How to Pick a Life Insurance Company

KEY TAKE AWAYS

  • Life insurance companies proudly display the option to “get a quote” on their site, but many aren’t doing enough to educate consumers about what to look for when buying life insurance.
  • Technology is supposed to make buying a policy easier, yet less than a third of Americans are purchasing, or attempting to purchase, life insurance online.
  • Knowing the different policy options and what to expect during underwriting can help you be more confident when buying a life insurance policy online.

There’s a lot of noise out there. We have a passion for helping people, and our goal is to cut through the noise to get you the right insurance for your situation. This article is meant to help you assess your options so you can pick a policy that is perfect for you.

Technology is a big part of how people are buying life insurance. Half of the adults in the U.S. visit life insurance websites to get information, and roughly 30% buy (or try to buy) life insurance online, according to LIMRA’s 2018 Insurance Barometer Study.

Online access makes reviewing and purchasing policies online a breeze. So why aren’t online platforms being used more?

If you’ve shopped for life insurance online, you might already know the answer.  It can be confusing.

Some companies make it easy with a helpful quote tool and streamlined underwriting process, while others leave a lot to be desired.

Want to pick the best company to buy a policy? Here’s what you should look for when buying life insurance.

And if you’re curious about how much you can save with a term policy from Everyday Life, get a custom quote in less than 60 seconds.

WHAT PRODUCTS ARE AVAILABLE?

One reason life insurance is confusing is that so many types of policies exist.

First, you must know what’s available. And then? You need to decide what’s right for you. The biggest choice is whether to go with permanent or term life insurance.

  • Permanent life insurance lasts your entire lifetime and comes at a price that can make it unaffordable for some people.
  • Term life insurance is priced much lower and provides a financial safety net during the years you need it most, generally, while you’re raising children or paying off a mortgage.

Going with term life is the best choice for most people. It’s affordable enough to fit any budget, and your price won’t go up as long as your policy is active.

At Everyday Life, we take it a step further.

Not only do your premiums not go up – but they go down over time.

That’s because your need for life insurance decreases as you get older. Your kids need less financial support, you pay your mortgage balance down, and you build savings.

And it doesn’t make sense to pay for more life insurance than you need. Otherwise, you’re spending money on a policy that could be used for retirement, vacations, or to start the business you’ve always wanted to.

THE BENEFIT OF IMMEDIATE PAYOUT.

As if life insurance wasn’t hard enough, there’s also the issue of how much benefit your loved ones will receive if you die within the first few years of coverage.

Let me explain.

A policy that is quick and easy to get and that might not require a medical exam sounds great. But there’s a catch. The downside is there might be a two or three-year waiting period before the company will pay 100% of the death benefit.

Ask whether the policy offers an immediate payout. If it’s “simplified issue” life insurance, you may not get the full proceeds. You might have to ask a company representative or read the fine print to get an answer, but it’s worth the extra step.

THE CUSTOMER EXPERIENCE

From start to finish, you should have the support you need to get your questions answered and purchase term life insurance.

At some point, you may need to change your policy. If you can’t find a “contact us” option when getting a quote, chances are the company won’t be too quick to respond if you have questions later.

Reading customer reviews is another excellent way to judge a platform.

The internet provides ample access to review sites, including:

  • Trustpilot
  • Google reviews
  • Yelp
  • Better Business Bureau
  • Reddit communities

Don’t discount the company’s website and social media profiles, either. Check both for customer reviews and contact information to get help if you need it.

ARE AUTOMATIC PAYMENTS AN OPTION?

Have you ever forgotten about a bill?

For most things, it isn’t a big deal. At most, you might pay a late fee. But life insurance isn’t one of those things you want to let lapse.

If you don’t pay on time, your policy could be canceled.  (The company doesn’t have to reinstate your policy if you miss a payment, either.)

Most companies give you a 30-day grace period to pay your premium, which provides you with some wiggle room.

But ask if automatic payments are an option. That way, you won’t ever have to worry about missing a due date.

TIPS FOR FIRST TIME LIFE INSURANCE BUYERS.

If you’re wondering, “What should I look for when buying life insurance,” you should first ask yourself if you even need life insurance.

Not everyone needs it. However, it’s a critical financial tool if you have a loved one who depends on your support to maintain their standard of living.

If you’re shopping for life insurance, consider these tips:

  • How much coverage you need is the biggest factor in what you’ll pay for your policy. Put some thought into this and consider the benefit of stacking insurance policies that step down over time to save 30% to 60% off your cost.
  • Make sure the insurer is A-rated by AM Best, the leading provider of ratings and financial information for the life insurance industry.
  • Be cautious of any company that asks for your contact information before they’ll give you a quote. If you give out your email or phone number, there’s a good chance an agent (or three!) will call you at least once to sell you insurance.
  • Consider who you’ll name as beneficiary to receive the payout upon your death. Your beneficiary could be a spouse, child, business, trust, charity, another person, or your church. You can name one beneficiary or many.

HOW TO BUY LIFE INSURANCE WISELY?

Companies proudly display the option to “get a quote” on their site, but many aren’t doing enough to educate consumers about what to look for when buying life insurance.

There’s a lot of noise out there.

We have a passion for helping people, and our goal is to cut through the noise to get you the right insurance for your situation.

If you have questions, we’d love to hear them. Email us at info@everydaylifeinsurance.com or call us at 888-681-3811 or use our convenient online chat service.

And if you’re curious about how much you can save with a term policy from Everyday Life, get a custom quote in less than 60 seconds.

Amy Beardsley, Author

Amy Beardsley, Author

Amy is a writer who specializes in personal finance and FinTech. She is known for her talent for transforming complex topics into content that’s easy to understand. In her spare time, Amy enjoys camping and serving her community as a Girl Scout leader.

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