How to find a life insurance company

Consider these four trusted methods for finding a reliable life insurance provider. / Credit: Getty Images
Consider these four trusted methods for finding a reliable life insurance provider. / Credit: Getty Images

Life insurance provides financial security for policyholders and their beneficiaries by providing a lump sum of money upon the death of the policyholder. This money can be used for income replacement, to pay off an existing home mortgage or student loan or simply to help pay monthly expenses. It can also just be saved for a rainy day.

The benefits of having life insurance are multiple. And there are a variety of types to choose from, the more commonly known ones being whole and term life insurance. But how do you find the right life insurance company for you?

Fortunately, there are a variety of ways to find a life insurance provider. Simply choose a method that you feel comfortable with and proceed from there.

If you're currently in the market for life insurance or you want to increase the coverage you already have now is a good time to do so. You can start by getting a quote today.

Consider these four trusted methods for finding a reliable provider.

4 ways to choose a life insurance company1. Through your employer

You may have life insurance provided by your current employer or maybe your former employer provided this benefit. Ask around and find out which company they use. See what current policyholders think of the plan. This could also apply if you're looking for supplemental life insurance. If you have a basic plan with a provider via your employer you may be able to add supplemental coverage with the same company (albeit for a likely cost to you). Your human resources department could also help steer you in the right direction.

2. Through a financial adviser

A financial adviser is well-versed in the intricacies of personal finance. Review your individual circumstances and preferences with them. Explain what type of coverage you want, how much you think you need and how much you want to pay. They can help you pick the best plan and provider for you.  Online financial advisers can help you get started right away.

3. Through family and friends

If there's a relative or friend that you trust, you can ask them what life insurance company they use. This is often a reliable way to pick a provider because the parties you will be speaking to don't have a vested interest in directing you to an individual provider. Instead, they can provide a full picture of the company (and include both pros and cons). They can also provide you with an honest opinion about whether it's worth pursuing yourself.

You can explore your options right now. There are multiple providers to choose from.

4. Through online research

Once you know what kind of policy you want and how much coverage you need, then you can shop around and compare providers online. But read the fine print. Don't just compare coverage amounts or costs. Make sure you're doing an accurate, apples-to-apples comparison by measuring the benefits (and potential drawbacks) of each individual provider. For example, if you have a quote from one company for a term policy make sure you're getting a quote from another provider for the same type of coverage.

If you think this is the route you want to go down, it's easy to get started. You can review a list of top life insurance providers organized by your zip code here.

How to get cheap life insurance

While life insurance and the associated costs are specific to each policyholder, there are some ways to make sure you don't overpay. This includes:

Comparison shopping among companies: Don't take the first deal you get. Review at least three providers to make sure you're getting the best coverage for the most reasonable cost. This can potentially save you thousands of dollars over the life of the policy so it pays to shop around. Starting early: The younger you are, the safer a bet you are to insurance companies. You'll pay a lot less than you would if you were older. If you don't have insurance already then get started now before premiums rise.Completing a thorough process: "Simplified" life insurance may not require a medical exam. But you won't get cheaper life insurance by going without it. Don't pay more for less. Complete the traditional life insurance vetting procedures. This is especially important for the young and healthy - by taking just a few more steps now you can save both in the short-term and over the duration of the policy.

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