Whole life insurance is a type of permanent life that doesn’t expire, so your family will receive a guaranteed lump sum of money called a death benefit regardless of when you die. It often comes with a cash value account, which can be used as a tax-deferred savings vehicle.
If you’re looking for an insurer with the best whole life insurance options, our evidence-based ratings and recommendations will get you started, but a Policygenius agent can help you find the right life insurance coverage for you.
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.
2023 Policygenius award winner
MassMutual
4.9
All 50 states
Why we chose it
MassMutual’s whole life insurance plan provides a lifetime coverage option that builds cash value with the potential to earn dividends.
Pros and cons
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
Best overall whole life insurance: MassMutual
MassMutual is one of the top whole life insurance companies in the country — it has an A++ rating according to AM Best. The company gives policyholders the chance to earn dividends, and pays out higher dividends on average when compared to some of its competitors. MassMutual also has high customer experience ratings compared to other insurers.
Best for accelerated death benefits: MassMutual
MassMutual also includes an accelerated death benefit rider at no extra cost. If you’re diagnosed with a terminal illness and given less than two years to live by your doctor, you’ll have the option to access some of your policy’s death benefit while you’re still living. This is a great option for anyone who may want to have additional funds available in this circumstance.
Mutual of Omaha
4.5
No-medical-exam option
Why we chose it
Mutual of Omaha is a reputable company that offers a variety of life insurance products — including a no-medical-exam option — so that you can select the type of life insurance that best suits your needs.
Pros and cons
Pros
No-medical-exam options for older applicants
Strong financial and customer ratings
Cons
Policies are more expensive than average
Slow turnaround time
Best for seniors: Mutual of Omaha
Mutual of Omaha offers two whole life options for seniors who are seeking a small amount of permanent coverage to cover their remaining financial obligations. It offers whole life policies up to $40,000 with no medical exam and fewer health requirements. You can apply for Mutual of Omaha’s simplified issue whole life or guaranteed issue whole life policies if you’re between the ages of 45 and 85.
2023 Policygenius award winner
Corebridge Financial
4.6
30+ year terms
All 50 states
Why we chose it
With competitive pricing and a range of flexible term periods for its Select-a-Term product, Corebridge is a solid option for many life insurance shoppers. Note: We are currently using AIG’s financial strength ratings until Corebridge has its own rating..
Pros and cons
Pros
Competitive pricing for all ages
Favorable underwriting for people with heart conditions and diabetes
Good for current and recently pregnant people, including people with gestational diabetes
Cons
Not the best for people with mental health conditions, including anxiety and depression
No no-medical-exam term option
Best for living benefits: Corebridge Financial
Corebridge’s whole life insurance policies include a chronic illness benefit that goes into effect immediately at no additional cost. This living benefit is a great feature, especially for older clients who are worried about how health issues could affect their financial situation before they pass away.
Transamerica
4.6
No-medical-exam option
Why we chose it
Transamerica is one of the oldest and largest life insurance companies, with over 12 million active accounts today. It offers affordable rates for almost every age, and you can even skip the medical exam if you fall under a certain age or coverage amount.
Pros and cons
Pros
Competitive rates for term life insurance
No-medical-exam available for qualifying applicants, including smokers and people between 60 and 70, which is rare
One of the fastest turnaround times in the industry for traditionally underwritten term policies
Cons
Term life not available in New York
Not a good option for people with a history of cancer, alcohol abuse, or asthma
Best for final expenses: Transamerica
If you’re looking for an affordable permanent policy with a small death benefit to cover end-of-life expenses, like a funeral or medical bills, without having to take a medical exam, Transamerica can be a great fit. It offers a simplified issue policy to people age 18 to 85. If you’re 55 years old or younger, you can apply for up to $50,000 of coverage. Older adults can apply for payouts between $25,000 and $40,000.
Comparing the best whole life insurance companies of 2023
Company | Policygenius rating | Best for | Types of policies | |
4.9/5 | Whole life, dividend options | Whole life, universal | ||
4.6/5 | Guaranteed issue whole life | Guaranteed issue whole life, universal | ||
4.6/5 | Simplified issue, final expenses | Whole life, simplified issue, final expense | ||
4.5/5 | Seniors, guaranteed issue whole life, simplified issue | Simplified issue, guaranteed issue whole life, universal |
What is whole life insurance?
Whole life insurance is a type of permanent life insurance that doesn’t expire — meaning that no matter when you die, your loved ones will receive a guaranteed lump sum of money called a death benefit.
Unlike, term life insurance, whole life also includes a cash value component that earns interest, usually at a rate set by your insurer. You can access the cash value while you’re still alive.
Whole life can be a good fit for:
High-net-worth individuals looking for additional investment vehicles, especially if you’re already maximizing contributions to traditional investment accounts like a 401(k) or IRA. Whole life can also help cover estate taxes.
People with long-term financial obligations — for example if you have lifelong dependent children, or if you expect to care for aging parents.
Whole life vs. term life insurance
The main differences between both types of policies are:
The length of your coverage: Whole life coverage is permanent, which means it never expires, while term life lasts for a set number of years and then expires.
The cost: Whole life is significantly more expensive than term life.
