What to Consider When Choosing a Life Insurance Provider
So you've finally decided you're ready to purchase a life insurance policy. But where do you start looking, and what must you consider when selecting a life insurance company?
The simplest way to start is to find an agent, but not just any will do. Ask your prospect about their professional designations, and if they are affiliated with any industry organization. Membership indicates they believe in the importance of ongoing education, which keeps them up to date with current trends in the industry. Moreover, organizations have a code of ethics to be strictly followed, lest agents lose membership.
Of course, you'd like to make sure you choose an agent who represents the company you're eyeing. But again, how do you choose a life insurance provider?
Financial stability is one of the most crucial factors you should look into before buying a policy. Do your own research before signing a contract. Don't forget to check with your state's Department of Insurance and the Better Business Bureau to know about consumer issues the company may have been or are involved in.
More specifically, here are factors to look into:
> Variety of options - After all, you can't put people's life insurance needs in a box. Different needs call for different policies. To learn more about life insurance, you can visit http://www.ehow.com/list_6130024_types-insurance-available_.html.
> Good history of time claims payments
> Conversion option - Inquire about the insurer's conversion options for term life insurance no exam. Most term policies do come with a conversion feature, which lets you convert your term insurance to a permanent policy, like whole life or universal life.
> Creative products - Some insurers, for instance, offer policies that let you choose between getting a lump sum payment or a guaranteed installment payout, where the inclusive dates of coverage are defined upon your purchase of the policy. This means less premiums or more coverage for the best term life insurance rates of a lump sum payment.
> Comdex score.
A Comdex score is any number from 1 to 100, representing a rank given by rating agencies. To get a Comdex score, an insurer needs to have at least two agencies rate them. According to experts, only insurers with an 85 to 100 rating are worth considering.
At the end of the day, you must realize that life insurance is not something you buy today and forget about tomorrow. Like life itself, it must evolve. Ideally, you would like to work with an agent and company that will be able to help you and your family over a reasonable amount time.