What Is Life Insurance? Who are The Largest Life Insurance Companies?


Triston Martin

Oct 17, 2023

Insurers and policyholders sign a life insurance contract. When an insured person dies, the insurer promises to pay a designated sum of money to their beneficiaries in exchange for premiums paid throughout the policyholder's lifetime. Accurate disclosure of the insured's history and present health issues and high-risk behaviors is required for the contract to be valid.

The Biggest Life Insurance Firms

Because it's so large and so competitive, the life insurancemarket in the United States is one of the most interesting in the world today. Even if it may not be better for customers or investors, a larger life insurance company is more likely to be there for the long haul and have a more secure financial future.

In return, the consumer agrees to pay the life insurance provider regular premiums or payments. Funeral costs and debt repayment might be more accessible by having life insurance to cover these fees for the policyholder's loved ones.

Guide to Purchasing Life Insurance

Applications for life insurance often need personal and family medical history and information about the intended beneficiaries. As part of the application process, you may also be required to undergo a medical exam and declare any previous medical issues and any driving offences or DUIs that you may have had in the past. Before purchasing life insurance, you'll need to provide proof of identities like your Social Security card, driver's license, and passport.

How Much Life Insurance Do You Need?

A variety of circumstances can impact the premiums paid for life insurance. Certain aspects of the application process may be beyond your control, but other factors may be manipulated before applying to lower the cost potentially. If your health has improved and you've adopted a healthier lifestyle since being accepted for insurance, you can ask to change your risk class. Your rates won't go up even if your health is deemed to be worse than it was when you were first underwritten. Your insurance premiums may go down if you're considered in better health.

The Most Prominent Life Insurance Companies

According to S&'P Global Market Intelligence, these are thelargest life insurance firmsin the United States, ranked by market share for individual life insurance. The total amount of premiums written for U.S. policyholders in 2020 is used to calculate market share. To discover more about each firm and the many forms of life insurance they provide click on the links provided.

1. New York Life

In 2020, New York Life Insurance Company had a 6.75 per cent share of the U.S. life insurance market. Long-term care insurance, annuities, and mutual funds are part of New York Life's life insurance business, but the company also has a burgeoning investment management division.

New York Life does not have a stock market listing as a mutual insurance firm. In 2020, it forecast operating earnings of $2.3 billion, a record high. In addition, the corporation planned to distribute $1.8 billion in dividends in 2021. Companies pay their shareholders in the form of dividends.

2. Northwestern Mutual

Insurance company Northwestern Mutual has 6.52 per cent of the American market. Along with life insurance and other insurance products, the firm also supplies investments, annuities, and financial planning services. The corporation made $31.1 billion in revenue in 2020, increasing $29.8 billion in revenue in 2019.

Northwestern Mutual is a mutual insurance firm, which means that it is run for the benefit of policyholders, not shareholders. Benefits to policyholders increased from $11.5 billion in 2019 to $11.7 billion in 2020, a 4% increase. The business is owned by its employees.

3. MetLife

Investors may buy Metropolitan Life Insurance Company shares on the New York Stock Exchange (NYSE: MET). In the United States, MetLife is the third-largest life insurance company, accounting for 6.05 per cent of the industry's total revenue. 1 Term life, universal life, and variable universal life insurance are all available via MetLife, as are plans for accidental death.

The organization offers a wide range of options, from health insurance to house insurance. It is not just an insurance firm, but MetLife is also a financial services provider that helps businesses provide benefits for their employees. MetLife achieved a return on equity of 7.6 per cent and a book value of $78.67 for the fiscal year 2020.

4. Prudential

Investment management services and insurance products are among the offerings of Prudential Financial, Inc. (NYSE: PRU), one of the largest publicly listed financial services conglomerates in the United States. The corporation has been in business in North and South America through Europe and Asia since 1875. As of 2020, Prudential has 5.8% of the life insurance market in the United States. Life insurance policies from Prudential include universal and variable universal and term and whole life policies.

5. Lincoln National

Annuities, retirement plan services, and life insurance are products offered by Lincoln National Corp. (NYSE: LNC). It is only available in the United States. The Lincoln Financial Group name promotes the corporation and its affiliates to the general public. It is estimated that Lincoln National will account for 4.83 per cent of the life insurance market in 2020. Lincoln National's annual report shows a decrease in premiums written in 2019 of $798 million to $630 million. In 2020, Lincoln's net income was $499 million, a reduction of 44% from $886 million the previous year.


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