Best Family Life Insurance Companies

State Farm offers affordable policies for families with a Children's Term Rider

We publish unbiased reviews; our opinions are our own and are not influenced by payments from advertisers. Learn about our independent review process and partners in our advertiser disclosure.

Family life insurance can ensure that everyone in your family will be taken care of if the worst should happen. Life insurance can offer an essential security blanket for your family and make sure that they’re properly provided for in the event of your death. Especially if you have a spouse or young children who depend on your income, a strong life insurance policy is a must-have for your family.

The best life insurance for families have great ratings when it comes to reputation, policies offered, add-on riders, coverage terms, cost, and more. You should look for a life insurance policy that fits your budget while providing the maximum amount of benefits. Here are our eight top picks for the best life insurance policies for families.

The Best Family Life Insurance Companies for 2021

Best Overall : State Farm


State Farm

 State Farm

  • AM Best Rating: A++
  • Plans: 10
  • Issue Ages: Up to 80
Why We Chose It

State Farm offers an affordable add-on rider that lets you add any number of children with no medical exam requirements.

Pros & Cons
Pros
  • Plans for all ages and stages of life

  • Wide selection of add-on riders

  • Discounts for bundling policies

Cons
  • Not all quotes available online

  • Limited no medical exam policies

  • Not available in Massachusetts

Overview

Founded in 1922 as an auto insurance company, State Farm offers a variety of home, health, life, disability, and liability insurance and boasts an impressive A++ rating from AM Best. It tops our list as the best overall because of its flexible and affordable children’s term rider.

State Farm offers term, whole, and universal life insurance policies as well as paid add-on riders that can extend your coverage options. The company’s Children's Term Rider lets you add multiple children to an existing life insurance policy and offers a range of death benefits up to $20,000.

Children can be added to your plan before they’re born and will automatically be covered when they are 15 days old. The policy lasts until the child turns 25. After the child’s 25th birthday, the term rider can be converted into a permanent life insurance policy with no medical exam required.

State Farm transparently posts the rate for children's coverage on their website. It's only $50 a year to cover your children with this rider.

Read the full State Farm Life Insurance review.

Best for Whole Life Policies : Northwestern Mutual


Northwestern Mutual

Northwestern Mutual

  • AM Best Rating: A++
  • Plans: 4+
  • Issue Ages: Up to 80
Why We Chose It

Northwestern Mutual is the only insurance company we came across that offers a unique blended policy that allows you to combine both term and whole life coverage.

Pros & Cons
Pros
  • Blended term and whole life policies

  • All types of policies can earn dividends

  • Life insurance consultation available from financial advisors

Cons
  • No online quote option

  • Limited options for term life insurance

  • Medical exams required for most policies

Overview

Northwestern Mutual’s origins date back to 1859 when it paid out its first claim of $3,500 for an incident involving an ox and a passenger train. In 2020, it paid out $6.2 billion in dividends to its policyholders. Northwestern Mutual offers the best and only blended term and whole life policy we’ve seen. The company also enjoys the highest rating of A++ for financial stability from AM Best.

Unlike most insurance companies that separate term and whole life policies, Northwestern Mutual offers a Whole Life Plus policy that blends term and whole life insurance with accelerated care benefit options. The ability to shift between term and whole life options offers you flexible coverage that can change as your needs change.  

Northwestern Mutual also offers a wide variety of riders ideal for growing families, including living benefit riders for chronic illness and additional purchase benefit (APB) riders that let you increase your coverage limits on seven age milestones as well as major life events.

In addition to its flexible blended policy and riders, Northwestern Mutual offers standalone term, whole, and universal policies with coverage amounts up to multiple millions and the opportunity to earn dividend payments throughout your life. 

Read the full Northwestern Mutual Life Insurance review.

Best Term Policies : AIG


AIG

AIG

  • AM Best Rating: A
  • Plans: 5
  • Issue Ages: Up to 80
Why We Chose It

AIG offers 18 selectable term policy limits with an unusually long 35-year option.

Pros & Cons
Pros
  • 18 term policies available

  • Term life available up to 35 years

  • Living benefits available for critical or terminal illness expenses

Cons
  • Low customer service rating from J.D. Power

Overview

AIG was originally founded as American Asiatic Underwriters in Shanghai in 1919 and now offers life insurance, retirement services, and more to customers around the world. We chose it for the best term policies because of its wide range of term limits and flexible living benefits. AIG also enjoys an A rating for financial stability from AM Best.

AIG stands out among many of the other insurers we reviewed for its term life plans which are renewable up to age 95 or convertible to permanent policies. You can choose from 18 different terms up to a maximum of 35 years, which is five years longer than most other policies, and four add-on riders to extend your coverage.    

AIG’s most generous coverage add-on is its Quality of Life (QoL) Accelerated Benefits rider. This allows you to receive some of your death benefit while living in order to cover the costs of care or recover lost income due to chronic, critical, or terminal illness. Note that a medical exam may be required to determine eligibility.

AIG offers quotes online for both term life and guaranteed issue whole life. While their policies look attractive, J.D. Power ranked AIG 15 out of 23 for customer satisfaction in 2020.   

Read the full AIG Life Insurance review.

Best Child Rider Option : Principal


Principal

Principal 

  • AM Best Rating: A+
  • Plans: 5
  • Issue Ages: Up to 80
Why We Chose It

Principal offers a variety of permanent life insurance policies and term policies with multiple term conversion options. Its Children Term Insurance Rider requires no medical exam and covers adopted children and stepchildren.

Pros & Cons
Pros
  • Children Term Rider offers broad coverage

  • Four permanent life policies

  • Multiple term conversion options

Cons
  • Doesn’t offer whole life policies

  • No online quotes available

Overview

Founded in 1879, Principal offers term life insurance with flexible conversion terms, multiple permanent life insurance policies, and a no-exam child term rider that covers biological and adopted children, making it our pick as the best child rider option. The company also enjoys an A+ rating with AM Best for financial stability.

Principal’s Children Term Insurance Rider covers any biological child, stepchild, or legally adopted child between 14 days and 18 years old and offers death benefits between $5,000 and $25,000, which can be purchased in increments of $1,000. The Children Term Insurance Rider can be converted to a permanent life insurance policy on the child’s 25th birthday.

Although Principal does not offer a whole life policy, you can choose from four permanent life insurance plans: universal life, indexed universal life, variable universal life, and survivorship insurance. The company also offers flexible term policy conversion options, including full, partial (some of the policy is converted and the remainder kept as term), and survivorship conversion (two term policies are combined into one universal life policy).       

Principal also offers an accelerated underwriting process that eliminates the need for a medical exam and labs. This program uses health data and automated decision making to speed up the process.

Best Affordable Option : Transamerica


Transamerica

 Transamerica

  • AM Best Rating: A
  • Plans: 7
  • Issue Ages: Up to 85
Why We Chose it

Transamerica offers convertible term life insurance plans with up to $10 million coverage with rates below the industry average.

Pros & Cons
Pros
  • Competitive rates for term life policies

  • Up to $50,000 coverage available without an exam

  • Policies issued up to age 85

Cons
  • Below-average customer service ratings

Overview

Originally founded as a bank in 1904, Transamerica is now the eighth-largest life insurance company nationwide and enjoys an A rating for financial strength from AM Best. It’s our pick as the best affordable option because it offers lower premiums than its competitors.

Transamerica offers term life insurance policies with a generous issuance age range from 0 to 80 and death benefits of up to $2 million or $10 million depending on the product. You can choose terms of 10 to 30 years in units of five years. Transamerica’s term life policies can also be converted to permanent insurance, which will let you access living benefits at the end of your term.

In addition to term life, Transamerica offers whole life and universal life that accumulate cash value. Transamerica also offers final expense policies with a simplified underwriting process with no medical exam or lab requirements.   

In terms of pricing, Transamerica offers some of the lowest life insurance premiums we’ve seen. Use the online quote system, to see what you would pay.

Read the full Transamerica Life Insurance review.

Best for Young Families : New York Life


New York Life

 New York Life

  • AM Best Rating: A++
  • Plans: 8
  • Issue Ages: Up to 90
Why We Chose It

New York Life offers a variety of life insurance policies with living benefits that provide cash value and premium waivers throughout the life of the policy.

Pros & Cons
Pros
  • Offers three types of life insurance coverage

  • A++ rated for financial strength

  • High customer satisfaction ratings

Cons
  • No online quotes available

  • Need to contact an agent for any issues

Overview

Established in 1845, New York Life is a mutual insurance company that has been paying dividends to its policyholders for 167 consecutive years as of 2021. New York Life offers a wide range of policies that can be converted with no medical exam along with riders that provide additional family coverage, making it our choice as the best for young families.     

