There’s a lot to consider when shopping for life insurance. You want to make sure you not only find the right policy for you, but also the right insurance carrier. Each insurance carrier offers a different experience, and shopping around before you commit to one can help ensure you find the best fit for your situation. In this article, we’ll walk you through what to look for when comparing life insurance companies.
How to Compare Life Insurance Companies
Comparing life insurance carriers and coverage options can be overwhelming. There’s a lot to consider, from policy type to how long it takes for the carrier to process your application to the cost of your premium. Here’s what to keep in mind when comparing life insurance companies.
Determine the Type of Life Insurance You Want
When comparing life insurance companies, you’ll want to look at the most common types of coverage they offer. This may include:
Term Life Insurance Term life insurance is one of the most affordable forms of life insurance, as you only buy for as long as you need it. These policies are designed to provide coverage for a specific length of time, typically a 10-, 15-, 20-, 25- or 30-year term.
Whole Life Insurance Whole life insurance is a type of permanent life insurance that covers you for your entire lifetime. In addition to the death benefit, these policies have a cash value component, which can be a useful tool for those looking to invest, pay down debt or supplement retirement funds.
Simplified Issue Life Insurance Simplified issue life insurance is a form of final expense insurance. With this type of coverage, you’ll forgo the medical exam and instead take a questionnaire about your health and lifestyle. This can be a good option for someone who needs immediate coverage or who is concerned that a medical exam would work against their favor for coverage.
Guaranteed Issue Life Insurance Guaranteed issue life insurance is a form of final expense insurance that guarantees approval if you’re between the ages of 45 and 85. Like simplified issue life insurance, this option works well for people seeking immediate coverage or for people who are worried about how a medical exam could impact their policy approval or premiums.
Once you’ve compared term vs. whole life insurance and determined what type of coverage best meets your needs, you’ll have a better idea of what insurance carriers to consider based on the types of policies they specialize in.
Look at the Company’s Premiums Based on Policy Type
One of the biggest factors to keep in mind when shopping for life insurance is how much it’s going to cost you. The cost of life insurance varies not only from person to person, but from carrier to carrier as well. Comparing quotes for particular policies, while time consuming, is one of the best ways to find a carrier that will provide the coverage you need within your budget. Consider working with an insurance broker, who can speed up the process and make it easier by shopping carriers on your behalf.
Evaluate if the Company Has Any Specialized Areas or Products
When comparing life insurance companies, keep in mind that some carriers have expertise in specific types of coverage. If you’re seeking a particular type of life insurance policy, focusing on carriers who specialize in that policy type will make the shopping process much easier.
Consider Life Insurance Company Ratings
Insurance carriers are given ratings based on a variety of factors, primarily customer satisfaction, financial strength and cost. Looking at these ratings can help you determine which carrier is best for you. While you’ll want to keep the big picture of the carrier in mind, evaluating their reputation and customer service capabilities will help reassure you that you’ll have a positive experience with them.
A.M. Best | Better Business Bureau |
A.M. Best ratings range from A++ (Superior) to D (Poor). These are rated based on the carrier’s ability to meet ongoing insurance obligations. | BBB assigns ratings ranging from A + (highest) to F (lowest). These ratings are based on how an insurance company is likely to interact with its customers. |
Can I switch life insurance companies?
Whether your policy is about to expire or you are looking for lower premiums, you may be wondering if you can switch life insurance companies. It’s possible, but you’ll want to work with a licensed insurance agent to make sure the process goes smoothly so you don’t leave yourself uninsured.
SelectQuote Works with Highly-Rated Life Insurance Companies
At SelectQuote, we work with some of the most trusted life insurance companies in the nation to help you find ways to save time and money. The life insurance companies we partner with can provide favorable life insurance rates for all types of situations, giving you the power of choice when securing the right life insurance for you.
