The best mutual life insurance companies at a glance
If you have a health condition, consider Guardian.
For a focus on customer experience, choose Northwestern Mutual.
MassMutual’s flexible payment options are best for those interested in paying off policies early.
New York Life is known for fast applications while Penn Mutual has lots of rider options to customize your coverage.
Reviewed monthly. Last updated: December 2025.
A mutual life insurance company is owned by its policyholders, not external shareholders — meaning policyholders are both customers and owners of the company. If that idea sounds appealing, you might want to consider buying a policy from one of the best mutual life insurance companies, all of which earned a NerdWallet rating of at least 4.7 stars.
Our list highlights companies that sell “participating” whole life policies, which are eligible for annual dividends. Because life insurance dividends are based on a company’s financial performance, they aren’t guaranteed. But the mutual insurers on this list have been paying dividends to policyholders since the 19th century and all are rated as having exceptional financial strength.
The best mutual life insurance companies in 2026
Insurer | NerdWallet rating | Dividend awards expected in 2026 | |
|---|---|---|---|
Best for health conditions | $1.7 billion. | ||
Best for fast applications | $2.78 billion. | ||
Best for customer satisfaction | $9.2 billion. | ||
Best for flexible payment options | $2.9 billion. | ||
Best for policy options | $300 million. | ||
NerdWallet rates insurers at the company level, not the policy level. This means our star rating reflects the company as a whole, and not any of its life insurance policies specifically. | |||
Dividend payouts are based on the company’s financial performance. They’re basically a share of the profits, and tend to be relative to the size of the insurer. For example, Northwestern Mutual is the biggest life insurer in the U.S., so it makes sense that its total dividend award for 2026 is higher than the other insurers’ on this list.
Best for health conditions: Guardian Life
Male
$31 /month
Female
$26 /month
Why this insurer made the list: Guardian stands out for lower than expected consumer complaints and extending coverage for people with health issues.
Rating Breakdown
Financial strength rating
Exceptional
Online purchase
No
NAIC complaints
Fewer than expected
Policies offered
Term & permanent
About Guardian Life
Guardian Life sells an array of whole life policies, some of which come with various payment options. Unlike many other companies, Guardian makes whole life insurance available to people living with HIV, and may have competitive rates for people with other pre-existing health conditions.
📄 Standout whole life insurance policy: Guardian offers joint life insurance policies that cover two people and pay out when the second one dies. This type of coverage could be a good fit for spouses or business partners.
Riders available: Note that the IPF rider allows you to link a portion of your cash value to the performance of the S&P 500 index, and any profits are paid out in dividends.
Waiver of premium.
Long-term care.
Index participation feature (IPF).
💰 Dividends: Guardian has paid out dividends to its permanent policyholders every year since 1868, and will pay 1.7 billion in 2026, the highest sum in the company’s history.
Online experience: Guardian provides very thorough explainers for just about every question you might have about life insurance, but the company’s policy details on the site are a little sparse. You’ll have to connect with Guardian to learn more or purchase a whole life policy.
What to know about applying for a policy: While Guardian might be more generous with coverage for people with health conditions, the company’s policies usually require a medical exam.
⭐ Where this insurer stands out: Thanks to affordable rates, exceptional financial strength and a relatively low rate of complaints, Guardian made NerdWallet’s 2026 lists in these categories:
» Read the full review: Guardian life insurance
Best for fast applications: New York Life
Male
$36 /month
Female
$30 /month
Why this insurer made the list: New York Life offers a wide variety of policies, including a whole life offering with an expedited underwriting process.
Rating Breakdown
Financial strength rating
Exceptional
Online purchase
No
NAIC complaints
Fewer than expected
Policies offered
Term & permanent
About New York Life
One of the largest life insurance companies in the U.S., New York Life has been paying dividends since 1854. The company sells a trio of whole life policies, including Secure Wealth Plus, which has a speedy application process that may suit people who need coverage quickly.
