urban farm business plan example

An official website of the United States government Here’s how you know

• Translated Resources |
• Service Centers |
• Local Dashboard

• Drought Programs and Resources

• Customer support
• Parts Request
• Replacement Cover Finder
• Floor Frame Kit Finder

How-to videos

• Shelterlogic

Shopping Cart

Checkout using your account

Checkout as a new customer

Creating an account has many benefits:

• See order and shipping status
• Track order history
• Check out faster

How to Start an Urban Farming Business and Eliminate Food Deserts

What is Urban Farming, and Why Does it Matter?

How do you Start an Urban Farming Business?

1. How do you Fund an Urban Farming Business?

2. What Will You Need to Buy?

3. Property Lease, Rental, Purchase, and Soil Testing

4. What About Rooftop Farming?

5. What Tools, Equipment, and Storage Will You Need?

ShelterLogic has developed a wide variety of greenhouse units that are adapted to various growing needs. The ShelterTech High Tunnel Greenhouse is a customizable greenhouse unit that can be used in large scale urban gardening and community gardening. Learn more here .

6. What Licenses and Permits Will You Need?

7. What About Training?

8. Help Wanted, Inquire Within

The urban farming trend is here to stay.

• A Step-by-Step Guide to Growing Crops with a Cold Frame Greenhouse arrow-circle-right
• Grower's Guide: What to Grow in a Greenhouse All Year Long arrow-circle-right
• Creative Garden Ideas for Spring arrow-circle-right
• Top 10 Balcony Decor Ideas for your Apartment or Condo in 2022 arrow-circle-right
• Growers Guide: Greenhouse Growing Tips arrow-circle-right

Membership Overview

Membership renewal, frequently asked questions, special offers, knowledge center, knowledge center overview, publications.

• PAS Reports
• PAS QuickNotes
• Zoning Practice

Applied Research

• APA Foresight
• Green Communities
• Hazards Planning
• Planning and Community Health

Research KnowledgeBase

• Contributor's Dashboard
• Featured Collections
• Search All Collections

Topic Based Resources

• Autonomous Vehicles (AV)
• Climate Change
• Disaster Recovery
• Infrastructure

Planning Advisory Service

Conferences and learning, conferences and learning overview, national planning conference, planners' day on capitol hill, upskilling planners.

AICP Overview

One path to aicp, certification maintenance, maximize your credential, aicp fellows, policy and advocacy, policy and advocacy overview, policy issues, planners' advocacy network, state government affairs, amicus curiae, career center, career center overview, job seekers, advance your career, choosing the planning profession, mentoring at apa, in your community, in your community overview, what is planning, great places in america, national community planning month, national planning awards, planning home, consultants, connect with apa, connect with apa overview, students and new planners, member directory, awards and honors, equity diversity inclusion, advertise with apa, apa foundation.

APA Foundation Overview

Ways to give, apa scholarships, foundation donors, urban farm business plan: handbook, september 2011, https://www.epa.gov/sites/default/files/2015-10/documents/1.urban_farm_business_plan_handbook_091511_508.pdf, food systems | urban agriculture.

This guide provides information for developing business plans intended to support the start-up and operations of urban farms. It outlines the type of information to be collected, assessed, and presented in each of the sections of a business plan. Each section references worksheets that support preparing the plan. 

• About Urban Agriculture Manual

Dark Mode On

Your device is set to dark mode so this site is matching that preference. You can click the sun icon to change your site experience.

Urban Farming 101: What you need to know to get started

December 31, 2023 --> January 21, 2024 9 min read 0 Comments

Starting an Urban Farm

Starting a farm in the city may seem like an impossible task but that is exactly what I did two years ago. I have always wanted to own a farm, and while that is still the goal, I realized that I could jump-start that plan right here in my urban setting. 

Growing food has always come naturally to me since I grew up on a farm. After moving to the city I naturally continued growing my own food. After many years of doing that I finally pivoted to growing for profit, direct to consumers via local farmer markets and food co-ops. 

If you want to start an urban farm but need more knowledge both on the production and business side of farming, this article will guide you on how to get started. 

WHAT IS URBAN FARMING?

Urban farming is any farming activity that takes place in a city or any heavily populated area. “ CDFA (California Dept. of Food and Agriculture) defines "urban" as a geographic area within 25 miles of an Urbanized Area with a population of 50,000 or more.” 

While the term evokes images of high-tech farming in warehouses, it is becoming more accessible and feasible for such farming to be done creatively in backyards, small plots, and even spare rooms. 

Urban farming differs from backyard gardening as the goal is to produce enough to sell for profit to the local markets via various sales channels. Now more than ever before, with the available resources, anyone with a passion for growing food can pursue owning and operating an urban farm.  

WHY IS IT IMPORTANT TO HAVE URBAN FARMERS?

If the recent pandemic has taught us anything, heavy reliance on outside sources for our food can be very detrimental. Having a robust urban farming economy is critical to withstand similar issues in the future. Urban farming also allows beginning farmers the opportunity to pursue their dream of growing for local markets and restaurants. 

Plus, locally grown food results in a lower carbon footprint from reduced transportation for delivering produce. Food apartheid is a problem many cities face, and having urban farms is a way to provide accessible fresh produce to the community.

Urban farming is a growing movement transforming the way food is produced and providing opportunities for social and economic development.

STARTING AN URBAN FARM

There are various ways to get started with urban farming, but the most important step is to assess your resources and knowledge. If you are already doing some gardening, you will already have an idea of what it will take, but careful planning is critical for success. 

Land Assessment  

The advantage of urban farming is that you don’t need acres of land to get started. If you have a large backyard or a front yard, that is a great place to start. This has the benefit of minimizing your startup cost and risk exposure. 

Check with your city or HOA if it is permissible to grow vegetables in the front yard before starting. Typically, no permission is needed to utilize your backyard so start planning out your beds. My urban farm is in an older part of the city so I didn’t need clearance from an HOA to get started. 

Alternatively, you can research your local area and find land that you can rent. Renting land allows you to conserve your startup capital that would otherwise be gobbled up if you purchased land outright. 

If you go in-ground with your growing technique, you can easily rent a garden tiller from your local home improvement store. It is not necessary to purchase this type of equipment in the beginning. 

Even if you want to do a no-till urban farm it is often necessary to do an initial tillage of the soil to work in amendments such as compost, worm casting, or manure. Spend adequate time preparing your soil as it is very critical for the success of your crops. The value of proper site preparation and soil improvement is immeasurable. 

If you have access to a local composting company, consider purchasing compost in bulk to save money; most of them will even deliver bulk amounts. 

Planters and Raised Beds

Alternatively, if you don’t have a lot of land, farming can be accomplished with permanent raised beds, grow bags , and other types of containers. You can successfully have a combination of inground beds and garden planters.  Especially if you are going to utilize a front yard space for growing, setting up some nice planters can add more grow space while keeping your front yard aesthetically pleasing to the neighbors.

Similar to inground growing, using planters will require bulk purchasing of potting mix, compost, and manure. If you would like to take a deeper dive into using grow bags on your farm, check out this article here . 

Vertical farming 

Another approach to urban farming is growing crops vertically. You can accomplish this in an even smaller footprint because it involves growing crops in layers stacked vertically on shelves. Multiple techniques can be used for vertical growing, such as hydroponics , aeroponics, and aquaponics.  

