Thinking about buying life insurance? Have you started your search on finding a life insurance provider, but find it to be a bit of an overwhelming process?
With several available life insurance providers out there how do you go about choosing the best one? While it’s great to have several choices, it can be difficult finding the best one for you on your own.
Fortunately, you don’t have to do it alone. We put together some helpful tips for finding the best life insurance provider for your life insurance needs.
What Defines Great Life Insurance?
Before discussing how to find the best life insurance provider, it’s good to understand what that means. Just how do you define great life insurance, anyway?
Great life insurance can be defined in many ways, depending on the individual asked. Some people may base it on price while others on what benefits the coverage have to offer.
We at Top Quote Life Insurance believe that great life insurance is when you purchase a life insurance policy and are left feeling good with your purchase.
Your purchase of life insurance should leave you with the piece of mind knowing that your loved ones will be left financially protected, should something happen to you.
Our first tip to choosing a life insurance provider is comparing prices. When making a purchase whether it is a new home, car or latest electronic gadget, you most likely want to get the best possible price. The same can be true when choosing a life insurance provider.
The cost of life insurance can vary from company to company and will depend on several factors. This is one of the many ways they stay competitive with each other.
When choosing a life insurance provider you will want to get quotes from multiple companies. The best way to compare life insurance quotes from multiple providers is to work with an independent life insurance agency.
Independent life insurance agencies generally work with several life insurance providers and have the ability to offer quote comparisons from several life insurance providers.
By shopping life insurance quotes from multiple life insurance providers, savings in some cases can be as great as 70%.
Check out the Coverage Options
A common factor that all life insurance companies have is that they offer a variety of life insurance coverage options. The difference, however, is that they may not be all equal in how they perform or even what they may cover.
Life insurance coverage, in general, has come a very long way over the last couple of decades. Several companies have developed newer features and benefits that can offer so much more than just death benefit protection.
For example, you can now purchase life insurance that has living benefits. This means having a life insurance policy that you can actually use while living!
Life insurance with living benefits is just one example of these newer features. Let’s say you become ill with a chronic or critical illness, a life insurance policy with living benefit can pay out a percentage of the death benefit to help pay for any expenses occurred by the illness.
In addition to newer coverage features, there are now several life insurance providers that offer a no medical exam or accelerated underwriting option.
This means you could qualify to skip the entire medical exam process that is often required when applying for life insurance coverage. No blood test, no urinalysis and no meeting with an examiner, who wouldn’t want that when applying for life insurance coverage?
These are just two of many newer exciting features being added to life insurance. How do you find out which company offers these benefits? You could contact providers separately and ask about their product offerings or the much easier way is to go with an independent life insurance agency.
An independent life insurance agency generally works with several life insurance providers and will have a good idea about the provider, products, and features offered with their coverage. This will save you a significant amount of time when working with an independent life insurance agency.
Favorable Underwriting Niches
What does your medical history look like? Do you have a history of high blood pressure, elevated cholesterol, diabetes or maybe something else?
Or, are you in excellent health but participate in activities some would say are risky such as skydiving, scuba diving, and mountain climbing or maybe even racing?
If you answered yes, you should know that the price of your life insurance coverage could be impacted depending on the provider.
Another way life insurance provider stay competitive with each other is through underwriting niches. For example, a company may give a better rate for someone with a history of diabetes than its competitor who may view it at higher risk resulting in a larger premium or even worse, a possible decline in coverage.
Underwriting niches don’t necessarily have to apply to only health-related or risky activates. They can also apply to people who use chewing tobacco, cigars and even recreational or medical marijuana.
There are actually a few life insurance providers that will approve you at non-smoker rates if you participate in the use of chewing tobacco, cigars, and even marijuana. Applying with these particular providers could end up saving you a significant amount of money for your coverage.
Knowing each life insurance providers underwriting niches takes experience. Again, this is where working with an independent life insurance agency comes in handy.
Through experience with working with multiple insurance providers, an independent life insurance agency should have a good sense of what each life insurance providers underwriting niches are.
Reputation, Reliability & Financial Stability
When searching for a life insurance provider you’ll want to do some research on their overall reputation, reliability and most important their financial stability.
You can do part of this by checking word of mouth. Ask your friends and colleagues about what they have heard about a company.
One of the best ways to research this is by searching online. Check out what current or past customers have had to say through reviews and even the testimonial page of the provider’s website.
The basic idea of life insurance is that a company can cover it if something catastrophic happens to you or your loved ones. That means you want the company to be very financially stable!
One of the best ways to view a provider’s financial stability is through their A.M. Best rating. An A.M. Best rating provides consumers peace of mind on not only the provider financial stability but also a provider’s ability to pay out a claim, should one arise.
One thing you’ll discover about providers really quickly is that size isn’t everything. Sure, some providers may be huge and have decades of experience, but smaller, younger companies may be just as reliable.
As always, you need to find the company that best meets your own needs.
Find Out if they're a Mutual Life Insurance Provider
If you’re in search of permanent life insurance such as whole life insurance, part of your research should include finding out whether or not a provider is a mutual company. This is the knowledge that might literally pay off for you!
Many life insurance companies are publicly traded and effectively owned by stockholders. However, a mutual company is one that is owned by the customers who have policies.
As a part owner of a company, you may be able to receive certain benefits. For instance, the board of directors will decide every year exactly what kind of dividends that you and other policyholders will receive.
Of course, no dividends are guaranteed, and term life policies are not eligible. However, when you are trying to choose a company, the prospect of getting a cash bonus every year might be enough to finalize your decision.
Talk to an Independent Agent or Agency
By this point, you’ve got your homework cut out for you on what to look for in a great life insurance provider. You have some intensive research ahead of you but you don’t have to do it alone.
As we mentioned several times throughout this article, one of the best ways of finding a great life insurance provider is by speaking with an independent agent who offers multiple companies.
There are several different advantages to talking to such an agent. The most basic advantage is that they can give you quick answers to any lingering questions that you might have.
Finally, finding a good agent means having a good point of contact if you sign with this provider. This gives you someone you can contact directly if there is ever a problem!
Start by Comparing Rates
Before talking with an agent, start by running a couple of comparison quotes. Play around with the quoter and view the rates on different plans and death benefit amounts.
Once you have an idea of prices based on your search query, you’ll have a list of providers to help begin your research.
At Top Quote Life Insurance, we are dedicated to helping consumers like you find the insurance they require at the most affordable price. Top Quote Life Insurance is an independent life insurance agency that works with only the top A.M. Best rate life insurance providers.
Feel free to run a quote comparison on our website and give us a call or shoot us a message to help you in your search for a great life insurance policy, from a great life insurance provider.