Best Life Insurance Companies
Pacific Life
BEST OVERALL
Pacific Life
Policies offered
Term, whole, universal, indexed universal, variable universal
Average term life cost (30-year-old buying 20-year, $250K policy)
Female: $128/year Male: $145/year
AM Best financial strength rating
A+ (Superior)
Term, whole, universal, indexed universal, variable universal
Female: $128/year Male: $145/year
A+ (Superior)
Pacific Life’s life insurance earned top marks in our analysis. We found that it has highly reliable illustrations. We also like that most of its policies build cash value relatively quickly.
For term life buyers, Pacific Life’s PL Promise Term policy offers low rates compared to competitors.
“Pacific Life has a long history of offering products with low costs and competitive investment options. However, the costs of some newer products can be higher, and some newer investment options have been underperforming expectations. As such, be sure to ask your financial advisor 1) whether internal policy costs are higher or lower than industry benchmarks, and 2) for the actual track record of recommended investment options,” advises Barry D. Flagg, founder of Veralytic and a Forbes Advisor board member.
- Competitive term life insurance rates for smokers.
- The website is informative, including important details for each policy offered.
- Easy access to a Pacific Life representative through a contact form or toll free number to ask questions.
- Conversion of term life policies is limited to universal life insurance.
Types of Life Insurance Sold
- Term life
- Whole life
- Fixed-rate universal life
- Indexed universal life
- Variable universal life
Life Insurance Riders Available
- Additional insurance rider
- Child life insurance rider
- Chronic illness rider
- Early/enhanced cash value rider
- Estate protection rider
- Lapse protection rider
- Long term care rider
- Option to split/change/convert rider
- Overloan protection rider
- Return of premium rider
- Spouse/other insured rider
- Terminal illness accelerated death benefit rider
- Waiver of monthly deduction rider
Availability of riders could depend on the type of policy.
Protective
BEST FOR INDEXED UNIVERSAL LIFE INSURANCE
Protective
Policies offered
Term, whole, universal, indexed universal, variable universal
Average term life cost (30-year-old buying 20-year, $250K policy)
Female: $127/year Male: $144/year
AM Best financial strength rating
A+ (Superior)
Term, whole, universal, indexed universal, variable universal
Female: $127/year Male: $144/year
A+ (Superior)
Protective’s indexed universal life insurance policies earned top marks in our analysis. We found that these policies are highly cost-competitive (including internal charges), and we’re impressed by the stellar historical investment performance underlying Protective’s indexed universal life policies. Strong investment performance helps keep policy costs low and fuels better cash value.
We also appreciate the low term life rates offered by Protective’s Classic Choice Term. It offers hard-to-find 35- and 40-year term options.
Forbes Advisor board member Barry D. Flagg warns that IUL promoters often (i.e., more than for any other product type) quote low premiums or project high account growth, giving the appearance of low costs while instead actually charging high costs with high risks of underperformance. On the other hand, Protectives IUL products are generally priced competitively and quoted based on reasonable performance expectations. The policies are also supported by generally superior performance of invested assets underlying policy account values, says Flagg.
- Choice of up to 7 cash value policies if you convert a Protective term life policy.
- Superior historical performance of company investments helps keep premiums low.
- Toll-free number is helpful for shoppers who are seeking quotes, need help applying or have policy questions.
- Cash value accumulation may be moderately slow in the early years of a policy.
- Policy-specific details are not easy to find on the company’s website, which can make shopping difficult.
Types of Life Insurance Sold
- Term life
- Whole life
- Universal life
- Indexed universal
- Variable universal life
Life Insurance Riders Available
- Accidental death benefit rider
- Child life insurance rider
- Chronic illness rider
- Conversion choice with chronic illness rider
- Disability rider
- Guaranteed insurability rider
- Income protection rider
- Lapse protection rider
- Overloan protection rider
- Protected insurability rider
- Return of premium rider
- Terminal illness accelerated death benefit rider
- Waiver of premium rider
Availability of riders could depend on the type of policy.
Prudential
GREAT FOR RELIABLE POLICY ILLUSTRATIONS
Prudential
Policies offered
Term, whole, indexed universal
Average term life cost (30-year-old buying 20-year, $250K policy)
Female: $168/year Male: $185/year
AM Best financial strength rating
A+ (Superior)
Term, whole, indexed universal
Female: $168/year Male: $185/year
A+ (Superior)
One of the reasons Prudential earned a top spot in our rankings was its highly reliable policy illustrations compared to the competitors we analyzed. This is especially important because whether you’re a young buyer who will likely hold a policy for many years or an older buyer who may not have the policy as long, having reliable expectations of funding requirements and cash value growth can help you develop a better financial plan.
