Step by step: How to compare life insurance quotes
Here’s how we recommend comparing quotes to find the best life insurance policy for you:
Start by deciding what kind of life insurance you want. There are two main types of life insurance: term and permanent.
Term life insurance
Term life insurance is simple and inexpensive — often the cheapest type of life insurance.
Term policies cover you for a period of time, such as 20 years, and pay out to beneficiaries if you die during the term.
In NerdWallet’s view, term life is sufficient for most people.
Permanent life insurance
Permanent life insurance is designed to last your entire life.
This type of coverage typically costs more than term life, but it offers additional features like cash value that grows over time.
Types of permanent life include, whole life and universal life insurance.
2. Calculate how much coverage you need
You’ll want to get quotes for the same level of coverage — for example, $500,000 — to compare them most easily.
Not sure how much coverage you need? Our calculator can help.
Get quotes from three or four insurance companies to find the best available price. You can get quotes in several ways:
Buy life insurance directly from the insurer
Buy coverage through an agent or broker
Shop for life insurance online
Most insurance companies offer life insurance quotes online. This makes it easy to shop around for the best coverage.
4. Check the companies’ reviews
Price is important, but there are a few other key things to keep in mind.
A well-rated company offering a competitive price could be a great option.
When you’ve found the right policy, it’s time to apply. Whether you apply for life insurance online, in person or over the phone, you may be asked to provide your Social Security number, driver’s license number or list of current medications. So gather the information you need before you start the life insurance application process.
How we rate the best life insurance companies
✅ 445 life insurers reviewed
📝 210 policies assessed
🔢 1,515 data points analyzed
📊 Star rating categories
When NerdWallet evaluates life insurance companies, our editorial team considers the insurer’s strengths and weaknesses, as well as the things that matter most to customers buying a long-term financial product. We then weigh these factors carefully:
💰 Financial strength (35%). We use AM Best ratings to confirm an insurer’s financial stability and ability to pay claims far into the future. The top life insurance companies have an exceptional financial strength rating of A+ or A++ (Superior).
🗣️ Consumer complaints (35%). Our top-rated life insurance companies have fewer than the expected number of complaints to state regulators over a three-year period, according to the National Association of Insurance Commissioners — so you can expect a smoother customer experience.
☎️ Consumer experience (20%). Insurers who allow consumers to contact them by email, phone and live chat earn the highest scores. The same goes for insurers who support online quotes, beneficiary changes and claims.
👀 Transparency (10%). Our methodology gives higher scores to transparent insurers who clearly display information about their policy options, coverage amounts and term lengths (if applicable) on their site.
⭐ What our star ratings mean
Companies with 5 stars are exceptional, with strong financials, diverse policy lineups and great reputations for customer service.
Companies with 4.5 stars are excellent, with solid financials and policy offerings, and good customer service track records.
Companies with 4.0 stars are good, and potentially great for people looking for niche coverage options.
Companies with 3.5 stars or fewer could do better in certain categories, like financial strength and customer complaints.
NerdWallet does not receive compensation for our star ratings or our reviews. Read more about our life insurance ratings methodology and editorial guidelines.
