Updated: November 20, 2024
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Whole life insurance offers guaranteed death benefits, cash value growth and stable premiums for life. We evaluated dozens of life insurance companies and their whole life insurance policy offerings to determine the top whole life insurance companies for you.
State Farm is the overall best whole life insurance company, receiving a MoneyGeek score of 99. Nationwide is the top pick for its buying process, while the best provider for customer satisfaction is Progressive.
Best Whole LifeCompaniesBest Whole Life Insurance Companies
Why Trust MoneyGeek? We analyzed customer satisfaction, financial stability reports, product offerings and more to determine the best whole life insurance companies for a variety of needs.
Coverage costs and company information for life insurance providers were updated in 2024.
With a MoneyGeek score of 99 out of 100, State Farm is the top choice for whole life insurance policies. The company received a perfect rating in financial stability, assuring policyholders of the company's ability to fulfill long-term claim commitments.
How was this MoneyGeek score calculated?
MoneyGeek ranked the top whole life insurance companies using the following weightings:
We did not include affordability in the calculation since we do not have quotes for whole life insurance policies. Of the companies that offer whole life insurance plans, we chose the one with the highest score.
| State Farm | 99 |
| Nationwide | 98 |
| Mutual of Omaha | 96 |
| Progressive | 95 |
| Protective | 94 |
| AAA | 93 |
| Transamerica | 92 |
| Allstate | 91 |
| Fidelity | 89 |
A++ AM Best rating ensures financial stability
Offers Limited Pay Whole Life, allowing flexibility
101 years of industry experience
Does not provide 24/7 online chat support
Customer satisfaction score is lower than some competitors
State Farm has established itself as a reliable provider in the life insurance market. With 101 years in the business, the company brings a wealth of experience to the table. Its whole life insurance policies are particularly noteworthy, especially its Limited Pay Whole Life product with level terms for 10, 15 or 20 years. These policies ensure lifelong coverage tailored to individual needs. The company's A++ AM Best rating underlines its financial stability, making it a trustworthy choice for those seeking a robust whole life insurance policy.
You can bundle life insurance with another State Farm product, such as auto or home insurance, to potentially save money. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Nationwide, with a MoneyGeek score of 98 out of 100, received the highest rating for its buying process, demonstrating its commitment to customer ease and accessibility.
A+ AM Best rating for financial stability
Offers 24/7 online chat support
Two flexible payment options for whole life
Slightly lower customer satisfaction rating than some competitors
Higher than average customer complaint index
No specialized products for niche markets
Nationwide distinguishes itself with an unrivaled buying process, making it easier for customers to navigate the complexities of life insurance. With 97 years of industry experience, Nationwide offers a range of life insurance products, including whole life policies with two distinct payment options: Whole Life 100 and 20-Pay Whole Life. The Whole Life 100 option allows premiums to remain consistent until they cease at age 100. The 20-Pay Whole Life product keeps premiums consistent until you fully pay off the policy after 20 years.
The company's A+ AM Best rating also assures policyholders of its financial stability. If you value a straightforward buying experience, Nationwide stands as a compelling choice.
Progressive earned a perfect customer satisfaction rating, contributing to its MoneyGeek score of 95 out of 100. Although partners issue Progressive's policies, the company is the best provider for policyholders seeking an excellent customer experience.
Highest customer satisfaction rating
A+ AM Best financial stability rating
Diverse product offerings, including whole life
Policies issued through other partners
No dedicated agent support by phone
Limited payment options
Progressive stands out for its commitment to customer satisfaction, as evidenced by its perfect rating in this category. With 86 years of industry experience, Progressive offers a wide range of life insurance products, including whole life policies. Although the company issues its policies through partners, it maintains a low rate of customer complaints, indicating high satisfaction among policyholders. The availability of online research material and a mobile app adds to the convenience, although it's worth noting that its buying process and payment options are relatively limited. If customer satisfaction is your priority, Progressive is a solid option to consider.
In general, life insurance is a policy that provides guaranteed cash value, level premiums and a death benefit. Whole life insurance is a type of permanent life insurance that covers you until death as long as you continue to pay your premiums. Some whole life insurance policies have a limited payment period, which means they will continue to accrue cash value after you pay the policy in full. For instance, a 20-year whole-life policy requires 20 years of payments before policy fulfillment. This type of policy has a higher premium due to the shorter payment timeline.
Additionally, mutual whole life insurance companies may offer policies that include dividends. These are profits returned directly to the policyholders instead of stockholders. Policyholders can use dividends in various ways, such as taking them as cash, paying premiums, paying outstanding loans against the cash value or buying paid-up additions. Paid-up additions can increase the death benefit amount and cash value by using the dividends to purchase additional whole life insurance coverage.
When researching whole life insurance, its important to consider not just the initial cost but the long-term benefits and potential for cash value growth and dividends. Its important to understand the details of this insurance whether you're seeking the best whole life insurance policy for young adults, for families or looking for the top companies.
Whole life insurance and term life insurance differ in several ways. Whole life insurance is a type of permanent life insurance, while term life insurance is temporary coverage. Both policies have level premiums, but whole life insurance provides lifetime coverage, whereas term life insurance expires once the term is over. If you renew term life insurance, you will have to pay higher premiums based on your current age.