Forbes Advisor board member Barry D. Flagg, founder of Veralytic, notes that regulations in many states permit insurers to quote low premiums or project high account growth, giving the appearance of low costs while instead actually charging high costs with high risks of underperformance. However, Prudential earns high ratings from Veralytic for more dependable premium quotes and more reliable illustrations of cash value growth, in addition to high ratings for competitive internal policy costs and financial strength.
Prudential’s Term Essential policy doesn’t offer as many term length options as other top companies (only 10-, 15-, 20- and 30-year), but its term life rates are competitive.
- Solid and reliable financial strength.
- Cash value policy costs are low compared to most competitors.
- Important policy-specific details are available on the Prudential website.
- Not all of Prudential’s permanent policies build cash value well early on in the policy.
- The historical performance of the company’s investments have been poor, which can impact the cash value growth of some policies.
- Customer service number targets existing customers, which is not helpful to non-customers with policy questions.
Types of Life Insurance Sold
- Term life
- Whole life
- Indexed universal life
Life Insurance Riders Available
- Accidental death benefit rider
- Child life insurance rider
- Chronic and terminal illness rider
- Disability rider
- Early/enhanced cash value rider
- Estate protection rider
- Guaranteed policy split rider
- Lapse protection rider
- Overloan protection rider
- Waiver of monthly deductions
- Waiver of premium rider
Availability of riders could depend on the type of policy.
Lincoln Financial
GREAT FOR VARIABLE UNIVERSAL LIFE INSURANCE
Lincoln Financial
Policies offered
Term, guaranteed universal, variable universal, fixed-rate universal, indexed universal
Average term life cost (30-year-old buying 20-year, $250K policy)
Female: $134/year Male: $152/year
AM Best financial strength rating
A (Excellent)
Term, guaranteed universal, variable universal, fixed-rate universal, indexed universal
Female: $134/year Male: $152/year
A (Excellent)
We like Lincoln Financial for its reliable policy illustrations for people considering a variable universal life policy. These illustrations give a view of potential future growth and costs within a policy, which gives you some help in financial planning.
Term rates are competitive for Lincoln Financial’s TermAccel policy, but the maximum issue age of 60 is lower than most other top companies. Term lengths are also limited to four options (10-, 15-, 20- and 30-year), compared to most other top companies in our analysis.
Barry D. Flagg, Forbes Advisor board member, also observes that “Lincoln Financial offers a number of joint life products [also called survivorship life insurance] that are among the lowest in cost, among the most stable in pricing, and that have a wide spectrum of different investment options and risk profiles for estate plans with different risk tolerances.”
- Relatively low internal policy costs for Lincoln’s permanent policies.
- Website is helpful, including policy details important to shoppers.
- Access to cash value early on in policies is poor.
- Investment performance has only been so-so, affecting cash value growth.
- Non-customers may find it difficult to speak with someone about general policy questions.
Types of Life Insurance Sold
- Term life
- Variable universal life
- Fixed-rate universal life
- Indexed universal life
Life Insurance Riders Available
- Additional insurance rider
- Child life insurance rider
- Chronic illness rider
- Critical illness rider
- Early/enhanced cash value rider
- Estate protection rider
- Lapse protection rider
- Long term care rider
- Option to split/change/convert rider
- Overloan protection rider
- Return of premium rider
- Spouse/other insured rider
- Terminal illness accelerated death benefit rider
- Waiver of monthly deduction rider
Availability of riders could depend on the type of policy.
MassMutual
BEST FOR FINANCIAL STRENGTH
MassMutual
Policies offered
Term, whole, universal, variable universal
Average term life cost (30-year-old buying 20-year, $250K policy)
Female: $158/year Male: $175/year
AM Best financial strength rating
A++ (Superior)
Term, whole, universal, variable universal
Female: $158/year Male: $175/year
A++ (Superior)
We like MassMutual for its enviable superior financial strength. This can give confidence to buyers who intend to hold their policies for many decades. It also supports the ability to grow cash value faster.
Forbes Advisor board member Barry D. Flagg says, “MassMutual’s whole life policies can be great for those seeking safety and security, given MassMutual’s high ratings for financial strength and claims-paying ability.
- Cash value builds well early in variable universal and whole life policies.
