Whole life insurance serves a vital purpose for those interested in protecting their family in the event of an unexpected passing. Upon the death of the insured, a whole life insurance policy pays out a settlement to the beneficiaries.
Whole life insurance is worth purchasing by those who want the premium costs to remain the same and not fluctuate during the term of the policy. Most appealing is the cash value accrual aspect associated with whole life insurance. The eventual cash value could help a family struggling at a difficult time in their lives.
The purchase of whole life insurance should never be done without any clear and careful thought about what insurance company to purchase from.
Researching the Best Company
Life insurance providers invest a tremendous amount of money in advertising. All those commercials appearing on television are designed to present a company in the most positive light possible. The intention, not surprisingly, is to draw in new customers.
Prior to purchasing any life insurance, the buyer really must weigh options and look at various criteria. Never lose focus on the critically important reasons behind why the whole life insurance is being purchased. Maintaining proper focus increases the likelihood of being very prudent when choosing a company.
The Right Coverage Amount
Finding the best whole life insurance starts with setting a price on the insurance itself. Purchasing a nominal amount of insurance won’t be too difficult, but a nominal amount of insurance is not likely to be very helpful to a family that may require more than $100,000 in order to cover various expenses during an 18-month traumatic period.
Set the right amount of the insurance. Doing so is vital before looking for a particular insurance company to buy from.
Look Over the Approval Process
Each individual insurance company has its own unique process for approving or denying a life insurance application. One insurance company may require an extensive health examination in which the applicant must pass thoroughly in order to be approved. Another company might ask a few health questions and not require an examination. And yet another company may not require an exam or even ask any questions.
The applicant must look at the proverbial big picture when examining policy approval requirements. The ability to procure reliable coverage is incredibly important.
Boosting the Coverage
The availability of riders on the policy is best not overlooked. Yet, some applicants for whole life insurance just might look past the possibility to add a rider to the policy. A rider is a clause that puts an added feature to the insurance coverage.
The added features are not acquired for free. Insurance companies are for-profit businesses so they charge for extras. The extra rider may be well worth the investment.
Vet the Insurance Company
Never take anything for granted when thinking about purchasing a policy from an insurance company. Remember the previously mentioned point about insurance companies investing significantly in advertising? Often, the promotional image of the company is what the public embraces. A more thorough vetting of the company is necessary before actually buying a policy.
Determining the financial strength of the insurance company is critically important. The financial strength of an insurance company is among the most important of all criteria to research. An insurance provider standing on weak financial footing is not exactly one primed to deliver six figure payments on policy settlements.
Learning about the financial health of an insurance company is not too difficult. Reliable websites exist to log consistently accurate information about debt, investments, and other fiscal statistics associated with insurance companies. An insurance company with a weak strength rating should be of concern to someone hoping to buy a policy.
The other vital trait an insurance company must embody is solid customer service. Mediocre or passable customer service is not enough. Policyholders have much invested in their policies. This is to say they have a great investment in their chosen insurance provider. Poor customer service creates stress and other issues. Would it not be best to make sure the company is known for exceptional customer service prior to signing on the insurance policy contract?
Various consumer review sources are available to determine a rating on any company’s customer service. Exploring those sources would be a good plan.
The Cost-to-Benefit Ratio
Every customer prefers a fair price on an insurance policy. Many look for the best price due to pure economics. They simply cannot afford to pay too much for a policy.
While understandable, customers should not look beyond the other important aspects of the policy. Supportive features and add-ons, good customer service, financial strength, and other previously-discussed traits could help craft a solid policy.
So, price alone might not be the most important factor to consider. Look at all the benefits associated with the policy in relation to the price.
And compare several policies from numerous companies. Such dilligence further improves the chances of finding an acceptable policy.