5 Best Universal Life Insurance Companies – Universal life insurance is a type of permanent life insurance that provides both lifetime protection and long-term flexibility. Unlike traditional policies, it allows policyholders to adjust their premium payments and death benefit amounts as their financial needs or circumstances change.
One important feature of this policy is the cash value component. Over time, this cash value grows and earns interest, with returns that vary based on market performance. As the policy matures, the cash value can serve several purposes. For instance, it can be used to help pay premiums or even be borrowed against, providing access to funds when needed.
In some cases, if a policyholder decides to cancel the coverage before its maturity, they may be able to withdraw the cash value. However, it is important to be aware that surrender fees might apply, which could reduce the final payout.
5 Best Universal Life Insurance Companies
Overall, universal life insurance offers a blend of lifelong coverage and financial flexibility, making it a valuable option for those seeking long-term protection with added control. Here are the 5 Best Universal Life Insurance Companies.
MassMutual Life Insurance Review
MassMutual is widely recognized for its financial strength and positive customer experience. The company, founded in 1951 and headquartered in Springfield, Massachusetts, is one of just seven providers out of the 45 reviewed by Investopedia to receive the top financial strength rating from AM Best. This further affirms its long-term reliability and trustworthiness.
MassMutual accepts applicants for universal life policies up to age 85. Coverage starts at $50,000, and there is no upper limit on the amount you can apply for. Some of its universal and variable universal life insurance policies come with no-lapse guarantees, which means the policy will remain in force as long as premiums are paid as required.
Pros:
- Very few customer complaints compared to market size
- Holds the highest financial stability rating (A++) from AM Best
- High customer satisfaction score according to J.D. Power
Cons:
- Does not offer indexed universal life insurance options
- No-medical-exam coverage is limited to policies up to $1 million
Nationwide Life Insurance Review
Nationwide stands out for offering living benefits at no additional cost with its universal life insurance policies. These include critical, chronic, and terminal illness riders, which allow policyholders to access a portion of the death benefit if diagnosed with a qualifying medical condition.
In addition to strong financial stability, Nationwide offers features designed with flexibility and convenience in mind. Its universal life insurance policies can be customized with optional riders, giving you the ability to adjust your coverage based on your personal needs.
Although the minimum coverage amount starts at $100,000, which may not suit those looking for a smaller or more affordable policy, there is no upper limit for applicants seeking higher protection. With accelerated underwriting, eligible individuals can qualify for up to $5 million in coverage without undergoing a medical exam. This makes the application process quicker and more convenient, especially for those in good health.
Pros:
- Living benefit riders are included at no extra cost
- No-medical-exam coverage available up to $5 million
- Receives few customer complaints
Cons:
- Minimum coverage begins at $100,000 with no smaller options available
Midland National Life Insurance
Midland National is a strong choice for those who need life insurance quickly. Its WriteAway accelerated underwriting program allows eligible applicants to receive approval for universal life insurance in less than a week. This feature is especially useful for individuals who want fast, hassle-free coverage.
Through the WriteAway program, qualified applicants can receive up to $2 million in universal life coverage without completing a medical exam. In some cases, healthy individuals may even get same-day approval. For traditional underwriting, policies begin at $50,000, and there is no upper limit on coverage.
To apply, you must work with a licensed agent. Policies also include living benefit riders, which allow access to a portion of the death benefit in the event of a qualifying illness. Additionally, tobacco users may qualify for no-exam coverage, which is not commonly available.
Pros:
- Tobacco users can get coverage without a medical exam
- Living benefit riders are included with eligible policies
- Accelerated underwriting approval is typically completed in less than a week
Cons:
- Below-average customer satisfaction score based on J.D. Power’s ratings
John Hancock
John Hancock stands out for offering universal life insurance coverage to applicants up to age 90. This is the highest age limit among all the companies reviewed by Investopedia, making it a strong option for older adults who still want access to life insurance.
The company provides a wide selection of policies, including universal, variable, and indexed universal life insurance. Some of these options come with no-lapse guarantees, helping to ensure coverage remains in place as long as premiums are paid as agreed.
John Hancock also offers a wellness program called Vitality GO at no cost. This program rewards healthy habits with discounts on groceries, fitness gear, and more. For a small monthly fee, the upgraded version of the program provides additional benefits, including savings at well-known retailers and potential discounts of up to 25 percent on life insurance premiums.
To apply for coverage or get a quote, you need to work with a licensed John Hancock agent, as quotes are not available online.
Pros:
- Accepts applicants up to 90 years old
- Includes two living benefit riders at no additional cost
Cons:
- Quotes are not available online
- Receives a below-average customer satisfaction rating from J.D. Power
Pacific Life Insurance
Pacific Life is a strong option for those seeking financial stability and product variety. The company holds a high financial strength rating and receives relatively few customer complaints, making it a dependable choice for life insurance.
It offers five variable universal life insurance policies, each featuring guaranteed minimum interest crediting and a range of investment strategies. For those focused on cash value growth and tailored coverage, Pacific Life also provides four indexed universal life insurance options designed for flexibility and long-term value.
In addition, the company offers a wide selection of policy types, including universal, indexed universal, and variable universal plans, along with survivorship policies that can cover two individuals under one contract. While Pacific Life does not provide as many rider options as some competitors, certain policies include valuable built-in benefits. For instance, the Pacific Trident IUL features a free no-lapse guarantee that can last up to 20 years.
Healthy applicants may qualify for up to $3 million in coverage without a medical exam. However, quotes and applications must go through licensed insurance agents, and universal life insurance policies are not available in New York.
Pros:
- No-medical-exam coverage available up to $3 million
- Policy amounts start as low as $25,000
- Offers a wide variety of universal life insurance options
Cons:
- Quotes are not available online
- Online applications are not supported
- Same-day coverage is not offered
Pros and Cons of Universal Life Insurance
Universal life insurance offers a unique blend of flexibility and long-term protection, but it is not without its challenges. Understanding both the advantages and drawbacks can help you decide whether it suits your financial goals and lifestyle.
Pros:
- Premium payments can be adjusted based on your financial situation
- The policy builds cash value over time
- Death benefit amounts may be increased or reduced as needed
Cons:
- Cash value growth is not guaranteed and depends on market conditions
- Premiums tend to rise as you get older
- The policy requires ongoing attention and active management
Universal life insurance offers valuable flexibility and the potential for cash growth, but it requires careful management and a clear understanding of how the policy works. If you are comfortable staying involved and adjusting your strategy over time, it can be a smart long-term option.
