Healthy Lifestyle

How to Find the Top Life Insurance Companies and What to Consider

Dallas, Texas – ( NewMediaWire ) – January 03, 2021 – When you lose someone you love, there is not only a big emotional toll to deal with, but often some heavy financial burdens as well. Life insurance is the best way to provide money and security to your family should something happen to you.

The idea of life insurance is pretty simple. You will pay a premium, or a fixed amount, each month or year for the coverage. If you die during the time period of the policy, your beneficiary, or the loved one of your choice, will get the agreed-upon money. 

This is known as the death benefit. The term of the policy and the amount of the death benefit will determine how much you pay in premium for the policy.

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Choosing Life Insurance

You can choose between two types of life insurance. There is basic life insurance or you can get life insurance that is bundled with some investment products. 

Products that are bundled, which include permanent life, universal life, and permanent life can be more complicated and expensive. Term life insurance is the least expensive of all the options and most people go with a straightforward life insurance policy.

The term life policies are often the best for most people and the death benefits provided for them can start at $100,000 and go to $3 million to cover the needs that you have. Some are a little higher.

All things being equal for you, you should err on the side of having more coverage because the cost of your policy will increase as you age. And if you start to get health complications later in life, you may not get any insurance. 

When to Buy Life Insurance

The best bet is to get as much as you can for the longest term possible without causing a big change in your current lifestyle.

With this in mind, it is best to buy life insurance when you are still healthy and young, though you can get a policy at any time. Your death benefit should be equal to about 10 to 12 times your annual income and the term should be long enough to cover any future financial liabilities like your mortgage and college tuition.

You will find that the cost of your policy, and the amount you pay for the premium, will be determined by the size of the death benefit you choose and the length of the term. There are a few other things that factor in a little bit like your age and health, whether you smoker, and even where you are in life.

Adults who are still in good health and younger than 40 can pay between $25 to $50 per month for an insurance plan that lasts up to 30 years and a death benefit up to $500,000 for example. This price can change based on the factors we discussed above.

Comparing the Best Life Insurance Companies

To help you decide which life insurance company is the best, we have gone through and provided information on the top insurance companies in the country. 

The six companies that we will explain below can offer you a 20-year policy with a death benefit of $500,000 for between $23 and $32 each month. The larger companies will have more expensive policies but can also provide great customer service.

Principal Financial Group

Principal Financial Group offers the best option when you want customer satisfaction and affordable coverage, which is why it is at the top of our list. 

It is actually ranked 4th on the J.D. Power’s 2019 customer satisfaction survey and has a lot fewer customer complaints than the average in the industry, making it a great company to work with.

This company offers different lengths for your insurance needs – from 10 to 30 years and the benefits range from $200,000 to $5 million. They have an A+ financial strength rating so they are likely to continue doing well in the future and can be a great place to put your money.

Haven Life/MassMutual

When you choose to work with Haven Life, the policy will be backed by MassMutual, which is one of the biggest and the oldest insurance companies in the United States. Despite being older, they have several modern touches that make them really great. 

Haven Life is one of the only companies that will allow you to apply and get a new policy from the comfort of your own home and you do not need to visit a lab or a doctor first.

You will need to finish a medical exam sometime within 120 days after you sign up, but you have time before getting that done and your policy will start right after you get approved. 

Be accurate with your answers though because if there are large discrepancies, it can cause some issues with paying the death benefit. Being a few pounds off will not harm anything, for example, but if you hide major medical issues in your health that could be a problem.

This company also has the lowest price quote for all of the companies listed. If you are healthy and 35 years old you can get a policy that lasts 20 years for $500,000 for just $22.34 a month, which is less than the average. They offer policies that go from 10 to 30 years and you can get benefits up to $3 million.

Northwestern Mutual

All of the companies on our list have amazing customer service, but Northwestern Mutual takes it to the next level. This is the largest company that provides life insurance in the country and they have some of the lowest customer complaints of all the insurance companies out there. 

They offer many policies and great service, though their quotes are often 20% higher than many of the competition.

Most of the term insurance options provided by Northwester will be between 10 to 20 years. They start at $100,000 and go up to $5 million. There are a lot of products that fall anywhere in between there so you should shop around and talk with a financial advisor to see which one is the best for your needs.

