When people search for the worst life insurance companies, they are usually trying to avoid costly mistakes. I get it. Buying coverage is not something most of us do often, and once you sign a policy, you may be locked in for decades. This article answers the question directly by breaking down which providers consistently receive poor feedback from policyholders, consumer watchdogs, and state insurance regulators, and more importantly, why they earn that reputation.
I am not here to tell you that these companies are scams or illegal. Every company listed below is licensed and regulated. The issue is performance. Complaints about claim delays, unexpected premium increases, confusing policy language, and weak customer support come up again and again. Understanding these patterns can help you make a smarter choice before you commit.
10 Poorly Rated Life Insurance Companies in the United States
Below is a clear overview of the companies that repeatedly appear in consumer complaint databases and policyholder reviews for the wrong reasons.
| Company Name | Common Complaints | Policy Types Affected | Customer Service Rating | Claims Reputation |
| Transamerica | Rising premiums, slow claims | Term, Universal Life | Below Average | Weak |
| Globe Life | Limited payouts, aggressive sales | Term, Whole Life | Low | Below Average |
| AIG Corebridge | Complex policies, billing issues | Universal, Variable | Mixed | Inconsistent |
| Mutual of Omaha | Rate increases, policy confusion | Term, Whole Life | Average | Below Average |
| John Hancock | Investment losses, fees | Variable Life | Mixed | Average |
| Colonial Penn | High costs for low coverage | Guaranteed Issue | Low | Weak |
| Brighthouse Financial | Poor communication | Variable, Universal | Below Average | Inconsistent |
| Lincoln Financial | Admin delays, claim disputes | Universal, Variable | Mixed | Below Average |
| Americo | Limited flexibility | Whole Life | Low | Average |
| Sagicor | Service gaps | Term Life | Below Average | Average |
The sections below explain what actually goes wrong with each provider, using real policy scenarios and industry data to make the issues clear.
Transamerica Life Insurance
Transamerica is a well-known name with a long history, which often gives buyers a false sense of security. The most common issue policyholders report is premium increases that were not clearly explained at the time of purchase.
Many customers purchase universal life policies expecting stable payments. Years later, they receive notices stating that the cost of insurance has risen due to policy structure or internal charges. In real terms, this means a policy that once cost $150 a month can jump to $300 or more later in life.
Another issue is claims processing. Beneficiaries frequently report extended waiting periods, sometimes stretching beyond 60 days, even when all documentation is submitted promptly. For families relying on that payout to cover funeral costs or mortgage payments, this delay causes real stress.
Common issues reported include:
- Premium hikes in universal life contracts
- Long response times from claims departments
- Confusing annual statements that lack transparency
Globe Life Insurance
Globe Life is heavily advertised and often marketed as affordable protection for families. The problem usually appears after the policy is issued. Coverage amounts tend to be low, while premiums remain relatively high when compared to competitors.
Many policies sold are limited benefit plans. That means the full death benefit may not be available during the first few years. Customers often do not realize this until a claim is filed. At that point, beneficiaries may receive only a refund of premiums plus interest instead of the expected payout.
Sales practices are another concern. Customers report frequent upselling calls and pressure to add riders that increase costs without offering meaningful value.
Typical complaints include:
- Low payout caps
- Waiting periods that reduce early benefits
- Aggressive sales follow-ups
AIG Corebridge Life Insurance
AIG’s life insurance business now operates under the Corebridge Financial name. While the company has improved some systems, policy complexity remains a serious drawback.
Variable and indexed universal life policies from Corebridge often involve layered fees tied to market performance. In plain terms, this means your policy value can drop even during stable market periods due to internal charges.
Billing errors are another recurring theme. Some policyholders report missed payments despite automatic drafts being set up, which later leads to lapse notices. Reinstating coverage can be time-consuming and expensive.
Policyholders frequently mention:
- Hard-to-understand policy illustrations
- Unexpected account value declines
- Administrative errors affecting policy status
Mutual of Omaha Life Insurance
Mutual of Omaha is often associated with Medicare products, but its life insurance arm has received mixed reviews. The biggest issue is premium stability, especially on term policies converted later to permanent coverage.
Many customers start with term life, then convert to whole life or universal life as their needs change. During conversion, rates often rise sharply, sometimes doubling or tripling without clear explanation.
Customer service experiences vary widely. Some policyholders report helpful agents, while others struggle to get consistent answers when policies are transferred between departments.
Recurring problems include:
- Sudden rate increases after conversion
- Inconsistent support experiences
- Confusing policy language during renewals
John Hancock Life Insurance
John Hancock is known for its investment-linked life insurance products. These policies can work well for financially savvy buyers, but they are often sold to people who do not fully understand the risks.
Variable life policies tie cash value to market performance. When markets dip, policy values can shrink, forcing policyholders to increase premiums to keep coverage active. Some customers are surprised to learn that poor investment performance can cause a lapse even after years of payments.
Fees also add up quickly. Management fees, fund expenses, and policy charges reduce returns over time.
