6 Factors to Help You Choose the Right Life Insurance Company
Looking for the best life insurance company for you? Are you unsure of where to start?
Luckily, it’s a lot simpler than you might think. Follow some basic tips — and in no time, you’ll be on the right path to finding a company that’s an excellent fit for you, your loved ones and your budget.
1. Financial Wellness
People buy life insurance for many reasons, but the biggest one is to ensure that their loved ones are in good financial shape — no matter what. Similarly, the life insurance company that you choose must be financially stable.
Thankfully, it only takes a few minutes to research an insurance company’s stability. AM Best — an independent, 3rd-party rating agency — is an excellent measure of a life insurance company’s financial strength. Please take note of the grade that they assign to each company. A rating of A+ thru A-minus indicates an exceptionally trustworthy and financially stable company.
SBLI has consistently earned strong ratings from AM Best. Since our inception in 1907, we’ve remained devoted to providing life insurance solutions to protect families.
2. Products Offered
Term life and permanent life insurance are the typical life insurance choices.1 Many insurers will carry both types, while some may specialize in one product or the other. Most people choose term life insurance because it is straightforward and has a relatively low cost.2 However, permanent life insurance is also something to consider. SBLI offers a more specific kind of permanent life insurance, called whole life insurance.
3. Customer Satisfaction
Some of the oldest, most experienced insurers in the U.S. today are life insurance companies, operating for more than 100 years in several cases (like at SBLI). Longevity is a good indication that a company knows what it takes to serve its customers.
However, a lengthy tenure doesn’t necessarily mean a life insurance company has a stellar track record. Organizations like J.D. Power and Associates, the Better Business Bureau and the National Association of Insurance Commissioners regularly perform surveys and studies to gauge customer satisfaction. They base ratings on claims administration, policy terminations, customer service, and policy administration, among other factors.
At SBLI, we think it’s even better to engage with our customers actively so we can hear their opinions. To do this, we work directly with two 3rd-party organizations to help lead an initiative we call “Total Customer Happiness”.
With any insurance company you’re considering doing business with, ask for genuine customer reviews (e.g. Trustpilot or a Net Promoter Score (NPS)). They’re both great ways of getting a real sense of how happy people are with their insurance company.
4. Cost of coverage – value over price
Competition in the life insurance industry helps keep premiums affordable. But, be careful not to instinctively buy the cheapest policy. Our research shows that shoppers aren’t always after a bargain-basement life insurance company. They want one to provide for their needs at the best VALUE, not just the lowest price.
So, what does “best value” mean? It means finding a company whose rates are fair and competitive without sacrificing service. It means feeling 100% confident you can rely on the insurance company you’ve chosen to be there for your loved ones— even years from now.
With SBLI, sometimes we have the lowest rates, and sometimes we don’t. Our rates are always fair and competitive. All our life insurance policies come with our promise to deliver the kindness, compassion and respect you deserve. You can rely on SBLI to be there for your family.
5. Specialization
Your life insurance premium rates are based on several factors, including your age, health status, where you live and whether you have risky hobbies (skydiving, hang gliding, piloting a small plane, rock climbing, etc.).
Your overall health has a great deal to do with your life expectancy.
Even if you think your current health will make a life insurance policy too expensive, explore your options by getting a quote for a term policy. You may be surprised at how genuinely inexpensive this essential coverage is for people despite having some health concerns.
6. Changes since the Pandemic
During the COVID-19 pandemic, paramedical examiners weren’t making nearly as many (if any) house calls to conduct medical exams for insurance companies. Some life insurance companies decided to use their database of information to calculate rates for high-value policies instead of using an individual’s current health metrics like body mass index (BMI), blood pressure and cholesterol readings.3
Now that many people can get vaccinated for COVID-19, you are more likely to get a timely medical exam to buy life insurance. Not all companies have bounced back, though. Look into the life insurance company’s current policies about health exams.
Since 1907, SBLI has moved the life insurance industry forward by staying focused on what matters most: helping protect our customers’ families. With that in mind, we prioritize value, speed and reliability. Get a quote today and discover the SBLI difference
This is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. You are encouraged to consult your personal tax advisor or attorney. Policy form B-56 series. Policy form B-52, B-54 & B-40 series. 21-4177
1 III.org, What are the principal types of Life insurance?, Insurance Information Institute, 2021, Accessed May 17, 2021.
2 Quotancy.com, How to Find the Best Term Life Option for New Families, Quotancy, 2018, Accessed May 17, 2021.
3 APnews.com, COVID-19 accelerates no-exam trend in life insurance, Georgia Rose, 2020, Accessed May 17, 2021.