Best life insurance companies in Chicago

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

Headshot of Brian Acton

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.

Updated|4 min read

Policygenius content follows strict guidelines for editorial accuracy and integrity. Learn about our editorial standards and how we make money.

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: How we chose the best life insurance companies in each state

We dont 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

Banner Life 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, Banner Life offers the best all-around coverage for the greatest number of applicants. Banner Life 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, Banner Life 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 Banner Life. 

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 Banner Life offers the most affordable term life policies with a variety of term lengths to choose from. 

Best whole life insurance

award icon

2023 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 ($$$$$).

$

$

$

$

$

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 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

award icon

2023 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 ($$$$$).

$

$

$

$

$

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

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

award icon

2023 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 ($$$$$).

$

$

$

$

$

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

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 Banner Life, plus a no-medical-exam option for certain applicants. 

Best for marijuana users

award icon

2023 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 ($$$$$).

$

$

$

$

$

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

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 Banner Life, 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?

Start calculator

Comparing the best life insurance companies in Chicago

Company

Policygenius rating

Best for

Banner Life

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 April 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?

Start calculator

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.

Frequently asked questions

What is the number one life insurance company in Chicago?

Banner Life is the best choice for life insurance in Chicago. With a variety of term length options and affordable rates for people of varying health classification and backgrounds, Banner Life is the best pick for most applicants.

What is the life insurance free look period and grace period in Chicago?

In Chicago, you have 10 days upon receiving a new life insurance policy to cancel it and receive a full refund. You have 30 days after the due date to pay a premium before the life insurance company can terminate your policy.

What types of life insurance are available in Chicago?

The two most popular types of life insurance, term life and whole life, are available in Chicago. Shoppers can also buy the other main types of life insurance, including no-medical exam policies.

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.

Questions about this page? Email us at .