Key concerns include:
- Market-driven policy volatility
- High internal fees
- Complex reporting that hides long-term costs
Colonial Penn Life Insurance
Colonial Penn focuses heavily on guaranteed acceptance life insurance, often marketed to seniors. While these policies do serve a purpose, they are among the most expensive forms of coverage for the benefit provided.
Coverage limits are low, often capped around $25,000. Premiums, however, can rival those of much larger term policies offered elsewhere. In many cases, policyholders pay more in premiums over time than the policy will ever pay out.
Another concern is graded benefits. Full coverage may not apply for the first two to three years.
Common complaints include:
- High cost per dollar of coverage
- Long waiting periods for full benefits
- Limited flexibility once enrolled
Brighthouse Financial Life Insurance
Brighthouse Financial was spun off from MetLife, and while it inherited a large policy base, customer service infrastructure has struggled to keep up.
Policyholders often report delays when making simple changes such as updating beneficiaries or adjusting payment methods. These delays can become serious issues if they occur close to a claim event.
Variable life policies also face criticism for underperformance, largely due to fees and administrative charges that erode cash value.
Reported issues include:
- Slow processing times
- Poor communication during policy updates
- Unclear fee disclosures
Learn more about how financial companies compare at FinTechRevo.Com.
Lincoln Financial Group Life Insurance
Lincoln Financial offers a wide range of life insurance products, but its complexity can work against policyholders. Universal and variable policies often include performance assumptions that do not hold up over time.
Many customers report receiving lapse warnings despite making regular payments. In most cases, rising internal costs reduce cash value faster than expected, requiring higher premiums to maintain coverage.
Claims disputes also appear in complaint records, particularly involving policy interpretations that beneficiaries were not aware of.
Common challenges include:
- Policy lapse risk due to cost increases
- Claim disputes tied to contract language
- Administrative delays
Americo Life Insurance
Americo operates primarily through independent agents and focuses on whole life policies. While simpler than variable products, these policies still draw criticism for limited flexibility.
Premiums are generally fixed, but coverage amounts are modest. Riders and policy adjustments are limited, making it difficult for policyholders to adapt coverage as their financial situation changes.
Customer service ratings tend to be low, with complaints about slow response times and limited online account access.
Key issues include:
- Limited policy customization
- Modest benefit amounts
- Weak digital tools
Sagicor Life Insurance
Sagicor has gained attention for its no-exam term policies, which appeal to younger buyers. The issue often appears after the sale.
Customer support is frequently cited as inconsistent, particularly when policies approach renewal or when beneficiaries file claims. Some policyholders report difficulty reaching knowledgeable representatives during critical moments.
While premiums may start low, renewal rates can increase sharply, catching customers off guard.
Common concerns include:
- Limited post-sale support
- Sharp premium increases at renewal
- Claims handling delays
Conclusion
Choosing life insurance is about trust, clarity, and long-term reliability. The companies listed here are legitimate providers, but their track records show patterns that make them risky choices for many buyers. Issues like unclear pricing, delayed payouts, and confusing policy structures can turn what should be a safety net into a financial burden.
If there is one takeaway, it is this: always look beyond brand recognition and advertising. Read policy documents carefully, ask direct questions about future costs, and review complaint data from state insurance departments before signing anything. A well-chosen policy brings peace of mind. A poorly chosen one often delivers the opposite.
Find The 10 Worst Medical Insurance Companies
Frequently Asked Questions
How can I check if a life insurance company has a history of complaints before buying?
I usually recommend starting with your state insurance department’s consumer complaint index. This data shows how often policyholders file complaints compared to the company’s size. You can also look at NAIC complaint ratios and read long-form customer reviews that focus on claims and billing, not just sales experiences. Patterns matter more than one-off reviews.
Are companies with low ratings always a bad choice for everyone?
Not always. Some poorly rated insurers may still work for very specific situations, like short-term coverage or guaranteed issue policies for people with serious health conditions. The problem starts when buyers expect flexibility, stable costs, or smooth claims handling. If your needs are simple and short term, the risk may be lower, but it should be a conscious decision.
What warning signs should I look for in a life insurance policy document?
I pay close attention to sections that explain cost of insurance charges, policy lapse conditions, and premium adjustment clauses. If a policy allows the insurer to increase internal charges or reduce cash value projections, that is a red flag. Another warning sign is vague language around claims timelines or exclusions that are buried deep in the contract.
Is it safer to choose a smaller insurer instead of a big national brand?
Size alone does not guarantee better service. Some large insurers struggle with volume, while smaller companies may offer more personal support. What matters more is financial strength ratings, complaint trends, and how transparent the company is about pricing and policy mechanics. I always look at consistency, not just name recognition.
How often should I review my life insurance policy to avoid future problems?
I suggest reviewing your policy at least once a year and anytime there is a major life change, such as marriage, a new child, or a job change. Annual reviews help catch rising costs, declining cash values, or policy terms that no longer match your needs. Catching issues early gives you more options than waiting until a problem shows up.
