Life insurance is something that just about everyone knows they should have. That’s especially the case if you have a spouse or children who are financially dependent on you. However, life insurance doesn’t just protect your loved ones; it could be of value to you while you’re alive as well.

Some policies, known as permanent life insurance policies, build cash value every time you make a policy payment. You may be able to tap into that cash value to supplement retirement income, cover the cost of long-term care, or take care of a wide variety of expenses later in life.

But, if you’re going to purchase life insurance, it’s important that you purchase your policy with a reputable company. Below, we’ll talk about what you should compare as you choose a life insurance provider, some of the best life insurance companies on the market, and how to compare your policy options.

Factors to Consider When Choosing a Life Insurance Company

There are several factors to consider as you compare your life insurance options. The most important factors to consider include:

Financial Strength and Stability

When you purchase life insurance, you’re trusting that the company you’re working with is financially stable enough to provide the benefits they agree to. After all, if the company goes out of business between the time you purchase your policy and the time you need it, you could end up paying premiums for nothing.

So, assessing a life insurer’s financial stability is critical before you decide to work with them.

The best way to assess a company’s financial stability is to look into its A.M. Best Financial Strength Rating. Any company with an A- or higher A.M. Best rating is financially stable and should be able to keep its promises.

Types of Life Insurance Policies

Life insurance companies typically provide multiple life insurance offerings. However, these offerings usually fall into one of two categories:

• Term Life Insurance: A term life insurance policy provides a death benefit for a predetermined period of time. These policies generally don’t gain cash value, but they have the benefit of lower premiums.
• Permanent Life Insurance: Permanent life insurance policies never expire. These policies customarily build cash value, but their premiums are usually significantly higher than term life insurance premiums. Permanent life insurance policies usually consist of universal and whole life policies. Traditionally, universal policies come with flexible premiums and death benefits, but fewer guarantees. Whole life policies don’t offer much flexibility in terms of premiums and death benefits but do offer guaranteed coverage.

Coverage Options

You’ll also need to consider the coverage options available. In particular, consider:

• Terms: If you’re interested in term life insurance, look into the terms available. Some companies will offer longer terms than others.
• Coverage Amount: There’s always a cap on the total amount of life insurance you can purchase under a life insurance policy. Some insurers have significantly higher caps than others. On the other hand, some insurers offer significantly lower coverage amounts than others for those looking for more affordable plans. So, consider the coverage amounts available as you compare your options.
• Riders: Riders are tools you can use to customize your life insurance policy. Be sure to look into the riders the company provides to make sure you can get coverage that fits your needs.

Customer Service and Reputation

If a company has a reputation for providing a high-quality service to its customers, you can expect to have a positive experience with that company. On the other hand, if their reputation is poor, you can expect a poor experience.

So, it’s important to consider the company’s history and reputation. In most cases, the best insurance companies are those that have been around for decades if not more than a century and have a storied history of providing positive services to their customers.

As you compare insurance providers, look into their history and customer reviews to determine if they’re a quality company to work with.

Price and Affordability

Life insurance isn’t worth buying if you can’t afford to consistently pay your life insurance premiums. So, it’s important to work with a life insurance provider that offers competitive premiums and payment options.

If you’re interested in finding the best value for your budget, you’ll need to compare your options. Consider getting quotes from multiple top life insurance companies to start your comparison.

Top Life Insurance Companies

It’s important to only work with the top life insurance companies to make sure you get the most benefit for your premiums.

One of the best life insurance companies you can work with is Fidelity Life. The company has a long history as a life insurance provider, serving customers for over a century. Here’s what you need to know about working with Fidelity Life.

Fidelity Life Insurance

Founded in 1896, Fidelity Life Insurance has been refining its life insurance offerings for more than a century and a quarter. The company offers a broad range of products with experts that can help you make tough life insurance decisions as your needs change.

Financial Strength and Stability

Fidelity Life has an “A- (Excellent)” financial strength rating with A.M Best. As such, financial strength and stability aren’t of any concern.  That’s important because when you purchase life insurance, you’re trusting that the company you work with will have the ability to pay out based on the promises they make.

When you work with Fidelity Life, you know that the company has been paying benefits as agreed for more than a century. Not only does the fact that Fidelity Life has been around for that long offer a nod to its financial strength, our A.M. Best financial strength rating further solidifies our strong financial management.

Policy Offerings

Fidelity Life Insurance offers a diverse list of policy offerings ranging from term life insurance to permanent life insurance. You’ll have access to a wide range of riders and customization opportunities, giving you the ability to make sure your life insurance meets your needs perfectly.