📄 Standout whole life insurance policy: New York Life’s Custom Whole Life Insurance policy gives you the flexibility to pay it off early, while Secure Wealth Plus builds cash value more quickly in the first few years you have coverage.
Riders available:
Waiver of premium.
Chronic care.
Living benefit.
Paid-up additions.
Accidental death benefit.
Yearly renewable term rider.
💰 Dividends: In 2026, New York Life is celebrating 172 consecutive years of paying annual dividends with a 2.78 billion payout to eligible policyholders.
Online experience: New York Life’s website is easy to navigate and is refreshingly transparent about the company’s whole life offerings. In most cases, you’ll have to work with an agent to get a quote or make a purchase, but policyholders can change beneficiaries online.
What to know about applying for a policy: You’ll need to contact an agent to apply for a life insurance policy through New York Life, and some whole life policies might require a medical exam. The exceptions are the Secure Wealth Plus policies and the guaranteed issue life insurance New York Life offers to AARP members and their spouses.
⭐ Where this insurer stands out: New York Life’s solid policy lineup and customization options means it caters to a range of life insurance needs. New York Life earns top marks on NerdWallet’s 2026 lists in these categories:
» Read the full review: New York Life insurance
Best for customer satisfaction: Northwestern Mutual
Male
$40 /month
Female
$38 /month
Why this insurer made the list: Northwestern Mutual has one of the lowest complaint ratios of all the life insurers we review.
Rating Breakdown
Financial strength rating
Exceptional
Online purchase
No
NAIC complaints
Far fewer than expected
Policies offered
Term & permanent
About Northwestern Mutual
Northwestern Mutual has a reputation for paying consistent dividends since 1872. It also draws very few complaints and has ranked above the average in J.D. Power customer satisfaction surveys for the last decade.
📄 Standout whole life insurance policy: Northwestern’s Whole Life Plus blends the benefits of term life and whole life insurance, maximizing what you’re putting into the policy and boosting cash value.
Riders available:
Waiver of premium.
Additional purchase benefit.
Accelerated death benefit.
💰 Dividends: Northwestern Mutual is set to pay out a whopping $9.2 billion in 2026. That’s nearly $1 billion more than the company’s 2025 dividend and currently a record for the life insurance industry.
Online experience: Northwestern Mutual’s site is straightforward, but lacks nitty-gritty policy details. If you want to learn more or get a quote for life insurance, you’ll have to connect with someone in the company’s network of financial advisors.
What to know about applying for a policy: You can start the process online by answering questions about your financial goals and household income. You’ll then be paired with an advisor in your region who will help you lock down coverage.
⭐ Where this insurer stands out: Northwestern Mutual offers whole life insurance with generous coverage limits up to $80 million. This is among the reasons Northwestern Mutual appears on NerdWallet’s 2026 lists for:
» Read the full review: Northwestern Mutual life insurance
Best for flexible payment options: MassMutual
Male
$36 /month
Female
$30 /month
Why this insurer made the list: MassMutual's whole life policies offer a variety of payment options to suit your needs.
Rating Breakdown
Financial strength rating
Exceptional
Online purchase
No
NAIC complaints
Far fewer than expected
Policies offered
Term & permanent
About MassMutual company
MassMutual sells a range of whole life policies that are eligible for dividends and earn top marks in Nerd Wallet’s life insurance scoring. It’s worth noting its whole life insurance payment plans, which let you pay off a policy in a set number of years, such as the first 10 or 15 years.
📄 Standout whole life insurance policy: MassMutual’s Whole Life 100 has an appealing guaranteed cash value return rate of 3.75% per year and is available to people aged 0 to 90.
Riders available:
Life insurance supplement .
Renewable term.
Waiver of premium.
Additional life insurance.
Guaranteed insurability.
Accelerated death benefit.
Transfer of insured.
Yearly term purchase.
