Choosing your Life Term Insurance Provider

Choosing your life term insurance provider is very important to the financial security of your family when you die. Since it is that vital, you cannot afford to make the grave mistake of paying your premiums to a carrier which would just put your money into waste in the near future. Keep in mind that insurance policies are not being paid just once unless you have that big amount of money. Even if you are paying the total face value of the plan in just one time, you must give it to the right carrier or you will be doomed to failure. Below are some of the criteria that you should use in deciding which insurance firm to employ.

• Credibility –the credibility of a company can give you a hint on what would you most likely experience with them once you transact with them. Their reputation can indicate their practice and this will also tell something about their business ethics. You must not delve solely into their developments or the awards that they have received. You should also look upon the ratings given to them by third parties such as their own clients and independent organizations that give ratings to carriers. Their agents may have some bias but you can deduce something from them if you can read between the lines.

• Financial strength –this is a major determinant in ensuring that your preferred carrier can be entrusted with your hard-earned money. Those with sound standing can provide cheap term life insurance quotes. This can be quite tricky though. It may be hard for an average Joe to comprehend the factors that affect the financial strength of insurance company. While it will not take a genius to understand the implications of the performance of the carrier’s profits such as stocks, you may have difficulty in dealing with realizing what a merger with another insurance company will incriminate and to other financial decisions.

• Authenticity of essential business documents –this is one of the things that prospective policy holders must and can easily do. One way to certify that a carrier is not a hoaxer is to check their pertinent documents. All you have to do is to go to your state’s insurance branch and verify if your preferred insurance company is registered and has the permit to operate. Such firms must be licensed by the state. Some offices use their web facility to conduct this service. Check their website so you do not have to bother yourself by going to their office.

• Complaints filed against them –in choosing your insurance company, you also need to look on the cases filed against them before you even start obtaining a life insurance quote from them. You can view the complaints charged on your state insurance department too. Take time to see what the natures of the cases are. Can it be blamed on merely ignorance on the part of the complainant or the carrier was at fault? See if there was a repetition of one case. You can make many inferences about the profile of the insurance company just by reviewing these mattes.

• Membership from independent certifying bodies –there are certain independent bodies that certifies carriers such as Insurance Marketplace Standards Association. It is a plus point for the company if they are a member of organizations such as the one mentioned herein as it would add up to their credibility. Being a member of certifying bodies needs compliance to the association’s strict guidelines, one of which is good business practice. You must not view the carrier’s membership as the sole basis in choosing them though as this alone cannot attest their credibility.

• Cost Index –this is the comparison of the projected revenues that you could earn if you will purchase the policy being offered such as term life insurance no medical exam and how much income you would most likely generate if you did not invest. In order to determine the difference, the surrender value and projected revenues’ value will also be compared. There is a number of ways of computing for this. Higher projected earnings would mean making more money with the policy. The carrier that offers the highest value of assumed revenues on the same policy can be considered.

These are just some of the factors that you need to consider when you are deciding which company you should be working with. This criterion can help you ensure that your money and your family’s coverage will be in good hands.


Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance and term life insurance quotes, visit his site today.