The Top 5 Life Insurance Companies in 2023 | Expert Ratings & Reviews

Life insurance is a contract between you and an insurance company that promises to pay a sum of money to your beneficiaries when you die. Life insurance can provide financial protection and peace of mind for you and your loved ones, especially if you have dependents, debts, or estate taxes.

But how do you choose the best life insurance company for your needs? There are many factors to consider, such as the company’s financial strength, product range, customer service, price, and reputation. You also need to compare different types of life insurance policies, such as term, whole, universal, and variable universal life insurance, and find the one that suits your goals, budget, and risk tolerance.

To help you with this process, we have compiled a list of the top 5 life insurance companies in 2023 based on expert ratings and customer reviews. We have also highlighted the strengths and achievements of each company in different categories of life insurance, such as variable universal life insurance, senior life insurance, universal life insurance, recreational marijuana user life insurance, and Gen X & Millennial life insurance.

We have used the following criteria and methodology to select the top 5 companies:

• We have considered the companies that have received high ratings from reputable sources such as A.M. Best, J.D. Power, Forbes Advisor, Policygenius, etc.
• We have evaluated the companies based on their product diversity, innovation, pricing competitiveness, customer satisfaction, market share, financial performance, etc.
• We have selected the companies that have demonstrated excellence and leadership in different categories of life insurance based on their product features, benefits, risks, and suitability for different customer segments.
• We have ranked the companies in alphabetical order and not in order of preference or quality.

Without further ado, here are the top 5 life insurance companies in 2023:

Pacific Life: Best for Variable Universal Life Insurance

Variable universal life insurance (VUL) is a type of permanent life insurance that combines the features of universal life insurance and variable life insurance. It provides a death benefit and a cash value component that can be invested in various subaccounts that are similar to mutual funds. The cash value can grow or shrink depending on the performance of the subaccounts. You can also adjust the amount and frequency of your premium payments and change the amount of your death benefit within certain limits.

Variable universal life insurance can offer several benefits, such as:

• Flexibility: You can customize your policy to fit your changing needs and preferences. You can choose from a variety of investment options that match your risk profile and financial goals. You can also modify your premium payments and death benefit amount as long as you maintain sufficient cash value to cover the cost of insurance and other fees.
• Investment potential: You can potentially earn higher returns on your cash value than with other types of permanent life insurance. You can also benefit from tax-deferred growth of your cash value and tax-free transfers between subaccounts.
• Cash value access: You can access your cash value through loans or withdrawals for any purpose, such as paying for education expenses, retirement income, or emergencies. However, keep in mind that loans and withdrawals will reduce your cash value and death benefit and may incur taxes and fees.

Variable universal life insurance also involves some risks, such as:

• Investment risk: Your cash value is subject to market fluctuations and may lose value if the subaccounts perform poorly. You are responsible for selecting and monitoring your subaccounts and bearing the investment risk. You may also incur additional fees for managing your subaccounts.
• Policy lapse risk: Your policy may lapse if your cash value becomes insufficient to cover the cost of insurance and other fees. This may happen if you skip or reduce your premium payments or if your subaccounts perform poorly. If your policy lapses, you will lose your coverage and may face tax consequences.
• Complexity: Variable universal life insurance is a complex product that requires careful planning and management. You need to understand how the policy works, how it fits into your overall financial plan, and how it may affect your tax situation. You also need to review your policy regularly and make adjustments as needed.

If you are looking for a flexible and potentially rewarding type of permanent life insurance, you may want to consider variable universal life insurance from Pacific Life.

Pacific Life is one of the leading providers of variable universal life insurance in the U.S., with over $100 billion in assets under management as of December 31, 2020. Pacific Life has been in business since 1868 and has a strong reputation for financial strength, product innovation, and customer service. Pacific Life has an A+ (Superior) rating from A.M. Best, an AA- (Very Strong) rating from Fitch Ratings, an A1 (Good) rating from Moody’s Investors Service, and an A+ (Strong) rating from Standard & Poor’s.

Pacific Life offers a wide range of variable universal life insurance products and features, such as:

• Pacific Choice VUL: This is a flexible premium variable universal life insurance policy that offers a guaranteed minimum death benefit option, a no-lapse guarantee option, and a variety of riders and benefits. You can choose from over 80 subaccounts that cover different asset classes, investment styles, and risk levels. You can also access your cash value through loans or withdrawals.
• Pacific Discovery Xelerator IUL 2: This is an indexed universal life insurance policy that offers a death benefit and a cash value component that is linked to the performance of one or more market indexes, such as the S&P 500, the Russell 2000, or the MSCI EAFE. You can choose from different index accounts that have different crediting methods, caps, floors, and participation rates. You can also access your cash value through loans or withdrawals.
• Pacific Indexed Accumulator 6: This is an indexed universal life insurance policy that offers a death benefit and a cash value component that is linked to the performance of one or more market indexes, such as the S&P 500, the Russell 2000, or the MSCI EAFE. You can choose from different index accounts that have different crediting methods, caps, floors, and participation rates. You can also access your cash value through loans or withdrawals. This policy also offers a bonus interest feature that adds extra interest to your cash value based on your policy performance and premium payments.

