Best life insurance companies in Chicago, IL (2024)

We picked the best life insurance companies in Chicago that can meet your coverage needs at a rate that works for your budget.

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By

Brian ActonContributing WriterBrian Acton is a contributing writer at Policygenius, where he covers insurance and finance. His work has also appeared in The Wall Street Journal, TIME, USA Today, MarketWatch, Inc. Magazine, and HuffPost. 

Edited by

Julia KaganJulia KaganContributing EditorJulia Kagan is a contributing editor at Policygenius, where she specializes in life insurance. Previously, Julia was the senior personal finance editor at Investopedia for nearly a decade, a vice president and editorial director at Consumer Reports, the editor of Psychology Today, and the vice president of content at Zagat Surveys.
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Reviewed by

Ian Bloom, CFP®, RLP®Ian Bloom, CFP®, RLP®Certified Financial PlannerIan Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

Updated|4 min read

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Trying to identify the best life insurance company in Chicago can be a challenge when you have to consider your budget, your health and lifestyle, and other factors that will affect your policy. To make things easier, we compiled the best life insurance companies available in Chicago, along with the average cost of life insurance for city residents and the state regulations that protect policyholders.

Best life insurance companies in Chicago

Methodology

Why you can trust our picks

Our recommendations are based on internal and external expert analysis, as well as our Policygenius Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. When reviewing a life insurance company, our editorial team uses a proprietary scoring rubric with five factors — price, policy details, financial strength, transparency, and customer experience — to assign an unbiased rating between one and five stars. These ratings are also taken into consideration as part of our company recommendations. We don’t get paid for our reviews.

Our reviews and recommendations can help you find a reliable insurer for your family’s financial protection, but the best life insurance company for you depends on multiple factors. A licensed agent at Policygenius can support you during the application process to ensure you get the right coverage for your circumstances at the most competitive price.

Read more about our reviews methodology

Best overall life insurance

Legal & General America, which also does business as Banner Life and William Penn, tops our list for the best overall life insurance company in Chicago. With a variety of term lengths, competitive rates, and a fast no-medical-exam option, Legal & General America offers the best all-around coverage for the greatest number of applicants. Legal & General America also has high financial security and customer satisfaction, with a low NAIC complaint rating of 0.35, compared to the national average of 1.00. 

Cheapest life insurance

For Chicago residents, Legal & General America offers the most affordable life insurance rates in the Policygenius marketplace. A variety of applicants, including people with no health issues and people with multiple pre-existing conditions, can find the best rates with Legal & General America. 

Best term life insurance

Term life insurance covers the policyholder for a limited amount of time and expires when the term ends. It’s the most cost-effective type of policy for most people, and Legal & General America offers the most affordable term life policies with a variety of term lengths to choose from. 

Best whole life insurance

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2024 Policygenius award winner

MassMutual

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.9

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

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All 50 states

Why we chose itchevron icon

MassMutual’s whole life insurance plan provides a lifetime coverage option that builds cash value with the potential to earn dividends.

Pros and conschevron icon

Pros

  • Strong financial stability ratings

  • Higher potential for dividends for whole life policyholders than many competitors

  • Good customer satisfaction ratings

Cons

  • High term life premiums

  • Term life not available through Policygenius

Whole life insurance policies cover the policyholder for as long as they live, but policies cost five to 15 times as much as term life. They also offer a cash value component and even pay dividends to policyholders when the company performs well financially. MassMutual pays out higher dividends than other policies, making it the best whole life pick for Chicago residents. 

Best universal life insurance

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2024 Policygenius award winner

Pacific Life

Pacific Life logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.8

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

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$

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All 50 states

No-medical-exam option

Why we chose itchevron icon

Pacific Life offers some of the lowest rates for term life insurance across age brackets. It also has the most competitive rates for many health conditions and builds.

Pros and conschevron icon

Pros

  • Extremely affordable across age brackets

  • Affordable guaranteed universal life insurance option for people who need lifetime coverage

  • Favorable underwriting for many health conditions

Cons

  • Traditional term life not available in NY

  • There are better carriers for active duty military, people who have a history of alcohol abuse, and people who have been through bankruptcy

Chicago residents who need lifelong coverage that's more affordable than traditional whole life can find competitive rates on universal life insurance with Pacific Life. 

Best for seniors

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2024 Policygenius award winner

Prudential

Prudential logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starEmpty gray star

4.1

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

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$

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No-medical-exam option

Why we chose itchevron icon

With nearly four million policyholders and 150 years to its name, Prudential offers competitive coverage options for seniors, as well as people with some of the most common medical conditions, including asthma, depression, and fibromyalgia.

