Skip to Search

Skip to Content

What to Look for in a Life Insurance Compan: Three Attributes to Look for in a Life Insurance Company:

You want a policy from a life insurance company that will be around for the foreseeable future. To find one, look for these three attributes in a provider.

Many of the things we need in life come with a contract, whether you're buying a car, a home or a life insurance policy. These contracts can help to protect both you and the life insurance provider — and make sure everyone is on the same page.

But, before signing on the dotted line, it's important to research the company with which you're doing business. That's especially true for life insurance, as you'll want to choose a company that will still be around 10, 20 or 30-plus years from now.

Your family's financial future might depend on it.

More than 1/4 of households would have immediate trouble paying living expenses if the primary wage earner died.

How can you find a reputable life insurance company? Look for these three attributes.

1. Financial Strength

It's great to support a new business when it comes to things like coffee or a haircut. (Hey, even if it doesn't work out, hair grows back, right?) But the life insurance company you choose is one you'll be sticking with for years — even decades — to come. As a result, you'll want to choose a company with longevity and experience.

To gauge how long a company has been in business, you can check the "About" or "Company" page on its website.

Financial strength is another indicator of long-term stability. Of course, you can't tell a company's financial standing just by looking at its website. Rating agencies, such as A.M. Best, can help to provide unbiased ratings for the life insurance company you're considering.

Each rating agency has its own system for rating life insurance companies. For example, A.M. Best's ratings range from poor to superior.

2. Happy Customers

Before you eat at restaurant or book a hotel room, we're willing to bet that you read online reviews about it. Reviews can help give you an idea of whether customers are generally happy or unhappy with the service they received.

Some red flags can include having difficulty reaching customer service, which is critical if you need help answering questions or making changes to a policy. You want to work with a life insurance company that is committed to helping its customers, even after the sales process is over.

A good company isn't one that only receives positive feedback, of course. It's one that cares enough to work with customers to resolve issues quickly and effectively. You can find reviews on a company's Facebook page, its own website, or third-party review sites.

3. Policies That Meet Your Needs

You've narrowed down your list of life insurance companies to the ones that have financial strength and great customer service. Now, you need to find one that offers a policy that aligns with your needs.

To help you determine those needs, consider:

  • The people who depend on your paycheck, such as a child, a spouse, or an elderly parent
  • How much your loved ones might need, both immediately and long term, if you were no longer here
  • What you can afford to pay for life insurance

Then, think about how long you'll need coverage — either for a set period of time (term life insurance) or up to a lifetime (whole life insurance).

Let's say you have a growing family and want protection from the days your kids are in diapers to the day they receive their diplomas. In that case, term life insurance could offer greater protection during the years you need it most — and often at a lower rate than other types of policies.

Or maybe you want continuous coverage that never expires, which you can find with a whole life insurance policy. It offers coverage for life at a rate that never increases, which is great for those who just want to "set it and forget it."

Choosing the right policy — and life insurance company — can be a tall task, as the decision you make will impact your loved ones more than anyone else. You want to work with a provider that will make it easy for your family to receive the benefits you paid for, hassle-free.

Help protect your family with Life Insurance!

Related Articles

What Can Life Insurance Be Used For? - 4 Uses for Life Insurance You Haven’t Considered

4 Uses for Life Insurance You Haven’t Considered

October 2016

Read full article...

5 Factors That Affect Your Life Insurance Premiums: Learn what could be driving up your life insurance rates

5 Factors That Affect Your Life Insurance Premiums

September 2016

Read full article...

5 Reasons To Buy Life Insurance: Whether you fit all of them or just one, it may be time to consider getting a life insurance policy.

When to Get Life Insurance? 5 Signs You’re Ready

October 2016

Read full article...