Finding the right life insurance company can be challenging when there are so many options to choose from. For Illinois residents, the lifestyle and health of the policyholder and state regulations all have an impact on the available policies.
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.
We’ve compiled the best life insurance companies in Illinois, the average cost of life insurance for residents, and state regulations that protect policyholders.
Best life insurance companies in Illinois
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 Illinois
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
With competitive rates, a fast no-medical-exam option, and a variety of term lengths, Banner Life is the best life insurance for people in Illinois.
Cheapest
Banner Life
Banner Life offers Illinois applicants the most competitive rates in the Policygenius marketplace. People with no health conditions and people with multiple health conditions can both find their best rates with Banner Life.
Best term life insurance
Banner Life
Term life insurance is a type of insurance that lasts for a set period and then expires. It is the most cost-effective option for most people, and Banner Life offers the most affordable term policies for most people.
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
MassMutual's whole life insurance policies pay out higher dividends to policyholders than other policies, making it the best whole life option for residents of Illinois.
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
For Illinois applicants wanting lifelong coverage at a lower price than traditional whole life, Pacific Life is a great option.
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
Prudential offers competitive rates to people age 60 and above.
Best for young adults
Banner Life
Banner Life offers competitive rates for young adults, plus a no-medical-exam option for qualifying 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 offers Illinois residents who are infrequent marijuana users non-smoker/non-tobacco rates, which can be 200% to 300% cheaper than smoker/tobacco, which many carriers automatically give to marijuana users.
Best for smokers
Banner Life
Banner Life offers the most affordable rates for smokers in Illinois, plus policyholders can apply for lower premiums just one year after they quit smoking (many other insurers require two years or more).
Ready to shop for life insurance in Illinois?
Comparing the best life insurance companies in Illinois
Company | Policygenius rating | Best for | |
Banner Life | 4.9 / 5 | Affordability, term life, young adults, smokers | |
Lincoln Financial | 4.8 / 5 | Marijuana users | |
MassMutual | 4.9 / 5 | Whole life | |
Pacific Life | 4.8 / 5 | Guaranteed universal | |
Prudential | 4.1 / 5 | Seniors |
What is the average cost of life insurance in Illinois?
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 Illinois 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 Illinois?
Life insurance companies rarely go bankrupt, but the non-profit Illinois Life and Health Insurance Guaranty Association protects policyholders if their insurance company is unable to meet its financial obligations.
When an insurance company becomes insolvent, the Illinois GA will cover policyholders using funds from assessments paid by other insurance companies. If this happens, affected policyholders will be notified by the Receiver, the Illinois Department of Insurance office overseeing the company.
Illinois covers up to $300,000 in life insurance death benefits for policyholders insured by a company found to be insolvent.
How to find a lost life insurance policy in Illinois
The Illinois Department of Insurance can help consumers locate the life insurance policies or annuity contracts held by a deceased family member.
When someone submits a request to the Department of Insurance, it will forward that request to all life insurance companies operating in the state. The request asks each company to search their records for life insurance policies or annuity contracts in the name of the deceased, and respond if they find a policy.
Ready to shop for life insurance in Illinois?
Illinois life insurance laws
Life insurance policies in Illinois must abide by state regulations governed by Chapter 215 of the Illinois Compiled Statutes, which outlines the protections provided to policyholders.
Free look period
Policyholders in Illinois can cancel their life insurance without penalty within 10 days of receiving the policy to receive a full refund of their initial premium payment.
Guaranty Fund protection
The Illinois Life and Health Insurance Guaranty Association will cover policyholders for up to $300,000 in death benefits if their life insurance company becomes unable to fulfill its financial obligations.
Contestable period
In Illinois, the contestable period for life insurance is set at two years. During this time, the insurance company can deny a claim if they find evidence of fraud on the policyholder’s application.
Time allowable to settle a claim
Life insurance companies have two months in Illinois to pay claims after receiving proof of the insured’s death. Claims that aren’t paid within 31 days may accrue interest.
Grace period for missed payments
This period gives policyholders some wiggle room to pay their premiums late without losing coverage. In Illinois, policyholders have a grace period of 30 days from the due date.
Frequently asked questions
What is the number one life insurance company in Illinois?
Banner Life is the best life insurance company for most people in Illinois. For young adults and people without complicated health conditions, Banner Life is the most affordable option on the market. Banner Life also offers long term lengths, with a 40-year term policy available to qualifying customers.
What is the life insurance free look period and grace period in Illinois?
In Illinois, you have a 10-day free look period to cancel your policy and receive a full refund of your premiums. You have a 30-day grace period from the due date to make your payment before losing coverage.
What types of life insurance are available in Illinois?
The two most common types of life insurance in Illinois are term and permanent. Consumers can also access no-medical-exam policies like accelerated underwriting and final expense insurance.
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