9 Best Family Life Insurance Companies of 2023

Life insurance is about protecting your family financially. While money can’t replace you, it's important to have the right amount of insurance in place to replace your income and help cover family obligations in the event of your untimely death. And while having a policy on yourself is a good start, you may want to have more insurance in place to cover your entire family.

Many companies sell life insurance policies for adults as well as children, which can help cover end-of-life expenses or serve as long-term savings vehicles. Both term and permanent life policies offer several options for coverage, allowing you to create a life insurance plan that works for your family and lifestyle.

We reviewed over a dozen life insurance companies and selected the best ones offering flexible insurance options for families. Read on to find out more.

Our Top Picks for Best Family Life Insurance

• State Farm - Best for Families
• Northwestern Mutual - Best for Whole Life Insurance
• MassMutual - Best for Term Life Insurance
• Legal & General - Most Affordable
• Bestow - Best for No-exam Life Insurance
• PolicyGenius - Best Online Broker
• Ethos - Best for Guaranteed-Issue Life Insurance
• USAA - Best for Military and Veterans
• Mutual of Omaha - Best for Return of Premium

Best Family Life Insurance Reviews

Why we chose it: State Farm is a top-rated insurance company that offers life insurance plans for the whole family. It sells term, whole and universal life insurance policies with up to $10 million or more in coverage.

State Farm has a family life insurance plan designed to cover you, your spouse and your children. The plan includes term life insurance coverage for you and your partner as well as insurance riders that provide up to $20,000 in coverage for your kids.

Child life riders are available for children under 18 years of age and can be converted to individual plans once they become adults. A family policy can provide up to 30 years of coverage, ideal for those who want financial protection while they pay down their mortgage, for example.

While you can obtain term life insurance quotes online, you'll have to speak with a State Farm agent to get a quote for the family life insurance bundle. And you can’t apply for coverage online either — all policies require working with an agent directly.

State Farm has an A++ rating from AM Best and was awarded the title of top insurance company in the 2022 J.D. Power Life Insurance Study.

Why we chose it: NorthWestern Mutual offers both term and whole life insurance as well as hybrid policies. Unlike other insurers, it also sells whole life policies for children and convertible term life policies in some states.

Northwestern Mutual is a mutual insurance company that's been around since 1872. It offers both term and permanent life insurance policies that can be tailored to the needs of families, including several whole life options. Coverage amounts start at $25,000, but maximums depend on underwriting results.

Northwestern gives whole life insurance policyholders the option to adjust payments to have their policies fully funded by a certain age (such as 65 or 90), after which time they no longer have to pay premiums. You can also get whole life insurance for your children, which can be transferred under their names once they reach the age of majority.

If you're looking for a more affordable option, Northwestern Mutual also offers convertible term life policies. These give you the opportunity to get an inexpensive policy now and convert it to permanent coverage in the future.

While Northwestern has flexible life insurance options suitable for the whole family, you will need to speak to an agent to apply for coverage. Additionally, it doesn't offer child riders, so you'll have to purchase stand-alone whole life policies to insure your children.

Why we chose it: MassMutual offers flexible term life coverage, with term options ranging between 10 and 30 years and benefits from $100,000 to $5 million (or more). These policies can also be converted to permanent coverage down the road.

Active since 1851, MassMutual offers a wide range of insurance options, including term, whole and universal life policies. Qualifying individuals can get immediate coverage in amounts ranging from $100,000 to $10 million. Term life policies feature 10-, 15-, 20-, 25- or 30-year terms, and policyholders can augment coverage through several optional riders.

Nevertheless, MassMutual doesn't offer child riders on term policies, so parents must purchase stand-alone permanent coverage to insure their kids.

MassMutual has a life insurance calculator to help you determine the amount of coverage you need. This tool accounts for income (including hidden income) and debt obligations.

Why we chose it: Legal & General is a large life insurance company that offers low-cost term life insurance coverage. Term policies range from 10- to 40-years in length and cost less than similar coverage options sold by competitors.

