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Whole life insurance is a permanent policy, which gives you guaranteed protection for your loved ones that lasts a lifetime. With whole life insurance, unlike term, you build guaranteed cash value , which you can use however you want. Participating whole life insurance is eligible to earn dividends,1 which can be used to increase the death benefit and the cash value of the policy. Or there are other options you could choose, such as using dividends to help pay premiums.
Who should consider whole life insurance?Whole life insurance can help protect your spouse during retirement or become a legacy for your loved ones or a favorite charity. It also provides guaranteed cash value that you can access at any time for any need, including funds to help pay for college, cash to support your business, or income in retirement. So if you have loved ones or businesses that depend on you, you should consider whole life insurance.
Whole life insurance features and benefitsWhole life ensures a guaranteed death benefit, which means that your loved ones will receive a lump sum of money regardless of how long you live. With whole life, the policy builds cash value over time that can be used to help you pay for college, supplement your retirement income, or for emergencies.2 Policyowners are also eligible to receive valuable dividends. While dividends are not guaranteed, MassMutual has paid them to eligible participating policyowners every year since 1869. NEED MORE INFORMATION? What is the process for getting a whole life insurance policy?
Contact a financial professional Learn more about whole life insuranceBuying life insurance can be confusing, especially with numerous policy types on the market to choose from. Whole life insurance offers guaranteed death benefit, cash value growth and stable premiums for life. The guarantees provided by whole life insurance can be attractive to those with permanent life insurance needs. Getting the best whole life insurance policy comes down to knowing specific details about the plan, like what riders, flexibility and customizations a company offers, and what returns you can expect out of the policy. Based on data collected by MoneyGeek, which include dividend payouts, third-party rankings and customer service scores, these are the best whole life insurance companies to choose from. TABLE OF CONTENTS
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Best Overall Whole Life Insurance Company: Northwestern MutualprosThis is an icon Hybrid term/whole life product This is an icon Choice of the length of payment term This is an icon Riders available to customize your whole life insurance This is an icon Dividends available consThis is an icon No online quotes This is an icon All policies are fully underwritten COMPANY HIGHLIGHTSMoneyGeek Score: 87.4 MoneyGeek's Take: Northwestern Mutual tops our list of best whole life insurance companies for its product flexibility and customization options, high third-party customer satisfaction scores, superior financial strength and industry longevity. Northwestern Mutual offers two whole life insurance policies for individuals up to 85 years old. Minimum coverage starts at $25,000 with no cap, as long as you can prove a financial need for higher death benefits. The company’s CompLife whole life insurance plan allows you to choose how long you’ll be paying for whole life insurance. You can opt to pay for a period of anywhere from 10 to 30 years, or until you reach age 65, 90 or until death. Keep in mind that the shorter the payment schedule, the higher your premiums. Northwestern Mutual is one of the few companies to offer a hybrid solution. Its Whole Life Plus policy combines term and whole life insurance in one policy. You can choose how much temporary and permanent coverage you need, with further customization provided through optional riders like accelerated care benefit to cover long-term care or waiver of premium, which pays your premiums if you become disabled. The company also provides living benefits, which means you can use some of the death benefits while still alive if you’re diagnosed with a terminal illness. As a mutual company, Northwestern Mutual pays some of the highest annual dividends to policyholders in the industry (most policies will receive a 5% dividend in 2022). Policy Types Offered:
