Does Your Life Insurance Company REALLY Matter? (Probably Not)
Off the top of your head, name your life insurance company. (You do have life insurance, right?)
If you’re like most of the people I work with every day, you’re likely stammering and naming random companies you see from television commercials. No worries.
I’m a life insurance agent, and when I bought my life insurance, I wanted the lowest price. I honestly didn’t care who gave it to me. And that’s exactly what I got.
Most carriers wouldn’t offer me a Preferred Plus rating, despite the fact I can probably outrun 98% of all humans at virtually any distance. I could throw an average adult over my head and squat them 10x without breaking a sweat.
But my dad can’t.
See, the best life insurance rates are dependent on more than just health. It’s your family history, in addition to driving record, health history, criminal record, and more. Unfortunately, my dad has had heart health concerns.
As I was programmed to do, I started searching through all the best life insurance companies, according to the major industry publications, of course, only to find I wasn’t allowed any better than Standard by most.
Fortunately, I’m a high risk life insurance agent and I dig deep to get my clients the best life insurance rates, every time. Since I am my own best client, you better believe I was going to live up to my name.
And I did; Preferred Plus by the only company who would have me at that rate. I grabbed a 20-year term so I wouldn’t have to worry about increasing premiums, and we’ll look over this thing again in 2034.
Does YOUR carrier matter? Probably not.
Does saving thousands of dollars over several decades matter? Um, yes.
As I instruct my own clientele, seek out a company with good ratings, a large business base, good customer service… and cheap rates. There’s a good chance you’re going to run into a company you’ve never heard of, like Banner, who is actually a great company.
Look, only 1% of all life insurance policies ever pay out. In other words, you’ve got a 99% chance of never using the policy you’re paying for anyway. Even if the company you choose fails, they’ll get bought up, their policies are liquidated to a new carrier, and you’ve just been adopted.
Trust me, someone wants your money.
I like to compare insurance to food. It’s an easy analogy.
You need food, and you probably need life insurance. You pay more for quality food, you pay more for better insurance. You consume food and it’s gone forever, you pay your premiums and they’re gone forever.
Not much different, right?
Now, some folks are all organic. Some folks like to be completely self-sufficient and grow their own food and maintain their own livestock (aiken to not buying life insurance at all, really). To each their own.
But at the end of the day, can you tell me what brand of food you’ve purchased over the last year? Do you really care? Unless you got food poisoning or you have an extreme lust over a certain food label, you likely can’t recall any.
You’re normal, don’t freak out.
Life insurance companies offer an intangible product, you pay for it, and hope to never use it. Of course, if you or your family does require the funds, hopefully the company is there to provide it. (Chances are, they will.)
Although it’s a PITA, life insurance is pretty simple for the vast majority of consumers in America. Don’t over complicate. Aim to pay less, don’t miss your premiums, and don’t hate on your agent. They’re just trying to help.