It can be overwhelming to pick the right life insurance company to go with because there are so many to choose from. Of course getting multiple quotes is a good idea, but the main thing to focus on is financial stability and reputation.
Look for high financial strength ratings by reviewing the company with:
• A.M. Best (Look for a rating of A (Excellent) or higher
• Standard & Poor (S&P) (Look for AA- (Very Strong)
• Moody’s Investors Service: Look for A1 or higher
Review their customer service ratings because even a financially stable company won’t do any good if you can’t get ahold of them. J.D Power publishes an annual study on customer satisfaction in the life insurance industry. And check the NAIC (National Association of Insurance Commissioners) for the Complaint Index. This is a record of the complaints an insurance carrier has received.
Check their longevity and ask yourself how long they’ve been in business? Do they have a proven track record showing financial stability and management?
The next thing you need to look for is product offerings and features that fit your unique needs. Some companies only offer a few types of life insurance products, while others may have different options. You need to understand some basics:
Term Life: Provides coverage for a specific number of years (typically 10, 20, or 30). It is generally more affordable and best for covering a temporary need such as paying off a mortgage, or providing financial security for children until they’re independent.
Permanent Life: Provides coverage for your entire life and builds cash value over time. It’s more expensive but can be used for estate planning, long term savings, wealth building, or college planning.
Riders: These are optional features that can customize a policy. For example, a lot of companies offer Waiver of Premium for disability. If you become disabled and can’t work while you’re still paying the policy, the company will waive the premium. People are often shocked to find out that there’s a life insurance rider that pays a portion of the death benefit out of you develop a chronic or terminal illness. Other policies have customizable premium investment options.
Finally, a good life insurance agent can be a valuable resource. An independent agent can shop policies from multiple companies for you, helping you compare prices and features to find the best fit. They should also be able to explain the pros and cons and compare companies in a transparent way.
As an independent agent, I work on your behalf—not for a single insurance company. Unlike captive agents who only offer one company’s products, I have access to multiple carriers. This allows me to compare options and help you find competitive rates from carriers I’ve already researched, ensuring you have a reliable plan that fits your needs.
I’m happy to help you bushwhack and get through the weeds of buying life insurance by reviewing your unique needs. Coverage and rates vary by carrier and underwriting, so I help you compare your options based on your individual situation. Please give me a call at 719-203-4025 or emailing me at sam@discerninsurance.com
Disclaimer: This article is for general educational purposes only and is not legal, tax, or financial advice. Product availability, features, and eligibility vary by insurer and underwriting. Coverage is subject to policy terms, conditions, limitations, and exclusions. Please contact Discern Insurance for a personalized review.