Insurance Companies

Insurance Companies and tips

Purchasing life insurance creates a contract between you and the company you purchase it from.  You pay them now, and they pay your family after you are gone.  As with any type of contract, you should choose your company wisely.  They are the people you trust with the financial future of your family, so getting to know them is of utmost importance.

There are over 1500 life insurance companies operating in the United States today.  All of these companies sell  insurance policies to clients.  Many are locally owned subsidiaries of large parent companies.  This is often a result of differences in state regulations and laws, and allows the large companies to practice in individual states while meeting their specific requirements.  When choosing your agency, it is a good idea to make sure that they practice within your state so that if a legal action were to occur, you would be able to have your state’s insurance regulatory agency work to settle the dispute.

After narrowing your list of candidates down to insurance companies in your state, it is a good idea to check out the company, financial stability, the policies offered, and of course claim settlements.  You should never rely simply on the company name.  Marketing can make any company sound good, and will include phrases like ‘most secure’ or ‘source of financial strength’ or ‘epitome of dependability.’  While these phrases may very well be true, you should not judge a book by its cover, so to speak.  If a company has been around for a number of years and is highly respected in the community, this is a better measurement than a catchy phrase.

Don’t choose a company that doesn’t offer the policy you need just because they are a good company.  Because of the number of insurance companies around, you should be able to find a policy that meets your needs and has all of the services and features that have been promised.  This is an important factor in shopping around.  Cost of similar policies is another measurement device, you don’t want to pay extra for a company name, when what you want is stability and financial security.

Security is one of the big issues when choosing between insurance companies.  You hope to be around for many years, and want your insurance company to still be there to take care of your family when you are gone.  Looking at the financial strength of a company is an important deciding factor when making a choice.  Independent agencies list financial ratings of companies, so choose a company with a high financial rating.  Checking out their policies on claim settlement is also important to your peace of mind.