Best Life Insurance Companies In Chicago, IL For 2024
Transamerica takes the crown for the best life insurance company in Chicago.
Choosing a life insurance policy that protects your loved ones is one of the most important financial decisions you’ll ever make. It ensures that your family will have a financial safety net in the event of your passing.
Our analysis of various life insurance companies in Chicago has led us to recommend Transamerica as the top choice. Its life insurance products are exceptional and come with reasonable premiums for all age groups.
In this review, we’ll examine whole life, term life, and variable universal life policies, as well as the average cost of life insurance in Chicago. This is critical because selecting the wrong life insurance company or policy for your age group can lead to long-term financial difficulties for your loved ones.
As a former career agent, I’m very familiar with the companies we’ll discuss in this review. While these insurers may cater to different demographics, they are all financially stable and provide excellent customer service.
Best Life Insurance Companies In Chicago, IL 2024
Compare The Best Life Insurance In Chicago, IL
To help in your evaluation of the top life insurance companies in Chicago, here is a table displaying our preferred companies across a few key criteria.
| Overall Rating | Best For | A.M. Best Rating | J.D. Power Rating | Online Experience | Get A Quote | |
|---|---|---|---|---|---|---|
| Northwestern Mutual |
|
Best Overall Runner-Up |
A++ |
794 |
9.5 |
Instant Quote |
| Transamerica |
|
Best Overall |
A |
740 |
9.7 |
Instant Quote |
| MassMutual |
|
Best For Seniors |
A++ |
780 |
9.2 |
Instant Quote |
| Transamerica |
|
Best For Young Adults |
A |
740 |
9.7 |
Instant Quote |
| Nationwide |
|
Best For Cheapest Life Insurance |
A+ |
791 |
9.6 |
Instant Quote |
| Banner Life |
|
Best For Customer Service |
A+ |
NR |
9.6 |
Instant Quote |
Our Methodology
We employed a thorough methodology that considered a range of factors, such as customer service ratings, product offerings, pricing, and the quality of the online experience. In addition, my experience of selling life insurance and my interactions with agents who have worked for other life insurers have also provided me with valuable insights into their products and services.
Quotes Analyzed
Years Of Industry Experience
Brands Reviewed
Research Hours
Best Life Insurance Companies In Chicago, IL
Best Overall
Key Statistics
Why We Like Them
⇅Transamerica offers a range of competitive life insurance policies tailored to meet the diverse needs of its customers. These include two types of term life insurance, with coverage periods spanning 10, 15, 20, 25, and 30 years. In addition, it offers whole life insurance policies that provide coverage up to $2 million, as well as smaller policies designed to cover final expenses like funeral costs.
If you’re looking for index and variable universal life coverage, agents representing Transamerica are available to help you select a plan that works for your unique needs. With affordable pricing and a variety of coverage options, Transamerica is one of the best life insurance companies in Chicago. Its commitment to providing value and personalized service makes it a top choice for those seeking quality life insurance.
Benefits & Drawbacks
⇅- Available through an extensive network of independent agents
- Diverse product portfolio
- Among the least expensive we evaluated ✓
- Rates are not competitive for seniors
- Lower J.D. Power rating than some competitors ✘
Best Overall Runner-Up
Key Statistics
Why We Like Them
⇅Northwestern Mutual is a top-rated life insurance company that distinguishes itself by being owned by policyholders instead of shareholders. As a result, if the company performs well, some policyholders receive annual dividends.
At Northwestern Mutual, flexibility is key. It offers a range of coverage options, including term, whole, and universal life insurance policies, and payment plans that can be tailored to meet individual needs. One of its standout features is the ability to convert term-life policies to whole life policies without undergoing a medical exam.
Because of its focus on flexibility and customer satisfaction, Northwestern Mutual is widely regarded as one of Chicago’s best life insurance companies. Its commitment to providing high-quality service and tailored coverage options make it a reliable and trusted choice for anyone seeking life insurance.
Benefits & Drawbacks
⇅- Offers a number of term and permanent policy options
- High customer satisfaction ratings
- Well-trained agent sales force ✓
- Can only purchase through Northwestern Mutual career agents
- Premiums can be too expensive for younger adults and seniors
- Doesn’t sell a variable life insurance policy ✘
Best For Seniors
Key Statistics
Why We Like Them
⇅MassMutual is a leading life insurance company that offers a wide range of financial products and services. Owned by its policyholders, MassMutual has distinguished itself by providing dividend payments to policyholders, depending on the product they purchase.
