Where to Find Top Rated Term Life Insurance

All too often, consumers who are shopping for life insurance products focus on the rates that they will pay for coverage rather than worrying about the how the company providing the coverage is rated.

Cost is extremely important when you are buying a product you are committing to pay for years, but you do not want to pay a provider who is not committed to making smart business decisions or providing excellent service.

The top-rated term life insurance companies are able to charge competitive rates because they use smart investment strategies and the executives know the marketplace.

Unlike the sub-par companies who must lower their staff costs in an effort to stay competitive, top-rated insurers do not have to compromise on customer service rankings to stay profitable and to keep the rates competitive.

When you are building your insurance portfolio to meet your financial planning needs, you must look past just the type of term you need and the amount, you must delve deeper to choose the best insurance carrier. Here is your guide to assessing the reputation of each insurer.

Once you know how to qualify a company or how to disqualify a company, you can then proceed to finding the rates with the insurers in one place for a quick price comparison. Use the FREE tool above to get started!

Why Low-Cost Term Insurance is Not Always the Best Option

You may have decided that you want to buy a level term policy instead of paying high rates for a smaller permanent insurance plan, but it might not be best to enter into a contract with the company offering the lowest level term rate.

Low-cost insurance is what many consumers gravitate to, but to really understand why low-cost does always equate to best you need to know how the marketplace works.

Regulation and Investing Premium Dollars

In the competitive and highly regulated life insurance marketplace, insurers must have an investment strategy to cover claims, stay profitable and in the end to stay in business.

While each insurer must follow the investment guidelines that are set by their state’s department of insurance in an effort to reduce the risk of choosing all risky options, the carriers do have some flexibility.

A specific percentage of the premiums that you pay will go into an reserve account to cover the pure insurance costs. The reserves account is what is used to pay out for projected claims that the company anticipates will be paid in a certain year.

The rest of the premiums for term insurance will cover expenses, operational costs and then investments.

Investments most commonly include conservative corporate bonds, but can also include high-yield stocks, real estate and more. The money that is put into the investments will earn a net investment income, which is used to cover expenses and to keep the company profitable.

What happens when the premiums are not sufficient?

If the company does not collect enough premiums to cover expenses, the cost of insurance, reinsurance premiums, and also to invest, there is a risk of going out of business. If the company goes out of business, there is a risk of losing the coverage that you have paid for for an extended period of time.

The government could step in, but the replacement coverage that you are offered could differ or the premiums could rise. This becomes a hassle and the major source of stress for people who may not be able to medically qualify for a new replacement plan once their less than reputable insurer goes insolvent.

As you can see, low-cost premiums are not always the best.

As long as the low-cost premiums are from a top-rated term life insurer, you can feel confident in your choice to bind coverage with the carrier.

What makes a carrier a top-rated carrier?

The top life insurance writers have become the top writers for a reason–they have a good reputation and have a large book-of-business of loyal customers they have built trust with and who will recommend their carrier to others.

To have a good reputation, you need to have financial solidity and good satisfaction rankings. Here are the factors that you need to consider to rate a company for yourself so you do not have to rely on biased reviews or statements.

Financial Solidity and Strength

It is difficult for an insurer to have financial solidity when they do not assess risk properly and charge the appropriate rates for term life coverage.

In an industry that is all about risk, it is critical that the insurer evaluates risk accurately and charges the right rates for high-risk or moderately risky applicants.

When the rates collected are low and a policyholder files a claim before a projected date, the company is losing money. The more the company loses, the more financially vulnerable it will become.

It is also difficult for newer companies that offer only one line of insurance to be financially secure and creditworthy. This is because a diversified product offering that includes permanent life, accident insurance and annuities along with term insurance will earn the insurer more investment income.

Creditors also prefer not to lend to companies without a history.

To check an insurer’s financial rankings, you can access different third-party financial ranking sites that assign letter grades basic on the financial statements. Consumer publications and independent agencies like Weiss Ratings, A.M. Best, and Standard and Poor’s all assess financial conditions and make it public record.

Be sure to access one of these rating sites direct and enter the name of the insurer in the website for a full report card. Any company that is not secure or creditworthy should be avoided, even if the costs are much lower.

Licensure and Complaint Index

Anytime you buy insurance from a carrier, you need to be sure that the company has an active license in the state you reside in. If the company is not licensed to do business by the Department of Insurance in your state, you do not have any consumer protection because the company is not obligated to abide by the laws and policies set by the regulatory body.

If you ever need to file a complaint, you have peace of mind in knowing there is a process to reporting issues to the state officials because the insurer is licensed.

It is also important to know what other consumers have experienced while doing business with an insurer. If a company is known for misleading clients or has been guilty of fraud in the past, you need to know.

Virtually all life insurance companies will have complaints, but if there is a large quantity of the same type of complaint it could be a red flag.

You can access the complaint index of any life insurer that you want to do business with by visiting the National Association of Insurance Commissioners site directly.

Enter the company name in the Consumer Information Source, and you can search by line of business, by type and more.

Available Methods of Contact

Life insurance can be a very personal product to buy. This is why the company that you do business with should provide personal service. If you prefer to review your policy or make changes online, be sure the company has this option.

If you like traditional service in-person, find a company with a local office so that you are able to build a strong relationship with your agent. After all, you are paying for service if you never end up filing a claim.

Where to Find Top-Rated Insurers in One Place

Once you have qualified the companies you can start to price the cost of their term products.

You can either visit each companies official website, locate their 1-800 number, or visit a local brokerage or agency, but all of these options require a great deal of time.

If you want to a platform that will only provide you with the rates available through top-rated insurers, try using an online rate comparison tool.

Rate comparison tools are systems that have been developed by a third-party. The developer has built relationships with reputable insurers offering term insurance and has incorporated their rates into their quoting system.

It benefits the insurer because it promotes their brand and benefits consumers because they are able to shop the rates charged by many companies by visiting just one website.

If you want to make the process of finding term life coverage from a top-rated company quick and easy, use an online quoting system that gives you power as a consumer. Be sure to do your own independent research on any provider that offers low prices so that you can be rest assured that they are financially stable and reputable.

Once you use the online resources to you advantage to qualify the company, you can choose the most competitive rate and begin the application process by filling out your personal application for term life insurance coverage.

Be sure to check out the FREE comparison tool below for instant quotes!