- Policy illustrations for variable universal policies are very reliable.
- Internal policy costs for cash value policies are high.
- Policy illustrations for whole life policies are not highly reliable.
- Term life rates are average.
Types of Life Insurance Sold
- Term life
- Whole life
- Universal life
- Variable universal life
Life Insurance Riders Available
- Additional insurance rider
- Catastrophic disability rider
- Early/enhanced cash value rider
- Estate protection rider
- Guaranteed insurability rider
- Lapse protection rider
- Long-term care rider
- Option to split/change/convert rider
- Overloan protection rider
- Terminal illness accelerated death benefit rider
- Waiver of premium rider
Availability of riders could depend on the type of policy.
Nationwide
GREAT FOR YOUNG ADULTS
Nationwide
Policies offered
Term, whole, indexed universal, guaranteed universal, variable universal
Average term life cost (30-year-old buying 20-year, $250K policy)
Female: $173/year Male: $180/year
AM Best financial strength rating
A+ (Superior)
Term, whole, indexed universal, guaranteed universal, variable universal
Female: $173/year Male: $180/year
A+ (Superior)
Nationwide stood out in our analysis for its reliable policy illustrations. This is especially important for young buyers who will likely be holding a policy for many decades and who want a reliable prediction of cash value.
Barry D. Flagg, Forbes Advisor board member, says, “Nationwide products can be great for young adults, given its history of low and stable costs. Young adults can also benefit from Nationwide’s wide selection of investment options, covering almost every different asset class from equities to fixed income, large cap to small cap, growth to value, domestic to foreign, etc.”
Nationwide’s internal costs for cash value policies are not the lowest in our analysis, but they are still moderately low. Flagg cautions that restrictions on accessing cash value (or surrender charges) can be higher in Nationwide products, but such restrictions can encourage long-term growth of cash value.
In addition, Nationwide recently introduced a new fee-based product with no such restrictions on access to policy account values. Such fee-based products are designed to compensate CFPs and other financial planners for ongoing monitoring and planning beyond just placement of the policy, which can be particularly important for young adults often with less financial experience and therefore needing more financial guidance.
Nationwide’s Guaranteed Level term life policy rates are low, though term length options are more limited (10-, 15-, 20- and 30-year) than those of some other top companies.
- Wide variety of life insurance riders available.
- Website is shopper-friendly, with the option to view guides with detailed product information.
- Nationwide’s investments have historically performed poorly compared to competitors. This can lead to higher costs within permanent policies.
- Cash value growth may be slow on some policies.
Types of Life Insurance Sold
- Term life
- Whole life
- Indexed universal life
- Guaranteed universal life
- Variable universal life
Life Insurance Riders Available
- Accidental death benefit rider
- Children’s term insurance rider
- Chronic illness rider
- Critical illness rider
- Early/enhanced cash value rider
- Estate protection rider
- Guaranteed insurability rider
- Lapse protection rider
- Long term care rider
- Overloan protection rider
- Return of premium rider
- Terminal illness accelerated death benefit rider
- Waiver of monthly deduction rider
- Premium waiver rider
Availability of riders could depend on the type of policy.
Mutual of Omaha
BEST FOR INVESTMENT PERFORMANCE
Mutual of Omaha
Policies offered
Term, whole, universal, indexed universal
Average term life cost (30-year-old buying 20-year, $250K policy)
Female: $155/year Male: $170/year
AM Best financial strength rating
A+ (Superior)
Term, whole, universal, indexed universal
Female: $155/year Male: $170/year
A+ (Superior)
Mutual of Omaha stands out from competitors in our analysis thanks to its excellent historical investment performance, which means the potential for strong cash value growth. We also like its low internal policy costs for cash value policies.
Rates for Mutual of Omaha’s term life insurance policy, Term Life Answers, are average, but it shares many of the same features as other top companies, such as high coverage amounts, accelerated death benefits, renewability and the option to convert to a permanent policy.
Veralytic founder and Forbes Advisor board member Barry D. Flagg says, “Mutual of Omaha consistently receives high-marks for performance of their general account portfolio of high-grade bonds and government backed mortgages. Performance of the general account drives performance of universal life (UL) crediting rates, whole life (WL) dividend interest rates and even the amount of the “options budget” critical to performance of indexed universal life (IUL) type products. Mutual of Omaha is also highly-rated for financial strength and claims-paying ability and competitiveness of internal policy costs.
- Reliable financial strength indicates Mutual of Omaha’s ability to pay future claims.
