticipate making more money in the future.
Whole life is also called traditional life insurance since it was the first type of plan sold. However, it’s no longer the only permanent plan on the market — you can buy universal life, indexed universal life, and variable universal life insurance.
How much does whole life insurance cost?
Whole life generally costs more than its counterpart term life insurance, but cash value accumulation and having a permanent plan might be worth the increase.
Insurance companies look at a variety of factors when crafting your rates. These factors include:
Level of coverage
Your age and gender
Your height and weight
Where you live
Your medical history
The medical history of your family
Your tobacco use
Your occupation and hobbies
You can get an idea of how much you might pay for whole life insurance below.
Companies look at the same factors when they craft your rates but weigh each differently. That’s why it’s vital to compare quotes with as many companies as possible before you sign up for insurance — if you go with your first pick, you’ll probably overpay.
Is whole life insurance a good investment?
In general, life insurance is always a good investment. Whether you buy a small no-exam policy or a whole life plan worth millions, leaving something for your loved ones after your death is never a bad idea.
As an investment, whole life insurance offers a steady accumulation of value with a set interest rate. Your accumulated value is tax-free as long as it’s in your account. You can also borrow against your cash value without worrying about paying it back — any outstanding balance will be subtracted from the death benefit when you die.
While it’s not suitable for everyone, whole life might be a good investment if any of the following situations apply to you:
You’ve maxed out your retirement funds. Once you’ve made all the allowable contributions to your retirement accounts, whole life insurance can be used to maximize your tax-deferred savings. You can cancel your plan and collect the savings when you no longer need coverage.
You’re ready to diversify. While it doesn’t offer the largest possible returns, whole life insurance has steady growth and dependable rates unaffected by the ups and downs of the economy.
You have lifelong dependents. Parents or guardians who expect a child to remain financially dependent on them for life can get peace of mind knowing they’ll always be covered.
You want to help pay estate taxes. If your estate is worth $12.6 million or more, your loved ones might have to pay an estate tax. Whole life insurance can help pay those taxes through the policy’s cash savings or death benefit.
Of course, there are alternatives to whole life that might make a different type of policy better suited for you. If you’re unsure of where to start, an insurance representative or financial advisor can help.
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What are the alternatives to whole life insurance?
There are more policies than whole life when you’re in the market for life insurance. In fact, most people are better served by a different type of life insurance — learn more about each below:
Term. As the name suggests, this life insurance lasts for a predetermined term, usually between 10 and 30 years. Term is more popular than whole life because of its affordability.
Universal. Universal and whole life insurance are very similar — the key difference is that your monthly payments are flexible with a universal policy.
Variable universal. The cash value in your whole life insurance policy grows steadily but slowly. Variable universal plans invest your savings to potentially grow your cash value quickly.
Indexed universal. Indexed universal plans connect your cash value to a stock index for increased growth. Unlike individual investments, indexed universal gains are generally reliable.
No-exam. Most life insurance applications require a medical exam, but these plans skip them. No-exam policies have lower coverage limits and cost more, but they’re a good option for people commonly rejected for standard plans.
The right type of life insurance for you depends on your unique situation. However, insurance experts usually agree that a term life policy is the right option for most. Unless you’re set on a permanent plan, you should consider term life insurance quotes.
Is whole life better than term life insurance?
Today, most people looking to get life insurance buy either a term or a whole life policy. There are two main differences between term and whole life insurance — the length of the policy and accumulated cash value.
Whole life lasts as long as you keep paying your bills — usually for the rest of your life. Term life is meant to protect you for a period of time when dying would leave behind unpaid debts and bills for your dependents. Available terms vary by company, but most let you buy between 10 and 30 years of coverage.
Unlike whole life, term life insurance does not accumulate value. If you outlive your policy and don’t have a return of premium life insurance add-on, you and your beneficiaries get nothing.
There are other factors to consider when trying to choose between term and whole life. For example, term life is generally easier to understand because the policy is straightforward.
Another important factor is cost. Since there’s a higher chance that the insurance company won’t have to make a payment to your beneficiary, your rates are lower with term life.
So, which is better? It depends on your needs. Term life is an excellent option for newlyweds, new parents, business owners, and people with large, unpaid debts. On the other hand, whole life allows you to lock in a rate for the rest of your life, builds wealth, and eliminates the need to renew insurance later.
Find the Best Whole Life Insurance Company Today
Whether you’re looking for no-exam insurance or a multi-million dollar policy that will help you grow wealth, there’s a whole life insurance plan that can work for anyone. As you saw above, researching your options and selecting the right company is integral to finding the perfect whole life insurance quote.
Now that you may have an idea of which companies offer the best insurance for your specific needs, your next step should be to compare whole life insurance quotes. Looking at as many companies as possible will help you find the best coverage for the perfect price.
Frequently Asked Questions
Is whole life insurance worth it?
In general, life insurance is a worthwhile investment to financially protect your loved ones after your death. Whole life insurance might be right for you if you want to avoid losing your coverage later in life or to lock in the lowest possible rates.
Of course, whole life insurance is more expensive than term, so you should also ensure it fits your budget.
How much is whole life insurance?
The amount you’ll pay for whole life insurance depends on various factors, including your age, gender, and how much coverage you want. Rates vary, but the average 25-year-old woman might pay around $400 a month, while the same woman at 45 will pay over $1,000.
What is modified whole life insurance?
Modified whole life insurance works the same as a standard plan, but your rates start lower and gradually rise. When rates are lower, you won’t accumulate any cash value. This is an excellent option for young people who want to lock in lower rates and anticipate making more money in the future.
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Maria Hanson grew up with a unique passion and understanding of both the automotive and insurance industries. With one grandfather in auto mechanics and another working in insurance, you could say automotive insurance is in her blood. Her love of research and finance serves her well in studying insurance trends and liability.
Maria has expanded her scope of expertise to home, health, and life i…
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Written by
Maria Hanson
Insurance and Finance Expert
Benjamin Carr was a licensed insurance agent in Georgia and has two years’ experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.
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Benji Carr
Former Licensed Life Insurance Agent
