No one likes to think about their death, but it’s important to be prepared in case an accident or unexpected illness occurs. If you’re in need of life insurance, there are many different companies out there offering plans at different prices and with different benefits. Make sure you take the time to find the best life insurance company by following these five tips.
1) Understand your needs
The first step to finding a life insurance company is deciding what you need and how much coverage you need. You’ll want to take into account a variety of factors, including: your overall financial picture (assets, debt, etc.), your dependents, heirs and beneficiaries.
Some companies specialize in certain situations—for example, term life insurance or whole life insurance—and some will have better deals than others depending on who you are and where you live. The best place to start is with research: What does it cost? How long does it last?
How much coverage do I need? Are there any hidden fees or ways they could make money off me?
Top Three Tips to Find the Best Car Insurance Policy
6 Ways to Capture the Cash Value in Life Insurance
2) Get quotes from at least five companies
It’s extremely important to shop around and get as many quotes as possible from different life insurance companies. Doing so will give you a chance to compare rates and find out which company will offer you the best deal based on your budget, health and other personal factors.
This step is critical to ensuring that you end up with a plan that’s right for you and your family. After all, when it comes to something as important as life insurance, there’s no room for mistakes or surprises.
3) Look at a company’s financial health
The most important factor to consider when choosing a life insurance company is its financial strength. Look at a company’s independent ratings (Moody’s and Standard & Poor’s) or ask your agent if it has been placed on any watch lists.
It should also have an A rating from AM Best, which specifically evaluates life insurers on their ability to pay out claims. You can check out our list of best life insurance companies here .
While you can find plenty of companies with strong financial health that sell policies online, local agents may be able to offer better rates based on your specific needs.
4) Check out customer service reviews
One of my pet peeves is bad customer service. And as a business owner, I understand how important it is to not only have good customer service but also to ensure your customers are 100% satisfied with your product or service.
One of my first steps in choosing a life insurance company was to check out their reviews and see if they were rated highly by past clients and consumers. In addition, you can always reach out to those you know who may have bought life insurance in the past and ask them how their experience was and if they would recommend that particular company.
Researching these types of things before making an important purchase will keep you from regretting your decision later on down the road.
5) Choose a policy that makes sense for you
Before you even think about comparing life insurance companies, you need to sit down and consider how much life insurance you need. Once you know how much coverage your situation calls for, it’s time to start shopping around.
But don’t simply choose one policy and sign on the dotted line—you may be paying too much. Comparison shop first and see if there are better deals out there.
You can often do a comparison yourself online or contact an independent broker or agent who will assist you in getting multiple quotes from different carriers. Some states require that you get a physical exam before purchasing a policy so make sure to include that in your budget, as well.