Best Single-Premium Life Insurance Companies in January 2025

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Updated: January 21, 2025

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State Farm, Northwestern Mutual and MassMutual are MoneyGeek's highest-rated single-premium life insurance companies. Ratings are based on data from J.D. Power, AM Best, NAIC and MoneyGeek affordability scores.

Single-premium life insurance involves a one-time payment to fund a policy fully, providing life coverage with a guaranteed death benefit. This type of policy is ideal for those who can afford the upfront fee and want an immediate death benefit. It also suits those looking to maximize cash value growth, offering opportunities for capital appreciation over time. The cash value can help fund future expenses like retirement or college.

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2025

Best Single-Premium Life Insurance Companies in 2025

Best Overall - State Farm
Runner-Up - Northwestern Mutual
Most Affordable - Mass Mutual

Key Takeaways

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Single-premium life insurance is a policy in which you make one lump-sum payment to receive a guaranteed death benefit.

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Most single-premium life insurance contracts become modified endowment contracts (MECs), changing how they're taxed to avoid abuse of their cash value tax deferment.

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Single-premium life (SPL) insurance policies require a one-time payment, which can be substantial. While this simplifies life insurance management, it may not suit everyone.

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HOW MONEYGEEK RANKED INSURANCE COMPANIES

To calculate our ranking scores, we incorporated data from J.D. Power, AM Best and NAIC. We also included our own affordability score, which we created by manually gathering thousands of quotes across major providers.

We used qualitative research to evaluate the best single-premium life insurance companies, focusing on their product offerings and support features.

Best Overall: State Farm

State Farm

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Ranks high for customer satisfaction and financial ratings

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Product range suits different budgets or needs

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Offers quotes online in minutes

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Coverage unavailable in Massachusetts

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Provides term life quotes only online

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Allows changes to policy through an agent or by mail

COMPANY HIGHLIGHTS

State Farm is the best overall provider for single-premium and traditional life insurance policies. This top ranking reflects its high customer service, claims handling, product offerings and financial stability scores.

Product Offering

State Farm provides various life insurance options, including term life, whole life, universal life, single-premium and final expense insurance. One of the biggest insurers in the U.S., it also offers auto, home, business, health, disability and liability insurance.

Its single-premium life insurance is available for newborns to adults aged 80, with a minimum coverage amount of $15,000. This policy offers a guaranteed cash value that grows tax-deferred, which can be withdrawn or paid as dividends.

Support Features

State Farm offers quotes online for some of its insurance products, but not all. For instance, it has quotes for term life insurance policies, but you must contact an agent for other types, such as whole life or single-premium life.

Policy Types

  • Final expense
  • Term
  • Whole life
  • Universal life

Runner-Up: Northwestern Mutual

Northwestern Mutual

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Ranks high for customer satisfaction and financial stability

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Low customer complaint ratio

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Offers dividends for all policy types

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No online quotes and applications

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Requires most applicants to undergo a medical exam

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Has limited financial resources online

COMPANY HIGHLIGHTS

Northwestern Mutual is the second-best provider for single-premium life insurance and the top provider for whole life insurance, thanks to its low customer complaint ratio and strong scores across MoneyGeek’s metrics.

Known more for its financial planning services than its products, Northwestern Mutual emphasizes a comprehensive approach that integrates insurance and investments. It's also the world’s second-largest insurer.

Product Offering

Northwestern Mutual provides various life insurance options, including term, whole, universal and variable life policies. Its single-premium life insurance is available for newborns to adults aged 75, with a minimum coverage of $50,000. Beneficiaries can choose to receive the death benefit as a lump sum, in installments, through an investment account or as a combination of these options.

Northwestern Mutual is also popular for its financial planning services, which include retirement, estate, college and other planning options.

Support Features

To inquire or apply for any of Northwestern Mutual’s life insurance policies, you must fill out its form online and wait to be contacted by one of its financial advisors. Otherwise, the company doesn't provide a quote or application form online.

Policy Types

  • Whole life
  • Universal life
  • Term life
  • Whole life plus
  • CompLife
  • 65 Life
  • 90 Life

Most Affordable: MassMutual

Mass Mutual

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Low customer complaint ratio

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Offers guaranteed acceptance whole life to those aged 50 to 75

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Ranks high for financial stability

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No online rate calculator

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Requires a medical exam for most policies

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No online application facility

COMPANY HIGHLIGHTS

MassMutual is the most affordable single-premium life insurance policy provider, offering a strong balance between cost and customer service. It's also the top provider of term life insurance.

With steady growth and a diverse range of products, MassMutual consistently ranks among the top 10 largest life insurance companies. Its low customer complaint ratio and high financial stability make it an excellent choice for those seeking single-premium life insurance.

Product Offering

MassMutual provides various life insurance options tailored to different needs and budgets. Its single-premium life insurance, offered as CareChoice One, covers long-term care expenses like nursing homes and hospital fees. 

