Find the right permanent life insurance to protect your family
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Shopping around for life insurance can feel overwhelming, mostly because there are so many decisions to make. You have to decide how much life insurance you need, but you also have to compare the financial strength and ratings of the companies. Next, comes another important question: Should you buy term life insurance that only lasts a certain number of years or permanent life insurance for a lifetime?
Only you can decide which life insurance is best for your needs, and universal life insurance is popular for several reasons and maybe the solution you are looking for. Universal life insurance is permanent, so the benefits will last a lifetime. If you pass the medical examination, you can choose to increase the death benefit of the policy, and the savings account portion of the policy usually earns interest. Once you have accumulated money on a universal life insurance policy, you can use it to change the amount of your life insurance premium
We compared more than 20 universal life insurance companies, ranking them based on financial strength, available riders and riders, and industry ratings. Here are the best companies you should consider for your universal coverage.
The 5 Best Universal Life Insurance Companies of 2021
- Best Overall: Northwest Mutual Bank
- Best reputation: State Farm
- Best Index Universal Life Insurance: Omaha Mutual Insurance
- Best Variable Universal Life Insurance: Prudential
- Best Custom Policy: AAA Life Insurance
BEST OVERALLNorthwest Mutual Bank
We have chosen Northwest Mutual Bank as the best universal life insurance company because of its financial strength and industry leadership. Its range of life insurance products includes single-premium universal life insurance policies, and you can choose from the same Access to full-service financial planning and life insurance from the provider;
- Financial Strength Excellent Rating
- Work with a financial planner to find the right life insurance policy for your needs
- No online quote option
Northwest Mutual Insurance Company has been operating since 1859, which means it has over 160 years of experience providing life insurance to consumers. During this time, the popular company has become the highest-rated company in the industry. In the JDPower 2020 US Life Insurance Study, Northwestern Mutual ranked fourth with a score of 790 out of 1000. Meanwhile, the company has higher financial strength ratings, including AM Best’s A++ rating and S&P Global’s AA+ rating.
Northwest Mutual is known for its high-quality life insurance, including term, universal, and whole life insurance. There are also benefits to working with a Northwestern Mutual financial advisor to determine the appropriate type and level of coverage. A company’s financial advisor can also provide additional assistance with financial planning or retirement planning.
You can customize your coverage with the flexible Custom Universal Life (CUL) policy option, which allows you to decide how to establish your tax-deferred cash value. You also have the option to fully fund your universal life insurance policy with one premium, which is a great benefit if you receive an estate or a bonus you wish to spend on your full premium;
Northwestern Mutual, on the other hand, makes it difficult to get a quote from Universal without talking to a financial advisor and providing more information about your financial situation and long-term goals. With that in mind, they may not be the best option if you want to buy life insurance online.
BEST REPUTATIONfarm state
State Farm has an excellent reputation, taking first place in the JDPower 2020 Life Insurance Study. The company also offers plenty of options for its universal life insurance policies.
- Excellent ratings for financial strength and customer satisfaction
- Generic life strategies can be customized in great detail
- State Farm is not licensed to offer life insurance in Massachusetts, New York, or Wisconsin
State Farm was founded in 1922 by a farmer and has since ranked 36th on the Fortune 500 list of largest companies. State Farm has an excellent rating, securing the top spot in the JDPower 2020 American Life Insurance Study with a score of 838 out of 1000. State Farm has an A++ rating from AM Best and an AA rating from S&P Global, both of which are considered excellent.
State Farm offers a variety of life insurance products, including term life, whole life, and universal life. Its universal life insurance policy stands out from the rest due to its overall flexibility and the fact that you can tailor your coverage to your unique needs;
With State Farm’s universal life insurance policy, you can buy lifetime coverage up to age 85. You can also choose a death benefit tier that does not change or a death benefit tier that changes based on your account value. In addition, you can customize your policy with the Horizontal Term Rider, Children Term Rider, Guaranteed Coverage Option, Disability Waiver, or Flexible Care Benefit Rider.
How Much Does Universal Life Insurance Cost on State Farms? It depends on your age, health, and where you live. For cosmic life, you have to talk to a country farm agent to get an offer.
