The right company for you is the one that provides you with the best recommendations about products, services, and prices. Here at InsuredMine, that is precisely what we do. We believe that knowledge is power so we strive to empower users with our analytics, but distance ourselves from the usual pressure antics of selling you anything for our benefit. Before you decide on a company, consider the following important recommendations: F
Do some homework: Doing some homework is always a good idea. Generally speaking, life insurance companies are in excellent financial health. But, you want to be sure you can rely on the company you choose. So even though insurance companies are required by law to maintain large reserves to guarantee they can meet their future obligations to their customers, it’s always smart to do some homework before making a decision to purchase, consider their financial health or at least their rating.
Check out their performance history: Check for complaints against a company. Life insurance companies are regulated by the State Department of Insurance, which tracks complaints filed by consumers. Though the type and quality of complaint information will vary from state to state, it is another measure you may want to consider when choosing a company. To look up complaints against a particular company, visit the National Association of Insurance Commissioners’ searchable database.
Check their ratings: Check out their ratings based on their financial analyses carried out by independent firms. This can be available for free or sometimes for a small fee. For instance, AAA is the top rating at Moody’s, but A++ is the best ranking at A.M.Best. So be careful when comparing information from different rating agencies. Also, remember that a company’s rating is just one of several factors to look at when considering a purchase. If you’re evaluating two policies and one is underwritten by a company with an A.M. Best rating of B+ (“good”) and the other is a company with an A rating (“excellent”), don’t automatically assume you should buy from the higher-rated company. If the policy from the other company has more of the features you’re looking for, it might be the better choice for your needs.
Check their size: Does size matter? Yes and no. Most of the largest insurance companies have been in business for decades and some date all the way back to the mid-1840′s. When a company has been in business that long, you can be fairly certain that it understands the complexities of the insurance business, knows how to manage risk and grow assets, and has a history of meeting long-term financial obligations. Some of the segment leaders with highest market share include — P&C: Statefarm (10%), Life & Health: Metlife (16.4%), Home Owners: Statefarm (19.6%), Private Auto: Statefarm (18.3%), Commercial Auto: Progressive (7%), etc. But that’s not to say that you shouldn’t consider doing business with smaller companies. There are hundreds of small- to medium-sized insurance companies, and many have been around just as long (and meeting financial obligations just as long) as their larger counterparts.
Seek advice from insurance professionals: Most people buy life insurance through agents or brokers and for a good reason. Determining how much and what kind of insurance to buy is one of the most important financial decisions you’ll ever make, but it’s also one of the most complicated. A qualified insurance professional will conduct a thorough insurance needs analysis and provide you with policy recommendations that are based not just on knowledge of company ratings, but on personal dealings with the companies he or she is recommending.
As we all understand, there is still a lot of analysis that each of us as a customer has to do before we buy insurance products. With digitization, however, there has been a paradigm shift in insurance purchase behavior and analysis approach, especially with the millennials favoring digital products and purchases and services online. Our goal at Insuredmine is to help all users make that transition and to be a part of their insurance management journey by providing all the analytics needed to make informed choices while housing all their insurance in one place.
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