Best Life Insurance Companies of April 2025

The payout, known as a death benefit, can also be used for a funeral, to help settle your estate or to provide a financial legacy.

Some policies pay out if you’re diagnosed with a disability or terminal illness, allowing you to cover the cost of care while you’re still alive. And some have a cash value component that accrues over time.

Life insurance functions differently depending on the policy you choose: For individual life insurance, you typically select a plan and provide personal information for the provider to use in its underwriting process. (You may have to undergo a medical exam to determine what level of risk you pose to the insurer.)

If you’re accepted, you’ll begin paying monthly premiums and coverage will begin.

A 30-year-old male would pay about $30 per month for the same policy.

For a $500,000 whole life policy, a 30-year-old female would pay about $408 per month, while a male would pay about $472 per month.

Several factors play into the cost of premiums, however, including:

• Age: As we get older, more health issues may emerge, so premiums cost more the older you are.
• Gender: Men have a shorter life expectancy than women, so they tend to pay more for life insurance.
• Medical history: Insurance companies consider people diagnosed with or who have a family history of diabetes, high blood pressure, or heart disease a bigger risk to ensure.
• Smoking: Smoking can shorten your life expectancy by at least 10 years, so smokers can pay more than twice what a nonsmoker would for the same policy.
• Risk factors: High-risk hobbies, a risky profession or even a spotty driving record can be factors in how much you pay.

Another strategy is the DIME method, which adds up the total sum from these four categories:

• Debt: All the debt you would leave to your family after your death.
• Income: Your annual income multiplied by the number of years you think your family would need your financial support after you die.
• Mortgage: Your outstanding mortgage and property taxes.
• Education: How much it would cost to put each of your children through college.

These are just rough estimates that don’t consider the age of your dependents, any unusual assets or debts, an expected inheritance or other specific circumstances. It’s a good idea to work with a financial advisor to determine your specific needs.

What to know about the most common types of coverage

Term life insurance

Whole life insurance

Assuming you keep up with payments, whole life insurance policies remain in effect for your entire life. Premiums and death benefits are also fixed but, unlike term life, the policy builds cash value you can use to help pay your premiums, make withdrawals or use as collateral for a loan.

Depending on the company, whole life insurance can also qualify you for dividends. You can use the dividends to pay premiums, take them in cash or leave them with the insurance company to earn interest.

Burial insurance (also known as pre-need, funeral or final expense insurance) is a whole life policy used to pay for a funeral and burial, outstanding medical or legal bills and other end-of-life expenses. Payouts are usually capped at $25,000, though some companies offer up to $40,000 of coverage.

It’s a guaranteed issue policy, so you don’t have to worry about having to get approved or take a medical exam.

Universal life insurance

Unlike term and whole life insurance, universal life insurance has premiums and a cash value component that fluctuate and death benefits that aren’t guaranteed.

There are several different kinds of universal life insurance policies.

• Indexed universal life builds cash value based on index funds. 
• Variable universal life allows the policyholder more control over how premiums are invested. That means the death benefit isn’t guaranteed if the funds have been poorly managed.
• Guaranteed universal life offers fixed premiums and a guaranteed payout, but it won’t accumulate much, if any, cash value. 

There are a few strategies to keep your premiums down

1. Buy it when you’re young

As you get older, life insurance companies see you as a bigger risk and the cost to cover you goes up. Locking in a level-term policy will keep your premiums the same for the length of your policy.

2. Get term life insurance

3. Maintain a healthy lifestyle

We can’t control every aspect of our health, but regular exercise, a healthy diet, limited alcohol use and good sleep habits can get you a better rate. And if you smoke, it’s time to quit: Tobacco smokers are charged anywhere from 40% to 100% more than non-smokers for the same policy. (If you take a medical exam, you may be given a nicotine test to verify your tobacco usage.)

4. Don’t skip the medical exam

If you’re young and relatively healthy, a policy requiring a medical exam will have lower premiums and higher coverage amounts than a no-exam policy. It’s free and can take as little as 30-40 minutes.

5. Comparison shop

Not every insurance company considers your medical history and risk factors the same. Get quotes from several providers and be sure to ask about discounts.

Life insurance can be worth it if you have loved ones who depend on your income to meet the necessities of life and pay major bills, like mortgage payments, insurance and student loans.

Whether you need a policy, what kind and for how much are very personal questions, however, and it may be worth discussing with a financial advisor with a clear picture of your situation and available options.

We considered policy types, coverage limits, average rates, state availability and the number and types of riders. We also reviewed the application process, including if there were policies that did not require a medical exam. 

We incorporated ratings from J.D. Power’s life insurance customer satisfaction survey, the National Association of Insurance Commissioners complaint index and the Better Business Bureau.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Based on these criteria, our picks for the best life insurance in 2025 are: