Do you want to know which are the 5 best life insurance in the United States? Then this article will interest you. First of all, life insurance is an insurance policy that can be temporary or permanent and provides benefits to the insured’s family in the event of death. So as long as you pay the premium (annual fee), you can get cash value and even qualify for dividends in some companies (in life). Remember, in this portal, we make the life insurance purchase process faster and easier. So read on to learn about the best insurance companies in 2020 and their respective life insurance policies.
Life insurance is an insurance policy that protects you in the event of the death of your family. On the other hand, these policies provide options to generate cash value (money accrued from interest); a very useful tool that people often use as financial aid to support their family or provide education for their children. Currently, there are several types of life insurance policies, and the choice of each type will depend entirely on your needs and the level of protection you can afford.
Why Should You Get Life Insurance in the USA?
Today, life insurance is considered one of the most useful policies to protect your family, at least in the event of sudden death or illness. On the other hand, providing financial resources to the members of the insured’s family to guarantee a stable standard of living will help to avoid future financial difficulties. On the other hand, there are many reasons why you should buy life insurance, including:
- Save money by accumulating cash values.
- Guarantee special coverage for children and the possibility of obtaining exclusive savings for them and their future education.
- Life insurance can be used as collateral for your mortgage.
- If you are looking to do estate planning or need a tax shelter.
- Life insurance provides security in many of these situations.
Types of Life Coverages in the U.S.A.
Before understanding the 5 best types of life insurance in the United States, it is necessary to better understand what types of life insurance exist and what are the differences between them. First of all, you should know that there are two main types of life insurance: regular and perpetual. On the other hand, permanent life insurance, as we know it, is also sometimes called “whole life insurance or whole life insurance”; This insurance is divided into traditional comprehensive life insurance, universal life insurance, variable universal life insurance, variable universal life insurance and other subcategories.
Important note: Insurance policies that cover individual life insurance are often different from life insurance policies issued specifically for family groups. Therefore, the following information focuses on life insurance sold to specific people.
Term or Term Life Insurance
This is the cheapest and simplest policy that we can find in life insurance. Its operation is quite simple, the insurance only pays when the death occurs during the period of validity of the policy, generally from 1 to 30 years. It is worth mentioning that most term insurance policies do not have exclusive benefits.
“Full” or “Whole Life” Permanent Life Policy
Full or permanent life insurance is a complete policy where you will obtain various benefits in life such as the accumulation of cash values and the possibility of requesting loans when you need them. Also, with this policy your family members will be able to collect compensation when your death occurs, either unexpectedly or due to a terminal or chronic illness. Currently, there are three main types of permanent life insurance which are:
- Traditional permanent policy
- Universal life insurance
- Variable universal life policy
The cost of life insurance depends on the type of insurance you choose. In other words, permanent life insurance is often the most expensive insurance because users pay premiums for death compensation and, at the same time, contribute to increasing the cash value of their insurance policies. However, each specific situation may be different, be sure to consult your financial advisor at any time.
There are some important considerations regarding the final cost of American life insurance, such as:
- Starting at age 30, the average American citizen pays $ 100 a month for $ 100,000 of permanent life coverage.
- People who buy additional policies after age 50 tend to pay higher premiums.
- On the other hand, your health status and the type of plan offered by the issuing company, as well as the cash value options and riders, will affect the final price of your life policy.
Here are some referential data on the value of premiums in the USA based on your age and the coverage you choose when looking for permanent life insurance:
|Insured’s age||Minimal coverage ($100,000)j||Medium protection (250,000)||Comprehensive coverage ($500,000)|
Is It Worth Acquiring Life Insurance in the U.S.A.?
Life insurance is always the right decision when it comes to protecting your family and ensuring your financial stability. Of course, there are different types of life insurance that can increase or decrease specific benefits depending on the situation. However, you should have a backup to ensure that those around you are comfortable in the event of sudden death or illness. Similarly, most users who purchase life insurance policies enjoy other life benefits, such as cash value savings. Remember, these savings can be used when you need them, so when you face financial difficulties, they usually help a lot.
The 5 Best Life Insurance 2021 in the USA
In this statistic, we show you the 5 best companies that sell life insurance in the United States. It is worth mentioning that this choice is made possible by thousands of user reviews on portals such as NerdWallet, TrustPilot and Consumer Affairs.
|Northwestern Mutual||Receive dividend benefits||4.5/5|
|State Farm||Combine different life policies||4.9/5|
|New York Life||General benefits||5/5|
|Mass Mutual||Receive cash values (interest payment)||5/5|
|Guardian Life||Estate and inheritance planning||5/5|
Important: Please note that not all life insurance companies are currently accepting insurance applications due to the COVID-19 pandemic. Therefore, it is always important to check the current status of the issuer of your choice.
Best Life Insurance 2020 To Get Dividend In U.S .: Northwestern Mutual
Northwestern Mutual is currently the largest individual life insurance company in the United States. First, all owners of the issuer’s personal insurance policy can receive dividends that are added to the original value and the total value of the policy. Among the main characteristics of this company, we can find:
- His complaint and claim history is low.
- The company is the winner of the “Best Customer Satisfaction” award given by JD Power in 2019.
- Northwestern Mutual’s financial strength is A + (Superior) and was awarded by AM Best.
- You have an exclusive combined policy that covers term life insurance with permanent life insurance.
