The Global News One team has chosen Banner Life and Mutual of Omaha as the top family life insurance policies after thoroughly evaluating 34 providers. Our selections were based on crucial family-focused factors, including cost, financial strength, and the ability to add children to a policy.
Top 5 Best Life Insurance policies for families in the USA in 2024
Family life insurance encompasses plans that either cover multiple family members under a single policy or offer separate policies that ensure financial security for family members in the event of a death. Our selections for the premier life insurance companies for families are:
- Banner Life: Best for term life insurance
- Mutual of Omaha: Best for no-exam coverage
- Nationwide: Best for whole life insurance
- Fidelity Life: Best for seniors
- State Farm: Best for customer satisfaction
1.Banner Life
Banner Life: Best for Term Life Insurance
Rating: 4.6:
- Sample Cost: $17-$39
- Policies Offered: Term and Universal
- A.M. Best Rating: A+
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For families seeking flexibility and long-term peace of mind, Banner Life, a subsidiary of Legal & General America, presents an excellent option, providing life insurance across 49 states and Washington, D.C. Banner Life distinguishes itself by offering an extensive range of seven term life plan options, including a rare 40-year term, which surpasses the typical 30-year maximum provided by most competitors.
Banner Life is also noted for its affordability. A 20-year term policy with $250,000 coverage averages just $27 per month for a healthy applicant. Additionally, the company offers a child term rider for dependents aged 15 days to 18 years, which is particularly appealing to parents wishing to include their children under their policy. In our February 2024 Pollfish survey of 1,000 life insurance policyholders, nearly 18% reported adding a children’s rider to their coverage, making it the second-most popular rider.
Pros:
- Provides term life insurance with coverage periods extending to 35 and 40 years, longer than most providers.
- Allows the conversion of term life insurance into permanent coverage.
- Offers a child term rider option on its term life policies.
Cons:
- Does not provide whole life or guaranteed issue coverage.
- Offers fewer riders compared to some competitors.
Coverage and Cost:
Banner Life offers the following types of life insurance policies:
- Term life insurance
- Universal life insurance
Estimated Monthly Premium Costs (based on a 20-year term policy for a tobacco-free applicant qualifying for the preferred health rate class):
- 35-year-old man: $16
- 35-year-old woman: $14
- 45-year-old man: $30
- 45-year-old woman: $24
2. Mutual of Omaha
Mutual of Omaha: Best for No-Exam Coverage
Rating: 4.7
Sample Cost: $21-$50
Policies Offered: Term, Whole, and Universal
A.M. Best Rating: A+
Mutual of Omaha excels in our rating methodology due to its no-exam plan options, financial strength, and customer service ratings from independent agencies. It offers viable solutions for individuals who might struggle to obtain traditional life insurance due to pre-existing conditions. The company’s guaranteed issue policy is available to customers aged 45 to 85, requiring no medical exam or health considerations. According to our survey, 48% of respondents were not required to undergo a medical exam before purchasing coverage.
Mutual of Omaha’s exceptional customer experience is further validated by its score of 805 out of 1,000 in J.D. Power’s 2023 U.S. Individual Life Insurance Study. The company also holds an A+ financial strength rating from A.M. Best, indicating a “superior” ability to meet its obligations to policyholders.
Pros
- Policyholders can add a children’s rider to term or permanent policies.
- Offers guaranteed issue coverage suitable for individuals with pre-existing conditions.
- Holds an A+ financial strength rating from A.M. Best.
Cons
- Does not offer online quotes for term life insurance.
- Does not offer a traditional whole life insurance policy.
Coverage and Cost
Mutual of Omaha provides the following coverage options:
- Term life insurance
- Whole life insurance
- Universal life insurance
- Guaranteed issue insurance
Cost
The estimated monthly premiums for a 20-year, $250,000 term policy for tobacco-free individuals in good health are as follows:
- 35-year-old man: $20
- 35-year-old woman: $18
- 45-year-old man: $40
- 45-year-old woman: $31
3. Nationwide
Nationwide: Best for Whole Life Insurance
Rating: 4.8
Our Review
Sample Cost: $21-$47
Policies Offered: Term, Whole, Universal, and Variable Universal
A.M. Best: A+
Nationwide is recognized for its robust coverage portfolio, which includes optional long-term care riders for certain permanent coverage options. It has earned the distinction of being the best provider for whole life insurance policies. According to our Pollfish survey, 42% of respondents reported purchasing a whole life policy, making it the most popular type of life insurance among those surveyed.
Nationwide is notable for offering discounts to policyholders who bundle their life insurance with other types of coverage, such as auto or homeowners insurance. The company’s financial stability is affirmed by its A+ rating from the credit rating agency AM Best, indicating a strong ability to pay claims.