Legal & General is a large national insurer that has been in business for over 150 years and offers low-cost term life insurance coverage. It also sells universal life policies and final expense policies that can help your beneficiaries cover your funeral expenses.

Legal & General purchased Banner Life Insurance and now offers Banner's flexible term policies, so you can choose between 10-, 15-, 20-, 25-, 30-, 35- and 40-year term lengths. Unlike most life insurers, Legal & General lets you get life insurance quotes online, and its prices for healthy individuals are lower than those of other competitors.

For example, a 35-year-old male non-smoker can get a 20-year, $500,000 term life policy for only $23 per month. Prices increase exponentially for smokers, however. A 35-year-old male smoker would pay $95 per month for the same level of coverage.

While Legal & General offers online quotes, applying for a policy requires speaking to an agent directly. Overall, if you're looking for an affordable life insurance option to financially safeguard your family in the event of your untimely death, Legal & General is a good option.

Why we chose it: Bestow offers no-exam term life insurance with benefits of up to $1.5 million for healthy, qualified individuals. Applications can be completed entirely online and policies come with a 30-day money-back guarantee.

Bestow offers term life insurance policies underwritten by North American Company for Life and Health Insurance®. The company sells term life insurance coverage of up to $1.5 million to individuals aged 18 to 60.

Bestow lets you get free quotes online and doesn't require medical exams. Term options range from 10 to 30 years, but the selection may be more limited for smokers. Bestow doesn't offer any riders with which to enhance coverage and is not available to New York residents as of the date of this review.

Nevertheless, busy parents that want term life coverage without delays and the inconvenience of medical exams could find Bestow to be a great option.

Why we chose it: Policygenius is an online insurance marketplace that makes it easier to compare quotes from top-rated life insurance companies. It sells both term and permanent life insurance policies and publishes informational articles and guides that can help new applicants make better decisions regarding coverage.

Policygenius was founded in 2014 as a way to aggregate the top insurance companies and provide a quote comparison tool to consumers shopping for insurance. It allows users to compare a variety of insurance products, including both term and permanent life insurance policies.

Policygenius only works with well-established life insurance companies, including Protective, AIG, Prudential, Brighthouse Financial, Transamerica, Mutual of Omaha, Pacific Life and Symetra. It also has an extensive library of educational articles and resources to help you learn more about the different types of life insurance and the benefits of each coverage option.

You can also work with a Policygenius agent directly to choose the right company and policy for your family. Agents don’t work on commission, so they are not incentivized to recommend any particular policy and can give you an unbiased opinion.

Why we chose it: Ethos offers guaranteed issue life insurance policies for seniors between 66 and 85 years of age. It also offers term and permanent life insurance, including term life policies with no medical exam.

Ethos is an online life insurance company that sells term and whole life policies underwritten by AAA Life Insurance Company. Its whole life policies are available to seniors aged 66 to 85 and are guaranteed issue, meaning policies are always approved and don't require a medical exam. These policies are ideal for parents and grandparents who have medical conditions and want to leave their loved ones enough funds to cover end-of-life expenses.

Coverage amounts on whole life policies with Ethos start at $1,000 and go up to $30,000. The guaranteed portion of the policy is limited to $25,000 in coverage, however, so any amount above that will require a medical examination.

Ethos also offers up to $2 million in term life insurance coverage, with accelerated underwriting so you can avoid a medical exam. Term policies feature 10- to 30-year terms and are available to applicants aged 20 to 65.

Why we chose it: USAA offers term and permanent life insurance options to military members and their families. Term policies feature benefit amounts from $100,000 up to $10 million and can be customized with child riders.

USAA term life policies provide up to 30 years of coverage and death benefit amounts starting at $100,000. Coverage is also available for children in the form of a child rider, which can be added to any level term policy. These riders can be converted to a permanent policy before the child's 26th birthday.

USAA also sells whole life and universal life policies that feature fixed or flexible payments. You can get up to $10 million in coverage and stop paying premiums at the age of 85 for whole life policies or age 90 for universal policies.

