Everything you need to know about the best life insurance companies in New York state, including average rates and protections for consumers.
By
Amanda ShihAmanda ShihEditor & Licensed Life Insurance ExpertAmanda Shih is a licensed life, disability, and health insurance expert and a former editor at Policygenius, where she covered life insurance and disability insurance. Her expertise has appeared in Slate, Lifehacker, Little Spoon, and J.D. Power.&Meredith HoffmanMeredith HoffmanSenior Editor, Life InsuranceMeredith Hoffman is a senior editor at Policygenius, where she covers life insurance. Previously, she was a news and advice reporter for Bankrate, CreditCards.com, and To Her Credit, where she covered personal finance and gender-based financial discrimination.
Edited by
Adam MorganAdam MorganEditorial DirectorAdam Morgan is an editorial director at Policygenius who leads the life insurance team. Previously, he led editorial teams matrixed across multiple financial publications at Red Ventures — including Bankrate, NextAdvisor, Million Mile Secrets, and others.
You need life insurance no matter where you live, but it’s especially important for people who live in the state of New York. The high cost of living in some parts of the state means some families may have trouble making ends meet if they suffer an unexpected loss.
We’ve broken down the best life insurance companies operating in New York state, the cost of life insurance for New Yorkers, and protections the state provides for shoppers and policyholders.
Methodology: How we chose the best life insurance companies in New York
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.
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.
5.0
AM Best rating
A.M. 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 ($$$$$).
$
$
$
$
$
No-med-exam option
30+ year terms
All 50 states
Why we chose it
Banner Life has some of the longest term lengths — up to 40 years — and most competitive life insurance rates available, even for people with a history of medical conditions.
Pros and cons
Pros
Competitive rates for a variety of health conditions
Fast instant-decision option for qualifying applicants
Variety of term lengths up to 40 years
Cons
Application underwriting can take longer than average
Does not have the most competitive rates for older applicants
William Penn, also known as Banner Life in other states, is our top pick for life insurance in New York state thanks to long term lengths and affordable rates, even for people with preexisting conditions.
Cheapest life insurance
2023 Policygenius award winner
AIG
Policygenius rating
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.6
AM Best rating
A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
30+ year terms
All 50 states
Why we chose it
With competitive pricing and a range of flexible term periods for its Select-a-Term product, AIG is a solid option for many life insurance shoppers.
Pros and cons
Pros
Competitive pricing for all ages
Favorable underwriting for people with heart conditions and diabetes
Good for current and recently pregnant people, including people with gestational diabetes
Cons
Not the best for people with mental health conditions, including anxiety and depression
Term life insurance policies provide a death benefit for a set number of years. Unlike permanent life insurance, it has no cash value, which makes it the most cost-effective option for most people.
William Penn’s “OPTerm” is a straightforward term policy, but with one of the largest term length ranges compared to other life insurance carriers (your policy can stay in force anywhere from 10 to 40 years). This product involves full underwriting, which means you can’t skip the medical exam.
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.9
AM Best rating
A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A++
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
All 50 states
Why we chose it
MassMutual’s whole life insurance plan provides a lifetime coverage option that builds cash value with the potential to earn dividends.
Pros and cons
Pros
Strong financial stability ratings
Higher potential for dividends for whole life policyholders than many competitors
AIG has several universal policies available, which are similar to whole-life policies, except they have flexible death benefits and flexible premiums you can change whenever you want, depending on your financial situation.
Anyone age 18 to 80 can apply for AIG’s universal life policies, which come with coverage amounts of $50,000 to $10 million. If you’re interested in the details of AIG’s universal life policies, keep in mind we don’t generally recommend universal life policies, since — unless you’re particularly wealthy and planning an estate — they’re overly complicated and expensive for most people.
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.1
AM Best rating
A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A+
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
No-med-exam option
All 50 states
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
Best life insurance for young adults: William Penn
For young adults, William Penn has highly competitive rates that are more affordable than most carriers. With its OPTerm policy, applicants in their 20s who don’t smoke can pay as little as $23 a month (compared to the industry average of $27).
William Penn stands out for offering some of the longest terms and the most competitive rates in the market. Young families can purchase 35- or 40-year term policies at an affordable cost, which can help protect multiple children until they’re all financially independent.
AIG is one of few insurers that treat infrequent marijuana users as non-smokers, but what sets them apart is their affordable rates, especially for young people.
However, make sure to be truthful during the application process, even if you only use marijuana occasionally. If you test positive for THC after saying you don’t use marijuana, your application will be declined.
Long term lengths and competitive rates make William Penn a top contender for smokers and people with complicated health issues.
Smokers will always pay more for life insurance than non-smokers for comparable policies, but William Penn offers the most affordable rates for smokers in New York. Customers can also apply for lower premiums after a year if they quit smoking, instead of two years or more like some other insurers.
Comparing the best life insurance companies in New York
Company
Policygenius rating
Best for
Types of policies
MassMutual
3.8 / 5
Whole life
Term life, whole life
William Penn
4.7 / 5
Affordability, term life, young adults, smokers
Term life, temporary life, whole life
Prudential
3.4 / 5
Seniors
Term life, temporary life, whole life
AIG
4.6 / 5
Universal life, marijuana users
Term life, temporary life, universal life, whole life
What are the largest insurance companies in New York?