Pros & Cons
Pros:
- Holds a strong A+ financial strength rating from AM Best
- Offers a long-term care rider to access living benefits for long-term care expenses
- Presents a comprehensive coverage portfolio, including term, whole, universal, indexed universal, and variable universal coverage
Cons:
- Online quotes for whole life plans are not available
- Only existing customers are eligible for simplified issue whole life policies
Available Coverage Options:
Nationwide offers the following types of life insurance policies:
- Term Life Insurance
- Whole Life Insurance
- Universal Life Insurance
- Indexed Universal Life Insurance
- Variable Universal Life Insurance
Cost:
We obtained term life insurance rates from Nationwide for a tobacco-free applicant considered to be in good health. The following rates are for a policy with a 20-year term and $250,000 in coverage:
- 35-year-old man: $21
- 35-year-old woman: $18
- 45-year-old man: $35
- 45-year-old woman: $32
4. Fidelity Life
Fidelity Life: Best for Seniors
Rating: 4.2
Sample Cost: $28-$68
Policies Offered: Term and whole
A.M. Best Rating: A-
Fidelity Life excels in offering a range of insurance plans tailored specifically for seniors. This company is a strong option for family members over the age of 50. The RAPIDecision Senior policies from Fidelity Life, designed for applicants aged 50 and above, do not require a medical exam and involve minimal or no health questions. Furthermore, obtaining customized quotes on their website is straightforward—an important aspect highlighted by our Pollfish survey respondents, with over 35% of policyholders obtaining quotes online before purchasing a plan.
Fidelity Life also distinguishes itself by offering a variety of riders, such as an accidental death rider for unforeseen events. For parents, the company provides the option to add children to their policies through a selection of optional child riders.
Pros & Cons
Pros
- Offers multiple plans designed for seniors, including simplified issue and guaranteed issue policies.
- Provides online quotes for most policies.
- Allows applicants to skip a medical exam for several policies.
Cons
- Premiums for term life coverage are slightly higher compared to some competitors.
- Does not offer plans with the option to convert from term to permanent coverage.
Available Coverage Options
Fidelity Life offers the following types of policies:
- Term life insurance
- Whole life insurance
- Guaranteed issue life insurance
Cost
The following sample rates for non-smokers are based on a 20-year, $250,000 term life policy for Fidelity Life applicants qualifying for the preferred health rating class:
- 35-year-old man: $23
- 35-year-old woman: $21
- 45-year-old man: $40
- 45-year-old woman: $34
5. State Farm
State Farm: Best for Customer Satisfaction
State Farm
Rating: 4.6
Sample Cost: N/A
Policies Offered: Term, Whole, and Universal
A.M. Best: A++
Overview
State Farm is a highly recommended option for families prioritizing exceptional customer service and robust financial strength in their life insurance provider. The company has achieved the highest ranking in J.D. Power’s customer satisfaction survey for four consecutive years. In a survey conducted in February 2024 involving 1,000 policyholders, State Farm emerged as the most popular choice, with 13% of respondents holding a policy from this provider.
With over a century of experience in the insurance industry, State Farm has solidified its reputation for reliability and financial stability. The company boasts an A++ rating from the credit rating agency AM Best, underscoring its strong capacity to pay out death benefits to beneficiaries.
Pros & Cons
Pros
- Holds the highest possible grade of A++ from AM Best for financial strength
- Ranked number one in customer satisfaction surveys from 2020 through 2023
- Offers discounts for bundling home and auto insurance with life insurance
Cons
- Applicants must connect with an agent to complete the application process
- Provides fewer riders compared to some competitors
Available Coverage Options
State Farm offers a variety of life insurance policies, including:
- Term Life Insurance
- Whole Life Insurance
- Guaranteed Issue Life Insurance
- Universal Life Insurance
Cost
We were unable to obtain specific cost information for State Farm. For detailed pricing, please contact the company directly.
What Is a Life Insurance Policy for Family?
A family life insurance policy consists of one or more life insurance policies that provide a death benefit upon the passing of a family member. This benefit can alleviate financial strain for surviving family members by covering debts, mortgage payments, funeral expenses, and everyday living costs.
Typically, the primary income earner in the family may have permanent coverage, such as whole life insurance, while other family members, including spouses, parents, and children, are covered by term policies. If your objective is to ensure your family’s financial protection in the event of a death, any life insurance policy qualifies as a family life insurance policy. However, it is essential to select a policy that fully meets your family’s financial needs.
How Much Is Life Insurance Policies for Families?
The cost of family life insurance varies based on individual circumstances, the type of policy, and the coverage options selected. Several factors influence insurance premiums, including age, gender, lifestyle habits, and more. Many insurers provide online tools to estimate the cost of coverage based on your specific details.
Factors Influencing the Cost of Family Life Insurance
Insurance companies establish rates according to your risk profile, which is assessed during the underwriting process. Factors that may impact your insurance rates include:
- Age: Premiums generally rise with age.
- Gender: Men typically face higher premiums than women due to the latter’s longer life expectancy.
- Health: Insurance providers may require a medical examination to evaluate your health status. Pre-existing medical conditions can lead to higher premiums.
- Family Medical History: A family history of medical conditions may also influence your insurance costs.
- Tobacco Use: Non-smokers usually benefit from lower premiums, as smoking poses significant health risks.
- Occupation/Lifestyle: Employment in high-risk occupations or engagement in risky hobbies can result in increased premiums.
- Chosen Coverage: The type of policy selected, the amount of the death benefit, and any optional riders included can affect the overall cost of premiums.
