HOW TO CHOOSE THE RIGTH INSURANCE COMPANY
Price is not the only factor when choosing the right company. Of course, it is important how much you spend on premiums, but there are other factors you should consider when choosing the right insurance company.
Number of products offered
Try to answers this question: Does the company you are looking at provide a wide assortment of insurance products?
Many insurance companies concentrate on only one segment of the market, such as Whole Life Insurance. Others can pride themselves on offering a more competitive lineup of products. If there is an independent broker working for you, you may want to secure yourself with multiple companies.
Sound financial stability
The company you will choose must have a solid financial background. You don't want to end up bankrupt only because your insurer is not on solid footing. That is why you should check its background via rating services.
You should also answer some additional questions concerning claims. It is a good idea to check with a claims database how many costumers have complained because of a bad treatment, and what kind of claims service does the insurance company have.
Some life insurance companies only operate in some regions of the country. You may want to look for one, which does business throughout the country and probably across borders, or in the particular city of your residence.
Find out if the insurance company is based where it is pursuing new business. This fact may influence the company's premiums. If you find a company at the optimal stage of their business cycle, you may qualify for insurance even if you would be declined elsewhere. An independent broker with an in-depth knowledge of the market can give you advice and thus save you a lot of money.
Some insurance companies have an in-house sales force which means their agents are only allowed to represent the company's products. This often skews the agent's advice, as he/she cannot offer an unbiased opinion. Insurance companies who use the independent brokerage channel create a level playing field and provide less biased advice for the consumer, allowing their sales force to work in the client's best interest.
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