Best Investment Grade Life Insurance Policies and Companies (2022)
You can buy investment grade life insurance from highly regarded companies like New York Life, Penn Mutual, and more. While investment grade life insurance shouldn't replace your other retirement funds, you can use such policies to grow wealth and provide a lasting legacy for your loved ones. Investment grade life insurance rates will vary from person to person so you should always do your due diligence and get at least five quotes online.
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UPDATED: Jun 30, 2022
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- Whole life policies can build cash value that you can access during your lifetime
- The rate of dividend growth is not always guaranteed
- You should purchase life insurance if someone else relies on your income
Most people know that life insurance is a great financial tool that can provide an immense financial cushion to your loved ones if you were to die unexpectedly. However, investing in life insurance can also provide benefits to you while you are alive as well. While a whole life insurance policy should never replace your other retirement accounts, you can use such a policy to build cash value that you can utilize during your lifetime.
When you employ whole life insurance as an investment tool, you can build wealth, borrow low-interest loans from yourself, and provide an even bigger death benefit for your loved ones. Even better, you can get as many free investment grade life insurance quotes as you would like, so you can be sure that you are making the best choice for your needs.
Keep reading to learn how you can find affordable investment grade life insurance with some of the best insurance companies on the market today.
If you are curious as to how investment grade life insurance can help you achieve your financial goals, enter your ZIP code to review free insurance quotes from the comfort of your home.
Is whole life insurance a good investment?
Have you ever wondered, should I get life insurance? Or asked, “is life insurance a good investment?”
If you are on the fence about purchasing life insurance, you should consider this: If you were to pass away unexpectedly, would the loss of your income leave your surviving loved ones struggling financially?
If your answer is “yes,” you should seriously consider purchasing life insurance. Also, if you have young children who will have expenses such as college, a spouse with a mortgage, or a business partner who would fail if you passed away, you may want to purchase more life insurance than a single person with fewer financial obligations.
If you want to leave behind a legacy for your alma mater or a beloved charity, buying whole life insurance is a wonderful way to provide a bigger gift than you may be able to afford in your lifetime.
So, is life insurance worth it? It is necessary if you want a safe and secure financial tool that will grow as you age.
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Which companies offer the best investment grade life insurance policies?
You can buy investment grade life insurance from any of the companies listed below:
- Penn Mutual
- American United Life (AUL)
- Lafayette Life
- Minnesota Life
- New York Life
- Mutual Trust
All of these companies provide great insurance options, but in order to find the best company for you, you will need to learn a little more about each one of these insurance institutions.
If you are interested in investment life insurance, Penn Mutual can help you find just what you need. Having earned an A+ by A.M. Best, the whole life insurance policies offered by this company are known to provide exceptional cash accumulation. Penn Mutual also reported that in 2020, $100 million was paid out to eligible policyholders.
Another interesting fact about this company is that it supports the collegiate rugby community. It is a sponsor of the National Collegiate Rugby Organization, which is dedicated to providing support to college rugby programs all throughout the United States. So, if you are a rugby fan, this may be the company for you.
Not only does MassMutual boast an A++ from A.M. Best but it also offers convertible term life insurance policies. These are policies that can be converted into whole life insurance policies at certain points in the policy’s life which could be a great option for individuals who are not sure if a whole life insurance policy is necessary but do not want to take that option off the table.
MassMutual is also as financially strong as it is flexible. In 2021, the company announced a dividend payout of $1.7 billion.
American United Life (AUL)
AUL has an A+ rating from A.M. Best and with $31 million in dividend payments made in 2021, it is easy to see why AUL got that rating. A whole life with AUL may be best for those individuals who want to increase their wealth as an Indexed Dividend Crediting Option (IDO) Rider can be added to your policy, which could potentially double the dividends you receive without putting your death benefit at risk.
Many individuals with health issues may think their medical history would bar them from purchasing a whole life insurance policy that has potential for dividend growth. While that may be true of many insurance companies, Foresters Financial makes these types of policies accessible to everyone.
This A.M. Best A rated company offers participating whole life insurance policies with no medical exam requirement. This means that applicants with health concerns can potentially purchase up to $400,000 in coverage without worrying about an exam.
