Whole life insurance provides lifelong coverage with fixed premiums and a cash value component that grows over time, making it ideal for long-term planning.
Top providers like State Farm, Nationwide and Progressive stand out for their financial stability, customer experience and policy customization options.
Insurer strength, policy flexibility and cash value growth are key factors when choosing a whole life policy.
State Farm is the best overall whole life insurance company with a MoneyGeek score of 99. Nationwide ranks highest for its buying process, while Progressive leads in customer satisfaction. Whole life insurance offers guaranteed death benefits, cash value growth and stable lifetime premiums.
Compare the top providers in the table below to find the right fit for your needs.
| Overall | State Farm | 99 | $22 |
| Buying Process | Nationwide | 98 | $16 |
| Customer Satisfaction | Progressive | 95 | $31 |
With a MoneyGeek score of 99 out of 100, State Farm is the top choice for whole life insurance policies. The company received a perfect rating in financial stability, assuring policyholders of the company's ability to fulfill long-term claim commitments.
State Farm has established itself as a reliable provider in the life insurance market. With 101 years in the business, the company brings a wealth of experience. Its whole life insurance policies are particularly noteworthy, especially its Limited Pay Whole Life product that offers level terms for 10, 15 or 20 years. These policies ensure lifelong coverage tailored to individual needs. The company's A++ AM Best rating underlines its financial stability, making it a trustworthy choice for those seeking a robust whole life insurance policy.
You can bundle life insurance with another State Farm product, such as auto or home insurance, to potentially save money. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Nationwide, with a MoneyGeek score of 98 out of 100, received the highest rating for its buying process, demonstrating its commitment to customer ease and accessibility.
Nationwide distinguishes itself with an unrivaled buying process, making it easier for customers to navigate the complexities of life insurance. With 97 years of industry experience, Nationwide offers a range of life insurance products, including whole life policies with two distinct payment options: Whole Life 100 and 20-Pay Whole Life. The Whole Life 100 option allows premiums to remain consistent until they cease at age 100. The 20-Pay Whole Life product keeps premiums consistent until you fully pay off the policy after 20 years.
The company's A+ AM Best rating also assures policyholders of its financial stability. If you value a straightforward buying experience, Nationwide stands as a compelling choice.
Progressive earned a perfect customer satisfaction rating, contributing to its MoneyGeek score of 95 out of 100. Although partners issue Progressive's policies, the company is the best provider for policyholders seeking an excellent customer experience.
Progressive stands out for its commitment to customer satisfaction, as evidenced by its perfect rating in this category. With 86 years of industry experience, Progressive offers a wide range of life insurance products, including whole life policies. Although the company issues its policies through partners, it maintains a low rate of customer complaints, indicating high satisfaction among policyholders. The availability of online research materials and a mobile app adds to the convenience, although it's worth noting that its buying process and payment options are relatively limited. If customer satisfaction is your priority, Progressive is a solid option to consider.
Whole life insurance offers permanent coverage, predictable premiums and a guaranteed death benefit, making it a solid choice for long-term financial planning. This guide walks you through how whole life policies work, who they’re best suited for, and what to consider when comparing providers. From evaluating cash value growth to insurer stability, the sections below will help you decide based on your needs and goals.
Insurance providers assess a range of factors to calculate your premium. These elements can range from personal health status to geographical location. Understanding these factors can help you navigate whole life insurance costs.
Age is one of the primary factors and significantly influences the cost of your policy. Generally, younger individuals receive lower premiums, as insurers view them as lower risk.
Insurance companies often differentiate quotes for whole life insurance based on gender. Typically, women may receive lower premiums due to a longer average lifespan.
Your overall health plays a pivotal role in determining your premium. A comprehensive medical exam may be required to evaluate conditions affecting your policy cost.
Habits like smoking or excessive drinking can elevate your risk profile, increasing premiums.
Jobs that expose you to higher risks can result in increased policy costs. Occupations in fields like construction or aviation are often considered higher risk.
The more coverage you seek, the higher your premium will be. Balance your coverage needs with what you can afford.
Your place of residence can also influence your premium. Insurance providers may adjust whole life insurance quotes based on local mortality rates and other demographic data.
Some policies offer optional riders, like long-term care coverage, which can add to the overall cost of your policy.
When you get a quote for whole life insurance, the sales illustration will depict cash value growth and potential whole life dividends based on historical data. Though the minimum cash value growth is guaranteed, dividend payments are not.
If you no longer want your whole life insurance policy, you can surrender it. You will receive any remaining cash value, but surrender charges may also be assessed. These charges vary by the company, which sets them 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.
In general, life insurance is a policy that provides guaranteed cash value, level premiums and a death benefit. Whole life insurance is a type of permanent life insurance that 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 you pay the policy in full. For instance, a 20-year whole life policy requires 20 years of payments before policy fulfillment. This type of policy has a higher premium due to the shorter payment timeline.
Additionally, mutual whole life insurance companies may offer policies that include dividends. These are profits returned directly to the policyholders instead of stockholders. Policyholders can use dividends in various ways, such as taking them as cash, paying premiums, paying outstanding loans against the cash value or buying paid-up additions. Paid-up additions can increase the death benefit amount and cash value by using the dividends to purchase additional whole life insurance coverage.