If long-term care isn't needed, the policy guarantees a death benefit. It also includes a surrender value that increases over time, allowing policyholders to receive a payout if they cancel their coverage.

Support Features

If you want a single-premium life insurance policy from MassMutual, you must contact an agent by filling out a form online. However, the company offers quotes for term life insurance online.

You may qualify for non-tobacco rates if you smoke no more than 24 cigars a year and you have a negative urinalysis specimen.

Policy Types

  • Direct term
  • Healthbridge program term
  • Lifebridge program term
  • 10, 15, 20, 25 and 30-year term
  • Whole life
  • Universal life
  • Variable universal life

What Is Single-Premium Life Insurance?

Single-premium life (SPL) insurance is a type of permanent life insurance that provides a guaranteed death benefit with a one-time lump-sum payment. This single-payment life insurance simplifies estate planning by eliminating recurring premiums and immediately accumulating cash value.

SPL insurance is ideal for those with significant wealth who want to streamline their estate planning. The upfront payment ensures financial security for heirs without the ongoing responsibility of regular premium payments.

Types of Single-Premium Plans

Single-premium life insurance offers various options to meet different financial goals and coverage needs. Each type of of single-pay life insurance serves specific investment and estate planning strategies.

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    Single-premium whole life insurance

    It's the most common form of SPL insurance. A lump-sum payment provides lifetime coverage and builds a cash value with guaranteed interest. Policyholders can borrow against or withdraw from the cash value.

    A single-premium whole life insurance policy is a good option for those who want stability and predictable growth without actively managing investments.

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    Single-premium universal life insurance

    This flexible SPL insurance option allows policyholders to adjust the death benefit and make additional premium payments. The cash value of single-premium universal life insurance grows at a specified interest rate, which may adjust with market conditions, potentially offering higher returns than single-pay whole life insurance policies.

    Single-premium universal life insurance suits those who value flexibility and can manage some variability in investment returns.

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    Single-premium variable life insurance

    A single-premium variable life insurance policy lets policyholders invest the cash value in options like stocks, bonds or mutual funds. This can result in higher returns but carries more risk due to market volatility.

    This option is better for experienced investors comfortable with market fluctuations.

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    Single-premium indexed universal life insurance

    Some insurers offer single-premium indexed universal life (IUL) insurance. The cash value of a single premium IUL policy is linked to a stock market index, combining equity market potential with life insurance coverage. Policies often include a floor to protect against market losses.

    This type suits individuals seeking a mix of coverage and more aggressive growth for their cash value.

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    Single-premium term life insurance

    Though rare, some insurers provide single-premium term life insurance. These policies offer fixed-term death benefits without cash value growth, making them a straightforward option for those focused solely on coverage.

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MONEYGEEK DICTIONARY

Single-premium life insurance policies are automatically classified as modified endowment contracts (MECs). MECs are taxed differently because their funding exceeds federal tax limits, which are designed to prevent the misuse of tax benefits in permanent life insurance policies.

Withdrawals from an MEC before age 59 ½ are subject to a 10% tax penalty and income taxes on the withdrawn amount.

Pros and Cons of Single-Premium Life Insurance Policy

When evaluating a one-time payment life insurance policy, consider both its benefits and challenges. Single-premium life insurance offers a unique way to secure your financial future but requires careful assessment of its specific factors.

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Simplified payments: The convenience of a one-time payment eliminates future premium worries, ensuring the policy remains active without the risk of lapsing.

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Immediate cash value access: Unlike traditional policies that build cash value over time, single-premium life insurance provides immediate access to cash value. This allows policyholders to use their policy for loans or withdrawals shortly after issuance, offering flexibility for investment or liquidity needs.

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Guaranteed death benefit: The full upfront payment guarantees the death benefit from the start, eliminating the risk of lapse due to non-payment. This provides peace of mind, ensuring beneficiaries receive the tax-free death benefit.

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Substantial initial investment: Single-premium life insurance requires a large upfront payment, which may be difficult for those without significant savings.

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Lack of refund on early death: If the insured passes away soon after purchasing the policy, the premium isn't refunded, making it more expensive than traditional policies that spread payments over time.

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No additional contributions: Once the lump sum is paid, no further contributions can be made, limiting flexibility if financial circumstances improve and additional investment is desired.

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High surrender charges: Early cancelation of a one-time premium policy can incur high surrender charges, reduce the returned value and make it costly to terminate the policy prematurely.

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Tax considerations: As modified endowment contracts, these prepaid life insurance policies have specific tax rules, especially concerning loans and withdrawals, which may lead to potential tax liabilities.

Who Should Get Single-Premium Life Insurance

Whether single-premium life insurance is right for you depends on your situation. Below are a few scenarios where it may be a good option:

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    Your financial advisor recommends it

    Getting a single-premium life insurance policy might be worth considering if your financial advisor recommends it. They have an overview of your finances and the expertise to determine whether it’s good for your estate and future.

