5 Simple Tips When Choosing the Best Rated Life Insurance Company

No matter what your current financial situation might be, finding the best rated life insurance company to meet your needs can often be quite tricky. After all, with an estimated 797 different life insurance providers to choose from in the United States, finding which company makes the most sense for you appears to be an overwhelming task.

Fortunately, there are many different things you can do to help narrow your search and make it easier to create a shortlist of your most viable options. By keeping these simple, yet important, tips in mind, finding the best rated life insurance company can become significantly easier.

1. Identify Your Current Life Insurance Needs

The life insurance company that makes the most sense for one person may not be the one that makes the most sense for another. Naturally, before you make any decisions regarding the life insurance company you plan to use, you should recognize the type of life insurance that you will need.

• Term Life Insurance is the most popular type of life insurance and is also usually the most affordable. With a term life insurance policy, you will pay a monthly premium in exchange for receiving coverage that lasts a specific amount of time (usually 10, 20, or 30 years).
• Permanent Life Insurance is often more expensive than term life insurance, but it will also provide you with coverage that lasts your entire life. Additionally, many permanent life insurance policies will also include a cash value that can be accessed while you are still alive.
• Hybrid Life Insurance policies combine elements of term life insurance and permanent life insurance.

In addition to these common types of life insurance, you may want to attach additional riders. Riders are policy add-ons that will vary tremendously between any two companies.

2. Work with a Company that Allows You to Compare Multiple Options at Once

As we move further into the information era, comparing multiple different life insurance providers has become significantly easier than ever before. Though you could go to the websites of many different life insurance providers and compare your potential options by hand, it will usually make much more sense to use a website or service that allows you to compare them simultaneously.

When comparing different policy options, there are numerous things you should be looking for. Things such as the amount of coverage available and the monthly premiums you will be asked to pay are obviously very important. Additionally, you should check for whether you will be required to take a medical exam, other services the company provides, and any other details you consider to be relevant.

3. Determine Whether You Would Benefit from Taking a Medical Exam

While some life insurance providers (and policies) will require you to take a medical exam, others will ignore this component of the underwriting process altogether. Furthermore, sometimes the presence of a medical exam will help you secure low rates and sometimes it will disqualify you from receiving the type of coverage you’ve been hoping for.

A life insurance medical exam will often consist of a blood test, urine test, and extensive medical questionnaire. The things they will be searching for include the presence of any serious medical conditions, diabetes, obesity, kidney issues, heart issues, substance use, and numerous others.

Now it all depends on you whether you want to go for a medical exam or not. You know your health better than anyone else. If you believe that you are in good health with no pre-existing conditions, then the life insurance company that offers low premiums after a medical exam may be the best for you.

4. Ask Your Friends for Possible References

In addition to the helpful pieces of advice mentioned above, you may want to consider asking your friends for recommendations on life insurance providers. Sometimes having connections in the industry can often be a helpful starting point.

When talking to your friends about life insurance, you should ask them about both their positive and negative experiences. Additionally, if your friends are people that you work with, they may be familiar with life insurance coverage that can be accessed through your current employer.

5. Read Reviews and Ranking from Objective Providers

Contrary to the websites of prospective life insurance providers and even the advice of your friends, you may be looking for information about life insurance that is entirely objective. Fortunately, many different review resources will make it easy for you to understand the current options you have available.

One of the most reliable sources of finding the best rated life insurance company and for objective life insurance advice is a company known as A.M. Best. Though they are just one of many authorities on the subject, A.M. Best is often the first place that people turn when trying to compare different life insurance providers. The company offers clear, reliable information that will be very useful when you are making your final decision.

These are just a few of the things you should keep in mind when trying to find the best rated life insurance company for you. As is the case with most things, the more research you are willing to do, the more confident you can be in your understanding of the life insurance industry. If you are willing to take the time needed to compare your available options, then you will already be moving in a positive direction.