Microgreens , as well as mushrooms and lettuces, are among the most popular crops in recent years that can be grown vertically. A spare room in your house can easily be converted into an indoor vertical farm. Microgreens are an excellent choice for vertical urban farming because of their relatively low start-up cost compared to the other growing methods. 

They can be grown all year round and can easily be scaled up with demand. It is a fantastic gateway crop to get you into a farmers market to start building your customer base. Microgreens are the crop that helped me transition into urban farming for profit.

Watering & Irrigation 

Water is a critical input in farming regardless of the size of the farm. During your planning and design phase, consider having some sort of automatic watering system which will alleviate the burden of watering your crops on time. 

While farming in a city offers the advantage of readily available municipal water, some cities have water use restrictions so also consider adopting efficient irrigation, rainwater harvesting , and if possible, reuse of water. 

A rooftop in an urban setting can provide an abundance of rainwater, which can help offset a little of the cost of city water. Plus, crops thrive on rainwater. Using drip irrigation which can be controlled automatically is a great way to water your crops efficiently. 

Irrigation equipment can be sourced from local home improvement stores or specialty suppliers. Once your water system is set up, adopt water retention methods to minimize the frequency of watering.

Soils high in organic matter result in less runover and increased water infiltration. Consider mulching to reduce evaporation and adding shade cloth during high temperatures which can create a great microclimate for plants. 

Tools & Equipment 

Investing in good quality tools and equipment is very critical in the beginning. This will ensure that you are not replacing those items frequently. 

For example, if you are going to grow microgreens, invest in quality trays . Since microgreens require weekly growing and sanitizing cycles, those trays must be durable enough to handle that frequent use. 

For most urban gardening, complicated tools are not required. The typical urban farmer would need hand tools, seeders, rakes, wheelbarrows, trellises, and a good wash station. It is always best to start small, add tools gradually as needed, or rent them if purchasing them is outside your budget. 

Another budget-friendly way to acquire tools is to buy used ones. Your local home improvement stores often phase out their rental equipment and that can be an opportunity to pick up items such as tillers and other small cultivating tools. 

In fact, the tiller that I have used for the past eight years was purchased from my local home improvement store. My favorite way to get new-to-me tools is to check out the garage at an estate sale. 

Also, consider adding season-extending items such as shade cloth or frost blankets. These items will help protect crops from extreme temperatures. This past summer we had record-breaking temperatures in Phoenix so I saved our cucumber crop by adding a shade structure with 50% shade cloth.

Post-Harvest Handling 

You are also going to need equipment for processing and storing your harvest. The most critical piece of equipment for post-harvesting is cold storage. Depending on how much are growing one or two standing fridges will do, or you may need to invest in a walk-in cooler. I was able to purchase two used fridges from Facebook marketplace for a really good price.  

Plastic food-grade tubs and totes are handy for washing, storing, and transporting your produce. If you plan on doing leafy vegetables, those will also need to be kept cool during deliveries, so a good quality cooler for transportation is a must. Additionally, if you are going to sell at the farmers’ markets, you will need containers to sell your product, such as clamshells and bags, and for displaying your product.

DECIDING WHAT TO GROW ON YOUR URBAN FARM

Pick crops that are suitable for your region and fast maturing. With your limited space, you need to have these quick-growing varieties that allow for multiple plantings for the season.

If you are new to the area or farming consider apprenticing or volunteering with a local farmer to increase your knowledge base and skills for the crops suitable for your climate. This has the added benefit of allowing you to learn the nuances of certain crops and decide which you like growing.  

Things to consider when selecting crops:

• Select high-yielding, high-value crops such as leaf salad, microgreens, cucumbers, or tomatoes. Crops like cucumbers can be trellised and grown vertically, so you can grow a lot in a small space. Microgreens can be grown all year round. They can be the main crop you grow or supplement your produce when outdoor growing conditions limit the availability of your other crops. 
• Talk to other local farmers in your area to see what varieties they have had success with. Experienced farmers have a wealth of knowledge, and most farmers would be happy to talk to you about what they grow.
• If you are doing part of your farming in containers or raised beds, be sure to consider if the variety you have selected is suitable for that planting style. Carrots , peppers, and tomatoes are a few examples of crops that do well in containers and raised beds.
• Trial multiple varieties to determine if they are a good fit for your growing conditions. Keep careful records so that you can evolve and dial in what works for your farm for future crop planning.
• Visit local farmers markets to see what is already being offered at the markets to determine what else you can offer your local community to help build your customer base.

SUCCESSION PLANTING 

For urban farming, it is essential to plan ahead to have continuous produce available for the market. This is best achieved with succession planting. This will allow you to extend the harvest season. 

Depending on your growing zone you can have multiple crop cycles during that season. Starting seeds indoors before the last frost is a way to give new crops a jump start on the upcoming season. If you are late with starting your seed starts, consider purchasing starts from your local nurseries for the first round of crops.

SEED STARTING

While it is convenient to run down to the local nursery to purchase seed to jump-start your farm, it can also be costly. Set yourself up with good quality seed-starting tools and supplies to have the most cost-effective source of plants for your farm. High-quality cell trays are a great option as the trays are reusable season after season. 

Soil blocking is another method of seed starting that is environmentally friendly, low waste, and an effective way to grow healthy seedlings, which can be up-potted or planted directly into your beds. 

Starting your own seedlings gives you complete control over the varieties you want to grow. Bonus tip if you grow too many seedlings, consider selling them directly to backyard gardeners at your farmers market.

FINDING A MARKET FOR YOUR PRODUCE

Now that you have grown all of this produce, where will you sell it? 

Farmers markets are the natural choice to start selling your produce; many cities have them multiple times a week. With consumers becoming more enlightened about sourcing better food there is an increasing demand for locally grown produce. 

Another option is to join a farmer co-op, which already has an established customer base of restaurants, residential customers, and local grocery stores. Consider working with your local food bank network as many of them have an annual budget to purchase locally grown food from farmers just like you. 

To successfully sell produce from your urban farm, it's important to utilize multiple sales channels.

Keys to a Successful Urban Farm 

Starting an urban farm is no small task so taking the time to plan is key. Farms are this incredible dynamic entity that is unlike any other type of business. Farming is a business and needs to run as such for long-term survival and success. 

Starting small and scaling up gradually will be helpful to avoid burnout. Focus on increasing your knowledge and skill set, and try different growing techniques to see which makes the most sense for your farm. I regularly attend sessions hosted by the University of Arizona Extension Office, which is designed to support small-scale farmers like me.

Record keeping is an essential tool that will help you accomplish that and be flexible to change course as needed. 

Written by Avrile Remy,  Shamba AZ

Sign up to get the latest on sales, new releases and more …

12: Business Plans

What is a business plan.

A business plan is a document that helps you to organize and succinctly summarize the vision you have for your business. The plan contains the operational and financial objectives of a business, the detailed plans and budgets showing how the objectives are to be realized.

