Finding the right loan protection insurance company can provide you with peace of mind in case life throws an unexpected curveball your way. With loan protection insurance, your loan will be paid off if you pass away or become disabled before fully repaying your loan. This protects your assets and provides financial security for your loved ones.

I’ve researched the top loan protection insurance companies to help you make an informed decision, Here are the key factors I considered when compiling this list

• Financial strength Companies with strong financial backing are more likely to be able to pay out claims. I looked at AM Best credit ratings where available

• Customer service: How helpful and responsive is the company if you need to make a claim or have questions about your policy? I looked at customer reviews and complaints.

• Policy options Does the company offer customized policies to suit different needs and budget? More flexibility is better

• Claims process: Making a claim after a loss can be stressful. I favored companies with simple, straightforward claims processes.

After extensive research, these are my top 8 picks for loan protection insurance companies in 2023:

1. State Farm

• AM Best rating: A++ (Superior)
• Pros: Top financial strength, good policy customization, simple claims process
• Cons: Mixed reviews on customer service

State Farm is my top overall pick. Their strong financial backing and stellar AM Best rating give me confidence they can pay out claims. Customers can bundle loan protection with other policies like home or auto insurance. While some customer reviews complain about poor service, State Farm policies offer good customization. The claims process is straightforward with the option to file online or over the phone.

2. Mutual of Omaha

• AM Best rating: A+ (Superior)
• Pros: Customizable coverage, online quotes and claims filing, positive reviews
• Cons: Slightly lower AM Best rating than some competitors

Mutual of Omaha offers highly customizable loan protection insurance policies. You can choose your coverage amount, term length, and optional riders like disability coverage. I like that you can get quotes and file claims entirely online for more convenience. Customer reviews praise the helpful service. The AM Best rating is slightly lower than other top picks but still quite good.

3. Lincoln Financial Group

• AM Best rating: A+ (Superior)
• Pros: Range of term lengths available, additional policy riders, easy online quotes
• Cons: Claims process can be slow

Lincoln Financial Group offers loan protection terms from 10 to 30 years. Additional riders provide options like terminal illness benefits. The online quoting portal makes it simple to get rate estimates based on your age, loan amount, and more. While Lincoln’s claims handling isn’t the quickest, their financial strength rating is excellent.

4. Pacific Life

• AM Best rating: A+ (Superior)
• Pros: Minimal health questions, guaranteed acceptance, premium refund option
• Cons: Limited policy customization, claims processing can be slow

Pacific Life is a great option if you want quick approval with minimal health questions. Their level term policies have guaranteed acceptance for borrowers aged 18-60. I like that they offer a premium refund rider to get your money back if you outlive the policy. Just keep in mind policy customization is limited. Claims processing can take longer than with some other providers.

5. Transamerica

• AM Best rating: A+ (Superior)
• Pros: Wide range of term lengths, accelerated payout for terminal illness, excellent mobile app
• Cons: Mixed reviews on customer service, higher premiums than some competitors

I like Transamerica for their long loan protection terms up to 40 years. Accelerated payout benefits allow you to access part of the death benefit if diagnosed with a terminal illness. Reviews of the customer service are mixed, and premiums tend to be on the higher side. But their top-notch mobile app and range of policy options push Transamerica into my top 5 picks.

6. AAA

• AM Best rating: A+ (Superior)
• Pros: Competitive pricing, multi-policy discounts, easy claims process
• Cons: Only available in some states, limited term lengths

AAA offers competitive pricing on loan protection insurance, especially if you bundle policies. The claims process is straightforward with the option to file by mail, phone, or online. Just keep in mind AAA insurance is only available in select states. Also, term lengths max out at 25 years, so it may not suit longer mortgages.

7. Cuna Mutual Group

• AM Best rating: A (Excellent)
• Pros: Specializes in credit union lending, customized underwriting, excellent financial strength
• Cons: Only works with credit union loans, limited online support

While more niche, Cuna Mutual is a great option if you have a loan through a credit union. They specialize in providing insurance for credit union lending. Underwriting is customized based on your health and lifestyle. The AM Best rating is a notch below the top companies but still excellent. Just know that Cuna Mutual only services credit union loans and has limited online services.

8. National Life Group

• AM Best rating: A (Excellent)
• Pros: Guaranteed life insurance acceptance, premium return option, discounts for healthy lifestyles
• Cons: Limited term length options, higher premiums than competitors

National Life Group guarantees acceptance for life insurance, making approval easy. They offer premium return riders to get your money back if you outlive the term. I also like their discounts for healthy habits like exercising and not smoking. Keep in mind they have limited term length options, typically 10 or 20 years. Premiums also tend to be higher than most competitors.

What to Look for in a Loan Protection Insurance Company

When searching for the right loan protection insurance, keep these key factors in mind as you compare providers:

Financial strength: Choose a company with an AM Best rating of A or higher to ensure they can pay claims.

Loan terms available: Look for a term length that matches or exceeds your loan repayment period.

Customization: Find a policy with customizable coverage, payouts, and riders to suit your needs.

Premiums: Get quotes from multiple insurers and compare costs. Consider discounts for bundling policies.

Ease of claims: Opt for simple claims processing, like filing online or via mobile app.

Customer service: Read reviews and complaints to gauge helpfulness and responsiveness.

Finding the best loan protection insurance company for your situation takes some homework. I recommend getting quotes from at least 3 providers before deciding. This list is a great starting point for your research. Reach out with any other questions as you evaluate options!