When you’re shopping for life insurance, it’s important to not only consider the type of policy that’s right for you, but also the life insurance company that’s right for you. Not all life insurance carriers are the same, and while some might look good on the surface, there might be a better option out there for you. In this article, we’ll talk more about comparing life insurance companies, what to look for in a carrier and how SelectQuote can help.
How to Compare Life Insurance Companies in Four Steps
Comparing life insurance companies and their coverage options can seem intimidating, but at SelectQuote, we make the process easy. We’ll get to know your needs, find options available to you and provide you with tips for buying life insurance. Here are the four main steps to consider when comparing life insurance companies.
1. Determine the Type of Life Insurance You Want
When it comes to comparing life insurance companies, you want to determine the types of coverage they’re known for carrying well.
Term Life Insurance
Term life insurance is one of the most affordable forms of life insurance, as you only buy for as long as you need it. Typically, the length of term options are 10-year, 15-year, 20-year, 25-year or 30–year policies.
Whole Life Insurance
Whole life insurance is a form of permanent life insurance that provides coverage for your whole life as long as you keep paying the premiums. In addition to providing a death benefit, whole life insurance also includes a savings component known as the cash value.
Simplified Issue Life Insurance
Simplified issue life insurance is a form of final expense insurance. Simplified issue coverage is based on a questionnaire about your health and lifestyle rather than a medical exam and can be good for someone who needs coverage immediately or believes a medical exam or questionnaire might work against their favor for coverage.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is a form of final expense insurance that you can’t be turned down for if you’re between the ages of 45-85. Guaranteed acceptance life insurance can be a good option for someone who needs coverage immediately or who believes a medical exam or questionnaire might work against their favor for coverage.
Once you’ve considered term vs. whole life insurance and figured out what kind of coverage sounds right for you, you’ll have a better idea if you should compare term life insurance companies or compare whole life insurance companies.
2. Look at the Company’s Premiums Based on Policy Type
A solid factor to consider when you’re shopping for life insurance is how much it’s going to cost you. The cost of life insurance can vary not only from person-to-person, but also from carrier-to-carrier. Jumping from one site to another and looking at premium examples for particular policies can be time consuming and seem overwhelming, but at SelectQuote, we can do all the hard work for you. In just minutes, we can compare life insurance coverage and rates of the types of policies you’re interested in to find the right coverage for you.
3. Evaluate if the Company Has Any Specialized Areas or Products
Some carriers primarily excel at one type of coverage, which is important to consider when comparing life insurance companies. The best life insurance policy at one carrier might look different with another carrier, so it isn’t always as easy as comparing apples to apples. Let us help take the pressure out of shopping for life insurance and do the work for you.
4. Consider Life Insurance Company Ratings
Much like any other company, insurance carriers are given ratings based on a number of factors—typically customer satisfaction, financial strength and cost. This can help you determine which carrier is right for you when comparing life insurance companies. Reputable claim handling and highly rated customer service can go a long way for a life insurance company, but it’s important to consider all factors reviewed when looking at life insurance company ratings.
| A.M. Best | Better Business Bureau |
| A.M. Best ratings can range on a scale from A++ (Superior) to D (Poor). These are rated based on the carrier’s ability to meet ongoing insurance obligations. | BBB assigns ratings ranging from A + (highest) to F (lowest). It’s ratings are based on how an insurance company is likely to interact with its customers. |
Can I switch life insurance companies?
Whether your policy is about to expire or you are looking for lower premiums, you may be wondering if you can switch life insurance companies. It’s possible, but you’ll want to work with a licensed insurance agent to make sure the process goes smoothly so you don’t leave yourself uninsured.
SelectQuote Works with Highly-Rated Life Insurance Companies
At SelectQuote, we work with some of the most trusted life insurance companies in the nation to help you find ways to save time and money. The life insurance companies we partner with can provide favorable life insurance rates for all types of situations, giving you the power of choice when securing the right life insurance for you.
- American General Life Insurance Company (AIG)
- Americo Life Insurance Company
- Banner Life Insurance Company
- Companion Life Insurance Company
- Globe Life Insurance Company
- The Lincoln National Life Insurance Company
- Pacific Life Insurance Company
- Protective Life Insurance Company
- Prudential Life Insurance Company
- SBLI of Massachusetts
- TruStage Life Insurance Company
- United of Omaha Life Insurance Company
- William Penn Life Insurance Company of New York
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