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5 best life insurance companies for parents

Make sure your family is adequately protected by the right life insurance company.

Having the right life insurance coverage helps ensure your loved ones are protected if you die unexpectedly. Here’s our list of the top 5 insurers for parents to help you narrow down the best policy for your needs and budget.

How we picked the best insurers

Finder’s life insurance experts spent over 500 hours analyzing the top 100 life insurance companies. We chose the companies on this list after looking at each company’s financial ratings, customer satisfaction and coverage options.

5 best life insurance companies for parents in 2021

These five companies cater to parents with a range of policy options, price points and child riders that provide extra coverage.

  1. Best overall pick: State Farm
  2. Best for young parents: Northwestern Mutual
  3. Best for older parents: Mutual of Omaha
  4. Best for child term riders Principal Life Insurance
  5. Best affordable options: Legal and General (previously Banner life)

State Farm is best overall

State Farm

Finder rating 4 / 5 ★★★★★

We choose State Farm as best overall for its selection of policies and high customer service ratings. The company offers term, whole and universal life policies with maximum benefit amounts up to $3 million in coverage.

State Farm also gives you the option to cover your children with their own life insurance policy through its child term rider. The rider provides $20,000 in life insurance coverage for each child until the age of 25. At that time, your child can convert the policy into their own life insurance policy.

The insurer ranks #1 in J.D. Power's 2021 customer satisfaction ratings for several years in a row. J.D. Power evaluates top insurers' customer support and timely responses to questions and complaints. State Farm insurance is licensed in all states except Massachusetts, New York and Wisconsin.

Northwestern Mutual is best for young parents

Northwestern Mutual

Finder rating 4.5 / 5 ★★★★★

If you're a young parent looking to tighten your budget, a term life policy may be your best option. Term life generally costs less than whole or universal life policies and you can choose the term length and coverage amounts that best meet your needs.

For that reason, we choose Northwestern Mutual as our pick for young parents. In addition to cheaper term life insurance, you have the option to convert some or all of your coverage into a permanent policy without having to undergo a health examination later if your coverage needs change.

The insurer ranks #3 in J.D. Power's 2021 customer satisfaction ratings and closed all 26 complaints on the Better Business Bureau website in the past three years.

Mutual of Omaha is best for older parents

Mutual of Omaha

Finder rating 4 / 5 ★★★★★

Mutual of Omaha is our pick for life insurance for older parents. It has a good reputation for covering older policyholders through its whole life insurance plans. The company offers whole life coverage for people between the ages of 45 to 85 with no medical exam.

Whole life policies typically last for as long as you pay for the policy and benefits are paid out regardless of when you die. And with whole life insurance, your premiums won't increase, which is important if you're on a fixed budget.

The company also has a disability waiver of premium that waives your monthly premium if you experience a covered disability, which can help you further plan for the unexpected. Mutual of Omaha ranks #5 on J.D. Power's 2021 customer satisfaction ratings.

Principal Life Insurance Company is best for child term riders

PROMOTED

Principal

Finder rating 4 / 5 ★★★★★

This company is our choice for best child term riders. In addition to providing life insurance for your child and their family in the future, it can also cover debt like college loans. This rider adds additional coverage for your children to your policy for a low cost.

And the rider has a conversion feature, which means your child can secure a permanent policy when they reach age 25.

Principal Life Insurance doesn't underwrite their child riders, which means a child doesn't have to undergo an exam or answer any medical questions.

PROMOTED

Legal & General

Finder rating 4 / 5 ★★★★★

We choose Legal and General (formerly known as Banner Life) as the best affordable life insurance option for parents. The company advertises that it offers term life insurance for as little as $7 a month, although your premium is based on your age, health and the coverage you select.

Banner Life offers term and universal life insurance. However, a term life policy from the company will get you the lowest price possible, while allowing you to customize the policy with riders. It also provides mortgage and income protection for additional financial security.

While Legal and General offers low rates overall, the company charges an $60 annual maintenance fee. Legal & General might also work well for higher-risk individuals, as it offers more flexible underwriting than some other insurers.

Financial ratings for the insurers we reviewed

Financial ratings are important in gauging a company’s creditworthiness. The higher the score, the more likely it is to pay out claims and offer good customer support. In general, you want to choose an insurance company that has the highest ratings possible.

AgencyState FarmNorthwestern MutualMutual of OmahaPrincipal Life Insurance CompanyLegal and General
A.M. BestA++A++A+A+A+
Moody’sAa1AaaA1A1
Standard & Poor’sAAAA+AA-A+AA-
FitchAAAAA-AA-
J.D. Power#1#3#5#10
BBB ratingNR (not rated)A+A+A+B+
BBB customer reviews1.23 out of 52 out of 51 out of 51 out of 5

How to compare life insurance policies for parents

Along with the benefits, features and price of the policy you’re looking at, here are some key questions to ask yourself when comparing quotes on life insurance policies as a parent.

  • Benefit amount. What’s the maximum amount of coverage, and will it cover your child’s expenses for the length of time required?
  • Cost. Are the premiums level or rising? Is it worth it to purchase child riders?
  • Maximum entry age. What’s the maximum age for applying?
  • Conversion. Can you convert your term policy to permanent policy in the future? Is a health exam required?
  • Free look period. What’s the window for canceling and getting a refund if you change your mind?

Alternatives to our best picks for life insurance for parents

Name Product Issue age Minimum Coverage Maximum Coverage Term Lengths Medical Exam Required
Policygenius - Life Insurance
18 - 85 years old
$50,000
$10,000,000
10, 15, 20, 25, 30 years
Depends on provider and policy
Compare 12+ top insurers side-by-side to get the best possible deal, and shop return of premium policies online.
Ladder
20 - 60 years old
$100,000
$8,000,000
10, 15, 20, 25 or 30 years
No, for coverage up to $3M
Apply for term life insurance online without the medical exam. Get an instant decision and adjust your coverage at no charge.
Sproutt
18 - 60 years old
$50,000
$4,000,000
5, 10, 15, 20, 25 and 30 years
No
Compare 40+ insurers and apply online to get the lowest possible price — no medical exam required.
Everyday Life
18 - 70
$100,000
$10,000,000
10, 15, 20, 25, 30, 35 and 40 years.
No
Ladder multiple life insurance policies to save on the coverage you need for all your debts.
Bestow
18 - 60 years old
$50,000
$1,500,000
10, 15, 20, 25, 30 years
No
Get a quote and apply.
Fabric
21 - 60 years old
$100,000
$5,000,000
10, 15, 20, 25 or 30 years
Depends on policy
No-exam term policies up to $1 million online, with the option to upgrade to permanent life insurance later.
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Bottom line

The best life insurance policy for parents will have sufficient benefits to cover your child through the different stages of life. But before signing on the dotted line, be sure to compare multiple life insurance companies to get the best possible rate for your situation.

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