When researching whole life insurance, it's important to consider the initial cost and the long-term benefits and potential for cash value growth and dividends. It's important to understand the details of this insurance, whether you're seeking the best whole life insurance policy for young adults, for families or looking for the top companies.
Whole life insurance and term life insurance differ in several ways. Whole life insurance is a type of permanent life insurance, while term life insurance is temporary coverage. Both policies have level premiums, but whole life insurance provides lifetime coverage, whereas term life insurance expires once the term is over. If you renew term life insurance, you will have to pay higher premiums based on your current age.
Whole life insurance builds cash value and may come with dividends, which insurers don't offer with term life insurance. The ability to accumulate cash value and receive dividends makes whole life insurance more expensive than term life insurance. Despite the higher cost, whole life insurance provides lifelong protection and long-term financial planning benefits that term life insurance does not offer.
We recommend considering your specific insurance needs before purchasing whole life insurance. Term life insurance may be the best choice if your primary goal is to cover a temporary debt, such as a mortgage, or ensure your children can afford college after your death.
If you want to provide for funeral expenses or have a financial dependent that will continue for life, such as a special needs child, permanent life insurance like a whole life insurance plan may be a better choice. Whole life insurance gives policyholders guaranteed cash value, level premiums for life, guaranteed death benefit, cash value growth and dividends (if offered by your provider).
A combination of term life and whole life insurance may be the best solution. This strategy allows term life insurance to cover temporary needs while whole life insurance meets permanent needs. Your decision to purchase whole life insurance depends on your circumstances and financial goals.
Whole life insurance offers stability, lifelong protection and a guaranteed cash value component, making it a valuable tool for long-term planning. State Farm ranks as the best provider with strong policy options and financial strength. Nationwide stands out for its smooth buying experience, and Progressive is a solid option for those who value customer-focused service. Comparing features like premium structure, policy flexibility and insurer reputation will help you choose the best whole life policy for your needs.
Find the answers to some of the most common questions about the best whole life insurance policies and companies.
The best whole life insurance policy offers a mix of guaranteed cash value growth, competitive whole life insurance rates and potential dividends. It comes from a top whole life insurance company known for financial stability and customer satisfaction.
The best whole life insurance policy will depend on your individual needs and financial goals. When choosing a policy, consider the coverage amount, premium costs, cash value growth and additional benefits or riders offered.
Based on MoneyGeek's analysis, State Farm is the best overall provider for this type of policy. Nationwide can be a top choice for those who want a seamless buying process, while Progressive offers the best customer service experience.
Whole life insurance offers lifetime protection with level premiums and a guaranteed death benefit. In exchange for your monthly or annual premiums, the life insurance company promises minimum cash value growth and a death benefit paid to your beneficiary when you die. If you buy whole life insurance from a mutual company, you may receive dividends; these you can then use to pay premiums, buy additional whole life insurance coverage or take as cash. In general, it's important to understand how life insurance works.
Whole life insurance is sold by mutual whole life insurance companies, as well as other insurance providers that offer custom whole life insurance plans. These companies provide detailed whole life insurance quotes online or through licensed agents.
To obtain whole life insurance, start by requesting quotes from top-rated whole life insurance companies. Compare these quotes, policies and whole life insurance interest rates to find a plan that meets your financial goals and provides the coverage you need.
The main difference between whole and term life insurance is the length of coverage time. Whole life insurance is permanent and offers a level death benefit from when your policy is issued until death. Term life insurance provides a death benefit for a specific number of years, usually between 10 and 30. The policy expires after the term is over unless you renew it at your current age for a higher premium.
The choice between term life insurance and whole life insurance ultimately depends on your individual needs and circumstances. Term life insurance is generally more affordable and offers coverage for a set period, making it a good choice for those with temporary financial obligations or a limited budget. On the other hand, whole life insurance offers permanent coverage and includes a savings component that builds cash value over time. This makes it a good choice for those who want lifelong coverage and the ability to accumulate savings that you can borrow against or use to pay premiums.
Most life insurer health questionnaires will include a few COVID-19 questions. Previously having COVID-19 should not impact your ability to purchase new life insurance coverage, according to the Insurance Information Institute. However, if you are experiencing long COVID symptoms, it may be considered a chronic condition and could impact the rate insurers charge you.
Why Trust MoneyGeek?
We analyzed 1,488 life insurance quotes alongside customer satisfaction, financial stability reports, product offerings and more to determine the best whole life insurance companies.
MoneyGeek created a scoring system to compare life insurance companies across five categories and ranked them based on their scores. We chose to review these companies based on their broad national coverage and ability to provide an online quote.
MoneyGeek’s Scoring System
MoneyGeek ranked the top whole life insurance companies using the following weightings:
We did not include affordability in the calculation since we do not have quotes for whole life insurance policies. Of the companies that offer whole life insurance plans, we chose the one with the highest score.
Each company’s score incorporates the following:
Sample Customer Profile
MoneyGeek used a standard profile to obtain life insurance quotes:
Premiums are based on the standard profile unless otherwise noted.
We modified the profile by age, gender, height, weight, tobacco use, health rating and geographic location to collect various quotes and determine the best life insurance company for several types of customers. We also collected quotes for term life insurance with varying term lengths and coverage amounts.
We identified trends in the data set and used those patterns to calculate projections and extend the data beyond what was initially collected.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
