Finding the best life insurance company typically involves weighing customer service, financial strength and price. There are hundreds of life insurance companies competing for your business and often selling similar products.
To help you differentiate among large life insurance companies, we’ve calculated a NerdWallet composite score based on three measurements:
- Complaints against the companies based on data adjusted for market share.
- A.M. Best financial strength ratings.
- J.D. Power customer satisfaction scores.
Our calculations show that Northwestern Mutual is the best life insurance company among those we scored, and many others also are worth considering.
The other element of your buying decision will be price. It’s smart to get life insurance quotes from several companies.
No. 1: Northwestern Mutual
A.M. Best financial strength rating: A++
J.D. Power customer satisfaction score: 820
Complaint score (higher = fewer): 100
NerdWallet composite score: 282 points
No. 2: Guardian Life
A.M. Best financial strength rating: A++
J.D. Power customer satisfaction score: 788
Complaint score (higher = fewer): 100
NerdWallet composite score: 279 points
No. 3: MassMutual
A.M. Best financial strength rating: A++
J.D. Power customer satisfaction score: 753
Complaint score (higher = fewer): 100
NerdWallet composite score: 275 points
No. 4: Mutual of Omaha
A.M. Best financial strength rating: A+
J.D. Power customer satisfaction score: 791
Complaint score (higher = fewer): 90
NerdWallet composite score: 274 points
No. 5: State Farm Life
A.M. Best financial strength rating: A++
J.D. Power customer satisfaction score: 823
Complaint score (higher = fewer): 100
NerdWallet composite score: 272 points
No. 6: AXA Equitable
A.M. Best financial strength rating: A+
J.D. Power customer satisfaction score: 748
Complaint score (higher = fewer): 90
NerdWallet composite score: 270 points
No. 7: New York Life
A.M. Best financial strength rating: A++
J.D. Power customer satisfaction score: 791
Complaint score (higher = fewer): 90
NerdWallet composite score: 269 points
No. 8: Nationwide Insurance
A.M. Best financial strength rating: A+
J.D. Power customer satisfaction score: 801
Complaint score (higher = fewer): 90
NerdWallet composite score: 265 points
No. 9: Principal Financial
A.M. Best financial strength rating: A+
J.D. Power customer satisfaction score: 769
Complaint score (higher = fewer): 90
NerdWallet composite score: 262 points
No. 10: Lincoln Financial
A.M. Best financial strength rating: A+
J.D. Power customer satisfaction score: 738
Complaint score (higher = fewer): 90
NerdWallet composite score: 259 points
METHODOLOGY
We started with a list of the largest life insurance companies and then calculated a total score based on three measurements, each with equal weight within the score, and adjusted scores to a 300-point scale:
- Financial strength ratings from A.M. Best, which indicate a company’s ability to pay future claims. All of the companies shown have solid financial strength. A.M. Best defines the ratings shown above as:
- A++ and A+ = superior.
- A = excellent.
- Customer satisfaction scores from J.D. Power.
- Complaint ratios from the National Association of Insurance Commissioners for 2015, which measure complaints adjusted for market share. We adjusted the complaint ratios to a 100-point scale, with the worst performer within the group getting zero and the top performer getting 100.
This article was updated July 22, 2016. It was originally published in March 2016.
from NerdWallet
https://www.nerdwallet.com/blog/insurance/best-life-insurance-companies/
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