LIFE INSURANCE: WHICH LIFE INSURANCE COMPANY IS RIGHT FOR YOU?

When you’re shopping for something, it’s normal to take your time going through all the available options in the market. The internet has made it even easier to access information that can help you make informed decisions about your purchase, and more often than not, the brand or company responsible for a particular product is a major consideration.

It’s the same with life insurance. It is still a product, something that you will be spending your hard-earned money on over a period of time. Hence, you have every right to think carefully and thoughtfully about which life insurance company offers the kind of financial protection that best fits the needs of your family.

When it comes to narrowing down your list of possible providers, one important item to note is the stability of the life insurance company. You can measure this by looking at certain numbers, such as premium income, total assets, reserves (or the funds that are set aside in anticipation of future pay-outs), number of years the company has been in existence, and number of customers (or policyholders, as the life insurance industry says). These financial figures are good indicators of the ability of a life insurance company to fulfill their promise to you. They can also give you an idea of how a life insurance company is doing in terms of growth and sustainability. If you already have a couple of companies in mind, you can simply check their corporate websites for this type of information. You can also check to see which are highly-rated, but keep in mind that some ratings companies receive payment and thus may be tilting the scale towards paying partners.

Reputation is closely linked with stability, and is associated with market perception. A life insurance company can post impressive numbers, but at the end of the day, you want a provider that will deliver on its promises in a timely manner. An insurer’s claims history can be used as a reference point, although bear in mind that a large figure does not necessarily mean that a particular company is better than others at fulfilling its obligations. The amount of claims paid differs from time to time, and is dependent on the number of people whose claims are deemed valid and compensable. You can read testimonials from policyholders and beneficiaries to gauge overall customer satisfaction, or ask around for referrals. If a life insurance company is perceived as reputable and trustworthy, policyholders are more likely to endorse it to their friends and family, so there’s no harm in considering word-of-mouth accounts.

A diverse product line can also be used as a standard when choosing a life insurance company. Typically, you can be insured with whole life insurance or term life insurance, but there are a variety of products that can be designed to fall under each of these categories. The life insurance benefits you sign up for should align with your plans and needs, as well as your current and projected financial capacity. The more products a life insurance company has to offer, the better your chances of finding a product that suits you and your level of comfort. Plus, a diverse product menu suggests that the life insurance company consistently pays attention to market demands and is working towards designing products that will provide maximum financial protection at reasonable premium levels.

Researching for information that can help you decide takes time, but it certainly has it rewards. However, if it feels like an overwhelming task or you’re not sure where to begin, you can always enlist our help. We at Jon Derrick are always ready to walk you through the process, prepare life insurance quotes for your review, and provide advice that can lead you to a sound decision. This way, you can rest
assured that the life insurance policy you will take home guarantees your family a financially safe and secure future.