Best Life Insurance Companies in Alabama for 2023
According to our study, Bestow is Alabama’s top life insurance provider. The top two companies for whole life and universal life insurance are State Farm and USAA.
Bestow and Haven Life are digital-first providers, thus clients can only submit applications and buy insurance online. Additionally, only term life insurance plans are sold by Bestow and Haven Life, and each company provides a term policy that excludes the need for a medical exam. The insurance plans sold by Haven Life, a digital insurance agency, are either issued by MassMutual or C.M. Life, a division of MassMutual.
A greater variety of insurance products are available from the additional life insurance providers that we ranked in Alabama. For instance, the No. 10 life insurance company, Guardian Life, provides two types of whole life plans, two types of universal life policies, and a term life policy. And MassMutual offers 15 different life insurance plans, including two term, 10 whole, and three universal options. MassMutual and Nationwide are tied for fifth place in Alabama.
The top term life insurance provider in Alabama is Bestow. State Farm and USAA are tied for third place, with Haven Life coming in at number two.
With term life insurance, beneficiaries are given a death benefit if the policyholder passes away within a predetermined time frame. Although some companies provide policies with terms as short as one year, the typical time frame is between five and thirty years.
Term life insurance is initially less expensive than other policy kinds. However, the cost of premiums rises when the term is up and it’s time to renew coverage. Some term life insurance contracts provide conversion to universal or whole life insurance, two types of permanent life insurance.
According to our ranking of the top whole life insurance providers in Alabama, State Farm and USAA are tied for first place. At No. 3, Nationwide and MassMutual are tied.
Whole life insurance policies give everlasting coverage as long as the premiums are paid, in contrast to term life policies, which only offer coverage for a certain time (and consequently need to be renewed). Whole life insurance has a cash value component that earns interest, which sets it apart from term life insurance. The cash is available to policyholders, but using it could lower the policy’s death payout unless it is paid back.
Whole life insurance also has the ability to provide dividends, which are earnings made by the insurance company from the investment of premiums.
According to our ranking of the top universal life insurance providers in Alabama, USAA and State Farm are tied for first place. Following them are Nationwide and MassMutual, which are tied for third place.
Like whole life insurance policies, universal life insurance provides lifetime protection. They also have a cash value element that can be used to pay for insurance premiums. However, when the policy has begun to pay out, holders of universal life plans have the option of changing the death benefit and premium. Although universal policies are typically more affordable than entire policies, they are nonetheless more expensive than term policies.
Universal life insurance policies come in a few distinct forms, including:
The cash value of variable universals can be invested in a variety of ways thanks to subaccounts.
Indexed universal insurance have a minimum (and maximum) guaranteed interest rate and link their cash value to a market index, such as the S&P 500.
In our ranking of the top no medical exam life insurance providers in Alabama, Bestow ranks first and Haven Life comes in second. State Farm and USAA are the next two.
The majority of life insurance policies require the prospective insured to go through a medical examination, which may include an electrocardiogram, x-rays, urine and blood tests, and other procedures. No-exam life insurance comes in a variety of forms. These include life insurance policies with rapid issue, simplified issue, and guaranteed issue options.
When applying for an accelerated issue no-exam life insurance policy, the applicant provides information that the provider utilizes and can be augmented with information from outside sources, such as driving and credit histories. Such policies have rates that are equivalent to those that demand thorough underwriting.
The applicant is permitted to share their medical history and respond to some health-related questions with a simplified issue no-exam life insurance. But the amount of coverage under these insurance is constrained.
Although coverage under a guaranteed-issue policy is assured, there can be age restrictions on eligibility. These insurance have higher costs and offer less coverage.
Visit our What Is No-Exam Life Insurance? guide for additional details on the various no-exam policy options. Visit our full ranking of the Best No Exam Life Insurance Companies for additional details on other top no-exam insurance providers.