Term or permanent: decide this first
The company matters less than the type of policy. Term life covers you for a set period, usually 10 to 30 years, and pays only if you die during that time. Whole life and other permanent policies last for life and build cash value, but they cost far more for the same death benefit.
The price gap is large. In NerdWallet's October 2026 data for $500,000 of coverage, a 40-year-old nonsmoking man paid about $321 a year for 20-year term and about $3,180 a year for whole life. That is roughly ten times as much. Term is the usual fit when the goal is replacing income while children are young or a mortgage is outstanding. Permanent coverage is mostly used for lifelong needs, such as estate planning or a dependent who will always need support.
For a full breakdown of prices by age, sex, term length and health class, see our life insurance rates guide.
How to judge a life insurer
Financial strength
A policy is a promise that may need to be kept 30 years from now. AM Best grades insurers' ability to pay claims. A++ and A+ are its "Superior" grades and A is "Excellent." Ratings do change. In November 2025 AM Best cut State Farm Life from A++ to A+, and in March 2026 it lowered Banner Life (formerly branded Legal & General America) from A+ to A after Meiji Yasuda completed its purchase of the company. The company relaunched under the Banner Life name in March 2026.
Customer satisfaction
J.D. Power's 2026 study surveyed 6,145 customers from July 2025 to July 2026. The industry average was 649 out of 1,000, down 1 point. J.D. Power found that one bad experience, such as trouble reaching a representative or an unexpected fee change, cut trust scores by 96 points. Satisfaction with policies bought directly from the insurer fell 12 points to 684, while satisfaction with policies sold through agents and advisors rose 6 points to 645.
Underwriting and availability
Some insurers sell online with no exam. Others require a paramedical exam and work through agents. Also confirm the brand still takes applications. Haven Life, once a well-known online term brand, announced in late December 2023 that it was no longer accepting new applications. Existing Haven Life policies were issued by MassMutual or its subsidiary C.M. Life and are still serviced by MassMutual.
Life insurers compared
| Insurer | AM Best rating (date) | J.D. Power 2026 | Notable facts |
|---|---|---|---|
| Nationwide | A+ (affirmed Nov 2025) | Ranked 1st, 701 | Up from third place in 2025; also ranked highest in trust and value for price |
| State Farm | A+ (cut from A++ in Nov 2025) | Ranked 2nd, 692 | Rating outlook revised from negative to stable with the November 2025 downgrade |
| Mutual of Omaha | A+ (affirmed Mar 2025) | Ranked 3rd, 680 | A+ affirmed for Mutual of Omaha and its life subsidiaries, including United of Omaha Life |
| Northwestern Mutual | A++ (per insurance.com, Jan. 2026) | Not in published top three | Lowest complaint ratio of 50+ insurers NerdWallet reviewed; most policies need an exam |
| Guardian | A++ (affirmed Sept 2025) | Not in published top three | Term from $100,000 to $10 million available to qualifying HIV-positive applicants; no online purchase |
| MassMutual | "Exceptional" financial strength (per NerdWallet) | Not in published top three | Whole Life 100 open to ages 0–90; agent needed for most quotes; services former Haven Life policies |
| New York Life | A++ (per insurance.com) | Not in published top three | Most policies need an exam; issues AARP's no-exam term policy |
| Banner Life (formerly Legal & General America) | A (cut from A+ in Mar 2026) | Not in published top three | Now owned by Meiji Yasuda; partner insurer for Lemonade's term policies |
Source: J.D. Power 2026 U.S. Individual Life Insurance Study (Oct. 8, 2026); AM Best press releases via Business Wire; insurance.com (Jan. 2026); NerdWallet (Oct. 2026). J.D. Power published only the top three scores.
What the companies are known for
- Nationwide led J.D. Power's 2026 study and was rated highest in trust, value for price, digital channels, flexible service options and problem resolution.
- Northwestern Mutual sells term, whole, universal and variable universal life through its own advisors. NerdWallet notes its website gives few rider details.
- Guardian (A++ from AM Best) and MassMutual both sell through agents for most policies and usually require a medical exam, according to NerdWallet.
- Mutual of Omaha placed third in J.D. Power's 2026 ranking with 680 points.
Sample term premiums by age
These are averages for healthy nonsmokers. Your quote can be lower or much higher.
| Age | Men, $500,000, 20-year | Women, $500,000, 20-year |
|---|---|---|
| 20 | $17/mo | $15/mo |
| 30 | $18/mo | $15/mo |
| 40 | $27/mo | $23/mo |
| 50 | $68/mo | $53/mo |
| 60 | $195/mo | $137/mo |
Source: NerdWallet, Average Life Insurance Rates (updated Oct. 1, 2026), using LifeStein.com data; average of the three lowest rates for preferred-health applicants. Monthly figures are annual premiums divided by 12.