On the other hand, the life insurance that this company issues is single until age 80, all this depends on the plan you choose. In addition, it also offers payment options from 65 to 90 years old.
It is estimated that by 2020, Northwestern Mutual will pay a total of $ 6 billion in dividends to all of its beneficiaries. In this way, it outperforms all competitors in America, at least in this particular category. In addition, when the beneficiary receives his dividend, he can use it in 4 different ways:
- Buy additional coverage for your life insurance, in this way you can increase your benefits in case of death.
- You can use dividends to cover your premium payments.
- Accumulate interest by adding it to the cash value of your policy.
- Request to receive your dividends in cash to spend or invest as you prefer.
2021 Best Life Insurance to Combine Additional Policies in the U.S.: State Farm
State Farm is known for offering life insurance with a payment term of between 10.15 and 20 years. On the other hand, the age range for the issuance of the insurance varies from 0 to 85 years, depending on the plan. On the other hand, this company also has a single premium life insurance policy service that allows you to pay for the policy in one go. Likewise, all insurance offered by the company can choose to build cash value.
State Farm provides services through local agents. Due to the wide range of products it offers, the insurance company will provide special discounts when you purchase auto, family and life insurance policies at the same time. On the other hand, they have several additional insurances, such as:
- Disability premium exemption.
- Additional clauses for accidental death.
- Additional coverage for children and spouses.
- Additional policies to purchase term life insurance without conducting a prior medical examination.
|Years of beneficiary||Term Life Insurance (Men)||Term Life Coverage (Women)||Permanent Life Insurance (Men)||Permanent Life Coverage (Women)|
|25 years||$ 20 / month and $ 240 / year||$ 17 / month and $ 195 / year||$ 217 / month and $ 2,489 / year||$ 190 / month and $ 2,211 / year|
|35 years||$ 23.10 / month and $ 257 / year||$ 28.01 / month and $ 322.01 / year||$ 297.03 / month and $ 3,413.01 / year||$ 260 / month and $ 2,985 / year|
|45 years||$ 40 / month and $ 460.02 / year||$ 31 / month and $ 350 / year||$ 450 / month and $ 5,177.01 / year||$ 366 / month and $ 4,202.03 / year|
Best Overall Life Policy 2020 in the US: New York Life
New York Life currently offers three different types of life insurance plans, including customizable plans. On the other hand, one of the main attractions of this company is that they can issue policies for people over 90 years of age. Similarly, all insurance policies offer horizontal premiums and some of these plans allow tax-free cash value. Also, like most insurance companies, once your cash value increases, you can borrow money from a life insurance policy.
Among the salient features that make this company one of the top 5 life insurance options in the US.
How Much Does a Life Insurance Cost with New York Life?
New York Life Insurance has a reputation known as ‘Best Overall Market Price’, this title was awarded by JD Power in early 2020. However, there is no way to get online quotes or sample pricing available ; because quotes are individualized and must only be obtained through a local agent .
Best Life Insurance 2020 to Get US Cash Values: Mass Mutual
MassMutual is an insurance company that offers guaranteed cash value, dividends, and guaranteed death compensation. Yes, in this company you will find exclusive advantages that make Mass Mutual the best option to generate cash value.
On the other hand, the company offers additional value-added terms, such as:
- Life insurance rider. (This policy allows you to use the dividends you earn to purchase the added protection of a perpetual life policy.)
- Additional death clauses. (Have exclusive life benefits).
- Long Term Care and Disability Waiver. (Life health insurance).
How Much Does a Life Policy Cost with Mass Mutual?
It is important to mention that the prices of life policies granted by Mass Mutual are not available online. Therefore, if you want to get a quote, you must speak with an agent in person. Currently, this company is ranked 13th out of the 25 insurers with the best value for money according to JDPower.
Best Life Coverage 2020 for Estate Planning in the US: Guardian Life
Guardian Life is one of the oldest life insurance companies in the country, founded in 1860.
Some notable features of this company are:
- Guardian Life’s financial strength rating is A ++ (advanced); a score awarded by AM Best.
- The policy issue age starts at zero and ends at 90 years.
- The perpetual policy provides insurance for 95.99 and 121 year olds.
- Also, if you are a smoker or have medical problems, this insurance company is also a good option.
- This company offers insurance for people living with HIV.
How Much Does Life Insurance Cost With Guardian Life?
Although, Guardian Life does not offer online quotes for permanent life insurance, we can quote a permanent life policy through a hypothetical example. It is important to mention that the rates shown below refer to a woman who smokes and has a state of health considered “good”. Finally, the coverage chosen was $ 500,000.
|Years||Cost / month|
Temporary Life Policy Prices (Smokers vs Non-smokers)
First, the sample prices for term life insurance were established for men and women aged 25, 35, and 45 who smoke vs. nonsmokers. On the other hand, the coverage chosen was $ 250,000 over a 20-year term. It is important to remember that this company does not offer online quotes; therefore, what we show you below is a hypothesis based on the results obtained on the official Guardian website.
|Years||Smoker man||Non-smoker man||Smoking woman||NON-smoking woman|
|25 years||$ 53 / month||$ 24 / month||$ 41||$ 21|
|35 years||$ 67 / month||$ 26 / month||$ 60 / month||$ 24 / month|
|45 years||$ 163 / month||$ 52 / month||$ 121 / month||$ 41 / month|