A good business plan will contain the following:

• Your business vision, mission statement, key values, and goals
• Description of the product(s) you intend to produce
• Strengths, Weaknesses, Opportunities and Threats the business may experience are described
• Production plans
• Marketing plans
• Estimated start-up costs
• Information on your legal structure and management team
• Current financial statements or projected financial statements.
• Resume or brief explanation of your background and relevant experience
• Less than 10 total pages so that people actually read it

Helpful Publications for Writing a Business Plan

General Business Resource Publications:

• Starting an Ag-Business? A Pre-Planning Guide http://publications.dyson.cornell.edu/outreach/extensionpdf/2004/Cornell_AEM_eb0408.pdf
• Business Transfer Guide: Junior Generation http://publications.dyson.cornell.edu/outreach/extensionpdf/2016/Cornell-Dyson-eb1605.pdf
• Producing a Business Plan for Value-Added Agriculture http://publications.dyson.cornell.edu/outreach/extensionpdf/2007/Cornell_AEM_eb0708.pdf
• Business Planning for the Agriculture Sector: A Guide to Business Plan Development for Start-up to Mid-size Operations http://publications.dyson.cornell.edu/outreach/extensionpdf/2010/Cornell_ pdf
• Building a Sustainable Business (Sustainable Agricultural Research Education (SARE)Publications) sare.org/publications/business.htm 280 pages of education and practical exercises to guide you through the financial, management, and interpersonal skills needed to start a successful farm business. Order hard copy for $17 or download PDF online for free.

Cornell Cooperative Extension Publications for Specific Commodities:

• Landscape Business Planning Guide http://publications.dyson.cornell.edu/outreach/extensionpdf/2003/Cornell_AEM_eb0313.pdf
• Writing a Business Plan: A Guide for Small Premium Wineries http://publications.dyson.cornell.edu/outreach/extensionpdf/2002/Cornell_AEM_eb0206.pdf
• Writing a Business Plan: An Example for a Small Premium Winery https://ageconsearch.umn.edu/bitstream/122203/2/Cornell_AEM_eb0207.pdf

Getting Help Writing a Business Plan

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Land use changes in the environs of Moscow

Related Papers

Eurasian Geography and Economics

Grigory Ioffe

komal choudhary

This study illustrates the spatio-temporal dynamics of urban growth and land use changes in Samara city, Russia from 1975 to 2015. Landsat satellite imageries of five different time periods from 1975 to 2015 were acquired and quantify the changes with the help of ArcGIS 10.1 Software. By applying classification methods to the satellite images four main types of land use were extracted: water, built-up, forest and grassland. Then, the area coverage for all the land use types at different points in time were measured and coupled with population data. The results demonstrate that, over the entire study period, population was increased from 1146 thousand people to 1244 thousand from 1975 to 1990 but later on first reduce and then increase again, now 1173 thousand population. Builtup area is also change according to population. The present study revealed an increase in built-up by 37.01% from 1975 to 1995, than reduce -88.83% till 2005 and an increase by 39.16% from 2005 to 2015, along w...

Elena Milanova

Land use/Cover Change in Russia within the context of global challenges. The paper presents the results of a research project on Land Use/Cover Change (LUCC) in Russia in relations with global problems (climate change, environment and biodiversity degradation). The research was carried out at the Faculty of Geography, Moscow State University on the basis of the combination of remote sensing and in-field data of different spatial and temporal resolution. The original methodology of present-day landscape interpretation for land cover change study has been used. In Russia the major driver of land use/land cover change is agriculture. About twenty years ago the reforms of Russian agriculture were started. Agricultural lands in many regions were dramatically impacted by changed management practices, resulted in accelerated erosion and reduced biodiversity. Between the natural factors that shape agriculture in Russia, climate is the most important one. The study of long-term and short-ter...

Annals of The Association of American Geographers

Land use and land cover change is a complex process, driven by both natural and anthropogenic transformations (Fig. 1). In Russia, the major driver of land use / land cover change is agriculture. It has taken centuries of farming to create the existing spatial distribution of agricultural lands. Modernization of Russian agriculture started fifteen years ago. It has brought little change in land cover, except in the regions with marginal agriculture, where many fields were abandoned. However, in some regions, agricultural lands were dramatically impacted by changed management practices, resulting in accelerating erosion and reduced biodiversity. In other regions, federal support and private investments in the agricultural sector, especially those made by major oil and financial companies, has resulted in a certain land recovery. Between the natural factors that shape the agriculture in Russia, climate is the most important one. In the North European and most of the Asian part of the ...

Ekonomika poljoprivrede

Vasilii Erokhin

Journal of Rural Studies

judith pallot

In recent decades, Russia has experienced substantial transformations in agricultural land tenure. Post-Soviet reforms have shaped land distribution patterns but the impacts of these on agricultural use of land remain under-investigated. On a regional scale, there is still a knowledge gap in terms of knowing to what extent the variations in the compositions of agricultural land funds may be explained by changes in the acreage of other land categories. Using a case analysis of 82 of Russia’s territories from 2010 to 2018, the authors attempted to study the structural variations by picturing the compositions of regional land funds and mapping agricultural land distributions based on ranking “land activity”. Correlation analysis of centered log-ratio transformed compositional data revealed that in agriculture-oriented regions, the proportion of cropland was depressed by agriculture-to-urban and agriculture-to-industry land loss. In urbanized territories, the compositions of agricultura...

Open Geosciences

Alexey Naumov

Despite harsh climate, agriculture on the northern margins of Russia still remains the backbone of food security. Historically, in both regions studied in this article – the Republic of Karelia and the Republic of Sakha (Yakutia) – agricultural activities as dairy farming and even cropping were well adapted to local conditions including traditional activities such as horse breeding typical for Yakutia. Using three different sources of information – official statistics, expert interviews, and field observations – allowed us to draw a conclusion that there are both similarities and differences in agricultural development and land use of these two studied regions. The differences arise from agro-climate conditions, settlement history, specialization, and spatial pattern of economy. In both regions, farming is concentrated within the areas with most suitable natural conditions. Yet, even there, agricultural land use is shrinking, especially in Karelia. Both regions are prone to being af...

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Computer Science
• Academia ©2024

Suburbanization Problems in the USSR : the Case of Moscow

• Référence bibliographique

Gornostayeva Galina A. Suburbanization Problems in the USSR : the Case of Moscow . In: Espace, populations, sociétés , 1991-2. Les franges périurbaines Peri-urban fringes. pp. 349-357.

DOI : https://doi.org/10.3406/espos.1991.1474

www.persee.fr/doc/espos_0755-7809_1991_num_9_2_1474

• RIS (ProCite, Endnote, ...)

Résumé (fre)

La suburbanisation n'existe pas en URSS au sens des phénomènes décrits dans les villes occidentales. Cependant on observe certains transferts limités d'activités industrielles exigeantes en espace ou polluantes, voire même de centres de recherches, vers les zones suburbaines ou des villes-satellites. Mais ces déconcentrations répondent à une logique de planification administrative. En outre, les Moscovites hésitent à aller habiter dans ces centres d'emploi, de crainte de perdre les privilèges liés à l'autorisation d'habiter Moscou (la propiska) et du fait des communications insuffisantes avec la capitale. Le taux de croissance de la population moscovite reste supérieur à celui du reste de l'oblast. Par contre le développement de datchas de seconde résidence est très important dans l'oblast de Moscou, en particulier aux alentours des stations de chemin de fer. L'abolition du système de propiska pourrait transformer les datchas les plus proches de Moscou en résidences principales.

