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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.
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.
5 best life insurance companies for first-time homebuyers
Many companies offer adequate and affordable protection plans, but these five life insurance companies stand out for catering to first-time homebuyers.
Best overall pick: MassMutual
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.
Best for affordable term insurance: Prudential
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.
Best for homebuyers with health issues: Legal & General
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.
Best for online shoppers: Haven Life
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.
Best for permanent life insurance: Pacific Life
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.
Must read: How we chose our top life insurance companies
Our writers and editors are committed to being objective and empowering our readers to make educated decisions without bias.
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.
Life insurance financial ratings
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.
|Agency||MassMutual||Prudential||Legal & General||Haven Life||Pacific Life|
|Standard & Poor’s||AA+||AA-||AA-||AA+||AA-|
|J.D. Power||3 out of 5||3 out of 5||N/A||N/A||3 out of 5|
Customer reviews and 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.
|Provider||BBB rating||Customer reviews|
|MassMutual||B-||1 out of 5 stars|
|Prudential||D-||1 out of 5 stars|
|Legal & General||A+||N/A|
|Haven Life||A+||2 out of 5 stars|
|Pacific Life||A+||1 out of 5 stars|
Compare more life insurance providers
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.
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