In 2021, $24.4 million was announced to be paid to individuals who owned eligible policies.
A.M. Best awarded, Lafayette Life an A+, and more than $67 million in dividend payments were paid out in 2020. Now, it is important to note that this company does not do business in New York or Alaska. However, Lafayette Life does allow you to get claim support and request a loan online.
Guardian announced a $1.05 billion dividend payment for 2021, which is not surprising as it has an A++ from A.M. Best. The dividends earned by your policy can be used to pay your premiums, can be cashed out if you need money to start a new business or anything else, or you could use them to continue earning interest.
Minnesota Life has an A+ from A.M. Best, and its Secure Accumulator whole life policy is designed to increase the growth of your policy’s cash value. You can also buy a waiver of premium agreement when you purchase a policy with this company. This means that your payments on the policy would be waived if you were to become completely disabled before your 60th birthday.
While this company is backed by Securian Financial, unfortunately, details about its dividend growth history were not readily available online.
New York Life
One of the first companies to pay out cash dividends, New York Life is still a titan in the industry. This company has an A++ rating from A.M. Best and reported more than $1 billion in dividend payments in 2021.
You can also customize your policy with New York Life. For example, if you are married and have your spouse set as your beneficiary, you may want to consider the Spouse Paid Up Insurance Option. If you have this rider, your spouse could buy a policy that is not only paid for but would not have to take an exam or even answer any questions about their medical history.
A.M. Best awarded, Mutual Trust had an A rating. The best types of policies to consider purchasing from Mutual Trust if you want to build cash value would be the Horizon Guarantee and the Horizon Legacy. It is important to note that dividends are not guaranteed by this company, and the company does share its dividend history on its website.
If you want a policy that you can pay off early and then forget about, you may want to look into purchasing insurance through Ameritas, an A.M. Best A-rated company. The Ameritas Growth Whole Life policy is structured in such a way that the entire policy can be fully funded in just 10 years. Ameritas also offers great riders like the Guaranteed Insurability Rider.
With this rider, you would be able to purchase additional coverage at set points during the policy’s life without any evidence of insurability. The Ameritas dividend rate performance for 2022 has not yet been announced.
How much does whole life insurance cost?
The cost of life insurance will vary from applicant to applicant since investment grade life insurance rates are determined by categories known as health classes, an applicant’s age, and the amount of desired coverage. You can, however, get an idea of what you may pay for insurance by using this data table which displays the average rate available at different ages and coverage amounts:
Whole Life Average Monthly Life Insurance Rates by Age and Gender
|Companies||50-Year-Old Female||50-Year-Old Male||60-Year-Old Female||60-Year-Old Male||70-Year-Old Female||70-Year-Old Male||80-Year-Old Female||80-Year-Old Male|
|Liberty Bankers Life||$25.57||$30.51||$34.67||$45.80||$54.79||$73.31||$109.16||$146.80|
|Mutual of Omaha||$24.67||$29.16||$32.87||$42.76||$53.24||$73.70||$98.43||$132.65|
|Nassau Re Life||$26.63||$30.15||$36.46||$43.27||$55.26||$72.74||$110.24||$146.92|
|United Home Life||$26.06||$31.02||$35.42||$44.69||$73.28||$74.63||$141.58||$138.60|
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This variation in pricing is why you should never request just one quote when shopping for life insurance. In order to affirm that a particular policy can help you accomplish your financial goals, you should always request at least five quotes from different companies, so all the data you conduct directly compares between each one.
What You Need to Know About Investment Grade Life Insurance
When a life insurance company offers investment grade life insurance options, you are being given an opportunity that you may not find with other investment tools. Remember, an investment life insurance policy should never be used to replace a 401k or IRA, but it can still provide some great benefits when you are alive and when you pass on.
Many companies offer participating policies that allow you to earn interest on your policy while not putting the death benefit you purchased at any kind of risk. You should always do your research before purchasing a policy through different companies, because they all offer different options and riders that can allow you to further customize your coverage.
Talking to an insurance agent from a top life insurance company may help you decide how much you’ll need.
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