25 Largest Life Insurance Companies- May 2022

25 Largest life insurance companies 2022

The five largest life insurance companies in the U.S. are Northwestern Mutual, Lincoln Financial, State Farm, Primerica and New York Life.

Below is a list of the largest life insurance companies 2022 by:

  • Total individual life insurance issued in the U.S.

There are several ways to rank the largest life insurance companies in the United States which include; total company assets, written premium (term, universal and whole life), amount of coverage in force, total individual and group coverage and several others metrics. For the purpose of this article, we’ll use the data for individual life insurance issued 2020. This number represents the amount of life insurance purchased by the individual life insurance consumer outside of their employer.

Largest life insurance companies in the United States 2022 chart

The table below shows the 25 largest life insurance companies in the United States 2022, listed in order by the total amount individual life insurance issued.

RankCompanyIndividual Life Insurance
Issued (millions)
Rating
1.Northwestern Mutual$173,132A++
2.Lincoln Financial105,843A+
3.State Farm100,279A++
4.Primerica99,583A+
5.New York Life96,940A++
6.MassMutual85,603A++
7.Prudential83,371A+
8.Principal68,393A+
9.Protective Life63,370A+
10.AIG62,264A
11.Transamerica55,813A
12.Pacific Life54,170A+
13.Banner Life52,852A+
14.National Life51,802A+
15.Globe Life41,558A
16.Guardian40,463A++
17.Manulife (John Hancock)37,909A+
18.Sammons (North American)37,492A+
19.USAA29,968A++
20.Penn Mutual29,359A+
21.Nationwide26,417A+
22.Allstate23,054A+
23.Equitable (AXA)20,684A
24.Zurich Financial20,623A+
25.American National19,675A
Largest life insurance companies in the U.S. 2022

Methodology: Largest life insurers by individual life insurance issued 2020 (millions). Source ACLI from NAIC data.

25 Largest Life Insurance Companies 2022 Bar chart

Which is the best company?

There are currently over 700 life insurance companies in the United States in 2022. While the size of the company is important, it’s not the only factor you should consider when shopping for a life insurance policy. Factors such as your height and weight, age, medications, family history, etc. will affect which company will offer you the best rates.

Each life insurance company has their own prices and underwriting guidelines so it’s important to compare quotes from several carriers to ensure you are receiving the best rates and policy for your needs and goals.

Life insurance companies such as SBLI and Symetra didn’t make the list of the 25 largest life insurance by individual life insurance issued but are great companies with an ‘Excellent’ financial rating and have great products.

What are the different types of life insurance offered by the largest life insurers?

The 25 largest life insurance companies in the U.S. offer the main types of coverage, term life, universal life and whole, as well as several other products. We’ll explain the three most popular in more detail below.

  • Term life insurance– Term life insurance is protection that lasts for a specific period of time. Term life insurance is the least expensive type of life insurance which allows for large amount of coverage for a relativity small premium. Term life insurance is pure insurance, similar to auto or home insurance since the coverage ends when the policy expires. It’s also the type of life insurance recommend by top financial experts such as Dave Ramsey, Suze Orman and Clark Howard.
  • Universal life insurance– Universal life insurance is a type of permanent insurance (since it lasts a lifetime). Universal life insurance is typically 4x to 12x more expensive than term life insurance but typically costs less than whole life insurance and has a cash value competent. There are several types of universal life insurance which include: no-lapse guaranteed universal life (GUL), traditional or non-guaranteed universal life, indexed universal life and variable universal life.
  • Whole life insurance Whole life insurance is coverage that lasts a lifetime. With whole life insurance the policy builds a cash value which you can borrow against and the policy holder may be able to participate in company dividends. Similar to term life insurance the rates and coverage amount are fixed. However, whole life insurance is typically 5x to 15x more expensive than term life insurance.

Choosing a highly rated life insurance company

One thing the top 25 largest life insurance companies all have in common is that they have an Excellent or Superior rating from A.M. Best. A.M Best is the gold standard when it comes to life insurance company ratings.

While you don’t necessarily need to choose one of 25 largest life insurance companies in the U.S. as your insurer, it is recommended by financial advisors to choose a life insurance company that has an ‘Excellent’ or ‘Superior’ rating from A.M. Best.

Wrap up

The 25 largest life insurance companies in the U.S. in 2022 are all highly rated and have been in business for more than 40 years, most well over a century. These life insurance companies are the largest writers of term life insurance, universal and whole life insurance in the Unites States in 2022.

While you can’t go wrong choosing one of the 25 largest life insurance companies, you may also benefit from choosing a smaller insurer that has the right product or underwriting that meets your needs and goals.

Also, it is recommend by financial experts to choose a life insurance company that has an ‘Excellent’ or ‘Superior’ rating from A.M. Best to help ensure the company will be able to pay out any future claims.


FAQ

Who is the largest life insurance company in the U.S.?

Northwestern Mutual is the largest life insurance company in the U.S. in 2022 by total amount individual life insurance issued. Likewise, Northwest Mutual also paid out the most in claims in 2022.

How many life insurance companies are in the Unites States?

There are 747 life insurance companies in the U.S. in 2022 according to ACLI.

How much do life insurance companies pay out in claims each year?

Life insurance companies paid out more than $90 billion to benefices in death claims in 2020.

What is a good rating for a life insurance company?

Financial experts typically recommend to choose a life insurance company that has an Excellent or Superior financial rating from A.M. Best.

Do I need to choose one of the top 25 largest life insurance companies as my insurer?

No. While you can’t go wrong with the companies on the top 25 largest life insurance company 2022 list as they are the largest writers of term life, universal life and whole life in the country, there are many other life insurance companies in the U.S. that offer great products and rates as well.

Which life insurance company has the best rates?

Each life insurance company has their own rates and underwriting guidelines. Therefore, the company that will have the lowest rate for one person may not for another at the same age. It’s important to compare quotes from multiple insurers in order to receive the best rate.


Keep Reading

error: Content is protected !!