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Best life insurance for first-time homebuyers

Buying your first house is an investment — and you can protect it with a life insurance policy.

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First time home buyers asian American family

The last thing most people want to do after they buy their first house is spend more money. But a life insurance policy can protect your new purchase and make sure your family can afford to keep living in the home if you pass away unexpectedly.

When analyzing life insurance providers, we assess the insurer’s reputation in the industry, as well as its product lineup, rider selection and underwriting standards. To determine industry reputation, our editorial team researches the company’s financial strength, accreditations and ratings, and reads customer reviews.

6 best life insurance companies for first-time homebuyers

Many companies offer adequate and affordable protection plans, but these six life insurance companies stand out for catering to first-time homebuyers.

Best for term life insurance: Prudential

Prudential logo
Finder Rating: 3 / 5

★★★★★

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$100,000 – $10,000,000
Coverage range
18 – 75 years
Issue age
As a first-time homebuyer, you’ll probably want to save as much money as possible after closing on your house and securing your mortgage. With that in mind, you might want to buy a standard term policy to protect your investment — and Prudential offers a range of policies at affordable prices.

The company also has a more lenient underwriting process than some other insurers, so you don’t need to be in perfect health to get a good rate.

  • Sells term life policies spanning 10, 15, 20, 25 or 30 years.
  • Offers return of premium riders and annual renewable term life policies.
  • Has a term life policy that stays in effect until age 65, so you can potentially protect your home until your mortgage is paid off.
Coverage range $100,000 – $10,000,000
Term lengths 10, 15, 20, or 30 years
Issue age 18 – 75 years

Best for lenient underwriting: Legal & General

Legal & General logo
Finder Rating: 3.5 / 5

★★★★★

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$100,000 – $10,000,000
Coverage range
20 – 75 years
Issue age
Life insurance can be very expensive if you smoke or have health conditions working against you. Legal & General makes life insurance more accessible with its relaxed underwriting guidelines and competitive rates.

It also offers up to $1 million in coverage, which is ideal for homebuyers trying to insure a more expensive property. The insurer specializes in term and universal life insurance.

  • Term policies can be converted up to age 70 — giving you plenty of time to upgrade to lifelong coverage.
  • Offers popular riders, such as a children’s term and disability.
  • Known for its fast claims process.
Coverage range $100,000 – $10,000,000
Term lengths 10, 15, 20, 25, 30, 35, 40 years
Issue age 20 – 75 years

Best for online shoppers: Haven Life

Haven Life logo
Finder Rating: 4 / 5

★★★★★

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$100,000 – $3,000,000
Coverage range
18 – 64 years
Issue age
If you want to shop for a life insurance policy from the comfort of your brand-new home, look to Haven Life. A subsidiary of MassMutual, Haven Life’s quoting and application process is fully online.

Once approved, your coverage could go into effect immediately — and you can check another task off your to-do list. The insurer sticks to term policies, and doesn’t require a medical exam in most cases.

  • Offers online quotes with instant approval.
  • Policies are issued and backed by parent company, MassMutual.
  • Flexible term and rider options allow you to customize your policy to fit your needs.
Coverage range $100,000 – $3,000,000
Term lengths 10, 15, 20, or 30 years
Issue age 18 – 64 years
Medical exam required No

Best for permanent life insurance: Pacific Life

Pacific Life logo
Finder Rating: 3.5 / 5

★★★★★

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$50,000 – $1,000,000
Coverage range
18 – 65 years
Issue age
If you want to treat your life insurance policy as a cash asset, consider purchasing a permanent policy. By buying while you’re young and just starting to build your home, you could save tens of thousands in premiums over the course of your lifetime.

Pacific Life excels in permanent life insurance policies. It offers standard whole life policies in addition to universal, variable and indexed universal life policies. These policies accumulate cash value, which you can then use to supplement your retirement later on.

  • Offers a range of riders to round out your permanent life policy, like a long-term care rider.
  • Low rates for those under 45 in good health.
  • Pacific Mutual is also a mutual company, which means it can pay annual dividends to its permanent life policyholders.
Coverage range $50,000 – $1,000,000
Term lengths 10, 15, 20, 25 or 30 years
Issue age 18 – 65 years
Medical exam required No

Best for cheap term life: Bestow

Bestow logo
Finder Rating: 4 / 5

★★★★★

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securely at Bestow Life Insurance
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$50,000 – $1,000,000
Coverage range
21 – 55 years
Issue age
Bestow’s ideal for young, healthy people who want to get cheap, basic coverage fast. You can get a quick online quote in minutes, with options for no medical exam policies. Term life insurance policies start as low as $10 a month for a 20-year term policy with $50,000 coverage, with options for coverage up to $1 million.

