Life Insurance Companies Compared: Ratings, Waiting Periods and Complaints

This page puts the life insurance companies compared on Octans side by side: the carriers we have reviewed, the product each review covers, who can apply, what happens in the first two years, and what the carrier itself says about its AM Best rating. It also shows you how to check any company on your own, using financial strength ratings, the NAIC complaint index and your state’s guaranty association. Every carrier fact below comes from the carrier’s own public page or rate chart; where we couldn’t verify something, we say so.

Life insurance companies compared at a glance

The table covers the carriers and products Octans has written a review or comparison about. It is not a ranking, and it is not a list of every company we can quote. Octans is an independent agency that compares 120+ carriers, and the right one depends on your age, health, state and budget.

Sources: Mutual of Omaha’s Guaranteed Whole Life rate chart (rates effective Aug. 1, 2026) and ratings page; Gerber Life’s Guaranteed Life and Grow-Up Plan pages; Western & Southern newsroom; Colonial Penn’s Guaranteed Acceptance page and home page; and Corebridge Direct’s guaranteed issue page.

How to read this comparison

Read the table of life insurance companies compared above with one fact in mind: most of the products are guaranteed issue or guaranteed acceptance whole life. That is not because those are the best policies. It is because they are the ones people see on television and ask us about most. With life insurance companies compared this way, three columns matter most.

• Issue ages. If you are 82, Gerber’s guaranteed product (50 to 80) and American General’s (50 to 80) are off the table, while Mutual of Omaha’s (45 to 85) and Colonial Penn’s most popular option (50 to 85 in most states) are not.
• First two years. Every guaranteed product here limits what it pays for a death from illness early on. The wording differs, and the wording is what your family will receive.
• Coverage limits. Mutual of Omaha, Gerber and American General all cap their guaranteed products at $25,000 per person in aggregate. Colonial Penn sells units of coverage, up to 25; our review shows what a unit buys at different ages.

If you can answer health questions, a simplified issue final expense policy is often cheaper and pays in full from day one. See our final expense insurance guide and the best final expense insurance companies comparison, which covers simplified issue products such as Mutual of Omaha Living Promise.

What each company pays in the first two years

This is the clause that separates otherwise similar policies. Here is the carriers’ own wording, summarized:

• Mutual of Omaha Guaranteed Whole Life. The application says a reduced death benefit is payable during the first two years if death results from sickness or other natural causes.
• Gerber Life Guaranteed Life. For a death in the first two years, the benefit equals 110% of earned premiums; accidental death pays the full benefit, subject to policy exclusions.
• Colonial Penn Guaranteed Acceptance. The company says it can guarantee acceptance “because of a two-year limited benefit period.”
• American General Guaranteed Issue. A natural death in the first two years pays 110% to 120% of the premium paid; an accidental death pays the face amount.

After the two-year period, each of these pays the full face amount. When you see life insurance companies compared on price alone, ask what the policy pays in month 18. A cheaper premium with a weaker early benefit can be the worse deal for someone in poor health.

A practical note: ask the agent or the company exactly when the two-year period starts and ends on your policy, and keep that date somewhere your family can find it. With life insurance companies compared on this point, the difference between two similar policies can be a few hundred dollars or the full face amount.

How to compare life insurance companies on financial strength

A life insurance policy is a promise that may be paid decades from now, so the company’s ability to pay matters. Any list of life insurance companies compared should start here. Rating agencies such as AM Best grade that ability. On its ratings page, Mutual of Omaha describes its AM Best rating as one “for overall financial strength and ability to meet ongoing obligations to policyholders.”

Four things to check when you read any rating:

1. Which legal entity. Brands often sell through subsidiaries. Mutual of Omaha’s guaranteed product is issued by United of Omaha Life Insurance Company, and the ratings page lists the AM Best rating for Mutual of Omaha Insurance Company. Colonial Penn’s home page states a rating without naming the entity. Match the rating to the company named on your policy.
2. Where the scale sits. Mutual of Omaha says its A+ is the “second highest of 16” AM Best levels. Colonial Penn describes A as “Excellent.” Gerber’s parent describes A+ as “Superior.”
3. How current it is. Gerber’s upgrade to A+ was announced Feb. 9, 2024. Two of the carrier pages we checked show no date at all. Ratings change, so check before you buy.
4. What it does not measure. A rating speaks to the company’s finances, not to whether a given policy is a good fit or fairly priced for you.

We only list a rating in our table of life insurance companies compared when the carrier itself publishes it. We do not copy ratings from third-party blogs, and we do not invent them.

Check complaints with the NAIC complaint index

A second way to see life insurance companies compared fairly is by complaints. The NAIC’s Consumer Insurance Search lets you look up insurance companies and their subsidiaries and pull company reports. The NAIC notes that a company may operate under several subsidiary names, so check your policy for the correct one.

Complaint indexes compare a company’s share of complaints with its share of business. The Indiana Department of Insurance explains on its complaint index page that an index of 1.00 means the insurer’s share of all complaints equals its share of the business. Below 1.00 means fewer complaints than its size would predict; above 1.00 means more.

Indiana also lists what to weigh alongside the index: the cost of the insurance, the services your agent provides, the company’s claims handling and its financial stability. A single bad year at a small company can swing its index, so look at more than one year if the report allows it. When you put life insurance companies compared by complaints next to their ratings, a pattern is more telling than any one number.

Finally, confirm the company is licensed where you live. The NAIC’s life insurance consumer guide notes that your state insurance department publishes a list of agents and companies authorized to do business in your state.

