There are so many life insurance companies out there these days. It can be difficult to know with which to apply. The goal is to find a life insurance company that is financially strong and that can give you the best rates. Those two things can be hard to find together.
The secret is applying with an independent agent or agency that is licensed with many life insurance companies. This will allow you to get rates and quotes from many different companies. If you deal with an agency like Wholesale Insurance, you will have access to all of the top life insurance companies and be able to shop around until you find the best rates available for you.
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March 12th, 2008 at 2:12 pm
Excellent point, Key Man. Too many people will search for insurance rates by going directly to the companies, instead of, as you pointed out, to an independent agency that can select from the best rates and serve them to you; neat, orderly, and rated by service.
I especially like your page on why you need a choice of life insurance companies. When it comes down to it, price selection is the major point. Agencies are far more unbiased than the life insurance companies themselves, and will find the best price with the best rates.
March 14th, 2008 at 10:43 am
Hi there, I saw this post about life insurance companies and financial ratings. How important is the AM Best rating when choosing a life insurance company? Why is the financial rating important?
Thanks.
March 14th, 2008 at 12:06 pm
Well, the AM Best rating is important because it shows how stable or financially strong the company is. A higher rating means a stronger more healthy company. A weak rating means a weak company. Most people would suggest investing in companies with high ratings, especially for long term investments like insurance. You want to make sure the company will still be there when you need it.
March 21st, 2008 at 8:51 am
Fred,
The financial strength rating is an indicator of the financial security and ability of an insurer to pay their claims.
It is important because several insurance companies go bankrupt each year. Yes, it does happen. If an insurer becomes insolvent, and taken over by the Department of Insurance in its State of Domicile, your beneficiary may not receive payment from your policy for years - and then it may only be pennies on the dollar, due to other financial debts the failed insurance company has on its books.