4 Tips to Find the Best Life Insurance Companies
One of the most common questions I hear is, “What are the best Life Insurance Companies?”
With all of the life insurance companies to choose from, and all of the different types of insurance available, it's clear why there's some confusion here.
The truth is, not all insurance companies are equal.
... so it's not as simple as asking "which company has the best price?"
But not to fear. We've compiled 4 simple tips to help you quickly find the best life insurance company for you and your family's needs.
[Hint]: The answer actually depends on who is asking.
Here’s what we'll cover in this post:
Quick Article Guide
Here’s what we'll cover in this post:
Tip #1 - Savings are Found in a Company's "Underwriting Guidelines"
Every life insurance carrier has its own criteria for determining the cost of an applicant’s insurance and rate class. This criteria is also referred to as underwriting guidelines. Some life insurance company’s guidelines are more lenient with specific health issues than others.
The insurance company will use these guidelines to determine which rate class you can qualify for and most life insurance companies have 16 rates classes.
When approving your application, the insurance company will evaluate your overall health and lifestyle. The health factors that life insurance companies will typically review include:
- Average Blood pressure
- Current cholesterol levels
- Family history of cancer and heart disease
- Medical history
- History of surgeries
- Weight in proportion to height
- Tobacco use within five years
- Prescribed medications
Because of this discrepancy, it is important that your agent MUST be an expert in underwriting guidelines carrier pricing so they can find you the best price for your specific situation.
Tip #2 - Shop the Market to Save Money and Time
If you have serious health issues, applying with the right life insurance company will save you money and decrease the chances of getting declined for coverage. This is because some life insurance companies are much better with certain health conditions than others.
Even if you are in excellent health, some companies may judge your family history or lifestyle, and every insurance company has different rates. This is why its so important to work with an independent agent that represents dozens of top-rated life insurance companies.
Behind health conditions, high risk occupations are the next big concern life insurance have when it comes to approving a life insurance application.
In fact, many life insurance companies have additional restrictions for insuring people with occupations that are considered to be dangerous. For this reason, when shopping for affordable life insurance, you’ll want to determine if your job is considered risky or hazardous.
The first step in sorting out life insurance and high risk occupations is simple: Determine whether your job fits the definition of high risk. This doesn’t affect the majority of our clients, but some positions that fall into the hazardous occupation category include SWAT team members, commercial fishermen, offshore oil platform workers, loggers, and high-rise construction builders.
However, there are some occupations that might seem like they are hazardous, but they don’t fit the bill. For instance, if you’re a law enforcement officer, you’re in the clear unless you receive hazard pay. Example of specific occupations within law enforcement that receive hazardous pay include officers with explosive duties or helicopter duties.
Traveling is another thing that is taken into consideration when determining if your job is high risk. Sadly, in today’s world, terrorism and kidnappings are major threats to international workers.
This factor alone will prompt some insurance companies to deny coverage to workers who travel in zones listed on the State Department’s travel warning list. In addition, a handful of countries prevent their citizens from purchasing life insurance outside of their county.
The countries include; Argentina, Belgium, France, Greece, Japan, Panama, Poland, Switzerland, and Uruguay. Some life insurance companies are more lenient with certain occupations than others. Because guidelines vary from carrier to carrier, choosing the right company is valuable especially if you have a high risk occupation.
If you are shopping for life insurance and have a risky job, we've created this article just for you, click here for insider's tips to saving money on life insurance with a hazardous occupation.
Tip #3 - Snoopy Isn't Always the Best
Most consumers mistakenly believe that the insurance company they see advertised on TV is their best choice. While MetLife may seem like a great option because they are known to be an excellent company, (and one we happily represent), they’re not always the perfect company for every individual.
Additionally, life insurance companies that spend the most money on advertising don’t always have the best options. It's no secret that advertising is extremely expensive. The cost of billboards, Super Bowl commercials, magazine ads, and radio commercials adds up.
In fact, the more ads a company runs, the more you as a client will spend on coverage. The cost of advertising trickles down to the consumer and this can result in rates that are up to 40 percent higher than that of another top-rated life insurance company that doesn’t advertise as much.
Consumers often worry about putting their faith in a so-called “fly-by-night” insurance company and believe that big ads reflect security and stability. The truth is that the biggest life insurance companies usually run the fewest ads. At JRC, we proudly connect clients with the best insurance companies based on how well they fit your exact needs, not on how often their commercials air.
We pride ourselves on partnering with the nation’s oldest and best-established insurance companies like Protective Life, Prudential, John Hancock, Nationwide, Transamerica, and other names you’ve grown to trust. We’re proud to say that the majority of the “A+ rated” companies we represent have been in business for more than 100 years.
Some of the clients we speak with wonder whether or not purchasing their life insurance from a lesser known company is a safe choice. In reality, the largest life insurance companies hardly advertise at all. For example, Prudential is the 4th largest life insurance company in America and they are A+ Superior rated.
Last year Prudential less than one-tenth of the money State Farm did in advertising yet they still control 37% more of the life insurance marketshare. In fact, State Farm spent a whooping $1.12 billion dollars on their advertising in 2020 alone! The cost of advertising is undoubtedly paid for by their customers, and this is why their rates are so much higher.
The life insurance industry operates under the oversight of each state’s insurance commissioner. A basic requirement is that any life insurance company must be able to prove it has enough liquid cash to pay all existing claims. If a company ever fails to pay a valid claim, they are forced to stop selling policies. In addition, companies are downgraded if they aren’t able to prove their financial stability and strength.
If a company has been downgraded too many times, the insurance commissioner will revoke the company’s license. If this happens, their insured clients are then passed on to another stable insurance company. This process is overseen by the insurance commissioner to ensure your family will have the money you intended to leave behind when they need it the most.