Résumé (eng)

The suburbanisation does not exist as such in the USSR with the meaning one has of the phenomena in Western cities. Though one may notice some limited transfers of industrial activities demanding a lot of space or polluting ones, even research centres, towards the suburban areas or satellite-towns. But these déconcentrations correspond to an administrative planification logics. Moreover the Muscovites hesitate before going and living in these employment centres, because they are afraid of loosing the privileges linked with the authorisation to live in Moscow (the propiska) and because of insufficient communications with the capital. The growth rate of the Muscovite population remains higher than this of the remainder of the oblast. To the contrary developing of datchas for second residences is very high in the Moscow oblast, especially in the vicinity of a railway station. The abolishment of the «propiska» system might transform the datchas nearer to Moscow into main residences.

• Economic structure [link]
• Suburbanization of activities [link]
• Suburbanization of population [link]
• Conclusions [link]
• Literature [link]

Liste des illustrations

• Table 1. Employment structure, % [link]
• Table 2. Annual rate of population increase, % [link]
• Fig. 1. Spatial distribution of country-cottages and gardening associations in the Moscow region [link]

Texte intégral

Galina A. GORNOSTAYEVA

Moscow University

Suburbanization Problems

in the USSR :

the Case of Moscow

Suburbanization processes typical to cities in Western Europe, the USA and other countries are not observed in the USSR or they are distorted to such an extent that they may not be compared with existing standards. This states the question how Soviet cities-succeeded in escaping this stage of urban development. In order to answer this question, we should first summarize the main aspects of Western suburbanization.

Firstly, it is well known that the urbanization processes are linked to structural changes in the economy. Thus the transition from the stage of concentration to this of suburbanization is associated with industrialization, and the transition to the third stage - déconcentration - is related with the rapid growth of employment in the non-industrial sphere. Secondly, a suburbanization of economic activities can be distinguished. It applies in the first place to the building and iron- working industry, transports, engineering and chemical works. These are polluting and requiring extensive areas. This suburbanization of industry is caused by the following factors: rising demand for land from firms ; worsening of transport

tions in the inner cities ; demand for lower land costs and taxation levels in suburbs ; rapid growth of road transports; state policies regulating the growth of large cities ; migration of the labour force to the suburban zones. Scientific and educational activities are also transferred from the centre to the suburbs.

The third important aspect of suburbanization applies to the population. In the suburbs two opposite flows of population meet ; one is centripetal, coming from non- metropolitan regions, the other is centrifugal, coming from the central city. The reasons for the migration to the suburbs are as follows : declining living standards in large cities (overcrowding, slow housing renewal, environmental problems, etc.); growth of motorization of the population, development of communications (telephone, telex, fax, computer) ; intensifying decentralization of working places ; lower land prices in the suburbs ; state support for the intensification of real estate development in the suburbs. The above-mentioned factors and reasons for suburbanization are altered in the Soviet cities. Let us explore them, by taking for example the largest one - Moscow.

Economic structure

The employment structure in the USSR reveals sharp differences from those in developed urbanized countries. The USSR is characterized by a high share of employment in agriculture, industry, construction and a low share in the non-industrial sphere (tab. 1).

A correlation analysis of the percentage of urban population and employment in the different spheres of economic activity reveals that the share of urban population in the USSR is higher than in countries with the same percentage of persons employed in agriculture.

TABLE 1. EMPLOYMENT STRUCTURE,

Source: personal calculations.

The urbanization processes in the Moscow Capital Region (MCR) are more intensive than in other regions of the USSR. Structural changes are more obvious here : the share of employment in the non-industrial sphere increases more substantially and the percentage of persons employed in industry and agriculture is lower than in the whole country. However the MCR cannot therefore be compared with a metropolitan region in a Western country. Although Moscow is the most advanced agglomeration in the USSR, it lags is far behind the major world cities in terms of development and it is at the very start of the post- industrial stage of its structural and urban transformation.

The structural «anomaly» of the USSR as a whole and of the MCR in particular is explained by the enforced process of industrialization (starting from the thirties) at the expense of the peasantry (thus, there is not only a booming industrial employment in cities, but also worsening living and working conditions in villages and forced collectivization having triggered off the massive rural emigration). As a result, the share of urban population in the USSR is higher than expected, based on changes in the economic structure. While urbanization in the developed countries was due, among

other causes, to an increasing labour efficiency in agriculture, this remained quite low in the USSR. Therefore the employment share in agriculture is overstated in comparison with countries with a similar percentage of urban population, and even this considerable part of the labour force is unable to feed the whole population of the country.

The share of agricultural employment in the mcr increased from 7,4 % to 7,6 °7o between 1980 and 1985 (as a result of Moscow attractiveness and the better living standards in its surrounding villages), whereas it continued to decline in other parts of the Central region. The population growth in villages adjacent to Moscow is especially intensive, though labour efficiency in localities near Moscow is higher than in the other oblasts. In spite of this, Moscow oblast provides only 61 % of milk, 34 °/o of potatoes, 45 % of vegetables and 23 % of meat needed by the population in Moscow city and oblast (Argumen- ty i facty, 1988, N50, p. 3). The structural anomaly is not only related to processes in agricultural sphere but also in industrial sector. As a result of the low economic mobility of socialist firms and of the absence of market relations, the industrial development was extensive,

without significant increases of the labour

productivity.

Thus the employment transfer from the

agricultural to the industrial sector, their

extensive development and their low labour

productivity are intrinsically related with the political definition of productiorfrela- tions and course of structural economic transformation.

Suburbanization of activities

Moscow and Moscow oblast show divergent economic structures and changes (tab. 1). In Moscow the employment share in the non-industrial sphere in Moscow is growing more rapidly, whereas the share of industrial employment is decreasing. In Moscow oblast the part of transport and communication infrastructure, retail trade, administration, housing (presently less developed than in Moscow) is increasing. Some stages in the transformation of activities in the mcr's settlements may be pointed out here. The stage of industrialization and reconstruction after World War II is characterized by the swift industrial development and the active restructuration of the Moscow and Moscow oblast economy. New industries have been built (motor-car and aircraft assembly, machine-tool industry, organic synthesis, etc.), around Moscow research and production potential. Nevertheless, this restructuration is extensive, since traditional industries don't curtail production. It favours the heavy concentration of modern functions in Moscow. There is no transfer of firms outside Moscow. Suburbanization of industrial activities did not occur because of the state owning the means of production and of thé socialist form of production relations. When research and technological progress are slowing down, these firms become inefficient and spatially immobile. The period 1956-1970 is marked by an intensive development of the region scientific sphere and by the rise of « satellite » urban policy. The new centres were specialized in modern branches of machinery and research-engineering activities and were undoubtedly very attractive for the population. Therefore towns like Dubna were growing rapidly. While the aim was to redirect part of Moscow population