- Intuitive website includes a tool to narrow down the available policy types.
- Website virtual assistant is helpful, attempts to answer questions and then offers shoppers the option to text or chat with an agent.
- Policy illustrations can be unreliable, so it can be hard to have confidence in future internal policy costs or cash value growth.
- Not all Mutual of Omaha permanent policies have early cash value growth.
- Website lacks policy-specific details shoppers need.
Types of Life Insurance Sold
- Term life
- Whole life
- Universal life
- Indexed universal life
Life Insurance Riders Available
- Accidental death benefit rider
- Additional insured term rider
- Child life insurance rider
- Chronic illness rider
- Critical illness rider
- Disability rider
- Guaranteed insurability rider
- Lapse protection rider
- Long term care rider
- Overloan protection rider
- Return of premium rider
- Spouse or other insured rider
- Terminal illness accelerated death benefit or nursing home confinement rider
- Waiver of surrender charges rider
Availability of riders could depend on the type of policy.
Penn Mutual
BEST FOR UNIVERSAL LIFE INSURANCE
Penn Mutual
Policies offered
Term, whole, guaranteed universal, variable universal, indexed universal
Average term life cost (30-year-old buying 20-year, $250K policy)
Female: $127/year Male: $145/year
AM Best financial strength rating
A+ (Superior)
Term, whole, guaranteed universal, variable universal, indexed universal
Female: $127/year Male: $145/year
A+ (Superior)
Penn Mutual’s universal life (UL) insurance policies offer a great combination of financial strength, competitive internal policy costs and superior historical investment performance. We think buyers will like the ability to maximize their death benefits for the premiums paid for the UL policies.
We are also impressed by Penn Mutual’s low rates for its non-convertible term life policy, although rates are much higher for its convertible option. In contrast to most other top companies, we noticed that no accelerated death benefit is mentioned for its non-convertible term policy.
Forbes Advisor board member Barry D. Flagg observes that “Penn Mutual is one of the highest-rated insurers for financial strength and claims-paying ability. It offers universal life products with broadly competitive internal policy costs across most ages, health risk classes and face amounts. Penn Mutual also offers generally reliable quotes and policy illustrations, good access to cash value in some of its products and superior historical performance of invested assets underlying policy account values.”
- Very competitive rates for non-convertible term life insurance.
- Term life conversion is available to any Penn Mutual permanent life insurance policy.
- The company’s investments have performed well.
- Pricey rates for term life that is convertible to permanent life insurance.
- Policy illustration reliability is generally poor.
- Not all permanent policies build cash value well early on.
- Website lacks policy details and is not helpful for shoppers.
Types of Life Insurance Sold
- Term life
- Whole life
- Guaranteed universal life
- Variable universal life
- Indexed universal life
Life Insurance Riders Available
- Accidental death benefit rider
- Accelerated permanent paid-up additions rider
- Child life insurance rider
- Chronic illness rider
- Disability rider
- Early/enhanced cash value rider
- Estate protection rider
- Guaranteed insurability rider
- Lapse protection rider
- Overloan protection rider
- Policy split option rider
- Return of premium rider
- Supplemental exchange rider
- Terminal illness accelerated death benefit rider
- Waiver of monthly deduction rider
- Waiver of premium rider
- Waiver of surrender charges rider
Availability of riders could depend on the type of policy.
How Much Does a Life Insurance Policy Cost?
Here is the average cost of life insurance for different types of policies, though your own life insurance rates will depend on your age, health, gender, amount of coverage and more.
- Term life insurance costs an average of $217 a year, or $18 a month, for a 30-year-old woman for a 20-year, $500,000 term life insurance policy, based on the companies in our analysis. For a male buyer of the same age, the same policy costs an average of $257 a year, or $21 a month.
- Whole life insurance costs an average of $2,316 a year, or $193 a month, for a 30-year-old woman with $500,000 coverage. For a male buyer the same age, the same policy costs an average of $2,688 a year, or $224 a month.
