Find the Right Business Life Insurance for Your Canadian Corporation in Vancouver
When it comes to business life insurance, there are a number of life insurance providers ranging from small-time companies to big players. With the vast options available, choosing the right life insurance company to partner with can be confusing, especially with the wide variety of insurance products.
Nonetheless, it’s important for business owners to know that they should buy insurance and partner with a licensed insurance company in their state.
Talk with Licensed Life Insurance Agent at Save Corporation Tax
to help you setup this process in the right way and smoothly.
In this article, we’ll breakdown the steps and important factors business owners need to consider before choosing an insurance company to handle their company.
First, Assess Your Company’s Needs
Before you start with the process, it’s important that you take some time to evaluate the reason why you need insurance for your business in the first place. Write down the needs of your company and how it can help secure your business financially.
The main purpose of getting business insurance is to protect your business from financial risks and ensure that it stays afloat even when you can no longer be part of it. There are many ways to do this and when it comes to insurance, there are plenty of products to choose from.
Some of the most popular insurance products for businesses include permanent life insurance, key person insurance, business interruption insurance, and group disability insurance to name a few.
Employers also need to determine how much coverage they can afford to pay for the policy’s premiums as well as how to protect their assets. Having life insurance in place can also protect your company from being financially hit in the event that you pass away or someone sues your company.
Next, What to Ask Your Insurance Providers
One of the most important things you can do is to do your research first. List down the things that you want to accomplish including the requirements you need for your business. Make a list of questions you want to ask a potential insurance provider. At the same time, when you start asking questions, make sure the insurance company can answer your concerns to your satisfaction.
Doing your research first will help save a lot of time, effort, and energy. Here are the most common questions you need to ask the insurance company.
- Is the company financially stable?
When choosing a company, you’ll want to hire someone who will be around for a long time. This way, you can have peace of mind knowing that the premiums you are paying will go to the beneficiaries when the time comes. Therefore, it’s important to find out the financial status of the company and if it is stable.
There are a couple of ways to check their status. You can ask the assistance of independent rating firms to identify the company’s grade. Each company usually has its own rating system which can easily be accessed on the website. Another way to access information is by visiting the local library or via phone.
Some companies share information for free while others may charge for a minimal fee. It is also important to remember that while a lot of insurance companies have been around for quite some time, you should don’t discard small time players. They may not be in business for a long time but there are a lot of companies that have a solid financial background.
- What is the company’s track record?
It is important for business owners to know a company’s track record. You can check the insurance company’s reputation with the state insurance department. At the same time, you can also ask if there are complaints filed against them or if they are following the state rules.
Some of the common issues that may arise could be due to claims, premiums, and cancellations among other situations. Hence, it’s important for employers to get more information about insurance companies before partnering with them.
There are many advantages on choosing a company that’s been in business for a long time. They are experts in the industry and know how everything works. Their tenure also helps support the fact that they can keep up with long-term financial obligations.
- What products are available?
Check the products offered by the insurance company to see if there is a wide range of selections available. This way, you can have an idea if they have the product you are looking for. Meanwhile, some insurance companies can help customize your needs.
Permanent life insurance is perhaps the most common type of life insurance employers purchase for their employees. It’s always best to choose life insurance from a company that has a solid performance. Check the best insurance products available with Save Corporation Tax.
- How much does it cost?
Insurance companies use underwriting guidelines to determine when to sell a policy or how much to charge. Employers should get different quotations from various companies to see how each would fare. The insurance industry offers healthy competition which provides more options for buyers.
This helps companies set affordable premiums. However, the cheapest products aren’t always the best decision. When it comes to bargaining hunting, it shouldn’t apply to life insurance. Employers should get the product that offers the best value which means finding an insurance company with the most competitive rates.
When comparing quotations on policies, make sure you compare plans with similarities based on age, type of policy, features, and amount of coverage. These factors will help determine if the rates of the insurance providers are fair.
- What is the coverage?
The type of coverage you need will depend on the industry you are in as well as the size of your business. In case your business falls under a specialty, you should look for an insurance company that understands the industry that you are in. If you feel that the insurance company does not offer enough coverage, you can always look for other options.
- Are the customers satisfied?
A tenured insurance company is a good indication that an insurance company is reliable. However, it is not the only basis. Another way is to engage policyholders and check customer satisfaction based on claims and policy cancellations.
Hearing from customers will give you unbiased opinions about the insurance company’s service. You can work with third-party companies to help with tracking the company’s customer reviews and scores. Another way is to ask your family or friends for recommendations on insurance providers they are currently dealing with.
- Are they licensed by the state?
Employers should not neglect this question because it’s important that the insurance company is licensed in their state. You can check with your local government if the company you are eyeing has a license to sell in your state.
Some states may require insurance companies to have separate licenses for the policies they sell. Hence, some insurance providers may have one or more licenses.
How to Choose the Right Insurance Product
Once you’ve locked down a company that you want to partner with, here are some of the steps you should follow.
- Research similar coverages bought by other companies. Find the insurance products wherein businesses that have the same size and industry as your company usually buys.
- Pick a product in line with your business plan. However, you need to identify what you want for your business and what your company needs.
- Request a quote. As mentioned above, employers should get quotes from different insurance companies and compare the details particularly the rates and policy inclusions.
- Review the quotes. Once you have all the information on hand including and spend some time reviewing the proposals and comparing them. This will help you understand the differences between the quotes and features of each product. Therefore, you shouldn’t rush this decision even if you’re in a tight timeframe.
- Stick to your coverage. Make it a habit to review your policy regularly, especially since new risks may suddenly appear. This way, you can make necessary adjustments in case the situation calls for it.
Conclusion
Purchasing life insurance for your business is one of the most significant financial decisions you can make as a business owner. Doing your research is always a good idea before you start signing any agreement.
Business owners should know that they can rely on the insurance company they choose. Hence, comparing the services of several insurance companies can help you pick the right product and provider that will suit your company’s needs best.
Business owners can seek the help of insurance agents or brokers to determine what kind of product to buy and how much coverage they need. A qualified insurance agent can help you with your needs and help you with recommendations.
Life insurance for your business can be complicated which is why it is important to deal with an insurance agent who you can clearly communicate with and who is attentive to your company’s needs.
Get in touch with Save Corporation Tax to find the right professional for you.
