Reliable Life Insurance

 

                                                                                                    
                                                                        

                                                                       

                                                                       
                                                                                            
                                                                                                      
                                                                                                                  
                                                                                                              
 

                   


It’s critical that you find reliable life insurance if you want to provide for your loved ones after you pass away.  The company you choose to insure your life is the one your heirs will have to deal with when you are gone.  If you don’t have reliable life insurance the ones you leave behind will not be financially secure.  That’s why it is so important to check out a company thoroughly before you decide to let them insure you.

It is important to choose a reliable life insurance company that is licensed in your state.  That way you can enlist the help of your state insurance commission if you or your heirs have a problem.  You state’s life insurance guaranty fund will also help if your company becomes insolvent and can’t pay.  If you buy from a life insurance company not licensed in your state you and your heirs won’t have the big guns to help you if you should have problems.

Your state’s insurance commission keeps track of fraud and abuse and has a database available to the public that you can find online.  Look up the companies you are considering and see if they have an excessive number of complaints.  Look for a pattern in one particular area.  For instance, complaints about a company’s central call center are not nearly as important as those about how benefits are disbursed. 

Look up a life insurance company’s rating with S&P, AM Best or the other watchdogs that rate insurance companies.  Life insurance companies are rated based on their financial stability, customer satisfaction and other important factors.  You can be fairly certain that you’ve found a reliable life insurance company if they have a high ranking with these organizations.

Financial stability is perhaps the most important factor when choosing a life insurance company.  Moody’s Investor Services is one of the agencies that rate a company’s financial health, from A+ to AM.   See who underwrites the company, too.  An insurance company’s website should list all of its underwriters.  Underwriters are people or companies that take financial risks on behalf of someone else.  In the case of life insurance the underwriter pays the death benefits of the insurance company’s policies in exchange for fees from the insurance company.  It is important that a company’s underwriters are solvent with an excellent financial outlook. 

Once you’ve found a reliable life insurance company, be certain of the type of coverage you’ll need.  If you have children that will want to go to college your life insurance death benefit should be enough to cover that.  Will your spouse have to get a job or hire outside help to care for children while they work?  The amount of insurance you buy should be at least six times your annual take home pay but ideally at least ten times the amount.

Once you assess your needs, check out a company’s ratings and its underwriters you can make a decision as to which company to go with.  By taking some time and doing your own research you can be sure to get reliable life insurance.