The Largest Life Insurance Companies in the US in 2024 (2024)

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• Northwestern Mutual, New York Life, and MassMutual are the largest life insurance companies in the US.
• State Farm, Nationwide, and MassMutual rank the highest in life insurance customer satisfaction.
• It's also important to compare costs, eligibility, coverage options, financial stability, and other factors.
• Compare life insurance online in minutes with Everyday Life Insurance.

There are many life insurance companies to choose from, but most Americas have policies under 25 companies. Insider compared their rank against each other based on market share and customer satisfaction.

The following are the largest life insurance companies in America, based on the percentage of insured Americans who use them:

Data from S&P Global Market Intelligence

Overview of the largest life insurance companies

Northwestern Mutual

Northwestern Mutual is the largest life insurance company in the US and received an A++ (Superior) for financial strength by AM Best. It ranks #10 in J.D. Power's customer satisfaction survey, with a score of 790 out of 1,000, on par with the study average.

Read our Northwestern Mutual life insurance review here.

New York Life

New York Life is the second largest life insurance company in the US and earned an A++ (Superior) for financial strength by AM Best. It rated #8 in J.D. Power's survey, with a score of 794 out of 1,000, slightly higher than the study average.

Read our New York Life insurance review here.

MassMutual

MassMutual is the third largest life insurance company in the US and received an A++ (Superior) financial strength rating by AM Best. It ranks #3 in J.D. Power's survey, with a score of 809 out of 1,000, higher than the study average.

Read our MassMutual life insurance review here.

Life insurance companies ranked on customer satisfaction

According to the 2023 J.D. Power life insurance customer satisfaction survey, these are the top-ranked life insurance companies based on communication, interaction, price, product offerings, and statements:

*The study average is 790 out of 1,000 points

Comparing types of life insurance policies

Life insurance policies fall under two umbrellas: temporary (term) life insurance and permanent life insurance. The table below offers a high-level overview of each policy's features.

Term life insurance

Term life insurance is like renting. When you rent an apartment, once the lease is over, you can leave or renew. Similarly, term insurance provides coverage for a specified period, and when it's up, you can reapply for coverage. However, the premiums will most likely increase as you age and your health deteriorates. Term life insurance tends to be the most affordable policy, making it accessible to most people.

These are the types of term life insurance policies:

• Level premium (most common type)
• Annual renewal
• Return of Premium
• Convertible term life
• Group life insurance
• Guaranteed issue
• Simplified issue
• Final expense

You can find our guide on the best term life insurance policies here.

Permanent life insurance

Like term life, permanent life insurance pays a death benefit to your beneficiaries when you pass away. The difference? Permanent life insurance lasts your entire life. It also comes with a cash value component, which allows you to earn interest on a portion of your premiums.

Cash value in a permanent policy is akin It's like owning a home. Your policy gains equity, which you can use as collateral. Like a home, when you pass away, the cash value you've accumulated can be left to your heirs. This is why buying permanent life insurance is considerably more expensive than term life insurance.

These are the types of permanent life insurance policies:

• Whole life
• Universal life
• Indexed universal
• Variable life
• Guaranteed issue
• Simplified issue
• Final expense

You can find our guide on the best universal life insurance and best whole life insurance here.

Choosing the best life insurance policy

The size of a life insurance company is indicative of its popularity among consumers. However, it's important to evaluate other factors to determine if an insurer is the best fit for you.

Coverage needs

Figure out what type of life insurance you need. If you want an affordable, no-frills coverage, term life is a great option. If you want to grow your policy's cash value and have lifelong protection, permanent life is the way to go.

Most companies offer term, whole, and universal life insurance. However, niche policies like variable universal or indexed universal life insurance are also available. If you are interested in those policies, research companies that offer them.

After deciding what type of policy you'd like to buy, figure out the amount of coverage you need. Multiply your annual salary by 10 to 15. That'll give you a ballpark figure. However, it's best to consult a financial advisor or an insurance agent to calculate a more accurate amount based on your family's current and future needs.

Eligibility

The underwriting process is how the insurance company determines how much of a risk you are and how much to lend you. During the underwriting process, the company collects information about your medical history, job, income, finances, and other personal information.

Traditional life insurance policies require a medical exam, which includes a blood test and urine sample, as part of the underwriting process. If a disease is discovered during the exam process, it may make it more difficult to get coverage because the results may disqualify you for life insurance in the future.

Based on your medical exam, you are assigned a risk assessment category. Once your risk is assessed, your premiums are calculated based on your risk and you are issued a policy. People with certain pre-existing health conditions may be ineligible for traditional life insurance — they should consider no medical exam life insurance.

Budget

If you're on a tight budget and earn a fixed income, term life insurance is usually sufficient for most people. If you have a net-worth individual or income, consider permanent life insurance for lifelong insurance and its additional perks.

Insider obtained quotes from four large insurance companies for people seeking $250,000 worth of term life coverage for a 30-year term, both in excellent health. Take a look at the table below for the average cost of term life insurance.

According to Policygenius, the average cost of a $500,000 whole life insurance policy for a healthy, 30-year-old male and female is $451 per month, significantly more expensive than a term policy.

However, your policy's premiums vary based on insurance company, age, health, lifestyle, coverages, and a host of other factors. Above all, it's important only to get as much as you can afford.

Customer experiences

After suffering the loss of a loved one, the last thing you need is to deal with an unresponsive or unprofessional insurance company. That's why customer satisfaction with life insurers is crucial. Check the insurer's customer and claims satisfaction ratings to ensure you're selecting a reputable insurance provider.

One way to do so is by looking at online reviews from real-life users through sites like the Better Business Bureau, Trustpilot, and Consumer Affairs. JD Power also surveys policyholders each year and ranks life insurers based on customer satisfaction and claims satisfaction. You'll want to see where your prospective company ranks compared to its competitors.

Financial performance

Financial stability in life insurance indicates a company's ability to meet long-term financial obligations. If an insurer ranks poorly, your beneficiaries may not receive the proceeds of your policy if you pass away. Look at credit rating agencies such as AM Best, Moody's, Standard & Poors, and Fitch to determine where the company stands in terms of financial performance.

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