💰 Dividends: MassMutual has paid dividends for the past 158 years and will pay out $2.9 billion to eligible policyholders next year.
Online experience: MassMutual supports online applications up to a point, but the platform will hand you off to a financial professional to buy a policy. Like most life insurers, MassMutual has a portal that supports online payments.
What to know about applying for a policy: MassMutual is up front about the fact that you may be required to take a medical exam to secure life insurance coverage.
⭐ Where this mutual company stands out: Mass Mutual’s low number of complaints and exceptional whole life offerings earn it a shoutout on several of our best life insurance lists for 2026:
» Read the full review: MassMutual life insurance
Best for rider options: Penn Mutual
Why this insurer made the list: Penn Mutual offers a broad slate of riders and has been paying dividends for more than 175 years, the longest consecutive span of any company on our list.
Rating Breakdown
Financial strength rating
Exceptional
Online purchase
No
NAIC complaints
Far fewer than expected
Policies offered
Term & permanent
About PennMutual
Penn Mutual declared its first dividend in 1849 and has been paying them to eligible policyholders ever since. Penn Mutual has two whole life policies on offer, both of which build cash value but have different potential payment schedules. The company also has a long list of life insurance riders to choose from.
📄 Standout whole life insurance policy: In addition to whole life policies for individuals, Penn Mutual sells a survivorship policy that covers two people (such as spouses or business partners). It pays out after the second person dies and coverage amounts start at $200,000.
Riders available:
Accelerated death benefit.
Accidental death benefit.
Waiver of premium.
Enhanced permanent paid-up additions.
Flexible protection.
Guaranteed purchase option.
Overloan protection.
Policy split option.
Supplemental exchange.
💰 Dividends: Penn Mutual has paid out dividends since 1850. In 2026, Penn Mutual will continue the tradition with a $300 million award.
Online experience: Although Penn Mutual does share some policy details on the site, you can’t get a quote or apply for whole life insurance online. Penn Mutual policyholders can manage their policies and change beneficiaries via the online portal.
What to know about applying for a policy: Some of Penn Mutual’s whole life insurance policies have accelerated underwriting, which means they may not require a medical exam.
⭐ Where this mutual company stands out: Along with making our best mutual company list, Penn Mutual is one of NerdWallet’s best life insurance for 40- and 50-year olds for 2026.
» Read the full review: Penn Mutual life insurance
How we rate the best life insurance companies
✅ 445 life insurers reviewed
📝 210 policies assessed
🔢 1,515 data points analyzed
📊 Star rating categories
When NerdWallet evaluates life insurance companies, our editorial team considers the insurer's strengths and weaknesses, as well as the things that matter most to customers buying a long-term financial product. We then weigh these factors carefully:
💰 Financial strength (35%). We use AM Best ratings to confirm an insurer’s financial stability and ability to pay claims far into the future. The top life insurance companies have an exceptional financial strength rating of A+ or A++ (Superior).
🗣️ Consumer complaints (35%). Our top-rated life insurance companies have fewer than the expected number of complaints to state regulators over a three-year period, according to the National Association of Insurance Commissioners — so you can expect a smoother customer experience.
☎️ Consumer experience (20%). Insurers who allow consumers to contact them by email, phone and live chat earn the highest scores. The same goes for insurers who support online quotes, beneficiary changes and claims.
👀 Transparency (10%). Our methodology gives higher scores to transparent insurers who clearly display information about their policy options, coverage amounts and term lengths (if applicable) on their site.
⭐ What our star ratings mean
Companies with 5 stars are exceptional, with strong financials, diverse policy lineups and great reputations for customer service.
Companies with 4.5 stars are excellent, with solid financials and policy offerings, and good customer service track records.
Companies with 4.0 stars are good, and potentially great for people looking for niche coverage options.
Companies with 3.5 stars or fewer could do better in certain categories, like financial strength and customer complaints.