We appreciate State Farm’s variety of universal living options, as well as the company’s strong reputation and financial strength.
BEST INDEX UNIVERSAL LIFE INSURANCEOmaha Mutual Insurance
We chose Omaha Mutual Insurance Company’s Indexed Universal Life Insurance Policy because the company’s indexed products offer the greatest flexibility, enabling you to purchase coverage that matches your goals.
- Omaha Mutual Bank has a very high financial strength rating
- Their indexed universal life insurance coverage allows you to tailor your policy to suit your needs, including offering cash growth potential or a focus on flexibility
- To get a quote for Universal Life Insurance, you must work with an Omaha Mutual Insurance Company agent
Founded in 1909, Omaha Mutual Bank offers a variety of insurance and investment products. Omaha Mutual Insurance ranked fifth in the JDPower 2020 American Life Insurance Study with a score of 789 out of 1000. Third-party ratings for the company’s financial strength are impressive, with AM Best and S&P Global both rated A+
While Omaha Mutual Insurance Company offers products like term life insurance and whole life insurance, we specifically selected them as the best indexed universal life insurance provider because of their wide range of products. Their index universal life insurance comes in two forms: Life Protection Advantage and Income Advantage;
Both types of coverage are permanent, but the Income Advantage product emphasizes the cash growth potential of your policy, while the Life Protection Advantage option offers more flexibility. All Omaha mutual insurance company universal life insurance policies (including index universal life insurance) come with death benefits, cash value accumulation, tax benefits, flexibility, and accelerated payment of partial death benefits if you are diagnosed with terminal illness options;
However, one downside to Omaha Mutual is that you can’t get a quote for their universal life insurance policy online. You have to work with an agency to get a free quote, which means providing a lot of financial and medical information.
BEST VARIABLE UNIVERSAL LIFE INSURANCEprudent
We chose it because Prudential’s variable universal life policy has more options for riders than any other policy we analyzed. Prudential also has strong ratings for financial strength, so that’s a range you can trust.
- Prudential has a high financial strength rating
- There are many different types of universal life insurance available
- The company has a long history of quality and success
- no online offer
- Too many options can be overwhelming when presented together
Prudential Financial has been in operation since 1875, providing individuals and employers with insurance products, investments, work benefits, and more. Prudential Insurance Company of America is rated A+ by AM Best and AA by Standard & Poors.
Prudential has a wide range of life insurance products, including term life insurance, universal life insurance, variable universal life insurance, and indexed universal life insurance. Prudential’s variable universal life insurance coverage stands out as you can take advantage of a variety of riders and riders to customize your policy;
With Prudential’s variable universal life insurance, you can purchase coverage with lifetime benefits, as well as underlying investment options that increase the long-term cash value of your policy. Riders include Living Needs Rider, Accidental Death Rider, Children Term Rider, Enhanced Disability Insurance Rider, Enhanced Cash Value Rider, Excess Loan Protection Rider, Heritage Protection Rider, etc. The policies also include more than 50 base investment options or fixed-rate options, both of which you can use to build cash value that you can withdraw or borrow;
However, you can’t get a quote for universal life insurance without talking to an agent and providing financial and medical information (term life insurance offers free online quotes).
BEST CUSTOM STRATEGYAAA Life Insurance
We chose AAA Life Insurance because it offers the most customizable universal life insurance, thanks to its various add-on menus that you can use to customize either of the two basic plans. AAA also offers term life insurance, whole life insurance, and universal life insurance, and you can speak with an agent to help achieve your life insurance goals.
- AAA has a strong rating for financial strength
- Buy different types of life insurance and adjust your policy to suit your needs
- Online quotes are for term life insurance only
- Limited universal life insurance options (ie no index universal life or variable universal life)
AAA Life Insurance became part of AAA in 1969 and now has more than 1.3 million active policies. The financial strength of this company is rated A by AM Best.
