You probably know life insurance is important. It can relieve your family of any debt burden when you die, provide for your children, supplement your retirement income and give you peace of mind. But with hundreds of entities offering policies, it can be difficult to know how to choose the right life insurance company.
After all, you don’t want to pay more each month than you must and you certainly don’t want your investment to go up in smoke. You can use a human life value calculator to help you determine the level of protection you require based on your age, income, assets, and liabilities. However, you also need to do some research on the life insurance providers. If you are shopping around for a life insurance policy, here are five things you should consider.
Products
This probably goes without saying but you should ensure you choose a company with life insurance products that meet your needs. Even though a friend or relative may suggest you get the same product they have, it may not be right for you. There are short-term plans, return of premium plans, whole life plans and universal plans, just to name a few. Get the details of each before you decide.
Premiums
You may find products you like at a few insurance companies. How will you choose between them? Most people will consider the monthly premium. As the Insurance Information Institute notes, life insurance premiums can vary widely even for similar products. Your age and the amount of insurance you’re purchasing will contribute to the costs.
Financial health
Insurance companies are required by law to have financial reserves large enough to meet their future obligations to policyholders. Still, you should check the independent ratings of any company you are considering. Top rating agencies include A.M. Best, Standard & Poor’s, Fitch and Moody’s. Some agencies and company make their information available online for free while others may charge a small fee. When you are reviewing ratings, remember that different agencies use different scales so be sure to check the details carefully.
Service
Money isn’t all. If you find yourself still struggling to choose between companies or plans, hear what their customers say. Does one company pay more attention to customer service? Do they take the time to answer questions? Are the branch locations or opening hours more favorable for you? What about online services? These may seem like little things when compared to things like financial strength, but they are important. You need an insurance company that makes doing business easy and pleasant.
Complaint levels
As a follow-up to the last point, you may want to check to see what complaints have been lodged against the companies you are considering. The department of insurance in your state can help. Make sure you look into not just the complaints, nut how they were resolved.
Even though you know the importance of life insurance, shopping around can be hard. You can employ the services of a broker to help you. However, you can also do it on your own. Make sure the company you choose is financially stable, has the product you need and delivers the service you want at a price you can afford.
About AEGON Life
Launched in July 2008 with pan-India operations, AEGON Life Insurance Company Limited has a vision to be the most recommended new age life insurance company. As a joint venture between AEGON – world’s leading financial services and Bennett, Coleman & Company – India’s leading media house, AEGON Life Insurance adopts the power of global expertise to facilitate a direct to customer approach, leveraging digital platforms to bring transparent solutions, and to prioritize customer’s needs. Our product portfolio includes term life insurance plan, pension plans, unit-linked insurance plans (ULIPs), health insurance plans, child education plans, and more.
