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
Best overall: Legal & General America
Cheapest: Legal & General America
Best term life insurance: Legal & General America
Best whole life insurance: MassMutual
Best universal life insurance: Pacific Life
Best for seniors: Prudential
Best for young adults: Legal & General America
Best for marijuana users: Lincoln Financial
Best for smokers: Legal & General America
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.
Best overall life insurance
2023 Policygenius award winner
Legal & General America
4.9
30+ year terms
All 50 states
No-medical-exam option
Why we chose it
Legal & General America, which also does business as Banner Life and William Penn, 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
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
Legal & General America
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
Legal & General America
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
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
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
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
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
2023 Policygenius award winner
Prudential
4.1
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
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
Legal & General America
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
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
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
Legal & General America
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).
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.
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?
Legal & General America 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.
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