Best Life Insurance in Illinois for 2025 (Check Out the Top 10 Companies)
State Farm, Banner Life and MassMutual offers the best life insurance in Illinois. Banner Life term policy rates start at just $25/month.
Scroll down for the key factors to consider when choosing an Illinois life insurance company. This guide also goes over term life insurance and what it covers.
| Company | Rank | Bundling Discount | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 |
#1 | 17% | B | Costumer Service | State Farm |
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#2 | 7% | A+ | Competitive Rates | Banner Life |
 |
#3 | 6% | A++ | Member Benefits | MassMutual |
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#4 | 10% | A+ | Permanent Life | Lincoln |
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#5 | 5% | A+ | Converting Term Life | Pacific Life |
 |
#6 | 11% | A++ | Customizable Policies | Guardian Life |
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#7 | 4% | A+ | Flexible Underwriting | Mutual of Omaha |
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#8 | 10% | A+ | Premium Discounts | John Hancock |
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#9 | 6% | A+ | Online Presence | Transamerica |
 |
#10 | 20% | A+ | Bundling Discounts | Nationwide |
We found that Banner Life and Transamerica have the cheapest life insurance in Illinois, but enter your ZIP code to find the best rates near you.
What You Should Know
- State Farm ranks #1 in Illinois for customer satisfaction
- Banner Life provides the most affordable term life insurance in Illinois
- MassMutual features mutual ownership benefits and an A++ rating
#1 – State Farm: Top Pick Overall
Pros
- Multi-Policy Bundle: Illinois residents get a whopping 17% discount through its bundling program. Compare more discounts in our State Farm insurance review.
- Extensive Coverage: The company offers five comprehensive discount plans for Illinois families, including life insurance coverage.
- Premium Accessibility: State Farm has competitive pricing in Illinois at a $30 monthly term life insurance rate.
Cons
- Limited Health Incentives: State Farm's basic health-related discounts don't compete with the bigger discounts offered by other Illinois life insurance companies.
- Rating Concerns: The company's A.M. Best rating is lower than some providers in Illinois.
#2 – Banner Life: Best for Competitive Rates
Pros
- Affordable Premiums: Banner Life is the cheapest life insurance company in Illinois, taking the lead with a $25 monthly term life rate.
- Term Conversion Incentives: The company allows Illinois policyholders to convert term policies without additional medical exams (Read More: The Best No Medical Exam Life Insurance Options).
- Strong Rating: Banner Life's A+ A.M. Best rating reflects strong financial stability for Illinois insurance customers.
Cons
- Limited Bundling: The company's 7% bundling discount is low.
- Basic Wellness Programs: Banner Life provides fewer health incentives compared to other Illinois life insurance carriers.
#3 – MassMutual: Best for Member Benefits
Pros
- Ownership Benefits: Illinois policyholders receive direct dividend payments through its mutual ownership structure for life insurance.
- Premium Planning: The company offers extensive discounts in financial planning that assist with managing Illinois life insurance costs.
- Highest Rating: MassMutual A++ A.M. Best rating gives Illinois customers the best possible protection of their cash.
Cons
- Largest Fees: It's the most expensive Illinois life insurance company on our list.
- Minimal Bundling: MassMutual's 6% bundling discount ranks below average for Illinois life insurance policies.
#4 – Lincoln Financial: Best for Permanent Life Insurance
Pros
- Whole Life Options: The company in Illinois offers a variety of permanent life insurance products, including whole and universal life policies.
- Loyalty Discounts: Loyal customers in Illinois get exclusive permanent life insurance discount rewards.
- Marijuana Users: Best life insurance for marijuana users with favorable Illinois life insurance rates.
Cons
- Fewer Family Options: The company offers fewer family-based discounts than its competitors.
- Complex Conversion: Lincoln Financial company has stiff requirements on converting Illinois term policies into permanent coverage.
#5 – Pacific Life: Best for Converting Life Insurance
Pros
- Term Transitions: Helps policyholders in Illinois make transitions from term life policies to permanent. Learn what happens if you outlive your term life insurance.