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    You have enough money

    If you can afford a single-premium life insurance policy, it may be a good choice. It provides an immediate guaranteed death benefit, eliminating the need to wait for a certain period or a set number of payments.

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    You’re okay with the tax implications and restrictions

    Single-premium insurance policies are taxed differently than traditional policies, which can mean hefty fees and tax implications if you withdraw funds earlier than maturity.

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    You're fully committed

    If you want a death benefit right away to ensure the financial security of your loved ones and ease your mind, single-premium life insurance may be a good choice.

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    You want a source of funds for long-term financial goals

    You can withdraw from your single-premium life insurance policy after a certain period, which will help pay for retirement, a child’s college fund or emergency expenses. However, it will decrease your death benefit.

A single-premium life insurance policy can be a good choice for estate planning or if you're working with a financial advisor, but it may not be suitable for everyone due to its high cost.

Since single-pay life insurance requires a one-time payment, it may not fit those wanting to make continuous investments or who can only afford the minimum. The high initial cost can strain those with limited cash, and the lack of contribution options and high surrender charges may disadvantage those expecting financial changes or needing emergency funds. If flexibility and lower upfront costs are a priority, other life insurance products may be a better fit.

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MONEYGEEK EXPERT TIP

Enhance your single-premium life insurance policy with additional riders to tailor coverage to your needs. Riders can boost the single-payment life insurance benefits and offer flexibility to access funds for unforeseen circumstances, making your investment more valuable. 

However, riders may increase the policy’s cost. Evaluate the added costs to ensure they align with your financial goals.

How to Find the Best Single-Premium Policy

Finding the best single-premium life insurance policy requires a strategy to make the most of your substantial investment. Here are some tips to guide you through the process:

  1. 1

    Use a single-premium life insurance calculator

    A single-premium life insurance calculator can help you estimate potential returns and costs. It shows the future cash value growth and death benefit based on your initial investment.

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    Compare single-premium life insurance rates

    Gather quotes for single-premium life insurance from multiple insurers. Comparing these quotes will give you a clearer picture of the benefits and costs offered by different carriers. Make sure to compare policies with similar features for a fair assessment.

  3. 3

    Review policy features

    Examine the details of each policy. Look for features that match your financial goals, such as the cash value growth rate, flexibility in accessing funds and the death benefit terms.

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    Assess insurers' financial strength

    Consider single-premium life insurance companies' financial strength and reputation. Strong financial ratings indicate a carrier's ability to fulfill policy benefits in the long term. This assurance is critical when you're committing a large sum upfront.

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    Understand tax implications

    Understanding the tax implications is important since single-premium policies can be classified as modified endowment contracts. Consult a tax advisor to learn how the policy's tax status might affect your financial strategy, especially regarding loans and withdrawals.

  6. 6

    Seek professional advice (optional)

    Given the complexity and cost of single-premium life insurance, consulting financial advisors and insurance experts can provide valuable insights. These professionals can offer personalized advice based on your financial situation, helping you determine if single-premium life insurance aligns with your estate planning and financial security goals.

By following these steps, you can effectively navigate the options and find the best single-premium policy that offers financial security and meets your needs.

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WHERE TO FIND A SINGLE-PREMIUM LIFE INSURANCE CALCULATOR

To find a single-premium life insurance calculator, you can typically start with the following:

  • Visit insurance company websites: Major life insurance providers often have various tools and calculators online. Search for tools specifically for single-premium policies.
  • Financial advisory sites: Websites specializing in financial planning often feature insurance calculators, including a single-premium life insurance calculator. These sites provide helpful insights on how to use the calculators effectively.
  • Contact insurance agents: If online resources are limited, contact an insurance agent who can provide access to proprietary calculators. Agents can also offer a personalized demo on how to use these tools to forecast your policy’s performance.
  • Insurance comparison platforms: These websites compile and compare different insurance products and usually offer calculators to help users evaluate various policy features side by side.

These resources can help you understand how a single-premium life insurance policy might fit into your financial strategy, helping you make a well-informed decision.

Compare Insurance Rates

Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.

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Insurance Rates
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MONEYGEEK EXPERT TIP

Although single-premium life insurance is convenient because of its one-and-done nature, term life insurance may be the better choice if you seek affordability and effectiveness. This type of insurance ends after a specified period. Still, you can maintain a high benefit at a more affordable rate than whole life or single-premium life insurance.

Review MoneyGeek’s analysis of the best term life insurance providers to find a company that balances cost and quality service.

FAQ: Single-Premium Life Insurance

If you're still unsure how this policy works, check out these frequently asked questions about single-premium life insurance.

Which company provides the best single-premium life insurance?

What is a single-premium life insurance policy?

Should I get a single-premium life insurance policy?

Is single-premium life insurance a good investment?

What is single-premium whole life insurance?

How long does one premium payment cover in a single-premium whole life policy?

Can you get single-premium term life insurance?

Who is life insurance best suited for?

About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a 5-time Jeopardy champion!

He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

Read Full Bio »

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