Prices roughly quadruple between 30 and 50: from about $213 to $810 a year for a man. Many people also overestimate the cost. In the 2026 Insurance Barometer, about three-quarters of consumers overestimated what life insurance costs, and adults under 31 guessed five to six times too high for a $250,000, 20-year term policy.
No-exam life insurance options
No-exam policies trade some price and coverage for speed. There are three main kinds:
- Accelerated term: a full term policy where healthy applicants who answer health questions online may skip the exam. Ladder, for example, says most of its applicants won't need one.
- Simplified issue: a short health questionnaire, no exam, usually lower coverage limits.
- Guaranteed issue: no health questions. Usually small whole life policies sold as burial insurance, generally for ages 50 to 85.
| Policy | Coverage | Issue ages | Terms |
|---|---|---|---|
| Ladder Term | $100,000–$3 million | 20–60 | 10, 15, 20, 25, 30 years |
| Lemonade Term (issued with Banner Life) | From $100,000 | 20–75 | 10–40 years, in 5-year steps; not in New York |
| AARP Level Benefit Term (New York Life) | $10,000–$150,000 ($100,000 in NY) | Members 50–74; spouses 45–74 | Coverage to age 80 |
| Protective Simplified Issue Whole Life | $20,000–$100,000 | 15 days to 65 | Permanent |
Source: NerdWallet, Best No-Exam Life Insurance (updated Oct. 2026). Ladder says most applicants won't need an exam; Lemonade says some may.
The cost of skipping the exam depends on your health rating. In NerdWallet's no-exam sample, a 40-year-old man paid $329 a year at preferred plus and $639 at standard for $500,000 of 20-year term. Lemonade policies cannot be converted to permanent coverage, according to NerdWallet, so check conversion rights if that matters to you.
How to choose a policy and insurer
- Size the need. Add debts, years of income your family would need, and future costs such as college. Subtract savings and existing coverage, including any group life through work.
- Match the term to the need. A 20-year term often lines up with a young child or a new mortgage. A 30-year term costs more: $104 a month versus $59 for a 40-year-old man buying $500,000 in MoneyGeek's survey.
- Get quotes from several insurers. Insurers weigh health factors differently, so the cheapest company for one person is not the cheapest for another.
- Check the rating and service record. Look up the AM Best rating and your state insurance department's complaint data for the issuing company, not just the brand name.
- Answer the application truthfully. State regulators note that during the first two years, the contestability period, an insurer can void a policy over incorrect answers it relied on.
- Use the free-look period. In North Carolina, for example, you get at least 10 days after delivery to return a new policy for a full refund. Rules vary by state.
Life insurance pays only if you die. A long illness or injury is more likely to hurt your finances while you are working age, so read our guide to whether you need disability insurance, and keep an emergency fund for short gaps. For other policy types, see our insurance hub.
Frequently asked questions
Which life insurance company ranked highest in customer satisfaction in 2026?
Nationwide ranked first in J.D. Power's 2026 U.S. Individual Life Insurance Study with 701 points, followed by State Farm (692) and Mutual of Omaha (680). The industry average was 649.
Can I still buy a policy from Haven Life?
No. Haven Life stopped accepting new applications at the end of 2023 (some sources date the cutoff to early January 2024). Existing policies, issued by MassMutual or its subsidiary C.M. Life, remain in force and are serviced by MassMutual.
What AM Best rating should a life insurer have?
AM Best's A++ and A+ grades are "Superior" and A is "Excellent." Check the rating of the company that actually issues the policy, since ratings can change, as State Farm Life's and Banner Life's did in 2025 and 2026.
How much does $500,000 of term life cost?
In NerdWallet's October 2026 data, a healthy nonsmoking 40-year-old man paid about $27 a month for a 20-year, $500,000 policy and a woman about $23. Prices rise steeply with age, smoking and health conditions. See our life insurance rates guide.
Is no-exam life insurance more expensive?
Often, though not always. Healthy applicants approved through accelerated underwriting may pay prices close to fully underwritten policies. Simplified and guaranteed issue policies usually have lower coverage limits and higher rates.
What is the contestability period?
It is usually the first two years of a policy. During that time the insurer can void the policy if your application contained incorrect answers it relied on when issuing coverage.