The cash value: Whole life policies come with a separate cash value account, while term life policies don’t — term policies only offer a lump-sum payout called the death benefit.
A financial advisor can help you decide which policy option might be the best fit for you.
→ Learn more about the differences between term and whole life insurance
Comparing whole life vs. term life
Features | Term life insurance | Whole life insurance |
Permanent coverage | No — maximum of 30 to 40 years | Yes |
Cost* ($500,000 coverage amount) | $26/month for a 20-year term | $440/month |
Guaranteed death benefit payout | Yes | Yes |
Guaranteed cash value | No | Yes |
Premium cost stays fixed | Yes, in most cases | Yes, in most cases |
Pays annual dividends | No | Yes, in some cases |
*Methodology: Average monthly term life insurance rate is for male and female non-smokers with a Preferred health rating obtaining a 20-year, $500,000 policy. Term life insurance averages are based on a composite of policies offered by Policygenius from Banner Life, Brighthouse Financial, Corebridge Financial, Foresters Financial, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. Average monthly whole life insurance rate is calculated for non-smokers in a Preferred health classification, obtaining a whole life insurance policy paid up at age 100 from MassMutual. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 09/01/2023.
→ Explore the best term life insurance companies
How much does whole life insurance cost?
A 30-year-old non-smoking female in good health can expect to pay $414.50 for a whole life insurance policy with a $500,000 death benefit payout. A 30-year-old non-smoking male with a similar health profile can expect to pay $487 for a policy with the same coverage.
Average monthly whole life insurance rates
Age | Gender | $250,000 coverage amount | $500,000 coverage amount | $1,000,000 coverage amount |
|---|---|---|---|---|
20 | Female | $147.50 | $290.00 | $558.50 |
Male | $175.50 | $347.00 | $670.50 | |
30 | Female | $209.50 | $414.50 | $814.00 |
Male | $245.50 | $487.00 | $954.50 | |
40 | Female | $305.00 | $605.50 | $1,195.00 |
Male | $371.00 | $737.00 | $1,433.50 | |
50 | Female | $480.50 | $957.00 | $1,899.00 |
Male | $569.50 | $1,134.50 | $2,222.00 | |
60 | Female | $800.50 | $1,597.00 | $3,179.50 |
Male | $957.00 | $1,909.50 | $3,769.00 |
Methodology: Whole life insurance rates are calculated for male and female non-smokers in a Preferred health classification obtaining a $250,000, $500,000, or $1,000,000 whole life insurance policy fully paid up at age 100 offered through MassMutual. Individual rates will vary as specific circumstances will affect each customer’s rate. Rate illustration valid as of 9/1/2023.
Factors that impact the cost of whole life insurance
Whole life insurance rates are determined by your age, gender, health, and coverage amount.
Each insurer has their own guidelines to assess risk and assign your rates.
Generally speaking, the younger you are and fewer health conditions you have, the cheaper your rates will be.
The higher your coverage amount, the more expensive your rates will be.
How much whole life insurance do you need?
How much life insurance you need depends on your financial obligations (like everyday family expenses, children’s education, or mortgage) as well as your income.
A common rule of thumb is to have 10 to 15 times your annual income in coverage, so your loved ones could maintain their lifestyle for a meaningful length of time without your financial support.
For many people, a permanent policy can be unaffordable — or simply unnecessary. If that’s your case, a term life policy can be a cheaper alternative.
On the other hand, you might only need a small amount of permanent life coverage to help your family with end-of-life expenses, such as funeral or medical bills. In this case, a final expense life insurance policy with a coverage amount of $10,000 or $20,000, may be enough.
As a licensed agent, it was very rare for me to recommend whole life insurance as a preferred option for a client if term life insurance was an available choice.
How to choose the best whole life insurance company for you
Choose a company with a strong financial background that meets your coverage needs and offers the best coverage for you at the best price. At Policygenius, our advisors are committed to providing unbiased advice based on your personal circumstances. If you’re not sure how much or what kind of life insurance is right for you, we can help.
Whole life insurance FAQs
Who offers the best whole life insurance rates?
Policygenius partners Mutual of Omaha and MassMutual are among the most reputable whole life insurance companies in the country. You can look at a company's financial security rating using metrics from sources like AM Best. Any insurer with an "A" rating or higher is considered excellent.
Can I borrow against the cash value of my whole life insurance policy?
In most cases, you can borrow money against the accumulated cash value of your permanent life policy. It does take at least a few years for a significant amount of cash value to accumulate, and if you die before you pay back the loan, the amount you owe will be deducted from the death benefit.
How long does it take for the cash value component of a whole life insurance policy to accumulate?
It often takes at least two to five years for any cash value to accumulate on a whole life insurance policy.
How do whole life insurance dividends work?
Some whole life policies offer dividends. The insurance company will invest some of the money you pay in premiums, and depending on the profit they make, you may be entitled to some of that amount. The exact terms of any dividends you are entitled to will be detailed in your insurance policy.
What is the best age to buy whole life insurance?
Generally speaking, the younger you are when you purchase life insurance, the lower your premiums will be. With whole life insurance, many of the benefits will be lost if you cancel the policy, so it’s best not to get whole life insurance until you’re in a position where you can commit to paying the premiums for the rest of your life.
