There are many life insurance companies in the market today. The purchase of a life insurance policy is an important financial decision – and it is one that could essentially impact the financial future of the insured, as well as his or her beneficiaries. In many instances, a life insurance policy may be in-force for a number of years before it is required to pay out its death benefit proceeds. With this in mind, it is essential to know how to determine the best life insurance companies in the market today – as well as those that are likely to still be in business for many years in the future.
There are thousands and thousands of different insurance companies on the market, which can make finding the perfect plan an overwhelming process. Luckily, we are here to help connect you with the best plan to meet your needs.
How To Determine The Best Life Insurance Companies
Locating a reputable life insurance company involves finding out various criteria that, when combined, signal that the insurer is financially stable, and has a good reputation for paying its claims.
In order to conduct business in a particular state, insurance companies are required to meet certain standards, as well as to comply with specific state insurance regulations and laws. If a consumer does purchase insurance from a company that is not licensed, he or she will have little recourse if they have an issue. Worse yet, should an unlicensed insurer go out of business due to bankruptcy, consumers who own policies through that company will have no protection under the state’s guaranty associations.
Each state has its own department of insurance. These agencies can provide consumers with important information such as:
- Whether the insurance company is licensed to do business in a particular state (or is licensed at all as an insurer);
- The length of time that the company has held its license;
- The company’s contact information such as its address and phone number;
- Statistics on any complaints that have been filed on the company, as well as the number of such complaints that have been filed over the past few years;
- The ratings that the insurance company rating agencies have assigned to the company.
What The Life Insurance Company Ratings Mean
Life insurance company ratings can be compared in many ways to a “report card.” There are two key areas in which insurers are typically rated. The first factor includes the company’s financial strength. Here, an insurance company is rated based on a quantitative and qualitative analysis of its operating performance, the strength of its balance sheet, and its overall business profile. Letter grades are used to indicate how an insurer rates in this category.
Life insurance companies are also rated based upon their financial size. This rating can offer an indication of the total size of an insurer based on several factors, including its technical or conditional reserve funds, its policy holder surplus, other investment and operating contingency funds, and various other miscellaneous reserves that are reported as being liabilities.
The top insurance company ratings agencies in the U.S. include:
While each of these agencies provide ratings that differ somewhat from each other, overall the insurance companies with the higher letter grade marks will be considered to be the most stable and financially secure in terms of payment of their insurance claims.
Life insurance company ratings may be obtained via phone, through the mail, or on the Internet. In checking with a rating agency, it is important to understand what the ratings that are assigned to a particular company mean. It is also a good idea to compare an insurer’s current ratings with any past ratings that it has received in order to get a better idea of whether or not the company has run into any recent financial or liquidity issues.
Getting Cheap Life Insurance
One of the most common reasons that people don’t purchase life insurance is because they assume that a policy is going to be too expensive to for in their budget. In most cases, that couldn’t be further from the truth. There are several ways that you can ensure that you’re getting the lowest premiums available. Making a few simple changes
The first thing that you should do is eliminate any tobacco that you currently use. If you’re listed as a smoker on your insurance application, you can expect to pay much higher premiums. In fact, smokers are going to pay twice as much for life insurance coverage versus what a non-smoker is going to pay. If you want to get the lowest insurance premiums, you’ll need to kick the bad habit once and for all.
Another way that you can secure better premiums is by starting a healthy diet and getting regular exercise. Both of these can help you lose weight, lower your cholesterol, and drastically reduce your chances of being diagnosed with severe health complications. This is a great way to get better results from the medical exam, which is going to translate into much lower premiums.
The best way to know that you’re getting the best plan is to work with an independent insurance agent, like one of ours. Unlike a traditional insurance broker, independent agents work with dozens of highly rated companies across the nation. That means that we can bring all of the lowest premium rates directly to you.
Locating The Top Life Insurance Companies
When shopping for a life insurance policy, choosing a plan that fits your specific needs is essential. Majority of applicants seeking life insurance coverage will be required to undergo a physical exam to determine how much of risk they are to insure, though there are companies out there that offer a no medical exam life insurance policy for those individuals with health issues. Yet, it is also of great importance to choose a policy from a company that will be there when you and your beneficiaries need to file a claim.
Shopping carefully for the right policy from the best insurance company may entail doing some comparisons and other research. However, the time that it takes will be well worth it. Working with a reliable life insurance professional can also help, as he or she will be knowing exactly what is being purchased.
When making any type of financial decision, it is imperative to go in with a good understanding of where your funds are being used. This is especially the case when working with an insurance company that loved ones will be depending on for funds to help pay off debts as well as to secure their ongoing lifestyle in an already stressful time.
Calculating Your Life Insurance Needs
Before you apply for insurance coverage, you’ll need to ensure that you’re getting know life insurance protection for your family. When you’re calculating your life insurance needs, there are several factors that you should account.
The first thing that you should look at is your debts or any final expenses that your family would be left with after you pass away. Be sure to add up your mortgage, car payments, student loans and much more. It’s important that your family has the money that they need to pay off all of your bills.
The next number that you should crunch is your annual income. If you’re one of the main sources of income in your family, they could struggle financially without your paycheck. The secondary goal of your life insurance plan is to give them the money that they need to pay for basic expenses.
We know that finding the perfect life insurance policy can be a long and difficult search, but it doesn’t have to be. Our agents can help you find the best policy to meet your needs. Nobody wants to think about his or her own death, but it’s important that you plan for the worst to ensure that your loved ones have the protection that they need.
Because you never know what’s going to happen tomorrow, means that you shouldn’t wait any longer to get the insurance protection that they need. If you have any questions about life insurance or about the best company to meet your needs, please contact one of our agents today. We would be happy to answer those questions and ensure that you’re getting the best plan for you.