Life insurance is a crucial safety net no matter where you are, but it’s especially important when you live in California. The high cost of living in some areas means many families will need financial relief if a loved one dies.
We’ve identified the best life insurance companies doing business in California, figured the average cost of life insurance for residents, and explained the most important state regulations that affect your policy.
We used industry data, pricing from Policygenius carrier partners, and third-party ratings like A.M. Best and J.D. Power to pick the best insurers on the market. Our independent recommendations will help you get life insurance coverage with confidence.
Best life insurance companies in California
Best overall life insurance: Banner Life
Cheapest: Banner Life
Best term life insurance: Banner Life
Best whole life insurance: MassMutual
Best guaranteed universal life insurance: Pacific Life
Best for seniors: Prudential
Best for young adults: Banner Life
Best for marijuana users: Lincoln Financial
Best for smokers: Banner Life
Methodology: How we chose the best life insurance companies in California
We don't get paid for our company reviews and use an extensive rubric of criteria covering policy details, price, financial confidence, third-party ratings, and customer experience to assign unbiased ratings out of five stars. Any recommendations we make are based on internal and external expert opinions and data from our Policygenius Price Index, which uses real-time rate data from leading life insurance companies to determine pricing trends. Our ratings and reviews can help point you to an insurer you can rely on for your family’s financial protection, but the best life insurance company for you is dependent on multiple factors. A licensed agent at Policygenius can work with you through the application process so you’re getting coverage from the best insurer for your circumstances at the most competitive price.
Best overall life insurance
2023 Policygenius award winner
Banner Life
4.9
30+ year terms
All 50 states
No-medical-exam option
Why we chose it
Banner Life has some of the longest term lengths — up to 40 years — and most competitive life insurance rates available, even for people with a history of medical conditions.
Pros and cons
Pros
Competitive rates for a variety of health conditions
Fast instant-decision option for qualifying applicants
Variety of term lengths up to 40 years
Cons
Application underwriting can take longer than average
Does not have the most competitive rates for older applicants
Banner Life offers California residents competitive rates and a variety of term lengths, meaning that most life insurance shoppers in the state will be able to find a policy that works for them, for a price that does, too. Banner Life also has fast no-medical-exam option available to qualified applicants, giving some people with no significant health conditions the possibility of getting covered quicker.
Cheapest
Banner Life
The best life insurance company for you is the one that can offer you the best rates based on your unique health history. Banner Life has the most competitive rates in the Policygenius marketplace for most applicants with most health conditions. People in California with a variety of health conditions, including diabetes and bipolar disorder, can find their best rates with Banner Life.
Best term life insurance
Banner Life
Term life insurance, which lasts for a set period of time and then expires, is the best life insurance option for most people. Banner Life is the best term life insurance option for most people in California, as it offers a variety of policy term lengths, including 40-year term policies, and has affordable rates for most applicants.
Best whole life insurance
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 experience ratings
Cons
High term life premiums
Term life not available through Policygenius
Whole life insurance is permanent life insurance with a cash value. It's not for everyone — it's five to 15 times more expensive than term life — but for people who need lifelong coverage or who have maxed out other tax-deferred savings vehicles, it can be a good option. For California residents who want a whole life insurance policy with cash value that pays dividends, MassMutual is a great option. It pays higher dividends to its policyholders than many competitors.
Best guaranteed universal life insurance
2023 Policygenius award winner
Pacific Life
4.8
All 50 states
No-medical-exam option
Why we chose it
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 cons
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
Guaranteed universal life insurance is a permanent policy with a small cash value, and it's one of the most affordable ways to get lifelong life insurance coverage. Pacific Life has the best guaranteed universal life insurance for Californians, in part due to its high levels of customer satisfaction.
Best for seniors
2023 Policygenius award winner
Prudential
4.1
All 50 states
No-medical-exam option
Why we chose it
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 cons
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
No-med option can end up requiring a medical exam most of the time
Californians age 60 and above can get competitive rates with Prudential. Another reason its one of our top picks for life insurance for seniors: Retirees can qualify for more coverage with Prudential than with some other companies thanks to their flexible income requirements.
Best for young adults
Banner Life
Young adults shopping for life insurance in California will find great rates with Banner Life. Many young adults without significant health issues will also qualify for Banner Life's no-medical-exam life insurance option, which forgoes the medical exam and can lead to quicker coverage.
