Our life insurance ratings methodology

How we rate life insurance

To help consumers find the best life insurance for their needs, we evaluated 26 life insurance companies and over 9,000 life insurance policies for a variety of coverage types, amounts and durations. Each analysis took into account at least two of the following:

Term life insurance rates

We used data from AccuQuote, a national online insurance agency, to evaluate term life insurance policy rates. Our analysis includes rates based on the following:

• Insured’s ages and gender: We looked at rates for males and females ages 30 to 75. 
• Coverage amount: $250,000, $500,000, $1 million and $2 million policies were included in our analysis. 
• Policy terms: We analyzed rates for coverage periods, or terms, ranging from 10 years to 30 years. 

Insurers with lower rates earned more points. 

>> Why this is important: Life insurance is meant to provide financial security to your beneficiaries if you die during the coverage period, but it shouldn’t break the bank while you’re alive. When all other factors are the same, how much an insurer charges for coverage can help you choose the right life insurance company and policy for you and your loved ones. 

Cost competitiveness of cash value policies

The cost of a permanent life insurance policy is more complex than the rate quote you receive. It includes the cost to provide coverage as well as any internal fees. We used Veralytic data to evaluate the cost competitiveness of cash value policies based on standard costs across the industry. Insurers received more points when their cash value life insurance policies were more cost competitive.

>> Why this is important: When you purchase a permanent life insurance policy, your premium payment is split into three buckets: the cost to provide coverage, internal costs and fees and your cash value account. When internal fees are high, a policy is less cost competitive and fewer dollars make it into your cash value account.

Historical performance

We used Veralytic data to analyze the cash value growth of permanent life insurance products offered by the insurers we reviewed. An insurer’s investment portfolio always drives the cash value of a permanent life insurance policy. Strong historical performance can indicate a better cash value return.

>> Why this is important: Investment performance is not guaranteed, but an insurer’s investment history can provide insight into the success rate of its investment strategy. Further, a strong historical investment pattern can yield lower internal costs throughout the life of the policy.

Complaints

We reviewed consumer complaint data made available by the National Association of Insurance Commissioners (NAIC). NAIC complaints data reflects the number and type of complaints made by consumers to state insurance departments. Common reasons for complaints include delays, denials and policy cancellations. Each insurer is assigned a complaint ratio, and the average national complaint level is 1.0.

The lower an insurer’s complaint level, the more points it received.

>> Why this is important: Life insurance claims are often filed during what may be an extraordinarily difficult period of a beneficiary’s life. As such, the customer experience — and the absence of delays and unjustified claim denials — is an important factor when identifying the best life insurance companies. 

Reliability of policy illustrations

We reviewed Veralytic data to determine the reliability of an insurer’s policy illustrations. Policy illustrations provide insight into the projected growth of a policy’s cash growth. Insurers that have a history of providing reliable policy illustrations received more points in our analysis.

>> Why this is important: When you purchase a permanent life insurance policy, the insurer should provide an illustration to show how the cash value is projected to grow over time. This is particularly important if you’re relying on your policy cash value as part of your retirement planning, but some insurers offer more accurate illustrations than others. Choosing an insurer with a reliable policy illustration can lead to better cash value growth over time.

Financial strength

We leveraged Vertaltic data to assess each insurer’s financial rating as determined by the four major rating agencies: AM Best, Fitch, Moody’s and Standard and Poor’s. Insurers with a higher financial strength score received the most points.

>> Why this is important: An insurer’s financial strength indicates the likelihood it can meet its claim payment obligations. Choosing an insurer with high scores from each of the major rating agencies can leave you confident that your beneficiaries will receive a death benefit for an eligible claim.

Access to cash value

Cash value growth varies by company and policy. We used Veralytic data to determine which insurers offered policies that tend to grow cash value early in the policy. Insurers that had policies that showed earlier growth and thus more liquidity received more points. 

>> Why this is important: The rate at which cash value grows varies by insurer and policy. Some policies grow more in the earlier years of a policy’s life, which can give you access to a more significant amount of money should you choose to access your policy’s cash value. However, it’s important to note that better liquidity early in the policy may come with higher costs, so always weigh the pros and cons before choosing an insurer or policy.

Term life insurance conversion 

Some term life insurance policies can be converted to permanent life insurance while the policy is in effect, per the policy agreement. Insurers that offered term life insurance policies that can be converted to permanent coverage received points. 

>> Why this is important: Term life insurance policies that are convertible typically allow you to convert your policy to permanent coverage without undergoing underwriting. This is a good option if you think you may want permanent coverage but aren’t ready to purchase that type of policy.

Accelerated death benefit 

An accelerated death benefit is a rider, or policy add-on, that lets you access your death benefit before you die if you’re diagnosed with a terminal illness. Life insurance policies may include this rider automatically or make it available at an additional cost. When this factor is included in a rating, insurers that offered it received points. 

>> Why this is important: If you’re diagnosed with a terminal illness, an accelerated death benefit rider can help offset some of the costs you may incur or make up for a portion of your lost salary if you’re no longer able to work. 

Maximum face value for lowest eligible age

No-exam life insurance policies may not offer as much coverage as those that require full underwriting with a medical exam. When this factor is used in a rating, we give points to insurers that offer the highest coverage amounts for the lowest eligible age. Remember that the maximum coverage amount available with a no-exam life insurance policy may be lower for older applicants. 