Nationwide

You will notice that Nationwide has offerings that are similar to some of the other options on our list. It ranks high in most of the categories that you want in a life insurance company from good customer service, affordable prices, and more. 

The prices are aligned with the competition and you can choose any type of life insurance that you would like. The company is considered stable and the customer service is amazing as well.

State Farm

The prices with State Farm are similar to Northwestern Mutual that we talked about above. However, they do this in order to provide more you with the flexibility that you need in the process.

You can go to their website to start the application process, but you will also need to speak with a representative from State Farm at some point. This helps you to finalize the application and get everything organized the way that you need.

Banner Life

The final provider we will look at is Banner Life. All of their policies are issued through Legal and General American, which is the American Branch of a British company. 

This is a life insurance company that has been around since 1836 and it provides one of the best reputations out there for being affordable and for great customer service. It also offers terms of 25 years, and is one of the few companies that does this.

FAQs About the Best Life Insurance

When considering life insurance, you likely have a number of questions about how to get started and which policy is the best one to go with. Some of the common questions you may have include:

Should I get life insurance?

If you have someone in your life who counts on you for financial support, whether it is a parent, spouse, or children, then life insurance is a must. 

This will make sure that your loved ones can still get some financial help, even if an emergency or death happens to you. The amount they get will depend on your specific policy.

I’m in good health and young, do I need a policy?

Yes. In fact, one of the best times to purchase any life insurance policy is when you are young and healthy. This helps you get a lower price on the policy and will save you money in the long term.

I have pre-existing conditions and other health problems. Can I shop for insurance still?

Yes, there are some insurance providers who will still provide you with coverage if you have health conditions. It is worth shopping around for them though and finding a policy that can be designed for your specific health situation. 

Each company has its own approach to how they will classify customers and whether they will accept you under their policies. Keep in mind that the more severe your health condition, the more expensive the policy will be each month if you do get approved.

What should I consider when choosing the term period for my insurance?

You need to pick out a policy term that will cover the time period of your greatest financial liabilities. So, if you are purchasing the insurance right now, make sure that you can pay tuition for your child who is 12, then a 10-year policy is enough. 

You need to err on the side of longer in case you need something that lasts longer and to keep you protected.

How high insurance do I need?

There are a few methods you can use to help figure out how much coverage you need. 

One option is the income replacement strategy. This will provide your family with an amount that can support them for 15 to 20 years through the interest and principal. To do this you would want a policy that is about 10 to 12 times the amount you make right now.

The second option is the expense calculation. This is going to be when you pick a policy that will handle your present and future obligations. You can count college, your mortgage, funeral costs, and more into that. Consider both when figuring out how much you should cover in your policy.

What if my financial situation changes a lot?

Life is always unpredictable and if something major happens to your financial situation, you will need to relook at the insurance coverage. If you find that you do not need the coverage any longer, it is possible to cancel the policy. 

If you find your obligations increase quite a bit, you can purchase more insurance. There are many supplemental solutions to help you out if your situation changes.

What about a guaranteed life insurance policy?

Most people do not need this kind of policy. Guaranteed life insurance is easy to get, even if you are less healthy or older. But the amount you get in the death benefit is low and you will pay a high premium. 

Most will have a waiting period of two years. This means that if you do happen to pass on during the two years of coverage, you will only get a refund of the premiums paid but no death benefit.

What if my coverage expires before I die?

While it does have the name of life insurance, it is actually more of an income insurance. It is going to ensure that you have uninterrupted financial support no matter what happens. 

Once your children get older and can support themselves and you pay enough to cover the retirement and your mortgage is done, you do not have as much need for the insurance and may no longer need it.

What is a rider and do I need one on my policy?

A rider is basically just an optional feature that you can add to your policy. They are available for the universal and whole life policies. An example of this is the chronic illness rider which will provide the insured with some of the death benefits if they get a terminal illness. A disability rider can waive or reduce the premium if you become disabled.

These riders may sound attractive, but the added expense is not worth it. It can quickly add up to the overall cost over 20 years and most people never utilize them at all.

Life Insurance: Final Word

Life insurance can be an important thing to consider. 

The right policy will keep your family covered and help them avoid too much debt and other issues along the way if something happens to you. 

Finding the right policy and choosing the right length of time and the best death benefit can help give you the peace of mind you need.