2018 – Top 10 Premium Life Insurance Companies

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Insurance policies are maintained because of premiums. These are fees that a policyholder must pay on agreed schedule, which may either be annual, bi-annual or quarterly. Payment of premiums is necessary to make certain that the insured individual continues to be protected for the duration of his insurance plan. There are many instances in which policies cease to be effective upon failure of the insured person to settle his premium payments. This results to forfeiture of the benefits that could otherwise be enjoyed by the beneficiaries at the time the insurance becomes payable.

Types of Premiums

Premiums for life insurance coverage are classified under five types. These are: single premium life, term life, whole life, universal life and variable premium life insurance.

  • Single Premium Life. Under this classification, the insured individual is required to give a one-time payment of the premium fees before he can be awarded a life insurance plan that is fully paid. This is easy when it comes to term life insurance policies particularly those that are renewable on yearly basis. However with long-term policies, insurance companies usually accept annual payments from the insured person until the end of the insurance term. Nonetheless this does not limit people from making a single payment for the entire term if they can afford the whole premium amount.
  • Term Life Premium. This allows the insurance company to award the face amount of the insurance if the insured person dies before the end of the insurance term. Payment of these premiums may take place in one to 30 years depending on the stipulated duration in the contract.
  • Whole Life Premiums. These are usually higher and have a coverage of up to year 100, which is equivalent to the full longevity of a person. Insurance companies commonly utilize premiums for whole life insurance in other investments, particularly stock market.
  • Universal Life Premiums. They are similar to whole life however investment of the money is placed on money market.
  • Variable Life Premiums. These are another form of whole life premium insurance. They differ only in the aspect where the company provides you with the option on where you want a portion of your money to be invested. Click here to learn about return of premium life insurance policies.

Ranking of Insurance Companies Based on Premiums

Top life insurance companies are ranked according to their direct premiums that refer to the gross premiums paid to insurance companies for coverage, which are not surrendered for reinsurance purposes.

The following are top 10 premium life insurance with their respective premium rankings.

  1. American International Group Inc. This group has direct premiums of $30,432.50 and market share of 18.08%. American International Group Inc. is based in New York City, New York.
  2. Metropolitan Life Insurance has a share of direct premiums amounting to $12,711.71 with 7.77% share in the insurance market. MLI maintains its main operation in Madison Square, New York.
  3. The Hartford Financial Services Group Inc has $8,376.41 direct premium shares and 4.98% market share. Its main company serves clients at Hartford Plaza in Connecticut.
  4. Northwestern Mutual Life Insurance Company operates with $7,992.67 direct premiums and has a share of 4.75% in the market. It is based in Wisconsin Ave. in Milwaukee, Wisconsin.
  5. Prudential Insurance Company of America enjoys $7,628.75 direct premiums and 4.53% market share. It maintains its main office in Broad St. at Newark in New Jersey.
  6. New York Life Insurance Co. receives direct premiums of 6,387.15 and 3.79% of market share. Its physical location can be found in Madison Avenue in New York.
  7. AEGON USA Inc. operates on direct premiums of $5,960.09 and market share of 3.54% while maintaining its principal outlet in Charles St., Baltimore, Maryland.
  8. Lincoln National Corporation comes up with $4,875.58 direct premiums and 2.90% share in investments. It is located in Market St., Philadelphia, Pennsylvania.
  9. John Hancock Mutual Life Insurance Co. maintains its direct premiums at $4,769.14 and market shares at 2.83%. You can locate its central office in Clarendon St., Boston, MA.
  10. Massachusetts Mutual Life Insurance Co. pegs its direct premiums at $4,302.84 and market shares at 2.56%. Found in State St., Springfield, MA, its core establishment is conveniently situated in the city proper.

It must be noted that the ranking enumerated here may vary from time to time. Also, these companies are mostly based in the United States with few of them exclusively operating only in several states. Although insurance companies normally expand their business outside the country, not all of them are able to meet the requirements set for global operations. Of course, Prudential Life, which is fifth among the insurance companies in the list of top 10 premium life insurance companies, has been in the industry for many years and has established its mark outside US. On the other hand, Massachusetts Mutual Life Insurance Co. offers service basically within the US territory although it does have some subsidiaries in other areas.

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