AAA Life Insurance focuses on providing term life insurance, whole life insurance, and universal life insurance, but also provides guaranteed issued whole life insurance, you can apply and get insurance online without medical examination;
What caught our eye, however, was how flexible and customizable AAA’s universal life policy was. Specifically, there are two main types of cosmic life: lifelong cosmic life and accumulator cosmic life. Both plans offer benefits starting at $100,000, though you can purchase more coverage depending on your needs. If whole life insurance has permanent coverage and guaranteed level of premiums, accumulator universal life will focus on accumulating cash value;
Optional add-ons available to customize your policy may vary, but may include term coverage for children, waiver of monthly deductibles, accidental death benefit, and guaranteed purchase options that allow you to increase your death benefit at a later date;
While the AAA doesn’t allow you to get a free quote online or discuss your situation with an agent, it does state that a non-smoking 35-year-old woman can buy $100,000 of Universal Life from $75.91 a month insurance.
What Is Universal Life Insurance?
Universal life insurance is a type of permanent life insurance that is designed to cover your entire life, which makes it different from term life insurance, which only lasts for a specific period. Of the two types, whole life insurance, and universal life insurance, universal life insurance tends to have lower premiums and more flexibility than whole life insurance.
The main components of universal life insurance are a death benefit and a savings element that accumulates cash value over time. However, as the cash value of the policy increases, most universal life insurance policies also allow you to adjust your monthly premium to make it more affordable.
Is universal life insurance the same as general insurance?
Universal life insurance and whole life insurance are both permanent insurance products, which means they are built over your lifetime. While both policies allow you to borrow based on the cash value that builds up over time, there are some important differences between the two policies:
- Whole life insurance policies pay dividends for the company in financially profitable years, while Universal Life does not pay dividends.
- Universal life insurance usually allows you to reduce or increase your coverage over time without the need for a medical exam.
- Universal Life allows you to adjust the premium amount over time.
- Whole life insurance tends to be more expensive due to death benefits plus dividends.
Term life insurance or universal life insurance?
Term life insurance is inherently simpler if universal life insurance offers a lifetime death benefit and a savings component. With term insurance, you can buy life insurance for a fixed term, usually 10 to 30 years. Once the policy term ends, your life insurance will no longer be valid and you will not have to pay any further premiums.
The type of insurance that is right for you depends on your needs and goals. However, term life insurance is usually cheaper than other types of life insurance. As such, this is often the best option for parents looking to purchase insurance to replace their working income, or for those looking to leave some money to pay off remaining debts such as student loans;
In a recent interview with Andrew Mays, Connecticut Insurance Commissioner, he said “Look at term insurance as a function of time. Term life insurance is for a specific number of years, like 10 or 20 years. For example, it might be The term of your mortgage, or until your child graduates from college. You have insurance for that time, and you pay for it. There is no accumulation of value. It’s just direct insurance;
Universal Life, on the other hand, can bring tax benefits and cash value benefits that make sense for consumers who need a more sophisticated solution to meet their financial needs. If you’re not sure what type of life insurance to buy, it may be helpful to talk to a financial advisor about your concerns and goals.
What is the expected cost of universal life insurance?
As you may have noticed from the insurance review above, premiums for universal life insurance can vary widely, from $70 to a few hundred dollars per month. Please note that the minimum premium amount for these policies depends on the applicant’s age, place of residence, and health. Policy premiums can also vary widely, depending on how much coverage you want to buy and how high your policy’s death benefit needs to be. The riders you choose also add to the total cost of your policy. With this in mind, you’ll need to shop around between insurance companies to get a life insurance quote for your policy;
Most insurance companies require new applicants to choose “male” or “female” when applying for coverage, not always for those who identify as non-binary or; transgender. Also; being non-binary does not mean you are ineligible for coverage, You should be aware that most insurance companies do not update their underwriting processes to reflect gender awareness.
How We Choose the Best Universal Life Insurance Company
When choosing the best universal life insurance companies for our rankings, we considered several important factors, such as company history, financial strength, and ratings from third parties such as JDPower. We also looked at the coverage companies offer, the add-ons and add-ons that can be used to customize life insurance policies and the features of each of their websites. We specifically considered each company’s quote process, as consumer preferences can vary widely; some companies may want the convenience of an online quote without the need to speak to an agent, while others may require a knowledgeable An agent to better serve him, he can help clients address a variety of financial needs and goals to achieve the right balance of coverage.