Family life insurance can ensure that everyone in your family will be taken care of if the worst should happen. Because 70% of households would find it difficult paying their living expenses in as little as two years if they lost their main financial provider, life insurance can offer an essential security blanket for your family.
We researched over a dozen life insurance companies and chose the best ones for you and your children based on reputation, policies offered, add-on riders, coverage terms, cost, and more. Here are our eight top picks.
The Best Family Life Insurance Companies for 2021
Best Overall : State Farm
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.
Plans for all ages and stages of life
Wide selection of add-on riders
Discounts for bundling policies
Not all quotes available online
Limited no medical exam policies
Not available in Massachusetts
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 from $5,000 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 or until the policyholder turns 65, whichever comes first. After the child’s 25th birthday, the term rider can be converted into a permanent life insurance policy for up to five times the coverage with no medical exam required.
State Farm doesn’t offer a quote for Children's Term Rider online so you’ll have to contact a local agent to get accurate pricing. However, a quick note on its website estimates that it will cost you $5 per month for $10,000 of coverage for each child you add to your policy.
Read the full State Farm Life Insurance review.
Best for Whole Life Policies : Northwestern Mutual
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.
Blended term and whole life policies
All types of policies can earn dividends
Life insurance consultation available from financial advisors
No online quote option
Limited options for term life insurance
Medical exams required for most policies
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. It has since paid out $4.8 billion in dividends to its policyholders and 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 between $10,000 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
Why We Chose It: AIG offers 18 selectable term policy limits with an unusually long 35-year option.
18 term policies available
Term life available up to 35 years
Living benefits available for critical or terminal illness expenses
No online quotes available
Low customer service rating from J.D. Power
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 use up to 50% of your living benefits 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 does not offer an online quote builder, though its website states that policies start at $14 per month for $250,000 of term life coverage. Although the company has a high financial stability rating from AM Best, 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
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.
Children Term Rider offers broad coverage
Four permanent life policies
Multiple term conversion options
Doesn’t offer whole life policies
No online quotes available
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 or even a health questionnaire to apply. This also makes it easier for special needs children who might otherwise be denied coverage by a company that requires a medical exam to get life insurance.
Best Affordable Option : Transamerica
Why We Chose It: Transamerica offers convertible term life insurance plans with up to $10 million coverage with rates below the industry average.
Competitive rates for term life policies
Up to $50,000 coverage available without an exam
Policies issued up to age 85
No online quotes available
Below-average customer service ratings
Originally founded as a bank in 1904, Transamerica is now one of the 10 largest life insurance companies nationwide and enjoys an A rating for financial stability 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 85 and death benefits of $2 million or $10 million. 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.
Transamerica’s term, whole, and some universal life policies also come with level premiums and guaranteed cash values. Transamerica also offers a final expense policy 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. Using the online quote builder, we were able to build a 20-year term life policy of $250,000 for a 30-year-old male in excellent health for just $12.90 per month. A policy for a woman with the same statistics came to $11.40 per month.
Read the full Transamerica Life Insurance review.
Best for Young Families : New York Life
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.
Offers four types of life insurance coverage
A++ rated for financial strength
High customer satisfaction ratings
No online quotes available
Need to contact an agent for any issues
Established in 1841, New York Life is a mutual insurance company that has been paying dividends to its policyholders for over 175 years. It 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 from $10,000 to several million dollars and. 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 fifth 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
Why We Chose It: Globe Life has a fast underwriting process with no medical exam requirements.
High ratings for financial strength
Family option covers both parents and children
High customer service ratings
No online quotes available
No online quotes available
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 ranked second among individual life insurance providers by J.D. Power. 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 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.
Although Globe Life doesn’t offer online quotes, 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
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 two health questions.
Apply by answering two medical questions
Long list of riders available
Excellent customer service ratings
Some policies can only be bought through an agent
Limited online account management
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 two 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 up to five times 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. Our research showed that a $10,000 policy for a 13-year-old costs just $5.50 per month, while a $50,000 policy comes in at just $23.50 per month.
Read the full Mutual of Omaha Life Insurance review.
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.
|Life Insurance Company||Category||Why We Picked It|
|State Farm||Best Overall||Coverage for any number of children with no medical exams|
|Northwestern Mutual||Best for Whole Life Policies||Flexible blended term and whole life policies|
|AIG||Best Term Policies||18 term policy limits with a 35-year option|
|Principal||Best Child Rider Option||No-medical-exam coverage includes stepkids and adopted children|
|Transamerica||Best Affordable Option||Term policies issued up to age 85 with competitive rates|
|New York Life||Best for Young Families||Cash value benefits and disability premium waivers|
|Globe Life||Best for Ease of Signing Up||Fast underwriting and single parent and child policies|
|Mutual of Omaha||Best for No Medical Exams||Simple application with just two health 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.
However, our research showed that a $50,000 policy for a healthy 13-year-old can cost close to $25 per month while a young parent in their 30s can expect to pay $12.90 per month for $250,000 of coverage.
How We Chose the Best Family Life Insurance
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.