USAA offers several additional benefits on life insurance policies, including an accelerated death benefit, a severe injury rider and survivorship support to spouses or family members after the death of an insured. The survivor relations team can help loved ones access the policy's death benefit and any existing USAA bank accounts.

Why we chose it: Mutual of Omaha is another large national insurer that offers a return of premium option on its term life policies. Other policy riders that can be paired with term life insurance include an accelerated death benefit and a disability waiver of premium.

Mutual of Omaha is a large life insurance company that was founded in 1909 and offers a wide range of additional benefits on life insurance policies. One such rider is return of premium benefits, which automatically refunds the premiums the policyholder has paid over the life of the policy — including fees and the cost of the rider.

Mutual of Omaha also offers an accelerated death benefit that pays out a lump sum if the insured is diagnosed with a terminal illness. Another living benefit is disability waiver of premium, which waives all premiums for the remainder of the policy term if the insured becomes permanently and totally disabled.

Mutual of Omaha sells whole and universal life policies as well. And term coverage can be converted to a permanent life insurance policy up until the end of the term or the insured’s 70th birthday, whichever is sooner.

Other companies we considered

Haven Life

Why we didn’t choose it: Haven Life doesn't offer any riders or permanent life insurance options, and its simplified issue policies are not available in every state.

New York Life

Why we didn’t choose it: New York Life focuses on permanent life insurance products and term policies are limited to 10- or 20-years in length. Additionally, you must speak to an agent to get a quote and sign up for a policy.

Family Life Insurance Guide

How does family life insurance work?

Life insurance plans for families come in the form of term life policies that can be augmented through spousal and child riders or separate policies for each family member.

Note that while you can buy life insurance coverage for your loved ones, you can't purchase a policy for an adult without their knowledge, and you must demonstrate you have an insurable interest in their death (and this applies to adults as well as children). This means you can only buy life insurance for a person whose death could impact you financially.

If you wanted to buy life insurance for a child, you could do so by adding a child life rider to your own policy. Once the child reaches adulthood, they may have the option of converting the rider into a whole life policy under their name. These policies generally feature lower benefit amounts, yet the new policyholder may increase coverage after undergoing a medical exam. Another option would be to purchase a separate whole life policy for the child at an early age. Once the child becomes an adult, they can assume ownership of the policy and continue paying premiums.

Before you purchase a life insurance policy, we recommend you get life insurance quotes from different companies. Comparison shopping can save you money and it generally doesn't take much time.

Once you've found an affordable life insurance option that meets your needs, you'll have to complete an application for it either online or over the phone with an agent. The application process generally entails providing your personal details (age, sex, family health history, lifestyle choices and smoker status) and selecting your coverage amount, term length (in the case of term life insurance), additional riders and payment schedule. All of these factors will affect the cost of your policy.

Your life insurance application will then be subject to the insurance company's underwriting process. Some insurers offer instant issue policies, giving you coverage right away without requiring a medical exam. Others, however, will require you to undergo a medical exam and manual underwriting process to determine your eligibility for coverage.

Once your policy is underwritten, it will remain in force as long as you keep up with premium payments.

What are the types of life insurance available to families?

There two main options for consumers seeking family life insurance coverage:

• Term life insurance: Term life insurance offers temporary coverage for a specified length of time, typically 10 to 30 years. Term policies are notably less expensive than permanent policies and often feature high coverage amounts of up to $10 million or more. While term life is only available to adults, policies can often be customized and expanded through riders that add coverage for spouses and children. This option is ideal for families that want low-cost coverage during their working years.

• Permanent life insurance: Permanent life insurance provides coverage that lasts your entire life. There are two main types of permanent policies, whole and universal life. Both options have a savings or investment component that builds cash value over time, yet whole life insurance features level premiums that don't change for the life of the policy while universal life insurance features variable premiums that may fluctuate over time. Permanent policies can cost between 10 and 15 times more than term life policies, so they may not be the best for all families.

What are the benefits of having family life insurance?

