Whilst it is perhaps not something that most of us like to think about, life insurance is very important as it ensures that our family and loved ones are well taken care of after we pass away. There are thousands of companies that offer life insurance so it can be difficult to decide which is the best choice for you.
In this article, we will explain the five attributes to look out for when choosing a life insurance company to help you make the most informed decision that you can.
A secure financial state
The first attribute that you need to ascertain is whether or not the life insurance company has stable finances. The reality is that you need the company to still be in business after you pass away to ensure that the money gets paid out to your loved ones. There are independent rating agencies, each with their rating scale, which can give you detailed information about the financial health of any life insurance company that you are considering. Many life insurance companies will show their financial ratings on their website. We looked at this website where Primerica offers life insurance and found that they have an A2 rating from the independent rating agency Moody’s and an A+ rating from AM Best. If the life insurance company doesn’t display it on their website, then check with the rating agencies. It is best to find out the rating from at least two of the agencies as they are often in disagreement.
A strong record
The second attribute that you should look out for when choosing a life insurance company is that it has a good track record of service. The last thing you want is that your insurance company tries to wriggle out of paying out to your loved ones. Check online for customer feedback which can tell you how the life insurance company that you are considering treats its customers. As well as online reviews, you can check the website of the insurance department in your state whose role it is to regulate the insurance industry. You will be able to find any complaints about insurance companies that the department has investigated and details of their policies, premiums and general business practices.
A good range of products
The third attribute that you should look out for when choosing a life insurance company is a good range of products. There are three main types of life insurance; whole life insurance, universal life insurance, and variable life insurance. Do your homework and decide which is the best type of insurance for you and then find out if your preferred insurance company offers it. These days insurance companies are coming up with interesting new policies like discounted rates if you can prove how much exercise you do each week. Make sure to do thorough research before choosing a life insurance policy, and remember that with so many companies to choose from, it is a buyer’s market. Take your time and make a considered choice.
The fourth attribute that you should look out for when choosing a life insurance company is that it offers affordable, competitive rates. Insurance policy rates can vary a lot, so it is very important that you fully understand all the details of any policy that you sign up for. Again, it is very important to remember that there are so many insurance companies that it is vital to shop around. Just because one life insurance company offers you bad rates, don’t think that other companies will offer the same, regardless of what they might try to say to convince you. There are loads of online life insurance comparison tools, so make sure you do your homework to get the best deal. You’ll also want to consider your own personal health, as life insurance companies will all view a person’s profile differently. Melissa Thompson of Diabetes 365 states ” Every life insurance company will have their own set of underwriting guidelines. As an example, a person with a history of Diabetes will be viewed differently from company to company. Because of this, life insurance for diabetics will be viewed on a case-by-case basis by companies. Certain companies may be more ideal compared to others when you have a type of chronic illness.”
A mutual company
One final attribute to look out for when choosing a life insurance company is if that is a mutual life insurance company rather than a publicly-traded company. Mutual insurance companies are owned by the policyholders, which will include you if you decide to go with that company. At the end of each year, the insurance company’s board pays out dividends to all the policyholders, which you can use to pay for your policy or receive in cash for other uses. Whilst not the most important attribute to consider when choosing a life insurance company, it is certainly additional food for thought.
Choosing life insurance is an important decision and requires thorough research and careful consideration. Look at the attributes laid out in this article and you will have the best chance at choosing the right company and policy for you.