What Is the Best Life Insurance Company?

By Jeff Rose on 23 June 2013 (Updated 26 June 2013) 0 comments

Have you ever noticed that every time you go to a small diner they always advertise how they have the best coffee around? Do you wonder how they determined, how they figured that their's is the best around? How do you know? How can you honestly compare their coffee with another diner? The funny thing is that you can apply the exact same thing to buying life insurance. How do you know what the best company is to get your life insurance through?

Financial Stability

Number one, how financially stable are they? There are different rating agencies that you can use to determine how stable life insurance companies are. Some of the most popular are S&P, AM's Best, and Moody's. If they have an A rating, preferably an A, A-, A+ or ++, it determines how financially solvent they are. If something happens to you, you want to make sure that your beneficiaries are paid.

If they have a low rating such as a C or D, please stay away. It is not worth messing with.

 

Cost

The second determining factor whether you are getting life insurance from the best life insurance company for you is which one is going to be the cheapest. That's right, who's going to give you the best rate. So as long as they are financially stable, and have the A rating we talked about earlier, and they are giving you the best rate of any other life insurance company, that's how you know it's the best insurance company for you.

Why Rates Differ

Let's say that you need $500,000 of life insurance coverage and you're 30 years old. Believe it or not, one company might cost $500 a year, and another company quoting the exact same amount, for the exact same term, may cost you $150 more per year. That's because each life insurance company has their own niches, their own specialties they focus on. Some might focus on the healthy 20- to 30-year-olds, others might focus on the older folks that have more high risk conditions. Obviously, the only way to really know you are getting the best life insurance company is to work with an independent agent that is going to be able to quote you across multiple different carriers.

If you use the quotes here at Wise Bread there are over 60 different carriers that you can have a quote on in less than one minute. By inputting your information you'll know quickly which is going to be the best life insurance company for you.

Jeff Rose is a Certified Financial Planner specializing in life insurance. Read more from Jeff at his site, Good Financial Cents.

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