- Affordable Coverage: Pacific Life provides Illinois residents with competitive $28 monthly term life insurance rates.
- Financial Strength: Pacific Life enjoys an A+ A.M. Best rating, implying high stability for Illinois policyholders.
Cons
- Minimal Bundling: The company's 5% bundling discount is still one of the lowest around in Illinois.
- Basic Rewards: Pacific Life's wellness program doesn't offer as many benefits for Illinois life insurance customers as other insurers.
#6 – Guardian Life: Best for Customizable Policies
Pros
- Wellness Benefits: Guardian Life rewards Illinois customers with an extensive range of wellness program incentives.
- Disability Coverage: The company provides an option that allows you to save on disability riders for life insurance policies in Illinois.
- Strong Rating: Guardian Life's A++ A.M. Best rating means superb protection for Illinois policy beneficiaries.
Cons
- Premium Costs: The $33 monthly rate exceeds many competitors' prices in the Illinois insurance market. (Read More: Best Online Insurance Marketplaces).
- Complex Options: Illinois customers may find Guardian Life's multiple rider selections overwhelmingly complicated.
#7 – Mutual of Omaha: Best for Flexible Underwriting
Pros
- Flexible Underwriting: Mutual of Omaha provides flexible underwriting policies, accommodating a wider range of health conditions for Illinois residents.
- Health Flexibility: Mutual of Omaha has reduced its health underwriting requirements in Illinois for applicants who desire life insurance (Read More: How To Find Affordable Health Insurance).
- Planning Support: In Illinois, life insurance policyholders gain significant savings by using thorough financial planning services.
Cons
- Limited Bundling: The company's 4% discount for bundling services is the smallest compared to all life insurance companies in Illinois.
- Basic Benefits: Despite offering term life insurance at $30/month, Mutual of Omaha provides fewer premium discount options than other Illinois carriers, making it a pricier option.
#8 – John Hancock: Best for Premium Discounts
Pros
- Vitality Program: Get life insurance discounts for being healthy with this John Hancock wellness program.
- Family Focus: The company has different family protection plans to cater to various life insurance needs in Illinois.
- Multiple Savings: Illinois residents can combine a 10% discount with other health-related savings.
Cons
- Premium Range: John Hancock's $31 monthly price is higher than the average Illinois life insurance prices.
- Program Complexity: The health tracking and discount eligibility with the Vitality Program can be confusing.
#9 – Transamerica: Best for Online Presence
Pros
- Digital Access: It's one of the best digital life insurance companies that offer online quotes, with advanced online experience in managing Illinois life insurance portfolios.
- Competitive Rates: Transamerica has cheap Illinois life insurance at $27 monthly for term life and $185/month for permanent coverage.
- Accelerated Benefits: Illinois policyholders can take advantage of special rider options with Transamerica life insurance programs.
Cons
- Limited Bundling: Transamerica's 6% bundling discount falls below average for Illinois life insurance policies.
- Basic Wellness: The company provides fewer health-related incentives than most Illinois insurance competitors.
#10 – Nationwide: Best for Insurance Bundling
Pros
- Best Bundling: The best bundling discount for Illinois life insurance at 20%. See more discounts in our Nationwide review.
- Program Benefits: Nationwide offers numerous incentives and discounts on Illinois life insurance for keeping healthy habits.
- Excellent Mobile App: Highly-rated mobile app for managing life insurance policies in Illinois.
Cons
- Premium Costs: Nationwide's $30 monthly rate matches the highest prices in the Illinois insurance market.
- Expensive for Younger Applicants: Most Illinois insurers give cheaper life insurance rates to young people, but not Nationwide.
Comparing Term vs. Whole Life Insurance Rates in Illinois
The table shows monthly premiums for term and whole life insurance from the best providers in Illinois. There is a diverse range of options available catering to various budgetary needs and preferences.
| Insurance Company | Term Policy | Whole Policy |
|---|---|---|
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$25 | $180 |
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$33 | $215 |
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$31 | $210 |
|
$32 | $210 |
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$35 | $220 |
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$30 | $205 |
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$29 | $190 |
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$28 | $195 |
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$30 | $200 |
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$27 | $185 |
Average life insurance rates in Illinois range from $25 per month for term policies at Banner Life to $35 at MassMutual, with whole life insurance premiums starting at $180 per month.
