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  • Robert Ryerson

Life Insurance in Retirement: 7 of the Best Companies to Consider

Retirement planning involves a series of decisions and actions designed to help you secure financial wellbeing beyond your working years. You must consider the lifestyle you want in retirement and save and invest as necessary to achieve those post-retirement goals. However, it's also important to consider a variety of other factors, including inflation, health care, housing costs, and day-to-day living expenses.

Life insurance is also an integral component of retirement and estate planning. Although life insurance won't offer immediate relief or support in retirement, it can serve as a safeguard for your family's financial future in the event of an unexpected death.

The following is a look at seven prominent life insurance companies in the US to consider when shopping for suitable plans.

1. Lincoln Financial

Lincoln Financial is a Forbes' five-star life insurance company that was also selected by the publication as the best option for baby boomers. This is due in part to Lincoln’s diverse selection of policies and competitive costs. You can opt for aggressive investments to expedite cash accumulation in the early years of the policy or select low-risk policies with competitive rates.

Founded in 1905, Lincoln has more than $315 billion in assets and offers its life insurance plans through independent brokers as well as financial advisors and agents.

2. Penn Mutual

In its October 2022 review of life insurance companies, Forbes listed Penn Mutual as the best option for estate planning. Penn Mutual offers cost-competitive cash value policies, allowing for higher-than-average death benefits for select premiums. Its term life insurance, meanwhile, can be renewed up until age 98. Most other life insurance companies stop offering term life policies once customers reach age 90 or 95.

3. MassMutual

Investopedia's runner-up for best overall life insurance company as of October 2022, MassMutual maintains an A++ financial rating from credit rating agency AM Best; this rating signifies a "superior" ability to award claims. The National Association of Insurance Companies notes that MassMutual doesn't receive many complaints and has a strong payout record. It has paid out life insurance dividends to eligible policyholders every year since 1869.

MassMutual also stands out for its flexibility. While some companies restrict options for converting term policies, MassMutual allows you to convert term policies into permanent policies without having to re-qualify.

4. Transamerica

Forbes listed Transamerica as the best life insurance company for term life insurance. These policies typically extend for periods ranging from five to 30 years and pay out a death benefit if you die during the selected term. There is no death benefit if you outlive the term and choose not to renew. Transamerica's Trendsetter Living Benefits term life policy is especially helpful for those still working as it allows policyholders to access their death benefit early if they have a critical or chronic illness.

Term life insurance is best for those with specific financial concerns during their working years because it usually carries lower annual fees, thus freeing up more disposable income for other purposes.

"Given the lower premiums associated with the policy, investors will have more to invest for retirement, college, or other financial goals," notes Mark Hebner, author of Index Funds: The 12-Step Recovery Program for Active Investors.

5. Haven Life

Investopedia lists Haven Life as the best life insurance company for user experience. Haven Life’s website is easy to navigate and includes an online application as well as live agents ready to assist applicants via online chat. It also has competitive prices and A++ financial strength, indicating a superior ability to pay out claims.

It's worth noting, however, that Haven Life only offers term life insurance, and policies can't be converted.


6. Prudential

Forbes also gives Prudential a five-star rating and lists it as the best company for senior life insurance. Founded in 1875, the company has $680 billion in assets and offers plans through independent brokers and financial advisors. It's best suited for seniors because of its competitive internal policy costs and reliable policy illustrations.

While Prudential primarily sells variable universal life insurance, it does offer some indexed universal life and term life policies. Its term life insurance allows you to access your death benefit for nursing home expenses.

7. Pacific Life

Headquartered in Newport Beach, California, Pacific Life was founded in 1868 and has $167 billion in assets. It mostly sells indexed universal life policies and is considered the best insurance company for retirement planning by Forbes. This is because of its strong track record in investing as well as its reliable illustrations, competitive pricing, and low internal costs. Compared to most other companies, Pacific Life's cash value builds at a strong rate during the early years. You can access your money via a policy loan or withdrawal.

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