Our evaluation included the cost competitiveness of both term and permanent policies, the reliability of policy illustrations, how fast policies build cash value and more. Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers and we use data-driven methodologies so all companies are measured equally.
Pacific Life
Pacific Life’s variable universal life insurance earned top marks in our analysis. We found that it has highly reliable illustrations for its VUL policies and very competitive costs. We also like that its VUL policies can build cash value relatively quickly.
Pacific Life has a long history of offering products with low costs and competitive investment options. However, costs in some newer products can be higher, and some newer investment options have been under-performing expectations. As such, be sure to ask your financial advisor 1) whether internal policy costs are higher or lower than industry benchmarks, and 2) for the actual track-record (i.e. not just hypothetical back-testing) of recommended investment options.
- Very cost-competitive for most cash value policies.
- Low costs for smokers.
- Can build cash value well even in the early years.
- Superior rates for term life insurance.
Cons
- Conversion of term life policies is limited to universal life insurance.
Protective
Protective’s indexed universal life insurance policies earned top marks in our analysis. We liked that these policies are highly cost-competitive (including internal charges), and they can be good at building cash value early on.
Current regulations in most states for indexed universal life insurance products in particular permit insurers to “quote” low premiums or project high account growth, giving the appearance of low costs, while instead actually charging high costs. Under these regulations insurers don’t have to disclose either those high costs nor the higher risks of future “premium calls for more than the originally “quoted” premium to cover the high costs. Nor do they have to disclose the potential total loss due to policy lapse even when all originally “quoted” premiums have been paid.
- Low term life insurance rates.
- Long 35- and 40-year level term life lengths available.
- Choice of up to 8 cash value policies if you convert a term life policy.
- Superior historical performance of company investments helps keep premiums low.
Cons
- Cash value accumulation may be slow.
Corebridge Financial (formerly AIG Life & Retirement)
Corebridge is notable in our analysis for its relatively friendly underwriting for marijuana users. Buyers who use marijuana eight or fewer days per month can still qualify for the best rate class from Corebridge. But life insurance shoppers who use marijuana frequently (more than 16 days a month or more than four days a week) should expect to be declined.
Pros
- Excellent term life insurance rates for a range of buyer ages and coverage levels.
- Customizable level term length between 10 and 35 years, such as 27 years.
- Low internal costs for cash value policies.
- Good reliability of policy illustrations.
Cons
- High level of complaints about its life insurance.
- Poor financial strength in the past but has recovered since AIG’s financial implosion in 2008.
- Term life
- Whole life
- Guaranteed universal life
- Indexed universal life
Penn Mutual
Penn Mutual’s universal life insurance policies offer a great combination of financial strength, competitive internal policy costs and reliable policy illustrations. Senior buyers will like the ability to maximize their death benefit for the premiums paid for the UL policies.
Pros
- Very competitive rates for term life insurance (non-convertible policy).
- Cash value policies are cost competitive.
- Term life conversion available to any Penn Mutual permanent life insurance policy.
Cons
- Pricey rates for term life that is convertible to permanent life insurance.
- Not all permanent policies build cash value well early on.
- Term life
- Whole life
- Guaranteed universal life
- Variable universal life
- Indexed universal life
Transamerica
Cash value life insurance buyers will appreciate Transamerica’s reliable policy illustrations. It earned top marks in this category. This means you’re less likely to be taken by surprise by lower cash value gains than you expected.
Pros
- Top-notch benefits in its Trendsetter Living Benefits term life policy, such as the ability to access your own death benefit money if you develop a chronic or critical illness.
- High maximum ages for renewing or converting term life insurance.
- Cash value generally builds fairly well in the early years.
Cons
- High level of complaints about its life insurance.
- Company investments haven’t always performed very well.
- Internal policy expenses passed on to customers have been higher compared to some top competitors.
- Term life
- Whole life
- Indexed universal life
Symetra
Symetra earned strong scores for term life insurance in our analysis. We especially like its low term life insurance rates. Term life insurance products are intended for a specified term-of-years, like 10, 20 or 30 years. However, over the course of the initial term, needs and health can change. In addition, term life insurance products can be sold on the life settlement secondary market, sometimes for a full refund of premiums paid or even more, but only if the product is convertible to some form of permanent coverage.
Pros
- Possible no-exam option for term life if you’re under age 60, for up to $3 million in coverage.
- Cash value policies are cost competitive (including internal charges).
Cons
- Cash value can be slow to accumulate.
- Poor performance of the company’s investments over time.
- Lacks long track record of financial strength (founded in 1957).
- Term life
- Universal life
- Indexed universal life insurance
Lincoln Financial
For couples doing estate planning, we think Lincoln Financial is worth consideration for its survivorship life insurance policies. These policies insure two lives under one policy and provide a payout when both people have passed away. Beneficiaries can then use the money to pay estate taxes or other financial obligations.
Pros
- Very reliable policy illustrations for its cash value policies.
- Low internal policy costs.
Cons
- Term life insurance rates are high.
- Investment performance has only been so-so, affecting cash value growth.
- Term life
- Guaranteed universal life
- Variable universal life
- Fixed-rate universal life
- Indexed universal life