The best whole life insurance companies

The top whole life insurance companies for financial strength, cost-competitiveness and more

Looking for something specific? Each life insurance company has its own strengths and weaknesses. To help find a whole life insurance company that caters to your specific needs, our editorial team looked at Veralytic data and rated life insurance companies in different categories.

Best whole life insurance companies for financial strength

The financial strength of your life insurance company is an important indicator of whether you can trust them to maintain your own family’s financial strength. Six of the eight insurers we ranked received a 5-star rating and have an excellent financial standing. 

Best whole life insurance companies for cost-competitiveness

No one wants to overpay for financial protection. Finding an insurer that falls within your budget is pivotal to preventing a policy lapse down the line. State Farm came out on top for cost-competitiveness with a 4-star rating. 

Best whole life insurance companies for pricing stability

Pricing stability is an important factor to consider when purchasing a policy. Northwestern Mutual topped the list of insurers for pricing stability, receiving a 5-star rating. National Life and State Farm were next, tied with 4.5 stars.

Best whole life insurance companies for account access

If you’re purchasing a whole life insurance policy for the cash value, then you want access to be fairly simple and seamless. National Life, Northwestern, and State Farm tied for the top spot.

Best whole life insurance companies for historical performance

A policy with strong historical performance demonstrates how well your own policy’s cash value can grow, although it is not guaranteed. Penn Mutual comes in first for historical performance with a 5-star rating.

Who should get whole life insurance?

While a straightforward, term life insurance policy will suffice for most people, some people with unique financial planning needs may be better suited for a whole life insurance policy. 

Individuals who have both a longer‑term need for life insurance  — such as 15+ years — and are in a higher income-tax bracket may want to opt for whole life insurance, says Barry Flagg, founder of Veralytic. “Interest on taxable investments is taxed at up to 37% but dividends and interest credited to a whole life policy account are exempt from such taxes,” he says.

You should consider whole life insurance if: 

• You need to create an estate plan: Whole life insurance is useful for people with high-value estates who want to ensure their heirs receive an inheritance. If a whole life insurance policy is set up correctly, it can cover estate taxes, debts or other financial obligations.
• You’ve maxed out other investments: If you’ve maxed out other investment options, you can add the cash value of a whole life insurance policy to your nest egg. However, traditional investment options are typically more lucrative, so talk to your financial advisor. 
• You’re a business owner: Whole life insurance can protect business interests. It can help fund a buy-sell agreement, provide funds to cover business debts or taxes or ensure the smooth transfer of business ownership if you die.
• You have long-term dependents: Many people no longer need coverage after retirement. But if you have long-term dependents who will always rely on you, a permanent policy like whole life is better.

According to Siwei Gao, Ph.D., professor of insurance studies at Eastern Kentucky University, there are three additional factors to consider when determining if you should get term or whole life insurance: 

• The length of time protection is needed. If financial protection is only needed for a few years, then term life insurance is the best option.  
• Financial constraints. Term life insurance offers lower premiums, and sometimes the option to convert to whole life insurance, making it particularly attractive to young families with short-term financial constraints. 
• The type of financial product desired. Term life insurance is the “vanilla” type of life insurance that only protects against premature death, while whole life insurance has a cash value component that grows over the years. The insurance company can invest this cash value on behalf of the policyholder and provides various investment options tailored to the policyholder’s risk appetite. The policyholder can also borrow the cash value as a low-interest loan. 

How much are whole life insurance premiums?

The cost of whole life insurance premiums depends on multiple factors, including your age, gender, and the type of policy you buy. If you’re using whole life insurance as a part of your financial strategy, you’ll purchase a policy that is unique to your needs — meaning the premium will be unique to you, too. 

According to Flagg, premiums aren’t everything when it comes to a whole life insurance policy. 

“Unlike some other forms of insurance, a premium ‘quote’ for a whole life policy is not the cost in the same way that a contribution to your IRA is not the cost. The cost of either is instead the amount deducted from that contribution and premium. Also unlike other financial products, whole life policies do not disclose internal policy costs, which can vary by as much as 80%,” says Flagg.

“In other words, some policies over-charge by almost twice as much as other policies. When an insurer charges twice as much, you get half as much, sooner or later,” he says. “So, when shopping for whole life, ask how internal policy costs compare to industry average costs. [You want] a good answer — for example, that costs are 20%-40% lower than benchmarks for average costs.” 

However, we crunched some numbers to get a general sense of what you might pay. The average annual rates below are for 35-year-olds who are in excellent health and are paid up until age 100, for smokers and non-smokers. 

Again, keep in mind that whole life insurance rates will vary depending on your profile and what your financial needs are. Talk to an agent to get a precise quote.

How to shop for a whole life insurance policy

When shopping for a whole life insurance policy, there are a few pivotal steps to ensure you get the proper coverage.

1. Consult with a certified financial planner or estate planning attorney: To ensure a whole life insurance policy is incorporated into your financial or estate plan the way you intend, consult a professional. This ensures you don’t experience a policy lapse and your benefits are correctly dispersed or not seized during probate. 
2. Compare quotes from multiple insurers: Insurers price their policies differently, and one company may charge you significantly more than another. Comparing multiple quotes can help determine where to get the lowest rate. 
3. Compare illustrations from multiple insurers: If you’re using your whole life insurance policy as a part of your investment strategy, you should compare different illustrations to showcase how your policy is expected to perform over time, how much cash value growth you will see, and what dividends to expect. 

The best whole life insurance company for you will depend on your profile and financial needs. Our guide is a great place to start, but speaking to a financial expert will help you find the policy best suited for your individual circumstances.

How to get the best life insurance policy

The right life insurance policy for you may be different than the right one for your spouse or family member, because everyone’s life insurance needs and eligibility are different. Working with a licensed agent is the best way to find a policy that caters to your needs.

But to make the process a little easier, we’ve put together a list of the best life insurance companies so you can come to the conversation armed with the knowledge you need. And if you’d prefer to skip the medical exam, check out our list of the best online life insurance companies.