Most major life insurance companies operate in New York state, although some may do so through a subsidiary. Below are the 10 largest life insurance companies that offer policies in New York state, ranked by total industry market share, according to the latest data from the National Association of Insurance Commissioners (NAIC). [1]
Company
Direct premiums
Market share
Northwestern Mutual
14.3 billion
7.49%
New York Life
13.3 billion
6.96%
MetLife
11.5 billion
6.02%
Prudential
10.6 billion
5.59%
MassMutual
10.1 billion
5.29%
Lincoln Financial
8.3 billion
4.36%
State Farm
5.2 billion
2.76%
John Hancock
5 billion
2.65%
Aegon (Transamerica)
5 billion
2.61%
Securian
4.8 billion
2.54%
Collapse table
Many of the largest companies operating in New York are also among the largest companies nationwide. However, because of state regulations, certain types of life insurance aren’t available in New York, including several no-medical-exam policies that allow you to get coverage without taking a medical exam.
What is the average cost of life insurance in New York?
Life insurance rates depend on many individual factors, including your age, health, and the length and benefit amount of your policy.
Based on Policygenius data from February 2023, the average monthly premium for a relatively healthy 35-year-old in New York buying a $500,000, 20-year term life insurance policy is $25.66 for women and $30.44 for men.
What happens if a life insurance company goes bankrupt in New York?
It’s extremely rare for a life insurance company to go bankrupt, but every state has some protections for consumers in a worst-case scenario. If a life insurance company in New York is in financial difficulty, the superintendent — the person who oversees the industry in the state — can take over operations of the insurer, with approval from the New York State Supreme Court.
The superintendent will try to resolve the company’s financial issues or ultimately decide to liquidate the company’s assets to fulfill its debts to creditors and customers, including beneficiaries of a policy.
The Life Insurance Guaranty Corporation of New York is a non-profit organization that steps in once an insurer goes bankrupt. The fund will pay out up to $500,000 to customers with unpaid claims from a provider that’s gone out of business or can help you transfer your policy to a financially stable insurer.
How to find a lost life insurance policy in New York
Resources like the NAIC’s Life Insurance Policy Locator Service can help you locate a policy in New York State. Someone’s immediate family members or an administrator or executor of the deceased’s estate can file a search request, which is forwarded to insurance companies operating in New York State. If your request matches a policy, the provider will contact you within 60 days. [2]
Life insurance is regulated on a state-by-state basis. Every state has similar protections in place, but the specifics vary.
Free look period
You can cancel your life insurance without penalty and be refunded your initial premium payment during this time. States set a minimum and maximum period, but insurance companies can set their own limits within those guidelines.
Guaranty Fund protection
Guaranty Fund protection is a financial lifeline if your insurance provider can’t fulfill the terms of your policy. While this is extremely rare, Guaranty Fund protection allows you to file a complaint with your state’s insurance commissioner. New York’s insurance guaranty association can help transfer your policy to a financially healthy insurer or pay out a policy claim.
Contestable period
A contestable period is the first two years of your life insurance policy. During this time, the insurance company can review your application and deny a claim if they find evidence of fraud.
Time allowable to settle a claim
In New York state, life insurance companies have 30 days after receiving a claim to provide a payout.
Grace period for missed payments
This period gives you a cushion to pay your premiums late without losing your coverage. New York regulations allow for a grace period of 31 days from the due date and 61 days for policies with variable premiums.
Frequently asked questions
What is the number one life insurance company in New York?
William Penn (also known as Banner Life) is the best life insurance company for most people in New York. If you’re a young adult or don’t have complicated health conditions, William Penn is the most affordable option on the market. Even better, William Penn offers the longest term lengths in the state, with a 40-year term policy available to qualifying customers.
What is the life insurance free look period and grace period in New York?
In New York, you have a 10-to-30-day free look period to cancel your policy and receive a refund of the premiums paid. The late payment grace period is 31 days for most policies.
What types of life insurance are available in New York?
The two most common types of life insurance, term and permanent, are available in New York state. No-medical-exam policies, like accelerated underwriting and final expense insurance, aren’t offered.
Why is life insurance different in New York?
Many of the largest companies operating in New York are also among the largest companies nationwide. However, because of state regulations, certain types of life insurance aren’t available in New York, including several no-medical-exam policies that allow you to get coverage without taking a medical exam.
Find the best life insurance companies in your state
Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of our
Amanda Shih is a licensed life, disability, and health insurance expert and a former editor at Policygenius, where she covered life insurance and disability insurance. Her expertise has appeared in Slate, Lifehacker, Little Spoon, and J.D. Power.
Meredith Hoffman is a senior editor at Policygenius, where she covers life insurance. Previously, she was a news and advice reporter for Bankrate, CreditCards.com, and To Her Credit, where she covered personal finance and gender-based financial discrimination.
Adam Morgan is an editorial director at Policygenius who leads the life insurance team. Previously, he led editorial teams matrixed across multiple financial publications at Red Ventures — including Bankrate, NextAdvisor, Million Mile Secrets, and others.