If you are interested in variable universal life insurance from Pacific Life, you can contact a Pacific Life representative or use their online quote tool to get an estimate of your premium and coverage.

Penn Mutual: Best for Seniors

Seniors face unique challenges and opportunities when buying life insurance. Some of the challenges include:

• Health issues: Seniors may have pre-existing medical conditions or develop new ones as they age. This may affect their eligibility for life insurance or increase their premium rates.
• Income needs: Seniors may have limited income sources or face unexpected expenses in retirement. This may affect their ability to afford life insurance or meet their financial obligations.
• Estate planning: Seniors may want to use life insurance to transfer wealth to their heirs, pay estate taxes, or support charitable causes. This may require careful planning and coordination with their legal and financial advisors.

Some of the opportunities include:

• Longer life expectancy: Seniors are living longer than ever before, thanks to advances in medicine and technology. This means they have more time to enjoy their retirement, pursue their passions, and spend time with their loved ones.
• Lower mortality rates: Seniors have lower mortality rates than younger people, thanks to improved health care and lifestyle choices. This means they have a lower chance of dying during the term of their life insurance policy.
• Higher cash value growth: Seniors who buy permanent life insurance may benefit from higher cash value growth than younger people, thanks to compound interest and tax-deferred accumulation. This means they can build more wealth and access more cash value through loans or withdrawals.

If you are a senior who wants to buy life insurance, you may want to consider Penn Mutual.

Penn Mutual is one of the oldest and most respected life insurance companies in the U.S., with over $178 billion in assets under management as of December 31, 2020. Penn Mutual has been in business since 1847 and has a strong reputation for financial strength, product diversity, and customer service. Penn Mutual has an A+ (Superior) rating from A.M. Best, an Aa3 (Excellent) rating from Moody’s Investors Service, and an A+ (Strong) rating from Standard & Poor’s.

Penn Mutual offers a wide range of life insurance products and features that are suitable for seniors, such as:

• Guaranteed Protection Universal Life: This is a guaranteed universal life insurance policy that offers a guaranteed death benefit for a fixed premium payment. You can choose the duration of your coverage, from age 90 to 121. You can also add riders and benefits to enhance your policy, such as an accelerated death benefit rider, a chronic illness rider, or a return of premium rider.
• Survivorship Plus Select Whole Life: This is a survivorship whole life insurance policy that covers two people under one policy and pays a death benefit when the second person dies. This policy can help you reduce estate taxes, preserve your legacy, or support charitable causes. You can also access your cash value through dividends, loans, or withdrawals.
• Accumulation Builder Flex Indexed Universal Life: This is an indexed universal life insurance policy that offers a death benefit and a cash value component that is linked to the performance of one or more market indexes, such as the S&P 500 or the MSCI EAFE. You can choose from different index accounts that have different crediting methods, caps, floors, and participation rates. You can also access your cash value through loans or withdrawals. This policy also offers a bonus interest feature that adds extra interest to your cash value based on your policy performance and premium payments.

If you are interested in life insurance from Penn Mutual, you can contact a Penn Mutual adviser or use their online quote tool to get an estimate of your premium and coverage.

Protective: Best for Universal Life Insurance

Universal life insurance (UL) is a type of permanent life insurance that provides a death benefit and a cash value component that earns interest at a rate set by the insurance company. The interest rate may vary depending on the market conditions and the performance of the insurance company. You can adjust the amount and frequency of your premium payments and change the amount of your death benefit within certain limits.

Universal life insurance can offer several benefits, such as:

• Permanent coverage: You can keep your policy in force for as long as you live, as long as you pay enough premiums to cover the cost of insurance and other fees. You can also choose a guaranteed universal life insurance policy that offers a guaranteed death benefit for a fixed premium payment.
• Cash value accumulation: You can build cash value over time that grows tax-deferred at a competitive interest rate. You can also access your cash value through loans or withdrawals for any purpose, such as paying for education expenses, retirement income, or emergencies. However, keep in mind that loans and withdrawals will reduce your cash value and death benefit and may incur taxes and fees.
• Premium flexibility: You can adjust your premium payments according to your financial situation and preferences. You can pay more than the minimum required amount to increase your cash value and reduce your future premiums. You can also pay less than the minimum required amount or skip payments as long as you have enough cash value to cover the cost of insurance and other fees.

