Wise people never go in their life without life insurance policies. Similar products have the main purpose of protecting the holder of the insurance in the case of unpredicted events, but also their families. But choosing a reliable vendor has never been an easy task. As there are many things to take into account when doing so, research is an absolutely necessary step. From costs to the vendor’s reliability and coverage, we have explained below all things you should never overlook when searching for life insurance companies.
A reliable customer service department
Customer service may not be the first thing you look into when searching for similar products. But given the nature of life insurance policy products, you might want to test this aspect, this time. Because the conditions under which you took a life policy might change throughout your life, you want to make sure there will be someone there to support you through the process. For instance, divorce, kids, a second marriage, these all might change. And you want to know you’ll be able to change these without a hassle.
Through the duration of your collaboration, you will also need to have different documents sent to you by the company. The customer service department will have to collaborate with you closely and help you get those easily.
The quality of the customer service department will also determine how easily the beneficiaries of your life insurance policy will get into the money’s possession when the time comes.
Search for a life insurance company that makes the process easy and straightforward. You will thank yourself later for it. Alternatively, use the services of companies like Dalbar, a company that develops standards and compliance customer service rakings.
The financial situation
The insurance company you choose should have a sound financial situation. Having stability through your entire collaboration is an important aspect you should evaluate when you want to take a permanent life insurance policy. Term life insurance policy choosers will have an easier time jumping from company to company during their lifetime, but the financial stability of the said player still matters.
If a permanent policy company goes bankrupt, you will have a difficult time transitioning to a new player. So, you want to research the stability ratings of multiple companies before signing with either of them. You can use comparison tools and platforms. Remember to research how each platform’s rating system works. They may have different ones to help clients figure out the best solution.
When researching the company’s financial soundness, avoid looking up just its dimension. Most of the times, this is irrelevant. Small and medium-sized insurers with a short history in the market may be more reliable and financially stable than players with decades of experience.
The company’s track record
When choosing a reliable life insurance company, you also have to pay attention to the company’s track record.
To research this aspect, go online and check how are performing the policies other clients have chosen are. See how many complaints former clients filed for the insurer and how the company investigates these. Also, check how many of those complaints have been solved to the client’s advantage.
All insurance companies post on their official website reports, so there is the perfect place to start your investigations. The National Association of Insurance Commissioners is also a reliable source for this type of information.
The products available
Not all companies have a wide selection of life insurance products. So, before jumping on the wagon, check and see if what a seemingly reliable insurer has in their portfolio matches your needs. What products can I find?
Generally, there are several insurance types you can choose from.
- Term life insurance policies;
- Permanent life insurance policies;
- Universal life insurance policies.
Some players have started to keep up with the latest developments in the industry and they have integrated smart devices and apps in their rates. For instance, some players offer substantial discounts for policyholders that agree to follow a healthy and active lifestyle and are willing to prove that with health tracking devices. Such initiatives are part of the digitalization trend in the insurance industry, which has been more visible and practiced over the past few years.
Mutual insurance companies vs. Publicly traded companies
To decide wisely, you have to understand the difference between mutual insurance companies and publicly traded companies. The latter is held by stakeholders, whereas mutual insurance companies are held by policyholders.
Choosing a mutual insurance company for your life insurance policy will assure you will receive dividends yearly. This is a smart aspect to consider, but make sure you don’t base your decision on this entirely. Analyze other factors, too and try to understand those in detail.
Always compare the rates
Sometimes, insurance companies might deny you a life insurance policy. But this isn’t the end of the world. Just check with other players in the market and see if you can get one. Do the same if the rates you get at a company are less than advantageous for you. Test the market and see how much you can get in different places.
Online rating matter
We cannot emphasize it enough how important online ratings are when choosing a life insurance company. Most companies in the market allow rating players to have their situation analyzed and to be rated depending on a series of variables. For instance, A.M. Best is one of the insurance rating players that will help you get a better look at different agencies and their performances.
These are the most important things to consider when choosing a life insurance company. By following the steps above, you will have an easier time deciding which one fits your needs better and can offer you the necessary support and guidance throughout your entire collaboration.