growth, they display a quite specific relation with the capital. For instance, Muscovites working in Pushchino cannot reach their job every day because they lack transport facilities. Nevertheless, they don't wish to move and register their passports in the city in which they actually work, since they would have to give up their Moscow registration and then lose all Moscow privileges (see further). These new centres are isolated from information sources in Moscow. Poor telephone communications, lack of computers and telex systems hamper contacts and teamwork with colleagues in the city. It seems that material resources for experimental work in research centres are not sufficient to compensate for lack of information and communications. At the same time, poor transport links with Moscow and the other towns of Moscow oblast isolate the scientists from the higher standard of culture in the centre and from a well developed social infrastructure. An original home-work relation can be observed in Dubna: the Muscovites get the second registration of passports and live there in hostel apartments during 4 or 5 working days, during the weekends they go back to Moscow, where their families are living. The change of functions in Moscow oblast towns is still going on. Inside the towns of the first circle adjacent to Moscow, the share of employment in the non-industrial sectors and transport is growing. Inside the towns of the second circle (suburban zone) these changes lead to an increasing potential of non-industrial, industrial and construction functions. Finally, in the outlying parts of the region the further grovth of construction and industrial functions is observed and the organization potential is intensifying in some towns. The mcr towns display a crawling concen-

tration of the regional most important functions and their extension outside the boundaries of Moscow to the towns of the suburban zone. But the déconcentration of functions in the mcr is not only of natural- economic character. It also results from the state urban policy. Déconcentration is not related to the search for more advantageous sites for firms and institutions as regards to economic or social relations (the availability of cheaper labour force or more comfortable living conditions, etc.), nor is it sustained by the expansion of transport and communication facilities. Thus, this déconcentration is independent from curtailment of any function in central Moscow, whose potential is still growing, and it is also completely inadequate regarding the continuing concentration of population (see below). All this, together with the slow economic and territorial mobility of firms, is an obstacle to the economic restructuration of the region, and to the reorientation of Moscow and its suburbs to non-industrial activities and to progressive scientific and informational work. The mass labour-consuming functions still remain in Moscow and its suburbs, but they are inevitably cut off from modern types of activities.

The idea of alleviating Moscow's development appeared from the very beginning of its rapid growth, since the excessive concentration of population and employment led (as in the other major world cities) to environmental discomfort, worsening of transport, strip-holding of land and other congestion signs. In market economies, the firms react to alterations of economic or social conditions by their mobility: some

of them close, other relocate in more convenient places. In the USSR, the problem of firm transfer (unhealthy or unprofitable firms) becomes unsolvable because of the special type of production relations. Economic and territorial passivity of firms is apparent in the difficulties of erecting industrial buildings and dismantling machinery and equipment, in the low turnover of the means of production. The same problem exist regarding the labour force. Firms transferred to the suburban towns of Moscow oblast are encountering great difficulties in recruiting staff in sufficient numbers and of required skill. The local labour force is rather weak, while the Moscow workers wouldn't leave the capital to follow their firm, because they are afraid of being deprived of passport registration in Moscow. From the social point of view, giving up a Moscow registration is more significant to people than losing their job. The processes going on in the mcr are therefore not quite comparable with those in the Western world. The market economy is more «lively» and replacement of functions has the character of territorial waves. Some functions disappear while new ones emerge. In the mcr, the waves are replaced by stratification. New functions do not replace the old ones, but joining them. At the same time, this process of relative déconcentration of functions overpass the process of stable concentration of population. In the mcr, the modern branches are gravitated closely to Moscow, where skilled workers are retained by their registration advantages. Suburban towns have to be satisfied with commuters or specialists from the outlying regions of the USSR.

Suburbanization of population

The urbanization structure of the region is characterized by the predominance of its main centre - Moscow. The share of the capital in the total Moscow oblast population was as follows: in 1929 - 44,3 Vo, in 1939 - 51,6 %, in 1959 - 54,9 %, in 1979 -54,5 Vo, in 1985 - 57,3 % (Moscow Capital Region, p. 137.). Within the agglomeration, the share of Moscow is still higher, in 1959 it was 75,5 % and in 1985

- 67,3 % (ibid., p. 141), whereas in the highly developed capital regions of the world the agglomeration counts one half or less of the total population and of the economic potential, the second half being concentrated in the suburbs (Gritsay, p. 71). Moreover, the growth rate of Moscow population is higher than that of Moscow oblast (tab . 2).

TABLE 2. ANNUAL RATE OF POPULATION INCREASE,

Migrations are of great importance to the mcr. The internal migration of rural population to the cities is rather substantial, and the immigration flow from the rest of the USSR is not compensated by the decrease of rural population in the mcr. The nearer a town to Moscow, the larger the migration share in its total population increase.

The dynamics of population in the mcr has a specific character. In agglomerations of the developed countries the principle of the «broken glass» summarizes the suburbanization process. When, for some reasons, the centre loses its attractiveness the urban population moves to suburbs in search of higher living standard. In Moscow agglomeration the principle of the «overfilled glass» is operating. People wanting to live in Moscow cannot enter the city and are forced to settle near it. In Moscow immigration undoubtedly prevails over emigration, confirming the extreme territorial differentiation in conditions, level and way of life. As a rule, commuting is oriented from suburbs to Moscow (600 thousand persons come to Moscow and only 200 thousand leave it), but it accounts only for 12-15 % cf the total employment in Moscow's economy. Moreover, these commuters are not Muscovites but potential new inhabitants of the capital (striving for passport registration and domicile in Moscow).

Moscow became the most attractive place for living and an intensive flow of ruined rural residents as well as residents from other regions of the country were rushing -to Moscow. These processes were generated not only by the inception of the country structural economic transformation,

but also by the policy of special privileges for Moscow. These privileges came into being after the establishment of a centralized distribution system. Such a system involves the assignment of a priority level of foodstuffs and manufactured goods to each territory. Moscow was awarded the highest priority level. From the very beginning, better living standards and higher income for certain population categories were established there. In the thirties the artificial differentiation in living standards was confirmed by imposing restrictions to passport registration in the capital, and also by the division of administrative bodies into Moscow and Moscow oblast authorities. In the period 1925-30 dozens of new large firms were located in Moscow, but housing was insufficient at that time. Therefore, a great number of migrants from every corner of the country came to get a job in Moscow and settled in cottages in the nearby countryside. Soon, these settlements in the nearby countryside. Soon, these settlements turned into urban ones. For example, towns like Mytishchi and Luberstsy developed rapidly, and even Muscovites moved there when the railways were electrified. This was clearly the outset of a suburbanization process, but it stopped as soon as the restrictions on passport registration in Moscow were imposed and the social barrier between Moscow and Moscow oblast was established. In the period 1930-40, new industrial developments were banned from Moscow and firms drawn towards the city were located on the outskirts thus causing a rapid growth of the old and new towns. Although the development of cottages as second residence near Moscow started even before the revolution, since the en-

vironmental degradation of Moscow was practically completed at that time, they became the main resorts of those years. They had flourished in the districts with privileged natural conditions and convenient transport services (not further than 2 km from a railway station). In the period 1930-40, this sprawl of leisure housing carried on - cottage settlements expanded into an entire belt of scattered one- storeyed buildings. But at the same time, urban multi-storeyed housing also increased and after World War II these multi- storeyed buildings were found in the cottage settlements of the leisure zone. In the period 1950-60 a network of gardening associations was established. In those

years the most convenient land near Moscow had already been built on. The gardening plots allotted to the Muscovites were located in the remote parts of the mcr, outside the suburban zone, and very frequently they were on improper territories. Because of their remoteness, the difficulties in cultivation and building, the lack of infrastructure, these plots cannot become effective leisure resorts. More frequently Muscovites use them for fruit and vegetable growing.

