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While most people don't want to think about their loved one's final hours, death is inevitable. That said, the conversation around death is often taboo, much to our detriment. We avoid discussing funeral plans, passing things along, and life insurance.
Best Life Insurance for Families
- State Farm Life Insurance: Best in Customer Service
- AIG Life Insurance: Best for Pregnant Individuals
- Protective Life: Best for Child Riders
- USAA Life Insurance: Best for Military Families
- Mass Mutual Life Insurance: Best for Low-Income Families
- Banner Life: Best for Affordability
- Northwestern Mutual Life: Best For Whole Life Policies
- Prudential Life Insurance: Best For Universal Survivorship Policies
Life insurance is a crucial part of any financial conversation, even for those who are hesitant to discuss death. More than ever before, life insurance is for the living. Life insurance is an excellent tool to have at your disposal to pay for final expenses and replace lost income. However, it's not just about death.
You can also use your policy as an investment vehicle. Many of the top companies and policies have options to take loans or early withdrawals from your policy. As long as you follow specific rules about the amount, you can enjoy tax breaks along the way.
Finding life insurance is a complex process. Fortunately, we've rounded up the best life insurance for families.
Compare Family Life Insurance Companies
Methodology: How We Chose the Best Family Life Insurance Companies
We choose the best family life insurance based on a company's customer satisfaction points, financial stability ratings, affordability, company offerings, and exclusions.
To compare the quality of a company's customer service, we used JD Power's life insurance customer satisfaction survey. 5,000 participants submitted their experiences with different companies, and this data was compiled into an average score for each company. The industry average is 774 points out of 1,000, meaning companies scoring above deliver better customer service than its competitors.
Financial strength determines a company's ability to pay claims and meet other financial obligations. To evaluate an insurance company's financial health, we sourced data from AM Best, an industry-leading credit rating agency. A company with an A++ to B+ is considered stable and likely to withstand economic downturns. On the other hand, anything lower than a B means a company is unstable or unable to meet its financial obligations.
To compare company offerings, we look at several aspects of a policy, including but not limited to riders, policy flexibility, no medical exam life insurance options, and instant approvals. We also look at agent training. For instance, some life insurance companies train agents to sell term life policies with the idea that it's cheaper or you can convert later. Others provide a full range of life insurance products, and agents can walk customers through every step of the shopping experience with extensive knowledge.
Factors like age, health, and lifestyle will influence your premiums. So the average life insurance premiums will vary based on your risk class. However, we do our best to compare policy rates from the same demographic profile to determine which plans offer the most competitive price.
How to Pick The Best Family Life Insurance Policy for You
No one wants to think of death when it comes to their family. However, it is vital to prepare for the inevitable, including death, retirement, illness, and more pleasant things like college costs. Therefore, buyers should consider a few factors when shopping for life insurance.
- Budget: The average term life insurance policy is between $40 and $55. You can snag a cheaper rate, but keep in mind inexpensive doesn't equal quality. Additionally, permanent life insurance policies tend to hover on the expensive end of the pricing spectrum. If you're older or have preexisting conditions, expect higher premiums than the industry average.
- Occupation and lifestyle: Do you have a risky hobby like skydiving or a dangerous job like mining? Unfortunately, you may have to shell over more coverage. However, you can get the best rate by shopping for high-quality providers.
- Health: Healthy individuals typically have no issue purchasing a life insurance policy. However, providers consider smokers and applicants with certain preexisting medical conditions higher in the risk class, therefore, more costly to insure. Some health conditions may preclude you from life insurance in general. We look at diverse options to ensure readers have essential resources to make informed decisions.
- Length and coverage amount: Think about your long-term financial plans and how life insurance may help you optimize your goals. If you're looking to maximize your term life insurance policy, some companies will insure you for over 40 years with over $1 million in coverage. Alternatively, for the best prices in the long term and wealth-building opportunities, it's often better to apply for whole-life policies at a younger age.
- Age: Age is a significant factor in underwriting life insurance policies, primarily because age-related conditions constitute a higher risk. Younger policyholders tend to get better rates. If you're a shopper over 60 years old, look into companies serving senior clients at a lower price with benefits to meet your needs, like AARP or Prudential.
- Company trustworthiness: Death is a stressful event for anyone. So you want to work with a reliable company offering good customer service to make the process easier. To evaluate the financial health and a company's track record for quality customer service, we suggest reviewing a company's AM Best and JD Power's customer satisfaction life insurance score to determine a company's trustworthiness.
