How to pick a life insurance company.

Thomas Dickson
Jul 30, 2017 · 3 min read

Roughly 1,000 and counting life insurance companies sell life insurance in the U.S., but many are members of groups of companies and so aren’t really competitors with each other. Having separate companies enables a group to offer its products through separate distribution channels, to more efficiently meet the regulatory requirements of particular states, or to achieve other organizational goals. There are an estimated three hundred company groups.

So when the time come to choose one the choices can get confusing. You have the companies you see who do the heavy advertising on television using certain game show hosts. There are the ads the come in the mail and magazines using glossy images. Then finally you have the companies your mom o grandfather always used and they want you to use as well. As you can tell, you’ll have your work cut out !


Here are just a handful of points to keep in mind when selecting an insurance company.

  • Product — most, but not all, companies offer a broad range of policies and features, so choose a company that offers the product and features that meet your needs.
  • Financial Solidity — life insurance is a long-term arrangement. There is no guarantee for life insurance policyholders similar to that provided for bank accounts by the Federal Deposit Insurance Corporation (FDIC). Select a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.
  • Advice and service — for many people, life insurance is a strange, complex product, so that it helps to deal with a representative with whom you can communicate and who is attentive to your needs. This might be connected to the selection of a life insurance company because some agents represent only one or a very few life insurance companies.
  • Premium and cost — The premium is the amount you pay the company for the life insurance contract with all of its benefits. Even for a given death benefit and type of insurance (e.g., term life), the premium can vary widely among companies, either because some companies’ policies have features that others don’t, or because some charge more than others for the same coverage. So the first step in comparing policies is to make sure you compare similar insurance plans, based on
    -Your age,gender, and if you smoke.
    -The type of policy and policy features
    -The amount of insurance you are purchasing

There are other factors to consider as well. However the four mentioned will give you a solid base to work from. It does not hurt to see the advice of a independent insurance broker. He or she deals with multiple companies and can pair you with the right insurance carrier that meets your needs.

Thomas Dickson is a licensed independent insurance broker in Louisiana at Acadian Insurance Group LLC .

Thomas Dickson

Written by

Independent Life Insurance Agent/ Acadian Insurance Group

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