The Best Life Insurance Companies in 2023 According to NerdWallet
Investing in Life Insurance
Life insurance is an important part of planning for the future. As you look for the best life insurance companies for your needs, it's important to make sure you understand the different types of life insurance policies and the coverage they offer. At NerdWallet, we've done the research to help you make the best decision for you and your family.
Types of Life Insurance
The two main types of life insurance are term life insurance and whole life insurance. Term life insurance, also known as temporary life insurance, provides coverage for a specific period of time, usually 5 to 30 years. Whole life insurance provides coverage for the remainder of your life, as long as you make the premium payments.
Term Life Insurance
Term life insurance is the most affordable type of life insurance. It's often used to cover expenses like a mortgage, college tuition, and other debts if the policyholder dies during the term of the policy. The premiums for a term life insurance policy are typically lower than those of a whole life policy.
Whole Life Insurance
Whole life insurance policies provide coverage for the remainder of your life, as long as you make the premium payments. Whole life policies also have an investment component, and the cash value of the policy can be used to cover the premiums if needed. This type of policy is more expensive than term insurance, but it offers more coverage and peace of mind.
The Best Life Insurance Companies in 2023
At NerdWallet, we evaluated the best life insurance companies based on customer service, financial strength, policy terms, and more. Here are the top five life insurance companies in 2023 according to NerdWallet:
- State Farm
- New York Life
- Northwestern Mutual
- Mutual of Omaha
- AIG
When selecting a life insurance policy, it's important to compare different companies and evaluate the coverage they offer. At NerdWallet, we make the process easier by providing tools and resources to help you find the best life insurance policy for you and your family.