The desire of the Muscovites for having a second residence in the suburbs can be interpreted as an unfulfilled suburbanization tendency. This desire has the same, mainly environmental, causes as suburbaniza-

tion in Western countries. The cottages within the reach of Moscow's traffic and having access to appropriate infrastructure and amenities, might become the principal residence of Muscovites if passport registration is abolished. The restrictions of passport registration in Moscow fixed in the thirties were devised as an administrative solution against the effects of Moscow's unique attractiveness and not as a means of eliminating the attractiveness itself. For this reason, Moscow became even more attractive, like a forbidden fruit. The consequences were both the concentration of the upper strata of society in the city and the extensive development of industry, resulting in a growing shortage of unskilled labour.

The shortage of regular workers in Moscow is sometimes explained by the increasing number of working places. An adequate planning of the «limiters» (1) system is then put forward as the solution for controlling the growth of Moscow is found in (Glushkova, 1988, p. 43). To be frank, about twenty industrial units and more than one hundred scientific institutions were already created in the seventies alone, in spite of the industrial building ban in Moscow, only a few firms moved outside the city in return. New industrial units easily find staff, since they offer new machinery, relatively good working conditions and higher wages. New scientific and administrative institutions are in a similar position. But the situation is totally different in the old industrial units, with rundown equipment and a high level of manual tasks. Those units suffer from a staff shortage. Moreover, as in any other city, there is a social mobility in Moscow, in most cases improving - from manual up to mental, from unskilled up to highly skilled work. Furthermore, the prestige of a higher education (university) is overestimated in Moscow, whereas the prestige of the manual professions has declined as a result of the stagnation of reinvestments in industry, the high share of manual labour (40 %), and also favouritism and

crowding in the administrative staffs. The attractiveness of an upper class position is therefore overestimated, and social mobility activated. Since Moscow cannot admit free «immigrants» the lower strata of the social structure are vacant and there appears a shortage of unskilled labour force. The lower strata of the social structure were filled in with « limiters ». Available employment in Moscow was not the cause of an organized immigration flow, but represented the only possible way to register the passport there. Roughly half of these people drawn into Moscow's economy left their jobs. «Limiters» get the right to register their passports in Moscow and take up their residence in new houses when their contract expires. They usually quit their job as soon as possible in search of better working conditions (Glushkova, 1988, p. 42). The nature of unskilled work in Moscow and the associated working conditions are so unattractive that it is nearly impossible to find Muscovites willing to perform them.

The institution of passport registration raised many problems. Thus the « limiters » are recruited in social groups not needing most of the advantages of a large city, their psychology and value system differ sharply from native Muscovites. The direct environment of the hostels where «limiters » live, has a pronounced criminal character. Fictitious marriage in order to register the passport in Moscow has become a widespread practice.

Moscow's environmental problems can hardly be solved as long as passport registration exists. The population is literally locked up within the city boundaries. Notwithstanding the environmental stresses, the Moscow privileges prevent the Muscovites from leaving the city. The urban districts not saturated with harmful industrial units are the most prestigious. The social and economic causes of Moscow's extensive growth reveal that its problems are a reflection of the ones facing the USSR. The concentration of economic, social and management functions in Mos-

cow in Soviet times materializes the strong centralism of the particraty and weighs down on the city's development. Low labour efficiency in agriculture and sheer desolation of villages on the one hand, rapid but extensive industrialisation together with forced increasing social attraction of Moscow, confirmed by the restrictions on passport registration, on the other hand, were the key factors of the mcr's polarization during decades. Together with objective factors found in other large cities of the world, subjective factors related to the Soviet political and economic system influence Moscow's growth.

The objective factors are as follows: the diversity of employment in the capital, the emergence of new types of occupations, the concentration of high-skilled and creative labour, the higher living standards, the large educational and cultural opportunities.

The subjective factors are the higher supply level of foodstuff and manufactured goods different than in other regions (the existence of meat-rationing system in many regions of the country and its absence in Moscow establishes a significant threshold not only in terms of supply but also in the outlook of the population); the lack of communications and individual motorized transport (in the rsfsr one counts 47 cars per 1000 urban inhabitants against 560 in the USA) (Argumenty i facty, 1988, N47, p. 2); the craving for joining the upper social classes and for accessing neighbourhoods with a high quality of life; unjustified promotion of upward social mobility releasing «the ground floors» of Moscow's economy; continued growth of employment due to the extensive economic development and the low economic and territorial mobility of firms. Today, the hierarchy of priorities for selecting a residence within the mcr and the whole country is as follows. Food supply comes first. The supply of manufactured

goods, the opportunities to obtain better and larger living quarters and to accede to a prestigious employment with a wage increase, social promotion, well developed consumer services come next. And only at the end of the scale appears the opportunity to fulfil cultural needs and education. Thus, there is a process of «pseudo- urbanization» characteristic of the Soviet economic and social system, superimposed on the process of «natural» urbanization. By natural urbanization we mean the process related to economic development and to the natural difference between rural and urban ways of life. The specificity, the structural changes and the hierarchy of city functions shape the migration flows conditioned by natural urbanization. «Pseudo-urbanization» points to «the scum» of the process, that may complete the economic and socially conditioned urbanization. The «pseudo-urbanization» is generated by a disproportionate development of the country's economic structure (hypertrophie share of industry; economic and political reforms have triggered off a massive flow of the peasantry towards the cities, related not with the rising but with the lowering of labour efficiency in agriculture, with impoverishment of the countryside and hence with the urge towards the centres of relative well-being), and by the territorial inequalities in standards of living, artificially created and maintained by the institution of passports and registration.

The suburbanization of population cannot be observed in the MCR. The centripetal tendencies mentioned above resulted in rapid growth of Moscow and its suburbs, as well as in some stagnation of its periphery. Thus Moscow agglomeration is now in the first stage of development, the stage of «crawling» concentration where centrifugal forces are very weak. This situation will last as long as the barrier in terms of standards of living exists between Moscow and Moscow oblast.

Conclusions

This study has reaffirmed the general lack of suburbanization in the Soviet cities. Some signs of suburbanization like the

transfer of some activities from Moscow to the suburbs, the concentration of population in towns and villages near the central

city and commuting, differ significantly pie and firms will emancipate, only if the from the Western cities. The process of ur- existing political and economic system in banization will take its normal course, peo- the USSR is dismantled.

Argumenty i facty, 1988, N47, p. 2 Argumenty i facty, 1988, N50, p. 3

GLUSHKOVA V.G. Questions of Interrelated Settlement in Moscow and the Moscow Region, Problems of Geography, vol. 131, Moscow, 1988, pp. 40-56.

GRITSAY O.V. Western Europe : Regional Contrasts at the New Stage of Scientific-Technological Progress, Moscow, 1988, 148 p.

Moscow in Figures. 1980, Moscow, 1981, 220 p. Moscow in Figures. 1985, Moscow, 1986, 240 p.

National Economy of Moscow Oblast. 1981-1985, Moscow, 1986, 271 p.

National Economy of the ussr. 1985, Moscow, 1986, 421 p. Yearbook of Labour Statistics. 1987, Geneva, 1987, 960 p.

Moscow Capital Region: Territorial Structure and Natural Environment, Moscow, 1988, 321 p.