According to a recent J.D. Power life insurance study, MassMutual ranked above average in
terms of overall customer satisfaction. Their application process is also known to be more efficient and streamlined than many of their competitors, which is appealing to the majority of seniors. Their low rates for seniors are among the factors that have made MassMutual one of the best life insurance companies in Chicago.
In addition to offering excellent life insurance products, MassMutual provides a variety of financial planning and wealth management services that can help clients achieve their long-term financial goals. Their commitment to customer satisfaction and financial stability has made them a trusted choice for many individuals and families that need reliable financial products and services.
Benefits & Drawbacks
⇅- Most competitive rates for seniors in Chicago
- The company is very sound financially ✓
- Not as many life insurance products for seniors as some competitors
- Career agents don’t specialize in the senior market ✘
Best For Young Adults
Key Statistics
Why We Like Them
⇅Transamerica has a strong presence in Chicago with a vast network of independent life insurance agents who offer its policies. One of its standout features is its highly affordable term life insurance, particularly for young adults.
In addition to competitive rates, Transamerica provides a seamless online experience for customers looking to purchase life insurance. Recognizing that many young adults prefer to buy insurance products online rather than through an agent, Transamerica has made it easy to get a quote through its website.
For those who prefer a more personalized experience, Transamerica also offers a “Locate an Agent” button on its website. This feature can help customers find a local agent who represents the company and can assist them in selecting the right policy for their needs.
Overall, Transamerica’s commitment to affordability and user-friendly experience make it a top choice for anyone wishing to buy life insurance in Chicago.
Benefits & Drawbacks
⇅- You can buy term life insurance online
- Policy face amounts go as high as $10 million
- No medical exam for up to $2 million for qualifying applicants ✓
- $25,000 is the minimum term life insurance face amount available
- Final Expense Policy is not guaranteed issue ✘
Best For Customer Service
Key Statistics
Why We Like Them
⇅Banner Life, owned by Legal & General America and operates as William Penn in New York, is an excellent choice for term life insurance, with competitive prices across ages and health classifications. It also offers a fast-approval, no-medical-exam policy for qualifying applicants for up to $2 million of coverage.
Young, healthy adults are a great fit for Banner Life’s policies, but so are smokers and individuals with diabetes, bipolar disorder, and high blood pressure. In short: people with a variety of health conditions across a variety of ages can find their best rates with Banner Life.
The latest data provided by the National Association of Insurance Commissioners index shows that Banner Life received an index rating of 0.35, well below the industry average of 1.00. This means that Banner Life gets 65% fewer complaints than the average life insurance company, which is a good indicator of quality service.
Benefits & Drawbacks
⇅- Has a lower number of customer complaints than the industry average
- Excellent choice for individuals with pre-existing medical conditions
- Has no-medical-exam policy options ✓
- Fair financial ratings (not rated by Moody’s)
- A limited number of riders are available ✘
Best For Cheapest Life Insurance
Key Statistics
Why We Like Them
⇅Nationwide is a well-known insurance provider with the lowest rates among most life insurers in Chicago. The company boasts a highly skilled team of career and independent agents who represent it, ensuring that customers receive accurate pricing and excellent service.
Nationwide offers a comprehensive range of life insurance products, including term and permanent life insurance policies such as whole life, universal life, and variable universal life insurance. In addition, it provides a no-exam life insurance plan for those who prefer a hassle-free option.
Purchasing life insurance from Nationwide is easy and convenient. With many neighborhood offices in Chicago, you can easily find a local agent or call its home office to connect with a career or independent agent who can assist you with your needs.
Nationwide has earned high financial ratings and customer satisfaction levels, making it one of the best life insurance companies in the industry. Its low rates make it an excellent choice for Chicagoans seeking quality protection at an affordable price.
Benefits & Drawbacks
⇅- An extensive network of trained agents sells Nationwide policies
- Offers a full complement of life insurance products
- Among the least expensive we evaluated ✓
- Term life applicants must be 70 or younger
- No online quotes or applications for permanent products ✘
How To Find The Best Life Insurance Company For You
After reviewing multiple insurance companies, it’s important to note that each company offers policies that can meet your needs. However, depending on your specific situation, one company may be more beneficial to you than others.
