What should I consider beyond price when buying life insurance?
Choosing a life insurance policy isn’t always easy. By focusing on things outside of price and product — like customer service — you might find an insurer that offers the coverage you need.
Cost is just one part of buying life insurance. Below are four other things to consider and what you should know about them:
1. History and reputation
Company reputation matters. One study showed that almost 23 percent of shoppers base their buying decisions on recommendations.1 Makes sense, right? You want to embrace companies that have earned the confidence of your loved ones and friends.
Go with businesses with strong track records and longtime customers who show their support. Focus on finding an insurance company with a history of consistent, reliable customer service. You may find this kind of information by digging into an insurer's website and getting a feel for its values. Better yet, see what other people have to say about the brand by reading reviews.
2. Customer service
On top of a good policy, you need strong customer support when you buy insurance. If you can't get someone on the phone when you need help, that’s a problem. Insurance can be complicated, so you want an insurer that will walk through the coverage options and answer your questions.
Quality insurers offer services that create extra value. They often have trained, licensed agents who will actually listen to your needs. They go further to find coverage that works for your budget. Look for companies that can answer your questions and solve your problems. The same goes for the claims process. Try to find companies that make this as simple as possible.
3. Financial strength
Good insurers stick around through sound money management — they keep their customers covered.
It's easy to figure out if your insurer fits that category. Five outside organizations — AM Best, Fitch, Kroll Bond Rating Agency, Moody's and Standard and Poor's — review life insurance companies and offer easy-to-understand ratings ranging from C to AAA.2 Choose an insurance company that’s set up for long-term success and has a rating to prove it.
How to learn more about life insurance
Life insurance may seem complicated, but it’s not that hard once you know the basics. Of course, we are happy to help. You can also use the
TruStage Life Insurance Calculator to compare different types of insurance and learn more about your options.
What are the different types of life insurance?
It may seem simple but understanding insurance types can also be confusing. We’ve broken down a few of the most common types of life insurance policies to simplify things.
What should I look for in a reputable insurance company?
Cost isn’t everything in choosing the best life insurance policy. There’s also a lot to be said about choosing an insurance company you can really trust.
How much life insurance do you need?
This article walks you through several popular methods for estimating how much life insurance you need to ensure your family’s future.
Life insurance when you're young
It’s tempting to put off buying life insurance when you’re young, especially if you’re just starting out and money is tight. But there are two good reasons to buy life insurance now instead of waiting.