(1) Limiters are unskilled workers, hired in an organised way by Moscow firms; after working there for several years of working they get the right to register

their passports and to take up their residence in Moscow.

• Best for customer satisfaction
• Best for older adults
• Best for long-term care
• Best for high returns
• Best for agent support
• Best for term life

How we review life insurance companies

Best life insurance of may 2024.

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

Life insurance is as complicated as the policyholders and beneficiaries who use it. That means there's no single "best" life insurance company. Instead, you can find the best option based on what you want or what you prioritize.

Best life insurance companies of 2024

While there is no such thing as the objective best life insurance policy, you will be able to find the best insurance policy for your specific needs. Here are our picks for the best life insurance companies, whether you want to use your life insurance policy to build wealth through cash value or you're just looking for a term life insurance policy .

• Best for customer satisfaction: State Farm Life Insurance

State Farm Life Insurance gets the best life insurance ranking in J.D Power's Individual Life Insurance Study, with a score of 843/1,000. The company is also ranked A++ with AM Best for its financial stability with term, universal, and whole life insurance options. 

All State Farm policies have to be purchased through a State Farm agent. Your agent can help you bundle and save or buy one policy. State Farm is also among the companies offering "survivorship universal life insurance ," which means the policy covers two people, and it kicks in after the second person dies. Couples looking to maximize their death benefit for beneficiaries with one premium payment each month may enjoy lower overall costs.

State Farm agents can run quotes and compare options to find the right plans for each applicant. The range of options, discounts, and familiar name all contribute to the popularity of State Farm's life insurance.

Read our State Farm Life Insurance review here.

Best for older adults: Prudential VUL Protector Life Insurance

Prudential Life Insurance is available in all states except New York. New York residents can buy the Pruco Life of New Jersey VUL Protector plan. This plan allows buyers to pull money out of their plan to pay for nursing home expenses. Cash value policy premiums are fixed, so you won't have to worry about extra costs later on. Internal costs are low, which minimizes risk. Due to age, many older adults want a safe investment option for their money. Prudential VUL Protector invests to avoid loss. That also means you're not as likely to see big increases in your available funds outside of what you deposit.

Read our Prudential Life Insurance review here.

Best for long-term care: Columbus Life Insurance

Columbus Life offers a wide range of riders to customize your policy with affordable premiums. The company also allows you to convert term policies to whole life insurance policies until the end of your term (generally around age 70). For this and many other reasons, customer satisfaction is high.

When using living health benefits (otherwise known as accelerated death benefits), buyers are allowed to pull money from policies early to pay for medical bills, living costs, etc. under certain circumstances. Most companies use a discounted death benefit, which reduces your final payout using two models. Columbus uses the lien method, which makes it easier to calculate the financial impact of pulling money out early.

Best for high returns on income: Allianz Life Insurance

Allianz Life plans are geared towards high-income adults looking for more tax-free income. Allianz offers a 40% multiplier bonus with a 1% annual assets charge. In short, the professionals managing your investments take 10%. Overall, your investments would pull in an extra 14%-1% asset charge. This means you end up with 3% more than what you deposit every year your life policy is active. This plan offers strong returns when using a life policy to supplement your retirement savings. Allianz also offers specialized plans to grow your income by as much as 20% according to some estimates.

Of note: Allianz also offers plans for foreign nationals, including those with H-1B visas.

Best for agents: New York Life Insurance

New York Life Insurance agents go through extensive training before they ever hit the sales floor. What does this get you? Policies vary widely, and New York Life offers both large and small payouts. Some policies have significant penalties for early withdrawal, but taking a loan offers more options. Whatever your questions, New York Life agents are trained to offer comprehensive support giving you accurate information about its policies every time. The company comes in at position eight in J.D. Power's latest life insurance customer satisfaction study.

Read our New York Life Insurance review here.

Best for term life: North American Life Insurance

North American Company offers term policies alongside accelerated death benefits for critical, chronic, and terminal illnesses and more. The company allows one conversion on a 20-year policy at 15 years or 70 years old (whichever is earlier). The conversion cannot happen later than the five-year marker regardless of which policy you choose or the length. North American Company also offers a term policy with a lower premium renewable up to the age of 95 for qualifying insureds.

Summary of the best life insurance companies

• Best for older adults: Prudential Life Insurance
• Best for agent support: New York Life Insurance
• Best for long-term care: Columbus Life
• Best for high returns: Allianz Life
• Best for term life: North American Company

How to pick the best life insurance policy for you

Finding the right fit in life insurance starts with finding a trusted insurance agent. Because there are so many state regulations, shopping for homeowners or auto insurance can be easily done online. Life insurance is not required. So it's a voluntary purchase. Many buyers don't know what they need or when they need it. Before making your selection, consider a few things:

Some companies will sell you a policy for your child as soon as they're born. While this may seem morbid, early sign-up means lower rates for a policy your child could enjoy in the future. Regardless, early sign-up equates to more policy for lower premiums and a higher likelihood of acceptance. At 20, you may be healthier and be able to pay into the policy for a longer period compared to when you're 50 with more age-related conditions.

As a general rule, never agree to more than you can afford. For the average life insurance agent, their job is to sell you a large policy with a large commission. Consider not only how much you make now, but how likely your current income is to continue. If you work on a project basis and your project is scheduled to end in 12 months, you may want to reconsider a policy premium outside your monthly savings.

How much are you prepared to buy? Some people only want a small policy to cover funerals and other end-of-life expenses. Others build a life policy into their retirement plan. Whatever direction you're going, involving a financial planner could help you make the right decisions. Depending on the carrier, customers can also compare set limits with index universal life policies, which set no limit. These policies never expire, and the value builds over the entirety of your life.

Living Benefits

Life happens unexpectedly. You could be healthy one day and in the hospital the next. Many life policies offer living benefits. These allow you to draw a limited amount out of your policy to cover medical and other bills you cannot pay while sick.

Much like a 401(k), many life insurance policies have penalties for early withdrawal. No matter what policy you want, this question is critical to an informed decision. It's a question of how early you can withdraw and how much you'll lose from the total to have the money in 10 years instead of 30 or after death.

Some policies require insured parties to pay premiums for at least one year before any significant payout would be available. Suicide exclusions are common. Even with no medical exam policies, the company may still do a check for known conditions. An insurance company has to mitigate its risk.

Flexibility

Once you've been denied a life insurance policy, a mark goes on your record. No matter the reasons, other insurance companies may deny you coverage based on the first denial. So consider your whole situation and choose your policy carefully before you submit any applications. Some policies have greater flexibility if you lose your job or otherwise can't make payments. Others will lapse if you miss even one payment.

Payment Type

Even within whole life or term life insurance policies, customers have the option to choose guaranteed fixed or variable rates. Some have guaranteed payouts, but you'll need to ask your agent for details.

What is your intended use? Why are you shopping for a life insurance policy in the first place, and what are your goals? Many successful financial planners also have a background in life insurance. So while they may not be able to find you a specific life insurance policy, financial planners can help you set out a blueprint for your purchase.

In life insurance, it's easy to get "sold a bill of goods." Many life insurance agents pass a state test to be thrown into the deep end. Agents sell the company product, but not all know the products. In this vein, we look at the products each company offers. We also look at agent training.