NerdWallet does not receive compensation for our star ratings or our reviews. Read more about our life insurance ratings methodology and editorial guidelines.
What is a mutual life insurance company?
Similar to the way stockholders can own shares in a company, a mutual life insurance company is owned by its policyholders. According to the American Council of Life Insurers, only about 15% of life insurers in the U.S. were doing business as mutual companies as of 2023.
Is it worth getting life insurance from a mutual company?
It can be, if you’re interested in a permanent policy. Although they’re not guaranteed, mutual life insurance companies often pay dividends — and you can use those funds to boost your cash value.
Many mutual life insurance companies also boast strong financials and above average customer satisfaction. In fact, 4 out of the 6 life insurers on NerdWallet’s best life insurance companies of 2026 are mutual life insurers.
Did you know…
A life insurance dividend is a payment insurers make to permanent policyholders when there is leftover profit from the business year. Dividends can be paid out as a check or used to buy more coverage, lower premium payments, accrue interest or cash value, and even pay down a policy loan.
Pros and cons of mutual life insurance companies
Pros
- Potential to earn dividends.
- Companies may focus more on policyholder interests.
- Mutual companies tend to have exceptional financial stability.
Cons
- Only permanent policyholders earn dividends.
- Dividends could be taxable in specific but rare situations.
How to choose a mutual insurance company
If you’re thinking about buying a policy from a mutual company, think about these factors:
Financial strength. Because your life insurance policy may not pay out for decades, it’s important to know the issuer will be around well into the future. You can check financial strength ratings for life insurance companies via rating agencies such as AM Best. All the companies in the list above have exceptional financial strength.
Coverage. Make sure the company has the policy and riders you want. Then, get quotes from a handful of insurers for the same type of coverage to ensure you’re comparing apples to apples.
Consumer complaints. The National Association of Insurance Commissioners tracks consumer complaints about each insurance company. You can look up the carriers you’re interested in on the NAIC website or check out our life insurance reviews, which include complaint data.
Dividends. If you’re looking to buy a participating whole life insurance policy, look at each mutual company’s history of dividend payouts. (Keep in mind, however, that dividends are never guaranteed.)
Frequently asked questions
Which life insurance companies pay dividends?
Which life insurance companies pay dividends?
Some life insurers pay annual dividends to their participating policyholders — typically those with whole life insurance policies. Most dividends are paid by mutual life insurance companies, but other carriers may also offer them. If you receive a life insurance dividend, you can cash it in, use it to boost your policy’s cash value or put it toward your next premium payment.
Why choose a mutual life insurance company?
Why choose a mutual life insurance company?
One major benefit of buying life insurance from a mutual company is the potential to receive dividend payouts on certain policies. Mutual companies are also owned by their policyholders, rather than shareholders or investors. That said, both mutual and stock companies can offer high-quality coverage, so it’s worth comparing life insurance quotes from both types.
Which is the largest mutual life insurance company?
Which is the largest mutual life insurance company?
Northwestern Mutual is the largest life insurance company in the U.S., according to the latest market share data from S&P Global Market Intelligence. It’s followed by two other mutual companies: New York Life and MassMutual.
Article sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- 1.Guardian. Guardian Announces $1.7 Billion Dividend Allocation. Accessed Dec 17, 2025.
- 2.New York Life. New York Life Announces Record $2.78 Billion Dividend for 2026.. Accessed Dec 17, 2025.
- 3.Northwestern Mutual. Northwestern Mutual Announces Historic $9.2 Billion Dividend Payout in 2026. Accessed Dec 17, 2025.
- 4.MassMutual. MassMutual to Pay Record $2.9 Billion in Policyowner Dividends in 2026. Accessed Dec 17, 2025.
- 5.Penn Mutual. Penn Mutual Announces Record-Breaking Dividend Award in 2026. Accessed Dec 17, 2025.
- 6.American Council of Life Insurers. Life Insurers Fact Book. Accessed Dec 17, 2025.
