The largest life insurance companies and how they rank in customer satisfaction
Customer satisfaction shouldn't be a concern while grieving, so pay attention to how your provider ranks.
The cost of life insurance varies depending on term life and perm life and coverage amounts.
See Insider's guide to the best life insurance companies.
There are many life insurance companies to choose from, but there are 25 companies that insure most Americans. We compared how they rank against each other based on market share and customer satisfaction.
The 25 largest life insurance companies
The following are the largest life insurance companies in America, based on the percentage of insured Americans who use them:
Data from S&P Global Market Intelligence
Top life insurance companies based on customer satisfaction
After suffering the loss of a loved one, the last thing you need is an unresponsive insurance company adding to the grieving process. According to J.D. Power, these are the top ranked life insurance companies based on communication, interaction, price, product offerings, and statements:
Finding the best life insurance company for you
Your life insurance needs change as you age, and you'll need to consider children, marriage, divorce, retirement, and caring for aging parents. It's important to understand the difference between term life and permanent life insurance and their different products. Depending on where you are in your life, one product might be better than the other.
Term life insurance is like renting, when that lease (term) is over you can renew — but most likely with an increase. Term insurance lasts for a specified period, and when it's up you can reapply for coverage, but the premiums most likely will go up as you age and your health deteriorates. Term life insurance is best suited for those who want to protect their family, since it's more affordable.
Permanent life insurance lasts your lifetime, has a death benefit for your beneficiaries, and a cash value that you can use during your lifetime. It's like owning a home, where you gain equity that can be used as collateral — and your home can be left to your heirs leaving a legacy. This is why permanent life insurance is considerably more expensive than term life insurance.
Financial advisors generally suggest a combination of permanent and term life insurance. For example, if you have $200,000 in permanent life and $300,000 in term for 20 years, at the end of 20 years the term life insurance policy goes away but you still have your $200,000 permanent policy that has earned cash value.
If you are on a fixed income with limited means, final expense insurance could be best for you. If you have health issues that may prevent you for traditional coverage, you may want to consider no medical examination life insurance. If you want coverage for your dependents in the event of your untimely death, then a term life policy works. If you are looking to build wealth and leave a legacy, a permanent life insurance policy is best.
Consider consulting a financial advisor, estates attorney, and accountant to ensure you have the proper coverage for your goals and life changes.
Life insurance premiums are based on your health risk
The underwriting process is how the insurance company determines your insurability — how much of a risk you are and how much to lend you. During the underwriting process, the insurance company collects information about your health (medical history), job, income, finances, and other personal information.
Traditional life insurance policies require a medical exam, which includes a blood test and urine sample, as part of the underwriting process. If a disease is discovered during the exam process, it may make it more difficult to get coverage because the results may disqualify you for life insurance in the future.
Based on your medical exam, you are assigned a risk assessment category. Once your risk is assessed, your premiums are calculated based on your risk and you are issued a policy. People with certain pre-existing health conditions may be ineligible for traditional life insurance — they should consider no medical exam life insurance.
Average life insurance cost by age:
Life insurance changes depending on your age. Most companies do not list prices for permanent life insurance, so we've included the average cost of term life insurance. The price you'll pay each month for coverage generally increases as you age and your health decreases. Insider obtained quotes from four large insurance companies for people seeking $250,000 worth of term life coverage for a 30-year term, both in excellent health.
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