A good life insurance agent may not volunteer all facts upfront. But a company's agents should answer questions about its products accurately and in a way the average consumer can digest. Agents should be able to inform you about the long-term benefits and limitations. This will help customers find the right policy for their long-term plan.

We consider affordability, policy sizes available, and performance for a comprehensive assessment in our insurance rating methodology . If you can, we recommend also working with a financial advisor to make a plan for your future with life insurance.

Our Expert Panel for The Best Life Insurance Companies

To inform our choices for the best life insurance companies, we spoke with the following experts:

• Paul LaPiana , head of product at MassMutual
• Barbara Pietrangelo , CFP, CLU, and chair of the nonprofit Life Happens
• Wykeeta Peel , Corporate Vice President and Market Manager, African American Market Unit at New York Life

The Experts' Advice on Choosing The Best Life Insurance for You

How much life insurance coverage do you believe the average buyer should have.

Paul LaPiana, Head of Product at MassMutual

"There are different approaches to determining how much life insurance you need. One is the 'human life' approach, which estimates the current value of your future earning potential. Another is securing specific coverage to pay off debts such as a mortgage or provide for the education of children. A comprehensive protection plan should provide the right amount of coverage over the course of your working life and into retirement."

Barbara A. Pietrangelo, Chair of Life Happens

"There is no one-size-fits-all life insurance policy because everyone is different. One way to get a rough estimate is to multiply your income by 10 to 15; another is adding $100,00 to that amount, should you have a child and anticipate college education expenses.

Your best bet is to talk to a financial professional or use the Life Insurance Needs Calculator on LifeHappens.org to analyze what's right for you."

Wykeeta Peel, Corporate Vice President & Market Manager African American Market Unit at New York Life

"As you consider what policy best meets your needs, it can help to answer four key questions: First, how much death benefit do you need? Second, how long will you need that coverage? Third, what is your budget (or how much monthly premium can you afford to pay?), and finally, what is your investment risk tolerance?

To determine how much death benefit makes sense, it's helpful to think beyond using life insurance to cover funeral expenses and consider whether anyone is relying on the policy owner's income to maintain a lifestyle, pay rent or a mortgage, or fund a child's education and for how long.

There are various rules of thumb regarding the right amount of Life insurance coverage. Some tips can be found online, but they only provide an estimate and don't necessarily factor in an individual's specific needs. In my opinion, human guidance, powered by technology, is required. Basically, it comes down to how much money your loved ones would need to remain on firm financial ground if your earnings were no longer in the picture and that is different for everyone."

What is the biggest opportunity you see for improvement in the life insurance industry?

"Increased accessibility through digital and other channels as well as through underwriting enhancements. Increased tailoring of products and features. And an increased emphasis on health and wellness programs."

"Having enough qualified insurance professionals to walk potential buyers through the multiple benefits of life insurance will be pivotal to the growth of the industry. Education is a key factor here, as professional agents also need to be able to explain life insurance and its benefits in an easy, digestible way, especially when there are so many misconceptions about life insurance."

"The need for life insurance is greater than ever. In fact, a recent New York Life Wealth Watch survey found that 37% of adults have been thinking about life insurance more often these days – and half of adults report that financial products that provide protection (50%) and reliability (50%) are more important now compared to last year. This may be especially true for middle-market and Cultural Market families.

Our organizational structure of having Cultural Market agents embedded in the communities where we live and work allows us to understand the needs of diverse communities and develop solutions that resonate with them."

What advice would you give to buyers who are debating whether or not to buy life insurance?

"It is difficult to say with any certainty how healthy you will be years from now. That's why securing life insurance, and insuring your insurability, today, when you are the youngest you'll ever be again, and perhaps your healthiest is a wise decision."

"Do you love someone? If the answer is yes, then life insurance is certainly something you should consider. Many buy gifts and experiences to express their love, but haven't considered that life insurance is just another way to say I love you. Nothing says support like ensuring your family's financial security and peace of mind."

"If you have someone depending on your income, you should consider purchasing life insurance. A death benefit from a life insurance policy can replace income from the loss of a breadwinner, ensure a family can stay in their home, fund educational or retirement expenses, address debt and so much more.

A life insurance policy can also help you grow your family's wealth over time. Once the risk of an unexpected loss has been managed, you can begin to think more broadly about your family's financial future. Life insurance can enable your mindset to shift from death to growth."

What's the most important thing buyers should look for when choosing a life insurance agent/company to buy from?

"With life insurance, you are securing a future commitment that may be decades away. Research the company behind the policy to ensure it has high financial strength ratings, longevity, and an excellent track record of paying claims."

"When looking for an insurance agent or company, be sure to do your research. When comparing companies, be sure to remember that the policy features that fit you and your loved ones best is the most important factor. Don't automatically assume you should buy from the higher-rated company.

If the policy from the other company has more of what you're looking for, it might be the better choice. If you're unsure where to start, try the Life Happens Agent Locator to find an insurance professional in your area."

• "The insurers' track record: At its core, life insurance is protection - a hedge against the unexpected - and you are paying premiums in exchange for the promise that the insurer will be there when you need them, so the financial strength and track record of the company backing your policy is critical.
• Customer service: Are service professionals available by phone and digital channels? Is there is an online dashboard where you can manage your policy? Beyond ensuring assistance is available after you purchase a policy, it's also critical to ensure you have access to trusted advice and guidance before you buy.
• Flexibility in conversion: How easy is it to change? Life can be unpredictable and while term insurance can cover your loved ones through a critical period of time, you may decide that access to cash value is an important piece of your strategy.
• Accelerated online applications : Online applications are convenient but don't replace human guidance. Keep in mind that accelerated online applications may have a maximum coverage amount, meaning that you may not be able to get all the coverage you may need exclusively through an online process.
• A range of payment options: It's important to understand how often you're required to make premium payments and whether and how often you can change the frequency of payments."

Best life insurance FAQs

According to JD Power's 2023 life insurance study, State Farm is the highest-rated life insurance company when it comes to overall customer satisfaction. However, you still may want to shop around for quotes from various insurers if you're looking to purchase a new policy.

There isn't one best life insurance company, because the best option for you will depend on the type of policy you're looking for. It's best to work with a qualified insurance agent to help you find the best coverage. If you're deciding between multiple similar options, it's also worth consulting J.D. Power's life insurance customer satisfaction study . The latest study ranks State Farm as the top pick for individual life insurance, outpacing Nationwide by three points.

The best type of life insurance policy for you will differ from someone else's, as your policy should be tailored to your needs. The best policy for you will be affordable and will offer the benefits best suited to your situation. For example, some policies are only meant to cover end-of-life expenses such as burial and funeral arrangements, whereas others include living benefits like a cash value insurance plan , which you can borrow against during your lifetime.

Some life insurance policies are advertised as "no medical exam." This doesn't mean the insurer won't ask you about known conditions or look at medical records. Policies with no medical exam also tend to offer lower benefits with higher premiums. Most companies have a network of medical examiners, some of whom can come to your home. You can find our guide on the best no exam life insurance here.

Each situation is different and requires a knowledgeable life insurance agent to assess your best options. Bring all your questions and the coverage you're looking for to an insurance agent near you to explore your options.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

**Enrollment required.

• Main content