Best for marijuana users
2023 Policygenius award winner
Lincoln Financial
4.8
No-medical-exam option
Why we chose it
Lincoln Financial offers a diverse array of life insurance policies, including competitive no-med and high-net-worth options.
Pros and cons
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
For Californians who are marijuana users, whether daily or occasional, Lincoln Financial offers competitive non-smoker/non-tobacco rates (many insurers only offer marijuana users smoker/tobacco rates, which can be many times more expensive).
Best for smokers
Banner Life
Banner Life offers Californians who smoke or use tobacco the most affordable rates. Another reason Banner Life is a top pick for life insurance for people smoke or use tobacco: Policyholders can apply for lower premiums just one year — not two like other insurers — after they quit smoking.
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Comparing the best life insurance companies in California
Company | Policygenius rating | Best for | |
Banner Life | 4.7 / 5 | Affordability, term life, young adults, smokers | |
Lincoln Financial | 4.7 / 5 | Marijuana users | |
MassMutual | 3.8 / 5 | Whole life | |
Pacific Life | 4.6 / 5 | Guaranteed universal | |
Prudential | 3.4 / 5 | Seniors |
What is the average cost of life insurance in California?
Life insurance rates depend on many individual factors, including your age, health, and the length and benefit amount of your policy. Where you live, however, is not one of the factors that affects your rates, except for policy availability.
Based on Policygenius data from June 2023, the average monthly premium for a relatively healthy 35-year-old in California buying a $500,000, 20-year term life insurance policy is $25.76 for women and $30.79 for men.
What happens if a life insurance company goes bankrupt in California?
The California Life and Health Insurance Guarantee Association protects policyholders in the rare case a life insurance company in California goes bankrupt. As long as policyholders continue to pay their premiums or cash value exists, the association will provide coverage.
If a life insurance company is liquidated, policyholders will receive notice from the court-appointed receiver that oversees the liquidation of the company, along with instructions on how to move forward with claims.
In California, owners of life insurance policies are covered for up to 80% of their death benefit (up to $300,000) or 80% of the net cash surrender and net cash withdrawal value (up to $100,000) if their life insurance company becomes insolvent.
Only state residents can receive coverage through California’s guaranty association. If a policyholder moves to another state, they will need to get coverage through the guaranty association where they currently live.
How to find a lost life insurance policy in California
Authorized parties (like a family member or executor) can search the National Association of Insurance Commissioners’ Life Insurance Policy Locator Service to find life insurance policies of a deceased person.
They can also search the State Controller’s Life Insurance Settlement Property Search or call their office at 800-992-4647. Life insurance companies are required to report and deliver property to the State Controller’s Office when there has been no activity on the account or contact with the owner for three years or more.
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California life insurance laws
California state laws provide protections to policyholders and regulate how life insurance companies operate in the state.
Free look period
Within 10 days of receiving their new policy, policyholders can cancel their life insurance and get a full refund of their premium payments.
Guaranty Fund protection
The California Life and Health Insurance Guarantee Association covers up to 80% of the life insurance death benefit (up to $300,000) and 80% of the net cash surrender and net cash withdrawal value (up to $100,000) if their life insurance company is unable to satisfy its financial obligations.
Contestable period
In California, the contestable period lasts for the first two years of the life insurance policy. During this time period, life insurance companies can reject a claim if they find fraud on the policyholder’s application.
Time allowable to settle a claim
In California, companies have 85 days to pay a claim after it's been filed. Additionally, claims that aren’t paid within 30 days from the date of death accrue interest.
Grace period for missed payments
Policyholders in California have a 60-day grace period to make up a missed payment before the life insurance company can cancel their policy.
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Frequently asked questions
What is the number one life insurance company in California?
Banner Life is the best life insurance company in California for most people. Banner Life offers Californians competitive rates across health classifications, a no-medical-exam option that means that qualified applicants can get covered in days, and a variety of term lengths up to 40 years.
What is the life insurance free look period and grace period in California?
In California, you can cancel a new life insurance policy within 10 days and get a full refund of all premium payments. You have 60 days to make up a missed payment before you lose your coverage.
What types of life insurance are available in California?
Available life insurance policies in California include the two most common types, term and permanent. Californians can also access no medical exam policies, including accelerated underwriting and final expense insurance, which is used to cover funeral expenses.
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