Best for High Guaranteed Returns and High Dividends: MassMutualprosThis is an icon Annual dividends This is an icon At least 4% cash value growth guarantee This is an icon Customizable premium lengths and riders consThis is an icon No online quote This is an icon Limited online information COMPANY HIGHLIGHTSMoneyGeek Score: 84.5 MoneyGeek's Take: Even during the pandemic, MassMutual managed to pay out a 6% dividend, something they’ve done annually for eligible policyholders since 1869. The company’s consistency in paying dividends is why it topped our list for the best whole life insurance policy for high guaranteed returns and dividends. Mass Mutual is one of the best whole life insurance providers for seniors and other age groups. Its whole life policies come with a guaranteed minimum of 4% cash value growth. Furthermore, although the company doesn’t ensure annual dividends, it has been paying them yearly since 1869. In 2021, policyholders got a 6% annual dividend, amounting to an estimated $1.7 billion in dividend payouts. MassMutual requires a minimum whole life insurance death benefit of $25,000. You can choose from various payment lengths, including 10, 12, 15 and 20-year terms, or payments until you reach the age of 65 or 100. The company also has a Legacy High Early Cash Value whole life policy — usually called keyman life insurance — geared toward businesses providing coverage for key employees. These policies are paid to age 85. You can choose from a wide range of riders to customize your whole life insurance, including waiver of premium, long-term care, renewable term and accelerated death benefit. With the guaranteed insurability rider, you can buy more whole life insurance at certain times in the future without having to answer health questions or complete a medical exam. If you want the ability to buy term life insurance when needed, the renewable term rider allows you to turn a whole life policy into a hybrid policy. It also offers you the option to convert the term coverage to permanent or drop it when it’s no longer needed. Policy Types Offered:
Best for Customization and Riders: New York LifeprosThis is an icon Highly customizable whole life policies This is an icon High cash value and dividend growth potential This is an icon Long list of riders, some free consThis is an icon No online quotes This is an icon Can only buy from an agent COMPANY HIGHLIGHTSMoneyGeek Score: 87.5 MoneyGeek's Take: MoneyGeek considers New York Life one of the best whole life insurance companies if customization and riders are what you’re after. It also happens to be one of the oldest and most well-respected providers in the industry. New York Life is one of the most recognized names in the life insurance industry. It offers a standard whole life insurance policy with a minimum death benefit of $25,000. This policy includes guaranteed cash value, death benefit and premiums. If you want to customize your policy, you get all that and more with custom whole life insurance. If you’re looking for the best life insurance policy for children, their whole life policies are great. The custom whole life policy begins with a $50,000 death benefit and no cap, as long as you can prove your financial need. New York Life is also a mutual company and has paid dividends annually since 1854. With New York Life, you can add the following free riders: insurance exchange to transfer your policy to another person (there is a transfer fee), living benefit to access a portion of the death benefit if diagnosed with a terminal illness and paid-up insurance purchase for your spouse. The last of these three allows the living widow or widower to use the death benefit to buy a fully paid life insurance policy for them after their spouse passes. New York Life also has the following paid riders that you can add to your life insurance premium:
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Best for Product Options and Flexibility: Guardian LifeprosThis is an icon May not require a medical exam This is an icon May earn yearly dividends This is an icon Hybrid long-term care solutions available consThis is an icon Quotes and applications only available through financial professionals This is an icon Limited information on company website COMPANY HIGHLIGHTSMoneyGeek Score: 81.6 MoneyGeek's Take: We chose Guardian Life as our top pick for best product options and flexibility because of its diverse whole life insurance policy lineup. With Guardian Life, you get varied whole life insurance options and flexibility, especially if you’re interested in long-term care coverage. Guardian’s standard whole life insurance policy allows you to choose payment terms ranging from 10 to 20 years or terms that are paid up at certain ages, like 65, 95 or 99 years old. The death benefit starts at $25,000 for individuals up to 80 years old, with no maximum coverage cap. Like other mutual companies, Guardian Life has paid out dividends annually since the 1800s, though they aren’t guaranteed. Guardian's joint long-term care rider and survivorship whole life policy provide a long-term care solution with life insurance for one or both spouses in one product. You have the option of accelerating up to half of the death benefit’s face amount for long-term care. Once you’re on claim, you can use the monthly benefit payments for care, and Guardian will credit premiums as paid, so the policy stays in force. All long-term care payments will reduce the death benefit, but not deplete it. The remaining death benefit can be paid to your beneficiary when the second-to-die spouse passes. This rider can be added as early as age 18 and up to age 70, but you must be in good health to be eligible. Policy Types Offered:
Best for Purchasing Through an Agent: State FarmprosThis is an icon Several policies to choose from This is an icon Local agents provide a personalized experience This is an icon May qualify for whole life insurance with no medical exam consThis is an icon Only available through agents This is an icon Not available nationwide COMPANY HIGHLIGHTSMoneyGeek Score: 97.4 MoneyGeek's Take: State Farm has over 18,000 agents across the country, making it easy to purchase through an agent and get a personalized experience. State Farm is another mutual life insurance company that offers dividends on its whole life insurance policies. Though product availability varies by state, State Farm has whole life insurance options. They also have local agents to help you find what you need to protect your family. State Farm offers a single premium whole life insurance policy, limited payment options for 10, 15, or 20 years, and a standard to-age-100 whole life policy. Starting at age 50, seniors can purchase final expense whole life insurance with up to $10,000 in coverage. When you speak to an agent, ask about State Farm’s rider options if you want to customize your life insurance policy. Several options are available, including the children’s and spouse term rider, waiver of premium for disability, guaranteed insurability, payor insurance benefit and level term to age 95, which offers a hybrid solution of term and whole life in one policy. The minimum death benefit for State Farm's whole life policy is $10,000. If their policy death benefit is less than $1 million, healthy individuals under 50 may qualify for coverage without a medical exam. Policy Types Offered:
Best Guaranteed Acceptance Whole Life for Seniors: Mutual of OmahaprosThis is an icon No medical exam or health questions This is an icon Most claims paid in 24 hours This is an icon Tobacco use not considered consThis is an icon Only available to seniors This is an icon Limited death benefit COMPANY HIGHLIGHTSMoneyGeek Score: 90.8 MoneyGeek's Take: Mutual of Omaha is our pick for best guaranteed acceptance whole life and best whole life for seniors. With no medical exam or health questions, coverage is guaranteed, and tobacco use doesn’t increase premiums. The older you get without buying life insurance, the greater your chances of no longer being eligible for coverage. For seniors with health concerns, Mutual of Omaha offers up to $25,000 in guaranteed acceptance whole life insurance. If you are between 45-85 or 50-75 in New York, you cannot be turned down for coverage. Your premiums are only determined by your age at the time of issue, gender and coverage amount. While this is more expensive than medically underwritten whole life insurance, guaranteed issue whole life allows you to get final expense coverage without health being a factor. If you don’t have as many health concerns but still prefer not to undergo a medical exam, Mutual of Omaha also has simplified issue whole life coverage. This policy makes you answer a few simple health questions but doesn’t require a medical exam and doesn’t take tobacco use into consideration. It offers coverage of up to $20,000 ($40,000 in WA) and provides a graded death benefit. The latter only provides returned premiums plus 10% if you die from a non-accidental death within the first two years. If you want a level death benefit immediately, an accelerated death benefit rider can give you up to $40,000 in coverage for being confined to a nursing home or diagnosed with a terminal illness. Policy Types Offered:
Best Whole Life Company Comparison SummaryBased on MoneyGeek's scores, the companies listed below are the best whole life insurance companies available today. These companies have superior financial strength to pay life insurance claims, high customer satisfaction scores with J.D. Power, are available to most age groups and have several policy options to choose from. Best Whole Life Insurance Companies
Compare Life Insurance RatesEnsure you’re getting the best rate for your life insurance. Compare quotes from top providers to find the most affordable life insurance coverage for your needs. How Does Whole Life Work?Whole life insurance is a permanent type of life insurance. It offers guaranteed cash value, level premiums and a death benefit. The policy covers you until death as long as you continue to pay your premiums. Some whole life insurance policies have a limited payment period, which means they will continue to accrue cash value after the policy is paid in full. For instance, a 20-year whole life policy requires 20 years of payments before the policy is paid in full. These policies have a higher premium because of the shorter payment timeline. Mutual insurance companies' whole life insurance policies may also have dividends, which are profits returned directly to the policyholders instead of stockholders. Policyholders who receive a dividend can use it in several ways, including taking it as cash, paying premiums or outstanding loans against the cash value, or buying paid-up additions. When