Life Insurance Policies for Couples
Life insurance provides financial protection for couples, with the extent of coverage depending on individual circumstances. Factors such as marital status and whether you have children can influence the necessity and amount of life insurance required. For instance, if you and your partner have made significant purchases, such as a home or a car, or if you have children or are planning to start a family, life insurance can help ensure that the surviving spouse can manage these financial obligations.
Additionally, couples have the option to choose between individual life insurance policies, each covering one partner, or a joint life policy, also known as survivorship life insurance. Joint life policies often offer potentially lower premiums and more flexible underwriting. Conversely, separate policies can be more easily tailored to individual needs and may provide living benefits.
Is Family Life Insurance Policies Worth It?
At a minimum, it is advisable for the primary income earner in a family to secure life insurance, as it ensures a financial safety net for the family in the event that the main source of income is no longer available.
Insurance coverage for a stay-at-home parent or a parent with a modest salary can also be valuable. The death benefit from such a policy can cover essential tasks managed by that parent, such as childcare. While coverage for children may not always be necessary, it could be beneficial for those with existing health conditions or elevated mortality risks.
Employers might provide group life insurance as part of their employee benefits package. Depending on your circumstances, this coverage might be sufficient to protect your family. For families with older adults who have cleared their mortgages and whose children are financially independent, additional life insurance may not be required if assets are adequate to manage your affairs.
Young adults and couples with minimal financial obligations might not immediately need life insurance. However, it’s important to consider that life insurance premiums are generally lower when you are younger and healthier. Securing a term policy at a lower rate now could be a prudent decision, as future changes in your financial responsibilities—such as having children or additional dependents—might make having coverage more essential.
Frequently Asked Questions About Life Insurance Policies For Families
What is a family life insurance policy?
Family life insurance varies widely depending on individual needs. You can choose to cover the entire household under a single policy, which may include bundled coverage either through a joint policy or by adding riders that extend protection to additional family members. Alternatively, you might opt for separate policies for each individual. Evaluating different options and comparing premium costs will aid in selecting the most suitable coverage for your family’s needs.
What type of life insurance policy is best for a family?
Term life insurance policies are frequently the most straightforward and cost-effective options for families facing significant expenses such as mortgage payments, childcare costs, and tuition fees. Should you pass away during the term of the policy, your family will receive a death benefit that can be used to address these substantial financial obligations, with the possibility of additional funds remaining.
Can you get life insurance policy for your family?
Life insurance options for families differ among providers. In certain instances, spouses may obtain a joint life insurance policy. Alternatively, riders can be added to an individual policy to extend coverage to additional family members. Another possibility is to purchase separate life insurance policies for each member of the family.
What are the benefits of family life insurance policy?
Life insurance delivers a death benefit upon the death of a family member. This lump sum payment is exempt from taxes and can be utilized to cover funeral expenses, end-of-life bills, and ongoing living costs. Additionally, life insurance payouts can serve as an inheritance.
What are the benefits of life insurance policy for a family?
At a minimum, life insurance coverage for both adults and children can address final expenses, which can be substantial. The National Funeral Directors Association reports that the median cost for a viewing and burial is $7,848, while cremation averages $6,970. Additionally, a death benefit can assist with medical bills and other end-of-life costs. Any remaining funds can be allocated towards living expenses and other financial obligations that may arise.
During one’s lifetime, the cash value accumulated from life insurance policies for children or adults can be accessed to cover various expenses, such as educational costs. However, investing in dedicated education savings plans over an extended period may yield a higher return and serve as a more effective means of financing educational expenses.
Methodology: Our System for Ranking Life Insurance Policies in USA 2024
Our team conducts extensive research and evaluation to rank life insurance companies using a detailed scoring system that prioritizes the factors most relevant to consumers. Our analysis involves a thorough review of each provider featured, focusing on aspects such as coverage options, customizability, availability, customer service, and overall company reputation. Here are the criteria we consider when assessing life insurance providers:
Brand Trust (40%): Given that life insurance payouts can exceed $100,000, selecting a reputable and reliable insurance provider is crucial. We evaluate brand trust through J.D. Power and Associates customer satisfaction surveys, AM Best credit ratings, and the National Association of Insurance Commissioners (NAIC) complaint index. Providers scoring higher across these metrics receive more points.
Coverage (33%): A broader range of policy options increases the likelihood of finding coverage tailored to specific needs. Therefore, we assign the most points to companies that offer diverse life insurance products, including various term, permanent, and no-exam policies.
Availability and Ease of Use (19%): Given the complexity of life insurance, we assess how easily customers can interact with the company. This includes evaluating the number of communication channels available for general support, claims processing, and the application process. Providers offering multiple methods of interaction, both in-person and online, receive higher scores.
Riders (8%): The availability of diverse life insurance riders or endorsements enhances a policyholder’s ability to tailor their coverage. We review the number of riders a company offers and allocate more points to providers with more than ten options.
Our rating system allows us to compare and evaluate each company based on these key factors, helping us identify the top life insurance providers in the industry. For a more detailed explanation, please refer to our comprehensive life insurance methodology for reviewing and scoring providers.