And Bestow promises you’ll be happy with your policy or you can get your premiums paid back with the 30-day money-back guarantee.

  • Up to $1 million in coverage with no medical exam required
  • No annual fees or cancellation fees
  • Some of the cheapest rates for healthy young people under the age of 55
Coverage range $50,000 – $1,000,000
Term lengths 10 or 20 years
Issue age 21 – 55 years
Medical exam required No medical exam

Best overall pick: MassMutual

MassMutual logo
Finder Rating: 4 / 5

★★★★★

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$2,000 for guaranteed acceptance policy, $100,000 for term – $10,000,000
Coverage range
18 – 80 years
Issue age
One of the oldest life insurance companies in the US, MassMutual is a solid choice for first-time homebuyers. It’s financially strong, and offers a range of policy options in addition to competitive pricing and well-rated customer service. It also issues up to $10 million in coverage, which is useful if your dream home is on the pricier side.

Additionally, it’s a mutual company that has paid out dividends to its policyholders every year since 1860. Since dividends aren’t guaranteed, this is an impressive achievement and one that could benefit you if you go for a permanent policy.

  • Offers term, whole, universal and guaranteed acceptance policies.
  • Allows you to customize your policy with riders like an accelerated death benefit and waiver of premium.
  • Thanks to MassMutual’s track record with paying dividends, you could potentially earn a little spare cash or put the money towards your premium payment.
Coverage range $2,000 for guaranteed acceptance policy, $100,000 for term – $10,000,000
Term lengths 10, 15, 20, 25 and 30 years
Issue age 18 – 80 years

How to compare the best life insurance companies’ financial strength

A life insurance company’s financial strength points to its ability to pay claims in a timely manner. Financially strong mutual companies can also pay out dividends to permanent life policyholders, and you can either collect that cash, use it to pay premiums or purchase more insurance.

AgencyMassMutualPrudentialLegal & GeneralHaven LifePacific LifeBestow
A.M. BestA++A+A+A++A+A+
Moody’sAa3Aa3N/AAa3A1A1
Standard & Poor’sAA+AA-AA-AA+AA-A+
FitchAA+AA-AA-AA+AA-A+
J.D. Power3 out of 53 out of 5N/AN/A3 out of 5N/A

Best life insurance company reputation

To determine each company’s customer service and reputation, we turn to the Better Business Bureau. Keep in mind that these ratings and reviews reflect each company as a whole, and not only its life insurance department.

ProviderBBB ratingCustomer reviews
MassMutualB-1 out of 5 stars
PrudentialD-1 out of 5 stars
Legal & GeneralA+N/A
Haven LifeA+2 out of 5 stars
Pacific LifeA+1 out of 5 stars
BestowA+N/A

Bottom line

Along with being a safe haven for your loved ones, your first home is likely the largest financial asset you own. If you want to ensure your family can keep the house if something were to happen to you, buying a life insurance policy is a must.

To explore other options before committing to a policy, check out our overall top life insurance picks and find the best fit to protect your home and family.

Compare more life insurance providers

Name Product Issue age Minimum Coverage Maximum Coverage Medical Exam Required
Sproutt
18 - 60 years old
$50,000
$5,000,000
No
This life insurance broker combines technology and the human touch to match you with a policy tailored to your needs.
Policygenius
18 - 85 years old
$10,000
$10,000,000+
Depends on provider and policy
Compare affordable quotes from 12+ A-rated life insurance companies side-by-side.
Bestow
21 - 54 years old
$50,000
$1,000,000
No
Affordable 10- and 20-year term life insurance policies with instant quotes and no medical exams.
Everyday Life
20 - 75 years old
$100,000
$10,000,000
No
Build a customized laddering strategy to target specific financial responsibilities and save on term life.
Fabric
25 - 60 years old
$100,000
$5,000,000
Depends on policy
Get affordable term life insurance with accelerated underwriting or no-exam coverage up to $1,000,000. Available in all states except CA, NY and MT.
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Compare up to 4 providers

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