Family Life Insurance FAQs
Yes, you can buy life insurance for your whole family. Different options are available to cover your entire family, depending on your chosen insurance company. For example, you can opt for a child rider to cover your dependents and buy a survivorship policy to protect you and your spouse. Alternatively, you can purchase individual policies, but most insurance companies have an age limit minimum, meaning your child can't own a policy until adulthood. Typically, child riders can be converted to individual policies once the child reaches a certain age.
Consider purchasing at least 10 to 20 times your household income in coverage. Licensed life insurance agents can also run estimates for you. Most importantly, don't jump to conclusions about the price of specific policies. If you're looking at a $1 million policy, you don't necessarily have to pay $1 million. Pricing for comprehensive policies is often surprisingly affordable, especially if you buy while young.
The best life insurance for families depends on your unique circumstances and household budget. If you have a spouse, consider purchasing a survivorship policy to take advantage of the tax-advantaged, wealth-building benefits. In addition, you may choose a company offering the best child riders or child life insurance if you have children.
One of the most critical misconceptions revolves around parents. The connection to financial well-being is evident if you're a working parent. However, the cost to replace a stay-at-home parent's contributions is not always so easy to see. Unfortunately, families feel this impact every day. However, the stress reduction will be incredible if you have life insurance to help your family transition.
Companies like Columbus have second-to-die policies. In short, you can buy a larger policy for one premium with your significant other. It may have early payout options for illness, and it pays out once the second person dies.
Family Life Insurance Companies
State Farm Life Insurance for Families
We are kicking off our list with our top pick based on JD Power's customer service rankings: State Farm. State Farm offers family life insurance to protect all members of your immediate family under one policy. The provider is also known for its top-rated customer service and high financial strength ratings. In addition, it continues to create great user experiences.
State Farm sells term, whole, and universal policies at up to $10 million in coverage. To obtain the family insurance bundle, you must purchase State Farm's Select Term or Whole Life plan. You can add a term rider and children's rider to cover the rest of your family.
State Farm's term rider provides additional coverage for you or another person on a select term or whole-life policy. With this rider, premiums remain level for 10 to 30 years, depending on your policy's term length. Additionally, this rider allows you to convert your term policy to a permanent policy if needed. State Farm's child rider provides up to $20,000 in death benefits per child. You'll only need to purchase the rider once to cover all current and future children. Your child qualifies for coverage from 15 days old to 25 years old when you can terminate the rider. Then your child can convert to permanent coverage.
AIG Life Insurance for Families
If you're pregnant, you may find it challenging, if not impossible, to find insurance past a certain point of your pregnancy. Fortunately, Corebridge Financial, formerly the American International Group (AIG), is friendly to expectant parents. While most providers will postpone your application if you're past the first trimester, AIG Corebridge offers coverage at any stage of your pregnancy, given that you're healthy.
Additionally, the insurance company provides a built-in terminal illness rider for all its policies. So, if you become terminally ill, you won't have to rely on your family to shoulder the hefty medical bills. Instead, you can draw from your death benefit to cover the expenses. AIG Financial also offers a child rider for up to $25,000 coverage per child.
Protective Life Insurance for Families
A child rider pays out a death benefit, usually for funeral expenses, if your child passes away. You can often add this rider to your policy regardless of your child's health status. If you're looking for an insurance company that offers the best deal for child riders, then Protective may be your winner.
With Protective Life, you get a maximum of $25,000 in coverage per child for all future and current children. When your child turns 25, they can convert the rider to a permanent policy for five times the rider's face value.
To apply for an individual Protective policy, you must be between the ages of 18 to 64. In addition, if you opt to supplement your policy with a child rider, your child must be no fewer than 15 days old and no older than 18 years old.
USAA Life Insurance for Families
USAA's insurance policies and financial services were designed with military members, reserve members, veterans, and their families in mind. However, USAA offers its life insurance policies to the general public. Unsurprisingly, rates are highly competitive. However, the value and diversity of plans are limited compared to other companies. The exception to this is for active military members who may not find coverage elsewhere.
If you're between 18 and 35, you may qualify for coverage. If you purchase a term life insurance policy, qualified applicants can renew their coverage until 95. However, like many insurance policies, you may see higher rates, lower death benefits, and renewed waiting periods at each renewal. More importantly, life insurance companies do not guarantee renewal unless you buy an extra rider with participating life insurers. Even then, the rates and coverage amount are not guaranteed.
Your USAA insurance policy includes the Military Severe Injury Benefit rider and Life Event Option rider at no additional cost. The Military Severe Injury Benefit rider qualifies you for up to $25,000 in reimbursement if you are injured while performing military duties. The Life Event Option rider is the equivalent of a guaranteed insurability rider, which many providers charge a fee to include. This rider guarantees up to $100,000 in coverage for qualifying events like getting married or having a child.
One thing to note is many active duty military members, especially if deployed, won't qualify for life insurance with other providers. So, USAA may be the only option for active servicemembers outside of SGLI (a group life policy for those in the military), which you lose after military retirement.
MassMutual Life Insurance for Families
Filling a unique role, MassMutual's LifeBridge program offers $50,000 in free coverage for legal guardians and parents. The policy has no early withdrawal, investment options, etc. Instead, should you pass unexpectedly, the money would go into a trust for your children's education expenses.
Applicants must be in good health between 19 and 42 years old. Both parents and legal guardians are eligible for coverage. Dependents under this plan must be 19 or younger. Household income is also capped at $40,000, but qualifying policyholders must earn at least $10,000 annually.
Banner Life Insurance for Families
Banner Life is our top pick for affordability because it offers the best bang for your buck. The provider has excellent financial health marks and provides a best-in-class no-medical exam option. In addition, applicants between 20 and 75 years old may apply for life insurance with no cap on coverage for up to 40 term years.
Underwriting at Banner Life is lenient to those with disabilities, mental health issues, and high blood pressure. However, if you have severe health complications like HIV and cancer, you may not qualify for coverage. Above all else, Banner aims to provide affordable options for many insureds. If you're looking for HIV-specific policies, companies like Guardian are increasingly progressive, but restrictions will still apply.
Banner Life is known to have some of the most competitive rates across all age and health classifications, as shown below:
Profile | Banner Life Average Premium | Industry Average |
25F | $19.37 | $21.08 |
25M | $24.42 | $26.90 |
35F | $23.04 | $25.58 |
35M | $26.80 | $30.34 |
45F | $43.75 | $47.86 |
45M | $55.72 | $60.76 |
Northwestern Mutual Life Insurance for Families
If you're looking for a comprehensive whole life policy to protect your family, look no further than Northwestern Mutual. The insurance company is recognized for its customer satisfaction and high marks in financial stability.
Northwestern Mutual's Whole Life Plus policy is highly customizable. You can pay more or less on your policy, depending on when you'd like to have your policy funded and stop paying premiums. You can also supplement your whole life insurance plan with a term life policy for more death benefits at a better rate.
Northwestern Mutual doesn't offer a child rider. However, unlike many major insurance providers, your child can qualify for a whole-life policy as the company doesn't have a minimum age requirement. Therefore, your child can start taking advantage of the lucrative cash value component and grow with their policy as they age. Once your child reaches working age, they can explore options for more coverage with Northwestern Mutual or other companies. However, a child policy gives them a headstart.
Prudential Life Insurance for Families
Prudential is a reputable company offering an affordable second-to-die or survivorship policy. A survivorship policy covers two people on a single, which is typically more affordable than buying two separate permanent policies.
It applies age and other restrictions to the second insured. However, policy payments can continue as long as the second party is alive. Any early withdrawal options also apply during both insured buyers' lifetimes. The idea is to maximize your benefits over time.
Prudential's joint life insurance comes with a no-lapse guarantee, meaning your policy will remain in force for a set number of years even if your cash value drops to zero as long as you pay your premiums.
You may even get approved for this policy if your partner doesn't qualify for an individual policy. Its universal policies track the S&P 500. So you can gain substantial cash value growth to meet your long-term wealth-building and retirement goals.
Family Life Insurance Companies Ranked by Customer Satisfaction
JD Power's latest life insurance study ranked major insurance providers based on the customer service provided. Here's how each company compares.
Company | JD Power Rankings (Max 1,000 points) |
State Farm | 822 |
Nationwide | 813 |
Northwestern Mutual | 807 |
Pacific Life | 801 |
Mutual of Omaha | 795 |
Globe Life | 788 |
MassMutual | 782 |
John Hancock | 781 |
New York Life | 777 |
Principal Financial | 776 |
Guardian Life | 775 |
Lincoln Financial Group | 773 |
Securian | 769 |
MetLife | 756 |
Prudential | 753 |
Protective Life | 752 |
Equitable | 749 |
Primerica | 747 |
Transamerica (AEGON) | 747 |
AIG | 729 |
Brighthouse Financial | 714 |
Additionally, this is how our top picks ranked with AM Best.
AM Best | |
State Farm | A++ |
AIG Corebridge | A |
Protective | A+ |
USAA | A++ |
MassMutual | A++ |
Banner Life | A+ |
Northwestern Mutual | A++ |
Prudential | A+ |
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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