What happens if a life insurance company fails

Every state has a life and health insurance guaranty association that steps in when a licensed insurer becomes insolvent. According to NOLHGA, the national organization of those associations, the most common limits are:

NOLHGA says these figures are based on data as of June 1, 2025, are general information rather than legal advice, and that protection runs “up to the limits set by state laws.” Most states also apply an aggregate limit per person across policies. Use NOLHGA’s state association lookup for your exact limits.

For most final expense buyers, whose policies are $25,000 or less, the guaranty limit is far above the face amount. It matters more for large term or permanent policies, and it is one more reason to keep life insurance companies compared on financial strength, not just price, when the policy is big.

Hypothetical example: comparing early payouts, complaints and guaranty limits

Hypothetical example. This example walks through three checks you can run on any life insurance companies compared list. The premium, the complaint figures and the policy sizes below are invented to show the math. They are not quotes and do not describe any named company.

1. Early payout. Ana, 72, buys a $10,000 guaranteed issue policy at a made-up premium of $70 a month and dies of an illness in month 18. Premiums paid: $70 × 18 = $1,260.

2. Complaint index. Suppose Company X wrote 1% of a state’s life premiums but drew 2% of its life complaints. Its index is 2% ÷ 1% = 2.00, meaning twice the complaints its size would predict. Company Y, with 1% of premiums and 0.5% of complaints, scores 0.50.

3. Guaranty limit. Ben owns a $500,000 term policy in a state with a $300,000 death benefit limit. If the insurer failed, the association would cover up to $300,000; the other $500,000 − $300,000 = $200,000 could become a claim against the failed insurer’s estate, which NOLHGA says may be partly paid from its remaining assets. Ana’s $10,000 policy sits well inside the limit.

A checklist for life insurance companies compared side by side

Use this list whenever you have life insurance companies compared on a quote sheet, a TV ad or a website, including this one:

1. Which legal company issues the policy, and is it licensed in your state?
2. What rating does that exact company publish, from which agency, and as of when?
3. What is its complaint record in the NAIC Consumer Insurance Search?
4. Can you apply at your age, and is the amount you need within the limits?
5. What does the policy pay for a death from illness in the first two years?
6. Is the premium level for life, and does the benefit ever decrease?
7. Would a policy with health questions cost less and pay in full sooner?

If a seller can’t answer one of these in writing, keep looking. A good list of life insurance companies compared fairly will answer every one.

How we choose which companies to review

The life insurance companies compared here are the ones we have reviewed so far. We write reviews for the companies and products our readers ask about, especially brands advertised directly to seniors and parents. With life insurance companies compared in one place, you can see that the reviewed products are mostly small guaranteed issue and child policies. For term and permanent coverage, see our guides to term life insurance and whole life insurance.

Our standards for every review:

• Product facts come from the carrier’s public pages, rate charts or applications, not from agent-only material.
• Ratings appear only when the carrier publishes them, with the entity and date when the carrier gives them.
• Prices from third parties are labeled as commercial sources and treated as samples, not quotes.
• We tell you when a product we review is not the cheapest route for your situation.

Octans is paid commissions by insurers, not fees by you. You can read how we get paid and see our licenses.

Life insurance companies compared: FAQ

Which life insurance company is the best?

There is no single best company, which is why we show life insurance companies compared on facts rather than ranked. The right carrier depends on your age, health, state, budget and the type of coverage you need. A company that is a good fit for a healthy 40-year-old buying term may not accept an 82-year-old buying final expense coverage.

Where can I check an insurer’s AM Best rating?

Start with the carrier’s own ratings page, as we did, and confirm the rating applies to the legal entity named on your policy. AM Best also publishes ratings on its own site. Ratings change, so check close to the time you buy.

What is a good NAIC complaint index?

An index of 1.00 means a company’s share of complaints matches its share of business. Lower is better. Look at more than one year and weigh price, claims handling and financial strength too, as the Indiana Department of Insurance advises.

Do guaranteed issue policies all pay the same in the first two years?

No. Gerber pays 110% of earned premiums for a non-accidental death in that period, American General pays 110% to 120% of premium paid, Mutual of Omaha pays a reduced benefit, and Colonial Penn describes a two-year limited benefit period. Read the policy’s exact wording.

Is my policy protected if the company goes bankrupt?

Your state’s guaranty association covers policies up to limits set by state law. The most common limits, per NOLHGA, are $300,000 in death benefits and $100,000 in cash value, but they vary by state.

How long can an insurer contest my policy?

Contestability rules are set by state law. In Massachusetts, a policy becomes incontestable after it has been in force during the insured’s lifetime for two years (M.G.L. c. 175, § 132), with some exceptions. Answer every application question truthfully.

How Octans can help

Octans is an independent life and health insurance agency based in Massachusetts. Beyond the life insurance companies compared on this page, our licensed agents compare 120+ carriers at no cost to you, check the first-two-years wording and the issuing company before you sign, and tell you when a simplified issue policy beats the guaranteed product you saw on TV.

Call (617) 935-9220 or start with a life insurance quote. For more on individual carriers, see our carrier reviews.

Keep Reading: Related Guides

• Carrier reviews
• Best final expense insurance companies
• Colonial Penn life insurance review
• Gerber Life guaranteed issue review

Important: Octans Insurance agents are licensed in the states in which they operate. Coverage availability and rates may vary by state. Premium examples, when provided, are illustrative samples from published sources, not quotes. Final rates are determined by the insurance carrier based on underwriting and applicable policy criteria. Policy terms, exclusions, limitations, riders, and availability vary by carrier and state.

Compare Companies With a Licensed Agent

Start with a free, no-obligation quote review with a licensed Octans agent.

GET YOUR FREE QUOTE

(617) 935-9220 | life@octansinsurance.com