Top 30 Best Life Insurance Companies in the U.S. (2017)

Top 30 Best Life Insurance Companies in the U.S. (2017)

Choosing a life insurance carrier in 2017 meant weighing financial stability, product breadth, and long-term pricing discipline. The best companies offered a mix of term, whole life, and universal life products backed by strong AM Best or S&P ratings. This overview ranks 30 leading U.S. insurers by the balance of policy options, rider flexibility, and claims-handling reputation, with a comparison table to clarify trade-offs.

How the List Was Compiled

The ranking draws on publicly available financial strength ratings, AM Best industry reports, J.D. Power customer satisfaction data, and product breadth as of 2017. Carriers were grouped by strength: top-tier incumbents, highly rated mid-caps, and well-regarded mutual insurers. No single metric defines "best," so the list balances financial safety, policy variety, and long-term pricing stability.

Comparison: Top 30 Life Insurance Companies (2017)

Term vs. Whole Life: The Core Trade-Off

Term insurance from 2017 carriers like Pacific Life, Protective Life, and Transamerica offered the lowest cost per thousand dollars of coverage. Premiums stayed level for 10, 20, or 30 years and then increased sharply at renewal, which is the central limitation. Whole life from mutual insurers such as Northwestern Mutual, New York Life, and MassMutual locked in premiums and built cash value, but required paying two to five times the term rate for the same face amount during early years.

Financial Strength Ratings: What They Mean

AM Best and S&P ratings gauge a carrier's ability to pay claims over the long term. An A++ or A+ rating from AM Best signals superior or excellent financial security, and most of the top 30 carried these grades. A-rated companies like Lincoln Financial and Pacific Life remained solid, but they carried slightly more reliance on investment returns and reinsurance. The ratings are forward-looking but not guarantees; 2017 saw some carriers adjust dividend scales as interest rates remained low.

Why Mutual Insurers Dominate the Top

Northwestern Mutual, New York Life, MassMutual, State Farm, and Guardian Life are mutual companies, meaning policyholders own the insurer and share in surplus through dividends. This structure often supports more conservative investing and a longer-term view on pricing. The trade-off is less public-market transparency and fewer innovative riders compared with stock companies.

Stock Companies and Their Advantages

Prudential, MetLife, Lincoln Financial, and Principal offered broader product suites, including variable life and indexed universal life, which tied cash value growth to market performance. These products can outperform mutual whole life in rising markets, but they also carry market risk and higher fees. In 2017, low interest rates compressed returns on fixed products, making the equity-linked options more attractive to some buyers — and riskier for others.

Riders and Policy Flexibility

Leading 2017 carriers differentiated themselves through riders. Guardian Life and Northwestern Mutual offered extensive chronic illness and long-term care riders. Prudential and Lincoln Financial emphasized terminal illness accelerations and return-of-premium term options. Riders typically increased premiums by 5 to 25 percent depending on the benefit and underwriting, so buyers should model total cost before selecting a policy.

Claims Handling and Customer Experience

J.D. Power 2017 U.S. Life Insurance Study highlighted New York Life, Northwestern Mutual, and State Farm for claims satisfaction. Mutual companies often scored higher on perceived fairness, while large stock insurers scored well on digital tools and agent accessibility. The experience gap narrowed as most major carriers added online portals, but the claims process still depended heavily on documentation completeness and beneficiary designations.

What to Consider When Choosing a 2017 Carrier

• Financial strength rating: A or A+ from AM Best or S&P for long-term security.
• Product fit: Term for short-term coverage, whole or universal life for permanent needs.
• Dividend philosophy: Mutual insurers often pay dividends, but they are not guaranteed.
• Rider costs: Model the total premium including riders, not just the base rate.
• Underwriting speed: Simplified issue options from carriers like Brighthouse and Legal & General were faster but carried higher premiums.
• Agent vs. direct: Agent-assisted sales often provided more rider customization but at a distribution cost baked into premiums.

Bottom Line

The top 30 life insurance companies in the U.S. for 2017 offered a spectrum from conservative mutual whole life to flexible indexed universal life. The best choice depended on whether the buyer prioritized premium predictability, cash value growth, or low-cost term coverage. Financial strength, rider flexibility, and claims reputation remained the most reliable filters for narrowing the list.