Life insurance can provide your family peace of mind and a measure of financial protection in the event of your untimely death. Extending coverage to your spouse and children can also protect you financially if you were unable to return to work while grieving their loss.

Life insurance proceeds can be used for any purpose, from replacing your income for a number of years to covering funeral costs and paying off debt. And some policies — specifically permanent life insurance — offer additional benefits like cash value accumulation, which can be used to supplement retirement income or help cover large future purchases.

What is the average cost of family life insurance plans?

According to Policygenius, the average cost of life insurance is about $30 per month or $360 per year, but your actual premiums will depend on factors such as the type and level of coverage you choose, whether you add other coverage options to your policy and your personal details.

Main things to know before choosing family life insurance

To pick the best life insurance policy for you and your family, there are several things you should consider:

• Term or permanent life insurance: Term life insurance is ideal for individuals looking for temporary coverage, as policies typically remain active for 10 to 30 years. Because coverage expires at the end of a term, these policies are very affordable and tend to feature high coverage amounts. Now, if you want coverage throughout your lifetime or a policy that will build cash value over time, you may want to consider permanent life insurance instead. Just be aware that premiums for permanent policies such as whole or universal life insurance will be much more expensive than term life (often 10 times more).

• Coverage amount: To choose the right amount of life insurance coverage for your family you should have a clear idea of what you want the policy to do. In addition to replacing your income, you may also want to set your family up for the future by paying off debt (including your mortgage) and leaving enough money to cover your children's college tuition and additional future expenses. Don't forget to calculate hidden income you might be bringing in, such as services you provide your family and benefits you may have through your workplace.

• Spousal coverage: If you are your family's sole breadwinner, you may be tempted to get coverage on yourself only. But if your spouse contributes to the household by cooking, cleaning or taking care of the children, you should factor in those services to select a coverage amount that truly meets your family's needs. Many life insurers allow you to add your spouse to your policy through a spousal rider, but the coverage may not be sufficient. To get a higher coverage amount and more flexible terms, consider a stand-alone policy for your partner.

• Child coverage: Child life insurance is often used to cover funeral costs and other end-of-life expenses for children. Some parents also purchase life insurance on their kids' lives as a hedge against the emotional and financial implications of a child's death. For example, parents may buy enough in coverage to replace their own income for several months, which allows them sufficient time to grieve and get back on their feet if the worst were to happen. Many companies offer child life riders you can pair with your term life coverage, but a select few also offer stand-alone whole life insurance policies for children.

• Cost: It's important to have a clear budget and compare life insurance quotes from several companies to find the best price. Experts suggest term life insurance, the more affordable option, may fit the needs of the vast majority of people. Nevertheless, base your choices on your financial plan and situation. And when in doubt, consult a financial advisor.

How We Found the Best Family Life Insurance

We researched over 20 family life insurance companies and evaluated them based on price, policies, coverage, term lengths and AM Best Rating. With the breadth of life insurance choices available, we aimed to include several different types of insurance companies that offer policy options for a variety of circumstances.

The top family life insurance companies included in our list scored high in the following categories:

• Cost: Most of the companies on our list charge fair prices for life insurance policies and optional riders.

• Policy offerings: We included companies that offer several types of life insurance policies to choose from, or at least flexible policy options for the type of insurance they provide.

• AM Best rating: AM Best is an independent organization that reviews the financial stability of over 16,000 insurance companies in the U.S. Ratings range from “D” to “A++” and reflect the overall financial health of a company. Every company in our list was rated an A- or higher, with many obtaining the highest ranking of A++. This ensures that the company has the ability to pay out claims without financial issues.

Summary of the Best Family Life Insurance of 2023

• State Farm - Best for Families
• Northwestern Mutual - Best for Whole Life Insurance
• MassMutual - Best for Term Life Insurance
• Legal & General - Most Affordable
• Bestow - Best for No-exam Life Insurance
• PolicyGenius - Best Online Broker
• Ethos - Best for Guaranteed-Issue Life Insurance
• USAA - Best for Military and Veterans
• Mutual of Omaha - Best for Return of Premium