Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance. Not only does he strive to provide you with the ...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insur...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Nov 3, 2021

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It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

Facts You Should Know

  • There are many life insurance companies that offer policies to small businesses
  • Small business life insurance policies can be either term or whole life policies
  • You can purchase life insurance to protect your business from the resulting loss of a critical member’s passing

Proceeds from a life insurance policy can entirely cover funeral expenses and leave beneficiaries an extra financial cushion.

Often, businesses provide the benefit of life insurance to their employees as a means of maintaining top-tier talent, and many business owners are seeking out life insurance companies that offer policies to small businesses.

The kind of life insurance for small business owners you buy will determine how expensive or inexpensive your life insurance rates are.

Keep reading to learn more about the best life insurance companies that offer policies to small businesses, including small business life insurance rates and how to keep them at a minimum.

Ready to compare affordable life insurance companies that offer policies to small businesses? Enter your ZIP code into our free online tool above for instant life insurance rates from companies near you.

What are the best life insurance companies that offer policies to small businesses?

Almost all life insurance companies offer policies to small businesses. As a small business owner, you have a good bit of options.

Some of the leading life insurance companies that offer policies to small businesses include:

  • State Farm
  • Farmers
  • Nationwide
  • The Hartford
  • MassMutual
  • MetLife

Comparing both term and whole life insurance quotes from life insurance companies that offer policies to small businesses will give you the best rates. It will also help you find the best small business life insurance policy for you.

The following table includes monthly rates for a $250,000 whole life insurance policy with State Farm for non-smoking men and women:

Average Monthly Rates for a $250,000 State Farm Whole Life Insurance Policy (Non-Smoker)
Age of InsuredMaleFemale
25$225.12$203.14
30$260.14$234.24
35$311.47$273.19
40$375.62$321.24
45$467.84$381.29
50$578.12$470.02
55$727.97$598.79
60$988.97$769.94
65$1,310.87$1,045.09
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Now, look at the monthly rates for a 20-year term life insurance policy with State Farm for non-smoking men and women:

Average Monthly Rates for a $250,000 State Farm 20-Year Term Life Insurance Policy (Non-Smoker)
Age of InsuredMaleFemale
25$23.27$18.72
30$24.59$20.44
35$26.09$22.19
40$33.72$28.49
45$45.47$37.42
50$69.59$54.59
55$105.72$78.97
60$183.79$131.17
65$323.42$220.99
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It’s important to note that these sample rates are for a personal life insurance policy and that a quote for a small business life insurance policy may be different.

Small business life insurance can be bought as either whole or term life insurance policies. Naturally, whole life insurance will be more expensive than term life insurance because you get more out of it.

Term life insurance is straightforward coverage with an expiration date and no additional features, while whole life insurance has no expiration date and builds cash value over time.

Ultimately, you will know whether or not term or whole small business life insurance for employees is the best option for you.

For the best results, talk with an insurance agent about your options and compare multiple life insurance rates from life insurance companies that offer policies to small businesses.

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Do small businesses need life insurance?

It is critical for every business to have life insurance of some sort. More than just paying out your beneficiaries when you pass, life insurance offers coverage to small businesses in a few ways.

First of all, life insurance is a fantastic benefit to offer your employees. As a small business, your employees are everything and making sure they’re properly covered is critical.

You can also buy small business life insurance for a co-business owner to fund a buy-sell agreement. Buy-sell agreements are legally binding contracts that specify how a co-business owner’s share may be allocated if he or she dies or leaves the business.

Without a buy-sell agreement, you may be left unsure of what to do with your business partner’s share or unable to make the best use of it. Talk with your insurance agent about whether a buy-sell agreement is in your best interest.

You may also choose to buy life insurance for business partners to protect your business from the loss of a central employee. This is often called key person insurance, which protects a small business from the untimely passing of a critical member of the business.

Again, your best bet is to talk over your options with an insurance agent before you decide to purchase a small business life insurance policy.

What You Need to Know About Life Insurance Companies That Offer Policies To Small Businesses

More providers offer policies to small businesses than life insurance companies that don’t offer policies to small businesses, and you will have a wide variety of options to choose from.

Researching life insurance for business owners will help tremendously. Comparing multiple life insurance rates from life insurance companies that offer policies to small businesses helps narrow down your options.

You may choose to buy life insurance for your employees, establish a buy-sell agreement, or ensure your business is covered after the passing of a critical employee with a key person policy. Small business life insurance can be either a term or whole life insurance policy.

While you pay more for whole life insurance rates compared with term life insurance, you’re getting more out of it than just coverage. You can build cash value over time without an expiration date to your policy.

Investing in a small business life insurance policy is in the best interest of both small business owners and employees. Therefore, it’s important to know exactly what you need before you buy any coverage.

Ready to buy life insurance from life insurance companies that offer policies to small businesses? Enter your ZIP code into our free online comparison tool to find the best life insurance companies near you.