Choosing the Best Life Insurance Company
There are keys you can use to unlock the confusion in selecting the best life insurance company. It is essential to understand that no one individual “right” insurance company fits everyone. A company that may have been the best company for a relative, friend, or co-worker may not be the best choice for you.
There are two basic factors regarding purchasing life insurance
- The length of time the coverage is needed
- The amount of coverage needed
After you have these two questions answered, how do you choose the best life insurance company for your situation? More people choose term insurance than any other life insurance product in the U.S. There are over 852 active U.S. companies to choose from that sell life insurance in the U.S. They can range from companies that sell a few hundred policies each year to companies that have millions of policies in force. You want a company that offers the best combination of quality, service, and price. Here are the keys to help make the decision easier.
Key 1. Check Financial Strength & Company Ratings
Companies are required by law to maintain more substantial reserves to guarantee they can meet their future obligations. Life insurance companies today are in excellent financial health. In choosing the best life insurance company, the best way to check the financial health of a company is to look at its ratings. Ratings are an important factor when making your selection to purchase.
The primary credit rating agencies are A.M. Best, Standard and Poor’s, Fitch Ratings, and Moody’s. Of these, A.M. Best Company is widely considered the premier rating agency for life insurance companies. A.M. Best ratings include:
- Superior (A+ to A++)
- Excellent (A to A-)
- Good (B+ to B++)
- Fair (B to B-)
- Marginal (C to C++)
- Weak (C to C0)
- Poor (D)
Typically, we only use companies that have earned an “A-” rating or better. However, a company that is rated B+ (good) might be a better selection than a company rated “A.” Especially if the B+ company has more additional benefits to choose from that are important to you.
The B+ rated policy might have a higher premium, but it just might be your best choice. It is important to note that some companies are not trying to be the least expensive company, that is not their goal. These companies might include living benefits enabling you to access benefits while living or a return of your premium at the end of the term period. Choosing one of these companies might be your best choice.
Choosing The Best Life Insurance Company
Top 10 Best Life Insurance Companies We Recommend in 2020
We can always have a policy issued with another company besides the ones listed below if you prefer. These companies have exceeded our expectations time and again. Companies with a* use the innovative “accelerated underwriting process.”
- American General
- Mutual of Omaha
Key 2. Check Longevity
How large is the company and how long have they been in business? Do you choose a large company? In other words, does the size of a company matter? The answer is, “yes.” Some companies have been in the business back to the 1840s. If a company has been in business that long you can be sure it understands the insurance business and knows how to meet financial obligations. You want a strong history of paying claims on a timely basis.
Some smaller companies have been around just as long also understand the insurance business and know how to manage assets and risks. They should not be discounted just because of size.
Key 3. Compare costs
The premium is the amount paid monthly or annually for the death benefit and any additional benefits you choose to add to the policy. This cost varies widely among insurance companies. When determining how to select the best life insurance company, consider that a life insurance policy with one company can cost twice as much when using another company with the same benefits. Cost is determined by the amount of insurance you are purchasing, how long you want the coverage, your age, health,
Key 4. Compare Underwriting Guidelines
Those who issue policies are called “underwriters.” Choosing the best life insurance company depends heavily on exhaustive knowledge of each companies underwriting guidelines. Underwriting guidelines vary widely by companies and change on occasion. These underwriting guidelines determine your insurance premium and if you qualify for life insurance protection with the company. Note, if you are turned down or made an offer at an unaffordable price by one company does not mean the same result with another company. Every one of us is unique, and underwriting guidelines are different for each life insurance company. Remember, each company looks at you differently.
Each of us has a unique height and weight, and we have unique occupations. Some occupations are quite dangerous, and others are relatively safe. We are either male or female, and we were born in different places in this world. We have unique family histories that have unique genes that affect our physical, mental, social, and disposition to future medical conditions.
All these factors are taken into consideration before insurance companies can make you an offer. Our goal is to align you with the company that fits your unique needs, health, and lifestyle so that you have the highest opportunity at qualifying for the top health category with only the top-rated carriers. Each company has a unique niche in the marketplace. We consider all these things, the company, and your unique situation when deciding which life insurance company is the best choice for you. If you are a non-resident, there are other factors to take into consideration.
Key 5. Check Complaints
State departments of insurance regulate life insurance companies and, they track complaints by consumers. One well-known company may have thousands of complaints in a year and still have an “A” rating. Their customer service might be the problem and reason for the complaints. Others with a similar rating may have less than ten complaints a year. However, their customer service might be outstanding. Checking complaints is only another key in selecting the best company.
How to choose the best life insurance company is to select the company that provides you with the right product at the right price. It should have a record of excellent customer service. The company has financial solidity and the ability to meet the obligation to your beneficiary when they come due.
Key 6. Check Conversion Options
Most policies sold are term policies; that number is 80%. Policy conversion allows you to change your term policy to a permanent policy, such as universal life or whole life policy. Converting enables you to keep the life insurance protection for the rest of your life and is a valuable benefit. Having this feature allows you to change your policy without having to take a medical exam or re-qualify for life coverage. Policies typically are converted through age 70 or 75. Policy conversion can be earlier before the term expires if you choose to do so. A good reason to convert a life insurance policy is a severe medical condition that develops before the end of the term period. Not converting and letting the term policy to expire, depending on the severity of the medical condition could mean that you could not qualify for another term policy or end up paying a high premium because of a high rating due to the medical condition.
Key 7. Contact an Independent agent
When you ask yourself how to pick the best life insurance company, you have done the research, you know how much insurance you need, and you know how long you want the coverage. You have taken into consideration the financial strength, company ratings, and longevity of various companies. You have taken the time to check complaints, and you have narrowed your search down to a few top life insurance companies and even run some quotes.
The next step in choosing the best life insurance company is to contact an experienced independent agent. As an independent agent, we have extensive knowledge of the life insurance industry and company underwriting guidelines. As independent agents, we know how to qualify you for the best possible life insurance rates using the best company. As independent agents, we listen and are committed to helping you find the best policy tailored to your individual needs.
Why use strahan financial services
Many of the websites offering life insurance are call centers with cubicles of agents using a script to sell life insurance. Some of the websites sell your information to 10 or more agents. This action results in you receiving many unwanted and unnecessary calls. We are not a call center.
Our staff has extensive knowledge of the insurance industry. With 852 life insurance companies active in the U.S., we only represent the top 1% of the market place. We know the companies, the products they offer, and we use the latest technology to improve your experience and get your policy issued as fast as possible at the least expensive rate.
You can even run a needs analysis, health analyzer, receive quotes, select a product, and a carrier and complete a pre-application on your own!
Some of the top-rated companies we work with are Mutual of Omaha, Transamerica, SBLI, Protective Life, American General, and Prudential, to name a few. We are not obligated to any company, finding the company that is the right fit for you, at the lowest possible price with the best rating and benefits is our goal. You can also find our agency, Strahan Financial Services, listed on the Term4Sale website along with other useful information.