Now is the best time to start thinking about subscribing for life insurance. This product is a great investment towards protecting yourself and your loved ones even after you’re gone.
For that purpose, we made the ultimate comparing guide for the best life insurance companies for 2020. Plus, we explained the smartest way of choosing a policy provider. It involves weighing a few points like financial status, rates, and coverage.
With our expert help, you will learn what all those rates of insurance brands reveal. Discover the various options of life insurance available and understand the concept of risk tolerance. You will need all these things to make a smart choice.
This investment is not for retirees and business owners only. This investment is important for young adults, families, and professionals of all kinds. Getting details on the options is the main step towards recognizing the best plans. Choosing the perfect insurance plan provider for your lifestyle and budget comes next.
Table of Contents
- 1 How To Choose The Best Life Insurance Company For You?
- 2 What Are The Top Life Insurance Companies In The USA For 2020?
- 3 Understanding Ratings Of The Highest Rated Life Insurance Companies In 2020
- 4 Summary Of The Different Types Of Life Insurance
- 5 What Is Your Risk Tolerance?
- 6 Who Has The Best Term Life Insurance Policy For You?
How To Choose The Best Life Insurance Company For You?
When a person starts looking for the best life insurance company in the USA, there are some things to keep in mind. Certain factors can reveal whether you should trust a policy provider or not. This process goes beyond brand deals and policies.
Life insurance is often a lifelong investment and that’s why you need a reliable provider. Here are the key factors to check before deciding:
- Company ratings and financial health
Independent rating institutions give ratings for top American policy providers. These ratings offer professional insight into the financial status of a company. If the financial rate i.e. the financial standing is weak, you may risk interruption of payment, loss of benefits, etc. So, make sure to stick to the providers with the highest grades.
- Brand reviews and reputation
Insurance company reviews are crucial for finding trusted providers. Same goes for the company reputation. If a provider managed to survive for years on the lucrative market and earn customer respect, you’ll probably like it too.
- Compare prices
Rates play an important role when purchasing right about anything. Take the time to compare prices because the same policy may be cheaper at another insurance company.
- Advice and service
Many people aren’t experts on this topic. Instead, this may be a confusing topic for them, and they may need help grasping all the options they have. So, you shouldn’t overlook the advice and service.
- Policy changes, customer support
Sometimes you may want to make certain policy changes or have questions regarding your policy. This is when you learn about the importance of these two correlated aspects. So, never overlook the importance of a company with top-notch customer care.
- Additional services and tools
Being able to use extra services and tools have become a necessity among policyholders. Any brand that offers educational materials, online calculators and policy management tools take seriously their customers’ convenience.
- Underwriting policies
Every insurance brand has its own underwritings that determine the levels of the risk presented to the policyholder. This helps them calculate the cost of the premium and considers health, lifestyle, and occupation. Finding a company with underwriting conditions that suit your lifestyle can save you tons of cash plus, for example, it’s a big difference between the cost of a root canal with insurance and without it, etc. You should know about everything.
What Are The Top Life Insurance Companies In The USA For 2020?
When you start considering this step, you start wondering which life insurance company is the best one. There is no simple answer to that question because there are lots of great providers and plans to choose from. Below, you can find a short overview of the insurance brands with the highest reputation.
Haven Life
This is a leading brand in the USA. Pros include quick subscription and approval procedures, no medical exam required and competitive rates. Cons of the brand include lack of permanent policies and not available to those aged 65+.
Ethos
The best option for the young and healthy. There’s no medical exam for most customers and the application process takes a few minutes. Main drawbacks are the age restrictions and only one policy option (term life).
American International Group (AIG)
Those looking for a guaranteed return of premium, death benefit protection, and minimum cash value should go with AIG. This company has competitive rates and good ratings.
Transamerica
This provider boasts a wide range of products, online policies, and many online tools. Transamerica’s cons include below average ratings and extra fees when paying online.
Metlife
Metlife provides instant quotes online, it is the largest insurance company in the USA and has great ratings. Products offered are whole life, 1-year term life, and simplified issue term life. The provider could improve its online offerings and mobile app.
New York Life
Easy to find quotes, affordable premiums and lots of policy options make this company a top choice. There is no survivorship policy on the offer and that’s the main con of the provider.
Prudential
It beats many competitors with low premiums for permanent policies. Prudential also has many financial resources and tools. Term policies at Prudential are often more expensive than plans found elsewhere.
Mutual of Omaha
Not the best option for those who want to manage their policies online. Mutual of Omaha works for adventurers who take part in risky activities. Term life, whole life, and accidental death are the main company products.
Lincoln Financial
This brand is among the best life insurance companies in the USA and has a spotless reputation. The provider offers better premiums on permanent plans and worse rates on term policies.
State Farm
A great choice for those who want a basic coverage policy that offers online claims. State Farm doesn’t have other services and holds the highest A.M. Best rating.
Understanding Ratings Of The Highest Rated Life Insurance Companies In 2020
Insurance provider reviews often include company ratings. Before future customers can take these ratings into consideration, they must understand them first.
There are four leading financial rating institutions for insurance providers. These are A.M. Best, Standard & Poor’s, Moody’s and Fitch Ratings. They all have either 9 or 10 level rating structures, whose goal is to separate superior companies from poor ones.
A.M. Best has ratings from A++ to S. The two highest ratings are A++ and A+; A and A- and then B++ and B+ come next. The respective ratings show that a company is either Superior, Excellent or Good. All ratings mean that the provider can meet insurance obligations. The table then goes on with weaker ratings like C++, C-, D, E, F and S. The lower the rating is, the worse the financial status of the company is.
