How do I know which life insurance companies are more reputable and reliable than others, and how important is it to choose the insurance company?
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UPDATED: Feb 1, 2012
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Insurance Question from Middletown, CT
Asked on 02/01/2012
How do I know which life insurance companies are more reputable and reliable than others, and how important is it to choose the insurance company? If I have 5 different options from different companies with a $300/yr difference between them, what is preventing me from choosing the cheapest company?
Answer given on February 02, 2012
Before making the choice based on price alone, do your home work. Choosing the cheapest company is good for the pocket book only if the company is reputable and in good financial standings. Checking out the financial standings of the insurance company on sites like Standard and Poors, AM Best and Moody’s will let you know if you are dealing with a company that is in good financial standings. Look for companies that have an A++ thru A- rating. Also, read reviews on the company concerning their claim service and customer service. The most important time you will deal with a life insurance company is when there is a death. Prompt and courteous service is paramount. Read our article on How to Find the Best Life Insurance Company. This will also give you more helpful tips on choosing the best company. If you find that your cheapest quote comes from an insurance company that is in good financial standings and one that has a good reputation with prompt and excellent customer service, then I would pounce on the quote.
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