Choosing the Right Life Insurance in Illinois
How is life insurance different in Illinois? Life insurance rates reflect factors like state-specific health demographics and local insurance regulations. Both claim types and its associated costs have distinct patterns across the state.
| Claim Type | Portion of Claims | Cost per Claim |
|---|---|---|
| Natural Causes | 65% | $150000 |
| Accidents | 20% | $200000 |
| Suicide | 5% | $100000 |
| Homicide | 5% | $175000 |
| Undetermined Causes | 5% | $120000 |
Big Illinois cities have different accident numbers and insurance claims. Bigger populations usually mean more accidents and higher insurance rates. (Learn More: If an accident isn't your fault, do your rates increase?)
| City | Accidents per Year | Claims per Year |
|---|---|---|
| Aurora | 5,000 | 1,000 |
| Chicago | 50,000 | 10,000 |
| Joliet | 3,500 | 700 |
| Naperville | 4,000 | 800 |
| Rockford | 3,000 | 600 |
These numbers show the need for enough life insurance, especially for city folks who often face accidents. They also reveal that in big Illinois cities, accidents cause more insurance claims.
What type of life insurance is best? Term life insurance is generally more affordable, while whole life insurance tends to be more expensive due to its lifelong coverage and benefits.
If you're looking for the best life insurance for smokers in Illinois, consider that term life insurance (30-year) offers affordable short-term coverage with stability.
| Category | Grade | Explanation |
|---|---|---|
| Term Life (30-Year) | A | Affordable long-term coverage with stability. |
| Whole Life Premiums | B+ | Lifetime coverage with competitive rates. |
| Universal Life Rates | B | Flexible options with moderate savings. |
| High-Risk Applicant | C+ | Premiums reflect health-related risk factors. |
| Final Expense Policies | C | Higher costs for limited coverage amounts. |
Whole life insurance provides lifetime coverage with competitive rates. Universal life insurance plans offer flexible options with moderate savings.
Save Big on Life Insurance in Illinois
When planning your financial future with insurance it's essential to consider the variety of discounts offered by different providers to ensure you're maximizing your coverage while minimizing costs.
| Insurance Company | Available Discounts |
|---|---|
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Preferred Health, Non-Tobacco User, Family Coverage, Term Conversion |
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Wellness Program Incentives, Non-Tobacco User Savings, Bundled Policy, Disability Rider Savings |
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Vitality Program Rewards, Non-Smoker, Healthy Lifestyle Incentives, Family Protection |
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Healthy Lifestyle, Non-Tobacco, Multi-Policy, Loyalty Savings |
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Health Status, Non-Smoker, Financial Planning, Family Plan |
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Preferred Health, Non-Smoker, Multi-Policy Savings, Financial Planning |
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Wellness Program, Non-Smoker, Family Plan, Multi-Policy |
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Preferred Health Status, Multi-Policy, Non-Tobacco Savings, Term-to-Permanent Transition |
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Multi-Policy, Non-Smoker, Good Health, Loyalty, Safe Driver |
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Living Well, Tobacco-Free, Accelerated Benefit Rider, Multi-Policy |
The largest life insurance companies in Illinois, such as State Farm, MassMutual, and Guardian Life, offer discounts for those policyholders who are healthy and non-smokers or when bundling multiple policies.
| Discount Name | Grade | Savings | Participating Providers |
|---|---|---|---|
| Non-Smoker Discount | A | 20% | Nationwide, Mutual of Omaha |
| Healthy Lifestyle | A- | 15% | MassMutual, Banner Life |
| Multi-Policy Discount | B+ | 10% | State Farm, Allstate |
| Loyalty Discount | B | 5% | Prudential, New York Life |
| Automatic Payment | B- | 2% | Lincoln Financial, Transamerica |
Companies like Pacific Life and Lincoln Financial offer healthy lifestyle and multi-policy savings, which help make coverage more affordable. These discounts really help lower the overall cost of life insurance, especially when you factor in family and wellness perks too.
