Best Term Life Insurance Companies Consumer Reports

Few Tips for How to choose the best life insurance company

Look at the point of customer satisfaction: 

Other customers’ experience can help you decide whether you want to do business with a company. You can also get clues about a company’s reputation through:

• Scores from J.D. Power. The independent ratings firm publishes customer satisfaction scores for two dozen of the largest life insurers each year.
• Complaints filed against the company with state regulators.

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Consider financial strength: Financial strength is especially important for life insurance companies because you’ll want a company that can pay claims many years down the road. Financial strength ratings are available through ratings agencies such as A.M. Best and Standard & Poor’s. We don’t recommend considering insurers with an A.M. Best rating of B or lower.

Get prices: The cost of coverage varies among companies, so it’s smart to compare prices. You can use NerdWallet’s tool to get term life insurance quotes from multiple insurers.

Evaluate product selection: Although many companies sell similar policies, some focus more on certain products, such as whole life insurance, or on certain customers, such as seniors. Knowing generally the type of life insurance you want to buy will help you narrow the choices. You can learn more about the product offerings of life insurance companies listed by clicking on the NerdWallet reviews.

METHODOLOGY: LIFE INSURANCE RANKINGS

How we came up with our rankings: We started with a list of the largest life insurance companies and then calculated a total score based on three measurements, each with equal weight within the score. We then adjusted scores to a 300-point scale:

1. Customer satisfaction scores from J.D. Power, worth up to 100 points.
2. Complaint index scores from the National Association of Insurance Commissioners for individual life insurance, which measure each company’s share of complaints to state regulators relative to its share of total market premiums. We calculated each insurer’s complaint index, weighted for the market share of its subsidiaries, over a three-year period (2016-2018). We then adjusted those scores to a 100-point scale, with 100 meaning the fewest number of complaints and 1 equaling the expected number of complaints for companies of a similar size.
3. Financial strength ratings from A.M. Best, which indicate a company’s ability to pay future claims, worth up to 100 points. All of the companies shown have solid financial strength with ratings of “excellent” to “superior.”

Scores are based on the most recently released data as of Jan. 1, 2020.

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