That means that whether you’re looking for a life insurance policy to provide benefits for your children until they graduate college or you’re interested in a policy that will provide coverage for your spouse for a lifetime, you’ll find what you’re looking for at Fidelity Life.

Customer Service and Reputation

The reputation a life insurance company has among its customers should be at the forefront of your decision to work with them. After all, if the company has a history of providing a positive experience, chances are your experience will be positive as well. On the other hand, when a company has a history of creating headaches for customers, you can expect a headache or two if you work with them.

Fidelity Life Insurance has a 4.6 out of 5-star rating on TrustPilot – a consumer review website – suggesting that the company has a strong reputation among its customers. That’s important because TrustPilot reviewers have no financial incentive to leave reviews. Instead, they simply share their experience. With the vast majority of customers enjoying their experience with Fidelity Life, chances are that you will too.

Pricing and Affordability

Fidelity Life has a wide range of life insurance offerings and customization opportunities. So, you’ll likely be able to find affordable options regardless of your current financial position. If you’re looking for a low-cost life insurance policy, consider diving into a term life policy. Keep in mind that the size of the death benefit will play a role in your premiums.

On the other hand, if you’re more interested in a policy that can offer lifelong coverage and comes with potential retirement benefits, consider a permanent life insurance policy from Fidelity Life.

How to Compare and Choose the Best Life Insurance Company

Follow the steps below to compare and choose the best life insurance company for you.

Assessing Your Needs

The first thing you’ll need to do is assess your needs. Start by determining what you plan to accomplish with your life insurance policy. Are you interested in achieving short-term goals like making sure your teenage children can afford a higher education? Are you interested in achieving long-term goals like making sure your spouse avoids financial hardship if you die first? You could even be looking to life insurance as a way to leave a legacy behind while offering a safety net in your retirement years.

Once you determine what you need your life insurance to accomplish, you’ll be able to better choose a company to meet your needs.

Research and Comparison

It’s always a wise idea to compare your options when it comes to insurance. After all, each insurance provider will offer a unique set of premiums and coverages and the best provider for your neighbor may not be best for you

Start by using online tools to gather quotes from between three and five reputable life insurance companies. Once you’ve done so, comb through their offerings to determine if they meet your needs. If you’re not sure, call the company’s customer service lines to ask questions and achieve more clarity on their offerings.

Evaluating Customer Feedback

As mentioned above, if most people had a poor experience working with a company, there’s a high likelihood that you’ll have a poor experience too. So, it’s important to evaluate customer feedback.

Start by talking to your friends and family members about their life insurance providers and their experiences.

Once you’ve reached out to trusted sources for referrals, consider reading online reviews and testimonials. Although it’s easy to fake or pay for an editorial review, websites like TrustPilot make it possible to find real consumer reviews. So, it’s best to avoid editorial reviews that read like a blog post, and lean heavily on consumer advocate websites that offer real consumer reviews instead.

Consulting with a Financial Advisor

Financial advisors aren’t just there to talk to you about investing and debt; they can also help with insurance-related matters too. After all, your life insurance can have a significant impact on your finances in retirement as well as your estate. With that in mind, it’s wise to seek the assistance of a financial advisor as you make life insurance decisions.

So, how do you find a qualified financial advisor?

Start by talking to your friends and family to see if you can drum up any referrals from trusted sources. If you can’t find any reliable referrals, consider using the National Association for Personal Financial Advisors’ financial advisor search tool.

Making an Informed Decision

Once you’ve taken notes and potentially spoken to your financial advisor, it’s time to weigh the pros and cons and finalize your decision. Start by looking at the premiums and coverage options offered by each of the insurance companies you’re comparing. As you do, consider the riders each provider offers to customize your policy, and the cost of those riders.

The lowest-priced options that offer the highest coverages are typically the best options to choose. However, before you purchase insurance, make sure to look over consumer reviews. After all, if the lowest-cost provider has a history of providing poor service, may not be not worth the risk associated with buying at the lowest price.

Once you find an affordable policy that meets your needs and is offered by a reputable provider, purchase the policy to ensure your loved ones are covered.

Conclusion

Life insurance is a no-brainer. It gives your loved ones a way to supplement your income if the unexpected happens and you’re unable to provide for them, and it possibly gives you a way to improve your financial position in retirement.

However, not all life insurance companies are the same. It’s important to work with reputable companies that have the financial stability needed to make long-term financial guarantees. Moreover, it’s best to look for companies that have a reputation for providing high-quality services.

It’s important to start your life insurance search today. After all, nobody’s promised tomorrow. Reach out to a financial advisor or life insurance agent today to discuss your options.