Standard & Poor’s, Moody’s and Fitch Ratings have ratings expressed in letters only. AAA mirrors superiority and a strong market position. AA, A, and BBB come after the best rating. All these ratings are good and given to the best life insurance companies that pay out. As the ratings fall to BB, B, CCC, CC, etc., policyholders can expect increased risk of interruption of payments.
Summary Of The Different Types Of Life Insurance
A life insurance policy is much more than benefits paid in case of demise. These plans may cover illness (but you need to ask about non-typical viruses, like a human coronavirus), injuries and many other unfortunate events. That’s what makes these deals a great investment for policyholders.
There are several different types of plans consumers must learn about before purchasing an option. Discover the three most popular and most common best term life insurance plans.
Term Life
Young consumers looking for a cheap and popular coverage should go for the Term Life. This policy defines all benefits and premiums right from the start i.e. you know what you’re paying for. The product covers a fixed period of time. For example, that can be 10, 15, 20 or 30 years. As soon as the policy expires, the coverage expires too. If the policyholder passes away, all benefits go to their heir.
Whole Life
These policies last a lifetime and include guaranteed premiums and money value. This means that the policyholder will have to pay for this type of coverage throughout their entire life. Benefits and policy conditions are defined from the start. So, people buying Whole Life plans know what they’re paying for.
We’d like to mention the Survivorship insurance, a subtype of the Whole Life plan. This option is available to couples only and their heirs get the benefits after both policyholders die.
Universal Life
Individuals who want more flexibility in terms of investing, death benefits and premiums should stick to Universal Life. Even though permanent, this type of policy comes with conditions that can change over time.
So, if you have chosen a brand among the top life insurance companies in the USA, you may expect reduced premium payments. If the insurance provider notes bad operating results, then the premium payments may go up.
What Is Your Risk Tolerance?
Any top rated life insurance companies in 2020 will want to know your risk tolerance. Before you answer this, you should know what risk tolerance is and what options you have. Well, risk tolerance reveals the policy holder’s attitude towards investment risk.
Your insurance provider will give you a form, which should help them understand your stance. Risk tolerance starts at low-risk shy strategy and goes up to high risk aggressive growth-oriented strategy.
- Conservative – Those who are concerned with security, usually have low-risk tolerance and choose this investment strategy. Conservative strategy guarantees low portfolio fluctuations and peace of mind.
- Moderate – Next, we have a moderate investment strategy, which is a bit riskier than the conservative one. Those who choose this strategy can expect modest profits, but also high levels of assets security.
- Balanced – Right in the middle comes the balanced investment strategy. With moderate risk and growth levels, this option works for those who can’t decide between serious profit and security. If both aspects are equally important to you, then you should settle with the balanced strategy.
- Growth – Policyholders often want to see their portfolio grow. Not all of them are willing to take the riskiest approach towards achieving this goal. For them, companies have a growth investment strategy. Here, the risk is somewhat limited, while the growth potential is higher than usual.
- Aggressive Growth – Finally, we have an aggressive growth strategy for those comfortable with taking risks. This investment strategy comes with the highest risk, but also with the highest growth potential too.
Who Has The Best Term Life Insurance Policy For You?
Buying life insurance is a serious investment, which often lasts your entire lifetime. So, it’s important to make smart choices based on serious research. You should remember that the best option for you depends on your funds, needs, and expectations.
There are various types of policies alongside tens of companies that supply them. If you have read everything we have explained above, you will be able to make a good decision. If you are wondering whether to sign up for life insurance, our advice is to just go for it. We have a selection of the best life insurance companies and all the information you need.
The providers we recommend are reliable, trustworthy and have been successfully working for years. Covering final expenses, replacing spouse’s income and covering debts are among the main causes why this policy is a great step for anyone. So, today is the day for you to stop delaying this key investment and subscribe for life insurance right now.
Thanks for such a thoughtful article. I am in the process signing up for life insurance but had no idea where to start when it came to providers. I’ll have to take a look at some of the policies offered by the companies you have mentioned here. The list is definitely exhaustive and detailed!
Yes, you can check out our list and choose the best company for you!
Thanks for sharing this article, it helps me a lot to find a perfect life insurance company.
Great to hear that!
This was incredibly helpful to me, since I recently started working from home. In the past, my employers would offer a couple of life insurance options and do all the work for me. I know next to nothing about investing, and I had no idea how to even start looking for a new plan. This articles covers all the basics and I really appreciate that.
You’re welcome.
Thank you!
What’s up, I desire to subscribe for this blog to take newest updates, therefore where can I do it please help out.
You can use “Subscribe Form” below each article or just visit this page.
That is the appropriate blog for anyone who desires to search out about top-rated life insurance companies. You realize so much its nearly arduous to argue with you (not that I really would need…HaHa). You definitely put a new spin on a topic that’s been written about for years. Nice stuff, simply great!
Thanks a million! You’re awesome
Very comprehensive list of the best life insurance companies on the market. I was recently shopping for a policy and opted to go with State Farm. A young consumer, I figured a term life policy would be best suited for me. I have other insurance policies through State Farm, so the decision to stay with one company made sense.
Thanks for sharing your own experience, Robert!
I was looking for the best life insurance company out there to get supplemental life for myself and my spouse. Here’s a great list of top companies along with tips and info I needed to make an informed decision that will aid my family. I even told a lot of my friends to check it out!
Thanks a million!
I want to get life insurance but don’t know which is the best life insurance company. Your post makes things clearer for me. Thanks.
Thank you too, Mickey!
My poor health made me think about getting life insurance. I never knew there were different kinds. I think term life is the best option for me. Does anyone else have experience with this?
You need to gain that experience!