The Leading Illinois Life Insurance Companies
Before applying for life insurance, compare the best life insurance in Illinois from State Farm, Banner Life, and MassMutual. Monthly rates start at $25 for term policies.
State Farm is considered the best overall life insurance company in Illinois, famous for comprehensive coverage and high-quality customer service. The Banner Life company is known for affordability and flexible term policies.
The world is an uncomfortable place filled with uncomfortable moments. But you already know that. After all, you’re on Twitter.
— MassMutual (@massmutual) July 26, 2021
MassMutual is great in terms of diverse policy options and long-term financial planning. If you want to explore your life insurance options, enter your ZIP code in our free tool to get started.
Frequently Asked Questions
What happens if a life insurance company goes bankrupt in Illinois?
If a life insurance company goes bankrupt in Illinois, the Illinois Life and Health Insurance Guaranty Association (ILHIGA) steps in to provide protection for policyholders. ILHIGA may pay claims up to certain limits, ensuring that policyholders are compensated, but coverage amounts may vary depending on the policy type.
Read More: How do insurance companies make money?
Can I cancel my funeral policy and get my money back?
You can cancel your funeral policy in Illinois and potentially receive a refund. The refund will depend on the terms of the policy, including whether it’s within a "free look" period or if any penalties or administrative fees apply. Be sure to contact your insurance provider for the exact details.
Who is the best life insurance for young adults in Illinois?
The best life insurance for young adults in Illinois includes providers like Banner Life and Transamerica, offering affordable term life policies starting around $25 per month. These companies provide straightforward applications and competitive rates, making them excellent options for healthy young adults seeking coverage.
What is the cash value of a $250,000 life insurance policy in Illinois?
The cash value of a $250,000 life insurance policy depends on the type of policy you have (e.g., whole life or universal life). Whole life policies generally accumulate cash value over time, which can be borrowed or withdrawn, while term life policies do not have a cash value. Contact your insurer for specifics and learn more about which type of life insurance policy generates immediate cash value.
What type of life insurance is the best to get?
The best type of life insurance depends on your personal needs and goals. Term life insurance is ideal for temporary coverage, while whole life and universal life insurance offer permanent coverage with an accumulation of cash value. Assess your situation before making a decision.
Who is the best life insurance for seniors in Illinois?
The best life insurance for seniors in Illinois depends on the individual’s needs, health, and budget. Companies like AARP and State Farm often offer senior-friendly life insurance options. It’s essential to compare rates and coverage to find the best plan for your circumstances.
Discover cheap quotes for life insurance by entering your ZIP code into our free quote comparison tool.
Who is the best whole life insurance in Illinois?
The best whole life insurance in Illinois is MassMutual, known for its strong financial stability and competitive rates. It offers lifelong coverage with cash value growth, making it a reliable choice for those looking for permanent life insurance.
How do you find a lost life insurance policy in Illinois?
To find a lost life insurance policy in Illinois, start by contacting your insurance company or agent. You can also check with the Illinois Department of Insurance, or use a life insurance policy locator service, which may help track down old or forgotten policies.
Who is the best beneficiary for life insurance?
The best beneficiary for life insurance is someone who will financially depend on the proceeds, such as a spouse, child, or other close family member. You can also name a trust as a beneficiary to manage the funds for specific purposes.
Read More: Are beneficiaries responsible for debts left by the deceased?
Who is the best guaranteed universal life insurance in Illinois?
The best guaranteed universal life insurance in Illinois is Pacific Life, which offers flexible coverage and premiums that can be customized based on your needs. It provides a reliable death benefit with the option to adjust premiums and death benefits over time.
Who offers the best term life insurance in Illinois?
Among the top 10 companies listed, Banner Life and Transamerica offer some of the best term life insurance options in Illinois. Both companies provide competitive rates starting at $25 per month, making them ideal choices for those seeking affordable, straightforward coverage with flexible terms.
Our quote comparison tool will allow you to shop for affordable life insurance rates from the top companies near you — just enter your ZIP code to get started.