How do I pick an insurance company?
There are hundreds of life insurance companies and thousands of
agents to choose from. Here are four main considerations you should
use:
Price
Premiums vary widely between different companies, depending on their
expenses, investment experience and underwriting standards.
Compare prices from at least three companies before buying to make
sure you are getting the best value for your insurance dollar. When
you compare prices, make sure you compare similar insurance plans,
based on your age, the kind of policy and the amount of insurance
you are purchasing. Prices may differ between companies because
of different features or different levels of service quality or
the financial strength of the insurance company.
Make sure you can afford the premiums because you will be wasting
your money if you are forced to drop it in a few years. Some state insurance departments publish guidelines
showing what different companies charge. You can also check prices
on your own at many of the insurance price-quoting web sites or
at their toll-free numbers.
Insurer's stability
In addition to a reasonable price, you want to be confident that
the insurance company will be in good health financially to pay
your claim if necessary.
Companies that rate insurer’s financial stability include:
Service
The insurer you select should offer excellent service. The agent
or company representative you deal with should explain options to
you in a way you can understand so you can make the best choice
for your needs.
If you have a claim or question, the company should handle it promptly
and accurately. Your state insurance department will be able to tell
you if the insurance company you are planning to do business with
has any consumer complaints about its service.
Comfort
You should be comfortable with your insurance purchase. Your agent
or company representative should answer all questions to your satisfaction
before you buy any policy. With Permission © Insurance
Information Institute, Inc. - ALL RIGHTS RESERVED -
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