Pros and conschevron icon

Pros

  • Good for people over 60

  • More flexible income requirements than some other insurers

  • Considers applicants with a variety of immigration statuses (visas and green cards)

Cons

  • Younger applicants will likely find better prices elsewhere

Even when they have certain pre-existing conditions that are associated with old age, Chicago seniors age 60 and above can get affordable coverage with Prudential. 

Best for young adults

Young adults in Chicago can find some of the best rates with Legal & General America, plus a no-medical-exam option for certain applicants. 

Best for marijuana users

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2024 Policygenius award winner

Lincoln Financial

Lincoln Financial logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.8

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

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No-medical-exam option

Why we chose itchevron icon

Lincoln Financial offers a diverse array of life insurance policies, including competitive no-med and high-net-worth options.

Pros and conschevron icon

Pros

  • Affordable rates

  • Good for many existing health conditions, including depression, stroke, and heart conditions

  • Good for marijuana users, including daily users

Cons

  • Term life not available in New York

Lincoln Financial can offer non-smoker rates to Chicagoans who use marijuana. Non-smoker rates are 200% to 300% cheaper than the smoker rates that many insurance companies automatically assign to marijuana users. 

Best for smokers

Chicago residents who smoke can find some of the lowest smoker rates with Legal & General America, and policyholders who quit for one year can request lower premiums (many companies require two years or more).

Ready to shop for life insurance in California?

Comparing the best life insurance companies in Chicago

Company

Policygenius rating

Best for

Legal & General America

4.9 / 5

Overall, affordability, term life, young adults, smokers

MassMutual

4.9 / 5

Whole life

Pacific Life

4.8 / 5

Universal life

Lincoln Financial

4.8 / 5

Marijuana

Prudential

4.1 / 5

Seniors

What is the average cost of life insurance in Chicago?

Life insurance premiums depend on several factors that include the applicant’s age, health conditions, the length of the policy, and the amount of the death benefit. 

Based on the latest Policygenius data from 2023, the average monthly rate for a healthy 35-year old in Chicago buying a $500,000, 20-year term life insurance policy is $30.79 for men and $25.76 for women.

What happens if a life insurance company goes bankrupt in Chicago?

Most life insurance companies will never go bankrupt, but the Illinois Life and Health Insurance Guaranty Association exists to protect Chicago residents if their insurer ever becomes unable to meet its financial obligations. 

When an insurance company is found to be insolvent, the state insurance department will notify affected policyholders. The guaranty association will cover up to $300,000 in life insurance death benefits for policyholders affected by their insurer’s insolvency. 

How to find a lost life insurance policy in Chicago

Consumers who wish to locate any life insurance policies that a deceased family member may have held can submit a request with the Illinois Department of Insurance. The department will send the request to all life insurance companies in the state and ask them to search their records for policies in the decedent’s name. 

Ready to shop for life insurance in California?

Illinois life insurance laws

Chicago residents are covered by insurance laws in Illinois that govern how life insurance companies have to operate in the state. 

Free look period

Illinois policyholders get a free look period that lasts for 10 days upon receiving the policy. During this time, the policyholder can cancel their life insurance without penalty and receive a full refund of the premiums they paid. 

Guaranty Fund protection

The Illinois Life and Health Insurance Guaranty Association covers state residents for up to $300,000 in life insurance death benefits if the insurer becomes unable to meet their financial obligations. 

Contestable period

The contestable period in Illinois lasts for the first two years of the policy. During this time, the insurance company may deny a claim if they find evidence that the policyholder committed fraud on their application. 

Time allowable to settle a claim

Life insurance companies in Illinois get two months to pay a claim after receiving proof of the policyholder’s death. Claims that are still unpaid after 31 days may accrue interest. 

Grace period for missed payments

When a life insurance policyholder misses their premium payment, they get a grace period to make up for the missed payment before the insurer can cancel their coverage. The grace period in Illinois is 30 days from the payment due date.

Author

Brian Acton is a contributing writer at Policygenius, where he covers insurance and finance. His work has also appeared in The Wall Street Journal, TIME, USA Today, MarketWatch, Inc. Magazine, and HuffPost. 

Editor

Julia Kagan is a contributing editor at Policygenius, where she specializes in life insurance. Previously, Julia was the senior personal finance editor at Investopedia for nearly a decade, a vice president and editorial director at Consumer Reports, the editor of Psychology Today, and the vice president of content at Zagat Surveys.

Expert reviewer

Ian Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

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