Whole life insurance builds cash value and may come with dividends, which insurers don't offer with term life insurance. The ability to accumulate cash value and receive dividends makes whole life insurance more expensive than term life insurance. Despite the higher cost, whole life insurance provides lifelong protection and long-term financial planning benefits that term life insurance does not offer.
We recommend considering your specific insurance needs before purchasing whole life insurance. Term life insurance may be the best choice If your primary goal is to cover a temporary debt, such as a mortgage, or ensure your children can afford college after your death.
If you want to provide for funeral expenses or have a financial dependent that will continue for life, such as a special needs child, permanent life insurance like a whole life insurance plan may be a better choice. Whole life insurance gives policyholders guaranteed cash value, level premiums for life, guaranteed death benefit, cash value growth and dividends (if offered by your provider).
A combination of term life and whole life insurance may be the best solution. This strategy allows coverage of temporary needs by term life insurance while meeting permanent needs with whole life insurance. Your decision to purchase whole life insurance depends on your circumstances and financial goals.
Insurance providers assess a range of factors to calculate your premium. These elements can span from personal health status to geographical location. Understanding these factors can help you navigate whole life insurance costs.
Age
Age is one of the primary factors and significantly influences the cost of your policy. Generally, younger individuals receive lower premiums, as insurers view them as lower risk.
Gender
Insurance companies often differentiate quotes for whole life insurance based on gender. Typically, women may receive lower premiums due to a longer average lifespan.
Health Status
Your overall health plays a pivotal role in determining your premium. A comprehensive medical exam may be required to evaluate conditions affecting your policy cost.
Lifestyle Habits
Habits like smoking or excessive drinking can elevate your risk profile, increasing premiums.
Occupation
Jobs that expose you to higher risks can result in increased policy costs. Occupations in fields like construction or aviation are often considered higher risk.
Coverage
The more coverage you seek, the higher your premium will be. It's essential to balance your coverage needs with what you can afford.
Geographical Location
Your place of residence can also influence your premium. Insurance providers may adjust whole life insurance quotes based on local mortality rates and other demographic data.
Additional Benefits or Riders
Some policies offer optional riders, like long-term care coverage, which can add to the overall cost of your policy.
When you get a quote for whole life insurance, the sales illustration will depict cash value growth and potential whole life dividends based on historical data. Though the minimum cash value growth is guaranteed, dividend payments are not.
If you no longer want your whole life insurance policy, you can opt to surrender it. You will receive any remaining cash value but may also be assessed surrender charges. These charges vary by the company, which sets them for a specific period, known as a surrender charge period. Like a mortgage, the surrender charge period front loads the interest, meaning you will pay the highest charge in the first few years of the policy.
Find the answers to some of the most common questions about the best whole life insurance policies and companies.
The best whole life insurance policy offers a mix of guaranteed cash value growth, competitive whole life insurance rates and potential dividends. It comes from a top whole life insurance company known for financial stability and customer satisfaction.
The best whole life insurance policy will depend on your individual needs and financial goals. When choosing a policy, consider the coverage amount, premium costs, cash value growth and additional benefits or riders offered.
Based on MoneyGeek's analysis, State Farm is the best overall provider for this type of policy. Nationwide can be a top choice for those who want a seamless buying process, while Progressive offers the best customer service experience.
Whole life insurance offers lifetime protection with level premiums and a guaranteed death benefit. In exchange for your monthly or annual premiums, the life insurance company promises minimum cash value growth and a death benefit paid to your beneficiary when you die. If you buy whole life insurance from a mutual company, you may receive dividends; these you can then use to pay premiums, buy additional whole life insurance coverage or take as cash. In general, its important to understand how life insurance works.
Whole life insurance is sold by mutual whole life insurance companies, as well as other insurance providers that offer custom whole life insurance plans. These companies provide detailed whole life insurance quotes online or through licensed agents.
To obtain whole life insurance, start by requesting quotes from top rated whole life insurance companies. Compare these quotes, policies and whole life insurance interest rates to find a plan that meets your financial goals and provides the coverage you need.
The main difference between whole and term life insurance is the length of coverage time. Whole life insurance is permanent and offers a level death benefit from when your policy is issued until death. Term life insurance provides a death benefit for a specific number of years, usually between 10 and 30. The policy expires after the term is over unless you renew it at your current age for a higher premium.
The choice between term life insurance and whole life insurance ultimately depends on your individual needs and circumstances. Term life insurance is generally more affordable and offers coverage for a set period, making it a good choice for those with temporary financial obligations or a limited budget. On the other hand, whole life insurance offers permanent coverage and includes a savings component that builds cash value over time. This makes it a good choice for those who want lifelong coverage and the ability to accumulate savings that you can borrow against or use to pay premiums.
Most life insurer health questionnaires will include a few COVID-19 questions. Previously having COVID-19 should not impact your ability to purchase new life insurance coverage, according to the Insurance Information Institute. However, if you are experiencing long COVID symptoms, it may be considered a chronic condition and could impact the rate insurers charge you.
About Mandy Sleight
Mandy Sleight is a licensed property, casualty, life and health insurance agent with 20 years of experience in the industry. She has worked for major insurance companies like State Farm and Nationwide, and most recently as the Operations Coordinator for a startup employee benefits company.
Sleight holds a business administration and management degree from the University of Baltimore and a master's in business administration from Southern New Hampshire University. She uses her vast knowledge of insurance and personal finance to create easy-to-understand and engaging content to help readers make smarter choices with their budgets and finances.