Life Insurance Cost for Females
Here are the average monthly costs for each top-ranking life insurance company for a 20-year $500,000 term life insurance policy for a healthy female.
| Company | Buyer age 30 cost per month | Buyer age 40 cost per month | Buyer age 50 cost per month |
|---|---|---|---|
| $16 | $23 | $53 | |
| $16 | $24 | $54 | |
| $21 | $29 | - | |
| $16 | $26 | $58 | |
| $19 | $28 | $61 | |
| $19 | $26 | $55 | |
| $20 | $28 | $61 | |
| $15 | $23 | $53 |
Life Insurance Cost for Males
Here are the average monthly costs for each top-ranking life insurance company for a 20-year $500,000 term life insurance policy for a healthy male.
| Company | Buyer age 30 cost per month | Buyer age 40 cost per month | Buyer age 50 cost per month |
|---|---|---|---|
| $18 | $28 | $68 | |
| $18 | $28 | $69 | |
| $24 | $33 | $71 | |
| $19 | $32 | $75 | |
| $23 | $31 | $80 | |
| $22 | $30 | $74 | |
| $22 | $33 | $82 | |
| $18 | $28 | $68 |
Best Term Life Insurance Companies
We found that Pacific Life, Symetra, Penn Mutual, Thrivent, Legal & General, Protective and Cincinnati Life offer the best term life insurance. Term life insurance is ideal for covering finite financial concerns, like the years until retirement.
Related: Best Term Life Insurance
Best Universal Life Insurance Companies
Pacific Life, Penn Mutual, Protective and Guardian are the best universal life insurance companies in our analysis. Universal life insurance offers the flexibility of adjustable premium payments, within certain parameters, and a flexible death benefit amount.
Related: Best Universal Life Insurance
Best No-Exam Life Insurance Companies
Pacific Life, Thrivent and Symetra are the best companies in our no-exam life insurance analysis. No-exam life insurance offers the convenience of skipping the medical exam typically required by traditional life insurance.
Related: Best No-Exam Life Insurance
Cheapest Life Insurance Companies
Protective is our top pick for the cheapest life insurance company, based on our analysis of term life insurance rates.
How Do I Choose the Best Life Insurance?
Tony Steuer
Advisory Board Member
Ashlee Valentine
Insurance Editor
Michelle Megna
Insurance Lead Editor
Establish your financial goals
Once you know your goals, then find the policy that’s right for you. An experienced life insurance agent can help you find the right company and policy. Insurance companies vary in their underwriting criteria and pricing, so while one company can be good for one person, another company might be better for you.
Advisory Board Member
Check financial strength ratings
I always make sure the companies I’m considering have an A rating or higher for financial strength. These ratings are available from agencies like AM Best and Standard & Poor’s and help me identify companies that will be able to pay claims many years in the future. That’s why all the companies in our analysis are rated A or higher.
Insurance Editor
Work with experienced professionals
I’ve found it’s essential to work with an experienced life insurance agent or financial advisor who knows which insurers are most likely to give the best price based on age and health. You want to know if you have a good chance of getting a decent quote from an insurer before you apply. A good life insurance agent or financial advisor can also anonymously shop around for you, so you don’t get declined—which can affect your ability to buy life insurance later from someone else.
Insurance Lead Editor
Life Insurance Policies Available by Company
| Company | Term life | Whole life | Universal life | Indexed universal life | Variable universal life | Guaranteed universal life |
|---|---|---|---|---|---|---|
| ✓ | ✓ | ✓ | ✓ | ✓ | ✖ | |
| ✓ | ✓ | ✓ | ✖ | ✓ | ✖ | |
| ✓ | ✓ | ✖ | ✓ | ✖ | ✖ | |
| ✓ | ✖ | ✖ | ✓ | ✓ | ✓ | |
| ✓ | ✓ | ✓ | ✖ | ✓ | ✖ | |
| ✓ | ✓ | ✖ | ✓ | ✓ | ✓ | |
| ✓ | ✓ | ✓ | ✓ | ✖ | ✖ | |
| ✓ | ✓ | ✖ | ✓ | ✓ | ✓ |
Related: How To Get Life Insurance
Compare Life Insurance Companies
Compare Policies With Leading Insurers
Methodology
To find the best life insurance companies, we evaluated term life and permanent life insurance for each company. We used our own research and data courtesy of Veralytic, a leading publisher of life insurance product research. Veralytic’s data provides a unique depth to Forbes Advisor’s analysis of whole, universal, indexed universal and variable universal life insurance policies from each insurer.
While independent research is commonplace for most every other element of our financial lives, life insurance product recommendations are too often based on hypothetical quotes or illustrations. What you pay in premiums and what you get in cash value and death benefits depends on what the insurance company actually charges and what you actually receive in performance over time. As such, Veralytic measures the competitiveness of internal policy costs and actual historical performance. Veralytic reports are available through financial advisors.
Our analysis was based on the following.