New York Life offers level term policies up to age 75 that can be converted to whole life insurance with no medical exam requirements. The company’s whole life policies can be issued up to age 90 and are eligible for dividend payments. 

New York Life’s policies offer coverage up to several million dollars. You can add living benefit riders for chronic and terminal illnesses that let you use a portion of your death benefit to pay for your care to avoid burdening your family. A waiver of premium payment is also available to ensure that your family is covered should you become disabled. 

New York Life received an A++ (Superior) rating from AM Best and was ranked sixth out of 23 life insurance companies for customer satisfaction in 2020 by J.D. Power.

Read the full New York Life Insurance review.

Best for Ease of Signing Up : Globe Life


Globe Life

 Globe Life

  • AM Best Rating: A
  • Plans: 7
  • Issue Ages: Up to 80
Why We Chose It

Globe Life has a fast underwriting process with no medical exam requirements.

Pros & Cons
Pros
  • High ratings for financial strength

  • Family option covers both parents and children

  • High customer service ratings

Cons
  • Low coverage limits

Overview

Founded in 1900, Globe Life provides insurance policies to over 16 million customers and enjoys an A rating with AM Best. In 2020, the company was ranked second by J.D. Power out of 23 individual life insurance providers. It’s our pick as the best for ease of signing up because of its no-exam underwriting process and family insurance policy.

Globe Life allows families to purchase children's whole life insurance entirely online without a medical exam or talking to an insurance agent. You simply need to fill out a medical questionnaire to see if you qualify. Globe Life’s whole life policies accumulate cash value, can be issued to children aged 0 to 24, and offer death benefit payouts between $5,000 and $30,000. 

In addition to its term and whole life policies, Globe Life also offers a family option that covers parents and children on the same policy from $5,000 and $100,000. 

Globe Life offers online quotes and it does have an online tool that lets you manage your policy. 

Read the full Globe Life Insurance review.

Best for No Medical Exams : Mutual of Omaha


Mutual of Omaha

Mutual of Omaha

  • AM Best Rating: A+
  • Plans: 7
  • Issue Ages: Up to 85
Why We Chose It

Mutual of Omaha offers whole life insurance for children with locked-in rates and accumulating cash value, and the company’s easy online application process only requires you to answer three health questions.

Pros & Cons
Pros
  • Apply by answering three medical questions

  • Long list of riders available

  • Excellent customer service ratings

Cons
  • Some policies can only be bought through an agent

  • Limited online account management

Overview

Established in 1909, Mutual of Omaha is a leading provider of life, long-term care, and disability insurance. The company gets an A+ rating from AM Best and is our choice as the best for no medical exams due to an application process that only involves three health questions.

Mutual of Omaha offers whole life insurance policies for children ages 14 days to 17 years with death benefits of $5,000 to $50,000 available. The policies offer locked-in rates, no decrease in benefits over time, and accumulating cash value you can borrow against as needed. You can also add a children rider to an adult policy that will cover a child’s up to their 20th birthday. 

Mutual of Omaha also includes a Guaranteed Insurability Rider that lets you purchase additional coverage on insured children or yourself at certain ages and life events, including marriage, the birth of a child, or buying a home.   

Mutual of Omaha offers low premiums for children’s life insurance. You can get a quote online.

Read the full Mutual of Omaha Life Insurance review.

Final Verdict

While researching this article, we discovered that there are enough life insurance companies on the marketplace to meet the needs of just about any type of family. Make sure you compare coverage including riders and policy limits, financial security, and monthly costs before selecting the best one for your needs. 

Although all of these policies are a good choice, we chose State Farm as the best overall since it allows you to easily add any number of children to your policy with no medical exam requirements.