>> Why this is important: If you’re shopping for life insurance but don’t want to get a medical exam, looking for no-exam life insurance policies with high coverage amounts can help you find a policy that provides enough financial protection. 

Age eligible for best term length/amount

All insurers have a maximum age limit at which they will no longer issue life insurance policies, but that age is often lower for no-exam life insurance policies. When rating no-exam life insurance policies, we gave points to insurers that issue coverage to eligible applicants over the age of 50. 

>> Why this is important: If you’re 50 or older and want no-exam life insurance, it can be difficult to find coverage. Identifying insurers that issue coverage to older individuals can narrow down your search.

Methodologies

• Best life insurance companies.
• Best term life insurance.
• Best whole life insurance.
• Best no-exam life insurance.
• Best seniors life insurance.

Best life insurance methodology

The best life insurance companies offer competitive rates, low customer complaint levels and a high level of financial strength. Further, they have permanent life insurance products that are cost competitive, offer policies that provide cash value liquidity early on, have a strong historical investment performance and reliable policy illustrations. 

Best life insurance rating factors

• Term life insurance costs: 35 points. 
• Cost competitiveness of cash value policies: 15 points.
• Access to cash value: 10 points.
• Financial strength: 10 points.
• Historical performance: 10 points.
• Reliability of policy illustrations: 10 points.
• Complaints: 5 points.
• Term life conversion availability: 5 points.

See the results of our analysis in our rating of the best life insurance companies.

Best term life insurance

Term life insurance allows you to lock in rates and coverage for a set period, often 10 to 30 or more years. It’s also the most affordable life insurance option for most people. The best term life insurance company is one that has competitive rates, a low level of customer service complaints and desirable features, such as policies that are guaranteed renewable or can be converted to permanent coverage.

Best term life insurance rating factors

• Term life insurance rates: 70 points. 
• Complaints: 10 points.
• Term life conversion availability: 10 points.
• Guaranteed renewable: 10 points.

See the results of our analysis in our rating of the best term life insurance companies.

Best whole life insurance methodology

Whole life insurance offers coverage for the duration of your life, as long as premiums are paid. These types of policies also typically have a cash value that grows at a guaranteed rate of return. The best whole life insurance companies are cost competitive, have a high level of financial strength, low level of customer complaints, reliable policy illustrations and a history of strong investments. 

Best whole life insurance rating factors

• Cost competitiveness of cash value policies: 35 points.
• Historical performance: 25 points.
• Reliability of policy illustrations: 20 points.
• Financial strength: 10 points.
• Cash value access: 10 points.

See the results of our analysis in our rating of the best whole life insurance companies.

Best no-exam life insurance methodology

No-exam life insurance can help get coverage without the need for a medical exam, as long as you’re eligible. The best no-exam life insurance policies have low rates, include accelerated death benefits and offer a high amount of coverage. They also can be converted to full coverage and are available to young and older applicants. 

Best no-exam life insurance rating factors

• Rates: 75 points.
• Maximum face value for lowest eligible age: 10 points. 
• Accelerated death benefit: 5 points.
• Term life conversion availability: 5 points.
• Age eligible for best term length/coverage amount: 5 points.

See the results of our analysis in our rating of the best no-exam life insurance companies.

Best senior life insurance methodology

Seniors shopping for life insurance see higher rates than most applicants, making the cost of coverage a significant factor. The best life insurance companies for seniors also offer reliable policy illustrations, have a history of strong investments, are cost-competitive and have a high level of financial strength. 

Best senior life insurance rating factors

• Term life insurance rates: 40 points.
• Cost competitiveness of cash value policies: 20 points. 
• Historical performance: 20 points.
• Reliability of policy illustrations: 10 points. 
• Financial strength: 10 points. 

See the results of our analysis in our rating of the best life insurance companies for seniors.

Our star ratings explained

We determine our best life insurance star ratings by assigning weight to the key factors listed above. Each life insurance company can score up to 100 points, and its total score determines its star rating, which ranges from 5.0 to 1.0. The top scores earn 5.0 stars. 

How we collect data

Our insurance editors collect life insurance rate data from AccuQuote. We use data from Veralytic to analyze other important life insurance factors, such as the cost competitiveness of cash value life insurance policies as well as an insurer’s financial strength and historical investment performance. 

To evaluate each life insurance company and their policies, when applicable, we leverage information made available through an insurer’s website and product documentation. 

Our analysis of customer complaints is based on data from the National Association of Insurance Commissioners (NAIC). 

Our data is subject to three levels of fact-checking to ensure accuracy. Data is collected annually and ratings are updated each year.

USA TODAY Blueprint’s editorial standards

Our goal as insurance editors is to provide readers with an unbiased analysis of insurance products on the market and break down the pros and cons of each. 

For insurance ratings, we collect thousands of data points to evaluate by assigning weights to the most important factors. These weights determine each product’s score out of 100, which translates to a star rating. Top-scoring insurance products get 5 stars. 

Our ratings are designed to let rigorous methodology determine the winners so all star ratings are data-based. Advertisers never influence our editorial content.