Term life insurance rates (30% of score): Because price is the primary concern of many term life insurance shoppers, we gave more weight to this category. We scored costs based on each company’s rates for 30- and 40-year-old men and women for 10, 20 and 30 terms and for coverage amounts of $250,000, $500,000, $1 million and $2 million. Source: Forbes Advisor research.
Complaints (10% of score): A low complaint level can indicate satisfied customers. Companies with a higher than average complaint index were eliminated. Source: National Association of Insurance Commissioners.
Term life guaranteed renewability (5% of score): Companies earned points if their term life policies can be renewed at the end of the level term period. Source: Forbes Advisor research.
Term life conversion (5% of score): Companies earned points if their term life policies can be converted to permanent life insurance. Source: Forbes Advisor research.
Financial strength (10% of score): This measure incorporates the insurer’s financial strength ratings from four major ratings agencies: AM Best, Fitch, Moody’s and Standard and Poor’s. Financial strength is particularly important when you’re relying on a company’s ability to pay claims many decades from now. Source: Veralytic.
Cost competitiveness of cash value policies (10% of score): This measures the level of premiums and internal policy charges, including the cost of insurance, fixed administration expenses and cash value-based wrap fees. Note that every life insurance product charges different prices based on age, gender, health profile and policy face amounts. No insurer will be the most price-competitive for all possible buyers. Source: Veralytic.
Reliability of policy illustrations (10% of score): This factor measures the reliability over time of the company’s illustrations for its permanent life insurance products. When you plan to be holding on to a policy for decades and counting on cash value to accumulate, you want an illustration that’s accurate. Source: Veralytic.
Historical performance of investments (10% of score): This measures whether the historical performance of the company’s investments that fuel cash value growth is superior to other companies’ comparable products. Source: Veralytic.
Access to cash value (10% of score): This measure evaluates the liquidity of cash value and a policyholder’s access to it. Some policies will build cash value better in the early years, and with other companies you may be waiting several years before you have meaningful cash value within a policy. Generally speaking, the higher the liquidity, particularly in early policy years, the better—but some insurers charge more for greater liquidity, so consider the possible tradeoff. Source: Veralytic.
Looking For Life Insurance?
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Read more: How Forbes Advisor Rates Life Insurance Companies
Other Life Insurance Companies We Rated
| Company | Forbes Advisor rating |
|---|---|
| Columbus Life |   |
| Minnesota Life | |
| Guardian Life | |
| Midland | |
| Symetra | |
| Massachusetts | |
| Ameritas |  |
| National Life | |
More Life Insurance Ratings
If you’re looking for a specific type of policy, check out our top picks across these categories:
- Best Term Life Insurance
- Best Whole Life Insurance
- Best Burial Life Insurance
- Best Family Life Insurance
- Best No-Exam Life Insurance
- Best Life Insurance for Seniors
- Best Life Insurance for Children
- Best Life Insurance for Veterans
- Best Life Insurance for High-Risk Applicants
Best Life Insurance Companies Frequently Asked Questions (FAQs)
What does life insurance cover?
Life insurance covers the life of the insured person. If you pass away with an in-force life insurance policy, the beneficiaries specified on the policy will receive the death benefit. Beneficiaries can use that payout in any way they choose.
What does life insurance exclude?
Life insurance policies typically include a suicide clause. This clause specifies that suicide within the first two years of the policy will not be covered.
Apart from the suicide clause, life insurance policies pay the death benefit no matter the cause of death unless the insurer can prove misrepresentation or the policyholder stops paying premiums. An insurer may deny a life insurance claim if it discovers something like a known health issue that was not disclosed in the application. It could also deny a payout if the policy had lapsed due to nonpayment.
Can I buy life insurance on someone else?
Yes, you can purchase life insurance on someone else as long as you can prove an “insurable interest” in that person. An insurable interest means that you would financially suffer if they died. The person being insured must sign the application. You cannot purchase a policy on someone without their knowledge.
If you buy life insurance on someone else, you can make yourself the life insurance beneficiary.
Can I use my life insurance while still living?
If you have a cash value life insurance policy, there are ways to use your life insurance while still living. You can access the cash value through loans, withdrawals or by surrendering the policy.
Another way to use your life insurance while still living is through living benefits if your policy includes them. Living benefits allow you to access money from your own death benefit if you meet specific health requirements. This could include people who are diagnosed with a terminal, chronic or critical illness.
If you’re buying life insurance, find out what living benefits can be included in the policy.
