Term Insurance

Learn the Process     

■ Top-Rated Companies & Lowest Prices! 

■ Factors To Consider Comparing Policies

■ How Your Rates are calculated

■ Insurance Company Ratings

Factors to Consider When Comparing Policies

Whether you are purchasing term insurance or permanent life, one of the most important issues to consider is the financial health of the company that’s providing the insurance. After all, you want to make sure the company will still be in business when your beneficiaries need that payoff. To check the financial health of an insurer, you should turn to one or more of the companies that make a business of analyzing players in the insurance industry. There are about a half dozen such rating services, with the best-known including Standard and Poor’s,  A.M. Best, Moody’s, and Duff and Phelps

Each of these services grades the life insurers on financial strength, using letter grades to indicate how secure they consider the company. The actual grades vary by rating company. S&P uses AAA as its highest, for example, and Best uses A++.

 Insurance Company Rating Categories indicates the rating service’s opinion of an insurer’s ability to meet its obligations to policyholders, based on the insurer’s reported financial performance over several years.

Another factor that can influence which policy to choose is the availability of riders that you want to purchase. With a term policy, for example, you might want to make sure the policy is guaranteed renewable, so that you could continue to have insurance even if your health deteriorates and other companies might consider you uninsurable. Perhaps you would want a convertible policy, which allows you to switch from term insurance to whole life with no questions asked, another way to guarantee that you can purchase insurance even if your health declines.

When you are buying a variable or universal life insurance policy, another issue to consider is what funds are offered. In these kinds of policies, you direct where you want your investment to go. Generally, the insurer will offer a range of investments, from safe, fixed-income funds to stock and high-yield bond funds which offer the potential for more income but which come with a higher risk.

Please feel free to contact our insurance agency at any time and speak with one of our highly qualified representatives. For over 20 years our agency has been providing families with quality insurance products & services.