Universal life insurance also involves some drawbacks, such as:

• Interest rate risk: Your cash value is subject to interest rate fluctuations and may earn less than expected if the interest rate falls below a certain level. You may also face higher premiums or lower death benefits if the interest rate is not enough to cover the cost of insurance and other fees.
• Policy lapse risk: Your policy may lapse if your cash value becomes insufficient to cover the cost of insurance and other fees. This may happen if you skip or reduce your premium payments or if the interest rate falls below a certain level. If your policy lapses, you will lose your coverage and may face tax consequences.
• Complexity: Universal life insurance is a complex product that requires careful planning and management. You need to understand how the policy works, how it fits into your overall financial plan, and how it may affect your tax situation. You also need to review your policy regularly and make adjustments as needed.

If you are looking for a permanent and flexible type of life insurance, you may want to consider universal life insurance from Protective.

Protective is one of the leading providers of universal life insurance in the U.S., with over $1 trillion of life insurance in force as of December 31, 2020. Protective has been in business since 1907 and has a strong reputation for financial strength, product leadership, pricing competitiveness, and customer service quality. Protective has an A+ (Superior) rating from A.M. Best, an AA- (Very Strong) rating from Fitch Ratings, an A1 (Good) rating from Moody’s Investors Service, and an A+ (Strong) rating from Standard & Poor’s.

Protective offers a wide range of universal life insurance products and features, such as:

• Classic Choice Term UL: This is a term universal life insurance policy that offers level premiums and a guaranteed death benefit for a specified period of time, such as 10, 15, 20, 25, or 30 years. You can also convert this policy to a permanent universal life insurance policy without evidence of insurability before the end of the term or age 70, whichever comes first.
• Custom Choice UL: This is a universal life insurance policy that offers level premiums and a guaranteed death benefit for a specified period of time, such as 10, 15, 20, 25, or 30 years. After the initial period, you can choose to continue paying the same premium amount for a reduced death benefit or increase your premium amount to maintain the same death benefit.
• Advantage Choice UL II: This is a universal life insurance policy that offers level premiums and a guaranteed death benefit for life. You can also access your cash value through loans or withdrawals. This policy also offers an accelerated death benefit rider that allows you to receive a portion of your death benefit if you are diagnosed with a terminal illness.

If you are interested in universal life insurance from Protective, you can contact a Protective agent or use their online quote tool to get an estimate of your premium and coverage.

AIG: Best for Recreational Marijuana Users

Recreational marijuana users face unique challenges and opportunities when buying life insurance. Some of the challenges include:

• Legal status: Recreational marijuana use is still illegal at the federal level and in some states. This may affect your eligibility for life insurance or increase your premium rates. You may also face legal consequences if you travel to a state or country where recreational marijuana use is prohibited.
• Health implications: Recreational marijuana use may have positive or negative effects on your health, depending on the frequency, quantity, and method of consumption. It may also interact with other medications or substances that you use. This may affect your eligibility for life insurance or increase your premium rates.
• Underwriting criteria: Life insurance companies have different underwriting criteria and guidelines for recreational marijuana users. Some companies may consider you as a smoker, which can result in higher premium rates. Some companies may require you to undergo a medical exam or a urine test to detect the presence of THC, the psychoactive component of marijuana. Some companies may also limit the amount of coverage or the type of policy that you can buy.

Some of the opportunities include:

• Progressive approach: Some life insurance companies have a more progressive and lenient approach to recreational marijuana users. They may not consider you as a smoker, which can result in lower premium rates. They may not require you to undergo a medical exam or a urine test, which can save you time and hassle. They may also offer you more coverage options and policy features.
• Competitive rates: Some life insurance companies offer competitive rates to recreational marijuana users, especially if they use marijuana infrequently or moderately. They may also offer discounts or incentives for healthy lifestyle choices, such as exercising regularly, maintaining a healthy weight, or quitting smoking.
• Financial protection: Recreational marijuana users can benefit from the financial protection and peace of mind that life insurance can provide. Life insurance can help you cover your final expenses, replace your income, pay off your debts, or leave a legacy for your loved ones.

If you are a recreational marijuana user who wants to buy life insurance, you may want to consider AIG.

AIG is one of the largest and most diversified life insurance companies in the world, with over $1.2 trillion of life insurance in force as of December 31, 2020. AIG has been in business since 1919 and has a strong reputation for financial strength, product innovation, and customer service. AIG has an A (Excellent) rating from A.M. Best, an A2 (Good) rating from Moody’s Investors Service, and an A (Strong) rating from Standard & Poor’s.