For example, if you’re 65 years old and looking for $25,000 of whole life insurance, MassMutual may be the best option. Conversely, if you’re 35 years old, Nationwide might be a better choice for a life insurance policy.
Moreover, if you prefer purchasing life insurance online, a company like Transamerica may be more suitable than others that only offer policies through agents. To find the best life insurance company for you, consider asking yourself these five questions:
- What are the financial ratings of the company?
- Does the company offer the type of policy I require?
- Do I prefer to receive assistance from a local agent or search for policies online?
- Are the company’s rates competitive for my age group?
- Are most online reviews of the company positive?
Remember that your needs are unique and may differ from those of your friends, neighbors, or coworkers.
Largest Life Insurance Companies In Illinois
There are dozens of life insurance companies doing business in Illinois. These are the five largest as measured by market share:
| Company | Market Share |
| Northwestern Mutual | 14% |
| Lincoln Financial | 6% |
| Prudential | 5% |
| New York Life | 4% |
| MassMutual | 4% |
Average Cost Of Life Insurance In Chicago, IL
Average Cost Of Life Insurance In Chicago For Females
| Company | Rates for $250,000 Coverage | Rates for $926,000 Coverage (Recommended) |
| Nationwide | $12 | $16 |
| Mutual of Omaha | $11 | $17 |
| MassMutual | $13 | $18 |
| Transamerica | $11 | $21 |
| AAA | $15 | $30 |
| State Farm | $18 | $32 |
| Prudential | $16 | $45 |
Average Cost Of Life Insurance In Chicago For Males
| Company | Rates for $250,000 Coverage | Rates for $926,000 Coverage (Recommended) |
| Nationwide | $13 | $23 |
| MassMutual | $14 | $24 |
| Mutual of Omaha | $15 | $24 |
| Transamerica | $13 | $25 |
| Prudential | $31 | $46 |
| Progressive | $32 | $53 |
Average Cost Of Life Insurance For Young People In Chicago, IL
(Male, average age of 25, average weight of 159, average coverage need of $310,000)
| Company | Rates for $310,000 Coverage |
| Transamerica | $14 |
| MassMutual | $19 |
| AAA | $22 |
| Prudential | $24 |
Average Cost Of Life Insurance For Seniors In Chicago, IL
(Average age 60, average weight of 187, average coverage need of $94,000)
| Company | Rates for $94,000 Coverage |
| MassMutual | $41 |
| Nationwide | $46 |
| State Farm | $55 |
| AAA | $59 |
Illinois Life Insurance Laws To Know
Life insurance companies in Illinois must adhere to state guidelines that protect policyholders and dictate how policies function.
Contestable Period
In Illinois, life insurance policies have a contestability period of two years from the effective date. During this time, an insurance company can reject a claim if it discovers that the policyholder provided inaccurate, misleading, or false information on their application.
Free Look Period
After receiving their life insurance policy from the company or agent, the insured has 10 days to return the policy for a full refund of any premiums paid to the issuing insurance company.
Grace Period For Missed Payments
If policyholders in Illinois miss a payment, they have a grace period of 30 days to make the payment before the life insurance company cancels their coverage.
In The News
The Illinois Department of Insurance (IDOI) rolled out the new IDOI Help Center in April 2023 to replace the current consumer complaints system, which was used for decades.
The completely revamped and renamed system will help IDOI better serve the nearly 15,000 Illinois insurance consumers annually that file complaints against insurance companies, including life insurance companies, property and casualty insurers for home and auto, health insurers, health maintenance organizations (HMOs), insurance agents and other entities regulated by IDOI.
FAQs
How expensive is life insurance in Illinois?
Various factors, including your age, health history, height, weight, and smoking habits determine the cost of life insurance in Illinois. Rates will vary by company, but we’ve found premiums as low as $10 per month for $250,000 of coverage.
Do I need life insurance in Chicago?
Chicago residents who have people financially dependent on them need life insurance. Life insurance replaces the income lost by the death of the insured and provides surviving family members and dependents much-needed funds to maintain their lifestyle today and in the future.
How much life insurance do I need in Chicago?
The amount of life insurance you need in Chicago will depend upon several factors, primarily the ages and number of people dependent on your income. Many insurance agents use a multiple of 7 to 10 times your annual income to determine how much life insurance you need.
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