Choosing the Right Life Insurance Company Author:    Posted under: Life InsuranceLife Insurance questions answered

It’s a guarantee: looking for the right life insurance company for you will be a lengthy process. It will take up a lot of your time, effort and energy to get to know each company before finally deciding on one. But in the end, you or your family will be able to reap rewards that no amount of time or money can make up for. And that is peace of mind.

We all wish to take care of our loved ones, and make every effort to ensure their security. Purchasing life insurance, especially the right coverage for you and your family is not a decision you would want to put off.

The question is, where do you start? What do you look for in a life insurance company? How do you find the right fit?

Price. In this age of internet and readily-available information, it is very easy to get online quotes from different life insurance companies. The cost of a life insurance is very important, especially in these hard times. But some people make the mistake of simply choosing on a company based on the price alone. Get as much quotes as possible and compare them but don’t stop there.

Financial security. You don’t want a company that avoids paying out its death benefits to legitimate and valid claimants. Look at each company’s financial ratings so you get a better picture of their financial strengths and weakness. A number of independent insurance ratings agencies including Moody’s, Standard & Poor and many others. These will help you determine their stability and recognize which ones you can trust to honor policies in a timely manner.

Customer service. Check out what kind of customer service is made available to you. Are there agents you can reach 24/7 in the event that a death occurs? Will someone be on hand to answer your queries about your life insurance policy or your premium payments? Are they able to answer your questions satisfactorily? Great customer service makes all the difference to those left behind in such an upsetting and confusing time.

Claims history. It is important to look at a company’s claims history before deciding to purchase insurance with them. This will show you a percentage of claims paid, and those that have been denied and contested. Looking at their claims history will give you an idea whether the company pays for legitimate claims or not.

Complaints. The truth is, there is no perfect life insurance company. There will always be dissatisfied customers and you will find them easily enough just searching the internet, but how do you know which is true or not? One thing that will help put your mind at ease is checking with your local Better Business Bureau or your state’s insurance department to see if there are any registered complaints against the life insurance company. See if any corrective steps have been taken by the company or if any disciplinary action has been executed. If the overall pattern reflects poor ratings, then it’s better to move on to the next company in your list.

Read the policies. Once you’ve narrowed down your list of life insurance companies, read each prospective policy carefully. Find out what exclusions, riders or restrictions there are and why they are in place. Usually, companies will allow you to add a rider if there is a specific coverage you want that is not included in the initial policy, but this will cause an increase in rates.


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