you purchase paid-up additions, the dividends are used to buy additional whole life insurance coverage, increasing the death benefit amount and cash value. Whole Life vs. Term LifeWhole life insurance is different from term life insurance in a few ways. First, whole life is permanent life insurance, while term life insurance is temporary. Both have level premiums, but whole life provides lifetime coverage, and term life expires once the term is over. You can renew term life insurance, but the premiums will be higher based on your current age. Whole life insurance also builds cash value and may come with dividends, which aren’t offered with term life insurance. Because it provides lifetime protection and cash value growth, whole life insurance is more expensive than term life insurance. Whole Life and Term Life Comparison
Who Should Buy Whole Life and What Are the Benefits?When determining which type of life insurance is the best choice for you, consider what needs life insurance will cover. If you’re looking to cover a specific debt, like a mortgage, or want to make sure your kids can go to college if you pass away before that happens, you have a temporary need for life insurance coverage. This would be best suited to term life insurance. However, if you want to pay for your funeral and end-of-life expenses, have access to a cash value or have a financial dependent that will continue for life, such as a special needs child, you should consider permanent life insurance like whole life. For many, a hybrid solution is best, with temporary needs covered by term life and permanent needs covered by the best whole life insurance you qualify for. With whole life, you get:
Potential Pitfalls to Know About Whole LifeWhile whole life insurance may be the best solution for some, it’s not without its pitfalls. For one, the cost of life insurance for whole life is often higher than term life insurance and is level for the policy's lifetime. Because of the higher premiums, you may not be able to afford as much coverage as you need or changes in your circumstances could make whole life insurance unaffordable for you. Though some whole life insurance companies offer limited payment options, others typically require premiums payments until age 100 or older, which means most people will pay for coverage until they die. When you get a quote for whole life insurance, the sales illustration will depict cash value growth and potential dividends based on historical data. Though the minimum cash value growth is guaranteed, dividend payments are not. If you decide you no longer want your whole life insurance policy, you can surrender it. You will receive any remaining cash value, but you may also be assessed surrender charges. These charges vary by company and are set for a specific period, known as a surrender charge period. Like a mortgage, the surrender charge period front loads the interest, meaning you will pay the highest charge in the first few years of the policy. Compare Life Insurance RatesEnsure you’re getting the best rate for your life insurance. Compare quotes from top providers to find the most affordable life insurance coverage for your needs. FAQs About the Best Whole Life Companies and PoliciesFind the answers to some of the most common questions about the best whole life insurance policy and companies. MethodologyHere at MoneyGeek, we do our best to ensure that you’re getting the most reliable information about whole life insurance. Our ranking for the best whole life insurance companies incorporates third-party analysis from AM Best and J.D. Power and Associates. It also considers our own proprietary research and analysis of each company’s policy offerings and application process. To learn more, visit our complete methodology page. About the Author sources
Does whole life insurance build up cash value?Whole life policies provide “guaranteed” cash value accounts that grow according to a formula the insurance company determines. Universal life policies accumulate cash value based on current interest rates.
Which life insurance policy builds cash value fastest?Whole life insurance is the type of life insurance that generates immediate cash value. Universal life, indexed universal life, and variable universal life insurance policies generate cash value, but whole life insurance generally has the most flexible options and features for cash value accumulation.
What kind of life insurance builds cash value?Whole life and universal life are forms of life insurance that have a cash value component.
How long does it take for whole life insurance to build cash value?With a cash value policy, your premiums are typically set at a fixed rate. A portion of your premium goes to fund the death benefit. Another portion goes to fund the cash value of your policy. In most cases, the cash value doesn't begin to accrue until 2-5 years have passed.
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Top whole life insurance companies for building cash value
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