AIG has a progressive and flexible approach to recreational marijuana users who want to buy life insurance, such as:

• Non-smoker rates: AIG does not consider recreational marijuana users as smokers, as long as they use marijuana no more than four times per week. This can result in lower premium rates than smokers.
• No medical exam: AIG does not require recreational marijuana users to undergo a medical exam or a urine test, as long as they are otherwise healthy and qualify for their simplified issue products. This can save you time and hassle.
• Coverage options: AIG offers a wide range of life insurance products and features that are suitable for recreational marijuana users, such as term, whole, guaranteed universal, indexed universal, and variable universal life insurance. You can also add riders and benefits to enhance your policy, such as an accelerated death benefit rider, a chronic illness rider, or a critical illness rider.

If you are interested in life insurance from AIG, you can contact an AIG agent or use their online quote tool to get an estimate of your premium and coverage.

Mutual of Omaha: Best for Gen X & Millennials

Gen X & Millennials face unique challenges and opportunities when buying life insurance. Some of the challenges include:

• Lifestyle preferences: Gen X & Millennials have different lifestyle preferences than older generations, such as traveling more, starting families later, pursuing higher education, switching careers, etc. This may affect their income stability, financial goals, family needs, etc.
• Financial goals: Gen X & Millennials have different financial goals than older generations, such as paying off student loans, saving for retirement, buying a home, starting a business, etc. This may affect their budget, risk tolerance, investment strategy, etc.
• Family needs: Gen X & Millennials have different family needs than older generations, such as supporting aging parents, raising children with special needs, co-parenting with ex-partners, etc. This may affect their dependents, beneficiaries, estate planning, etc.

Some of the opportunities include:

• Brand recognition: Gen X & Millennials are more likely to recognize and trust well-known and reputable brands than unknown or new brands. They are also more likely to research and compare different brands online before making a purchase decision.

• Product innovation: Gen X & Millennials are more likely to appreciate and adopt innovative and convenient products than traditional and complex products. They are also more likely to use digital and mobile platforms to access and manage their products.
• Digital experience: Gen X & Millennials are more likely to value and expect a seamless and user-friendly digital experience than a cumbersome and outdated one. They are also more likely to communicate and interact with their providers online than offline.

If you are a Gen X or Millennial who wants to buy life insurance, you may want to consider Mutual of Omaha.

Mutual of Omaha is one of the most recognized and respected life insurance companies in the U.S., with over $48 billion in assets under management as of December 31, 2020. Mutual of Omaha has been in business since 1909 and has a strong reputation for financial strength, product innovation, and customer service. Mutual of Omaha has an A+ (Superior) rating from A.M. Best, an A1 (Good) rating from Moody’s Investors Service, and an A+ (Strong) rating from Standard & Poor’s.

Mutual of Omaha offers a wide range of life insurance products and features that are suitable for Gen X & Millennials, such as:

• Term Life Answers: This is a term life insurance policy that offers level premiums and a guaranteed death benefit for a specified period of time, such as 10, 15, 20, or 30 years. You can also convert this policy to a permanent life insurance policy without evidence of insurability before the end of the term or age 70, whichever comes first. You can also add riders and benefits to enhance your policy, such as an accelerated death benefit rider, a disability waiver of premium rider, or a children’s term rider.
• Income Advantage IUL: This is an indexed universal life insurance policy that offers a death benefit and a cash value component that is linked to the performance of one or more market indexes, such as the S&P 500 or the MSCI EAFE. You can choose from different index accounts that have different crediting methods, caps, floors, and participation rates. You can also access your cash value through loans or withdrawals. This policy also offers an income advantage feature that allows you to receive a portion of your death benefit as an income stream during your lifetime.
• Guaranteed Plus Whole Life Insurance with Long-Term Care Rider: This is a whole life insurance policy that offers level premiums, a guaranteed death benefit, and a guaranteed cash value component that grows at a fixed interest rate. You can also access your cash value through loans or withdrawals. This policy also includes a long-term care rider that allows you to use your death benefit to pay for long-term care expenses, such as nursing home care, assisted living facility care, or home health care.

If you are interested in life insurance from Mutual of Omaha, you can contact a Mutual of Omaha agent or use their online quote tool to get an estimate of your premium and coverage.

Conclusion

Life insurance is an important financial tool that can provide financial protection and peace of mind for you and your loved ones. However, choosing the best life insurance company for your needs can be challenging, as there are many factors to consider and many options to compare.

We have provided you with a list of the top 5 life insurance companies in 2023 based on expert ratings and customer reviews. We have also highlighted the strengths and achievements of each company in different categories of life insurance, such as variable universal life insurance, senior life insurance, universal life insurance, recreational marijuana user life insurance, and Gen X & Millennial life insurance.

We hope this article has helped you narrow down your choices and find the best life insurance company for your needs. However, we encourage you to do your own research and compare different life insurance companies and products before making a final decision. You can use online tools like Policygenius or Forbes Advisor to get quotes from multiple companies and compare their features, benefits, prices, and ratings.

Remember, the best life insurance company for you is the one that meets your needs, goals, budget, and preferences. So don’t delay and get started today!