Compare the Best Family Life Insurance Companies

Company  AM Best Rating Coverage Capacity Issue Ages Policies Offered
State Farm Best Overall A++ $3,000,000 Up to 80 Term life, whole life, universal life, survivorship life, joint life
Northwestern Mutual Best for Whole Life Policies A++ Not stated Up to 80 Term life, whole life, universal life, and more
AIG Best Term Policies A Not stated Up to 80 Term life, guaranteed issue whole life, universal life, variable universal life, index universal life, guaranteed universal life
Principal Best Child Rider Option A+ $1,000,000 or greater Up to 80 Term & permanent policies
Transamerica Best Affordable Option A Not stated Up to 85 Term life, whole life, universal life, indexed universal life, final expense
New York Life Best for Young Families A++ $5,000,000 and up Up to 90 Term life, whole life, universal life
Globe Life Best for Ease of Signing Up A+ $100,000 Up to 80 Whole life, term life,
children's whole life, guaranteed issue, final expense
Mutual of Omaha Best for No Medical Exams A+ $1,000,000 and up Up to 85 Term life, children’s whole life, whole life, universal life, guaranteed issue

Frequently Asked Questions

What Is Family Life Insurance?

Family life insurance allows parents to purchase coverage for themselves to protect their families should something happen to them as well as coverage for their children to pay for funeral expenses. Although some companies offer dedicated life insurance policies for children, most use riders that add them to an existing parent’s policy.  

Who Needs to Get Family Life Insurance?

While any family can benefit from family life insurance, young couples can often benefit the most. This is because the needs of young families can change as they grow and have more children, buy a home, or deal with unexpected health issues.

Family insurance can also protect your children by providing them with guaranteed life insurance when they become an adult so they can protect their own families.      

What Does Family Life Insurance Cost?

Most of the companies we researched don’t allow you to get a life insurance quote online and require you to speak to an agent or go through a lengthy application process. The price of a policy often depends on a variety of factors, including your health, where you live, how much coverage you want, and any add-on riders you choose. That said, coverage for children is usually very affordable.

Methodology

We looked at over a dozen life insurance companies for this review. At the top of our list were providers with a long history in the business and top ratings for financial stability.

Next, we dug into each company to find out what they did best, whether it was offering the most options for term life insurance, the lowest rates, or a variety of riders that provided even more protection for families.

Although it was difficult to get quotes for life insurance, we also tried to choose companies with a reputation for affordable or competitive rates that offered the best coverage options for your money.  

Article Sources

  1. AM Best. "AM Best Affirms Credit Ratings of State Farm Mutual Automobile Insurance Company and Most of Its Subsidiaries." Accessed Aug. 3, 2021.

  2. Businesswire. "AM Best Affirms Credit Ratings of The Northwestern Mutual Life Insurance Company and Its Subsidiary." Accessed Aug. 3, 2021.

  3. Businesswire. "AM Best Affirms Credit Ratings of The Northwestern Mutual Life Insurance Company and Its Subsidiary." Accessed Aug. 3, 2021.

  4. Businesswire. "AM Best Affirms Credit Ratings of American International Group, Inc. and Most Subsidiaries; Downgrades Issuer Credit Ratings of Life/Health Subsidiaries." Accessed Aug. 3, 2021.

  5. J.D. Power. "Life Insurance Customer Satisfaction Flatlines Despite Pandemic Fears, J.D. Power Finds." Accessed Aug. 4, 2021. 

  6. Businesswire. "AM Best Affirms Credit Ratings of Principal Financial Group, Inc. and Its Subsidiaries." Accessed Aug. 3, 2021.

  7. Businesswire. "AM Best Affirms Credit Ratings of Principal Financial Group, Inc. and Its Subsidiaries." Accessed Aug. 3, 2021.

  8. AM Best. "AM Best Affirms Credit Ratings of Aegon N.V.’s U.S. Subsidiaries." Accessed Aug 4, 2021.

  9. Insurance Information Institute. "Facts + Statistics: Life insurance." Accessed Aug. 4, 2021.

  10. AM Best. "New York Life Insurance Company." Accessed Aug. 4, 2021.

  11. AM Best. "New York Life Insurance." Accessed Aug. 4, 2021.

  12. AM Best. "AM Best Affirms Credit Ratings of Globe Life Inc. and its Subsidiaries." Accessed Aug. 4, 2021.

  13. Businesswire. "AM Best Affirms Credit Ratings of Mutual of Omaha Insurance Company and Its Subsidiaries." Accessed Aug. 4, 2021.

  14. Businesswire. "AM Best Affirms Credit Ratings of Mutual of Omaha Insurance Company and Its Subsidiaries." Accessed Aug. 4, 2021.