Real Life Example of A Client We’ve Helped
A client approached me last year needing 15 years of coverage to protect the last 15 years of his mortgage. It’s a simple enough request, but it became complicated by the fact that he was 71 years old. His local State Farm agent couldn’t help him since State Farm doesn’t offer more than ten years of coverage to clients older than 70.
By shopping more than 50 companies, I quickly located a handful of carriers willing to offer him affordable coverage up to the age of 90, 95, 100, 105, 110, or beyond. I was able to secure the client an offer for $300,000 of coverage with a policy that was guaranteed not to increase in cost over the length of his coverage.
Remember, State Farm could only offer my client ten years of coverage, but because I had the ability to shop multiple carriers, I was able to offer him 15 years of coverage at a rate lower. With insiders knowledge of each insurer and multiple companies to choose from, a skilled agent can usually find affordable insurance coverage for just about any situation.
Tip #4 - Use an Independent Agent to Find the Best Life Insurance Company
If you have a specific medical condition or work in a high risk job, an experienced, knowledgeable agent can not only take you to the right company, but they can literally save you thousands of dollars over the life of your policy.
The Case for JRC Insurance Group
At JRC, you’ll receive friendly, professional advice from agents who used to work in big call centers. With over 50 years of combined experience, we know that clients want help from agents who take their time with you.
See our Infographic - "Why Work with JRC?"
To further ensure our clients only receive the cream of the crop, JRC Insurance Group chooses to solely work with insurance companies that are “A” or better rated by AM Best. Our philosophy involves focusing on the individual.
We forego one-size-fits-all tactics to connect clients with insurance that fits their lifestyle. We also work with over 50 top-rated life insurance companies allowing us the flexibility to match you up with the best life insurance options available.
The nation’s biggest call centers only represent six to eight life insurance companies which prevents them from truly shopping the market to find your best rates. We also pride ourselves on providing unbiased options.
Some of the life insurance companies actually provide multi-million-dollar incentives to the larger call centers, and in-turn, this can cause these call centers to recommend their services, even if they are not the best option available to the client. JRC suggests only the companies that best fit your individual needs.Our agents focus on getting you only the insurance you need. You’re never pressured into shopping for renters, auto or any other type of insurance. The average family simply can’t afford to spend thousands more than they have to for life insurance – and neither should you. JRC will find the most affordable life insurance company and policy available to meet your needs.
In fact, many of our clients are actually licensed life insurance agents who work for companies like Allstate, Farmers, or State Farm. Fellow life insurance agents come to us because not only are our policies competitive in pricing because we shop products from more than 50 of the top-rated companies, but they also value the JRC customer experience.
Our agents are knowledgeable and friendly, we will not read to from a script, or offer you products that you don’t want or need. Our agents are intimate and they truly care - you’ll never deal with a cold call center or giant insurance mill that values stock prices over customer service.
We like to consider ourselves part of your extended family. We’re employee-owned with a vested interest in helping you. Whether it’s for high-risk insurance or simply a policy to cover your golden years, the choice is simple - JRC for your family and your future.
Call us today at 855-247-9555 to learn why our clients tell their friends and family to try JRC. Our service is free and we will find the best life insurance company based on your needs, health, and lifestyle. You can also request a free quote here and shop dozens of companies in just a few seconds.
Managing Partner and Co-founder
Cliff is a licensed life insurance agent and one of the owners of JRC Insurance Group. He has helped thousands of families of businesses with their life insurance needs since 2012 and specializes with applicants who are less than perfect health. In his spare time he enjoys spending time with family, traveling, and the great outdoors.
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Questions From Our Visitors
Some of the questions we received from our website visitors:
You're right about how having a good life insurance plan can help people with high risk occupations. My dad was a firefighter before he retired. He was always putting his life at risk to safe other lives from fires and other emergencies. He was really lucky that he never got severely injured, but it would have been smart for him to have a good live insurance plan during the early years of his life. That way, he would have been able to have the coverage he would have needed if something happened to him in an accident. Thanks for the tips!
Thanks for your comments, Deanna. Many people we speak to are unaware that life insurance companies don't add a "hazardous occupation" life insurance fee to first responders, including fire, police and EMTs....which we think is great. Same goes for commercial airline pilots.
My fiance and I are considering getting life insurance as soon as we are married. However, we don't know too much about where to start and I really like the idea that you, in this post, helped your clients shop at over 40 different companies. I think that we will definitely want to look at multiple companies to make the right decision for us. We are both in our twenties and don't have a serious plan just yet for our lives, but do you know which companies would be good for us to look at as a young couple?
Faylinn, thanks for your inquiry, and congratulations on your pending wedding! It's a great time to get your first life insurance policies locked in...when you're young and healthy. Many of our clients get a 20 or 30 year term policy which can be very low in cost ($20 a month of so) if you're both healthy. The next time to look at life insurance would be when you're a bit more established and salaries have increased and/or you begin having children. Call as at your convenience at (855) 247-9555. You're able to receive quotes and apply for the two of you. Just need your fiancée's birthdate, height/weight, and any medications or health conditions he's treating. By shopping 40 companies for you at once, we'll make sure you find your best values. As a young couple just starting out, you'll have plenty of other expenses coming up! All the best.
I think it is really interesting that the companies that advertise more aren't necessarily the best. There is a balance between name recognition I could see how it isn't a one size fits all situation. I would want a customized life insurance plan. Thanks for sharing all this information.
You're welcome, Diane. There are over 2000(!) fully licensed life insurance agencies in the US, so there is no "best company". It's an art to match a client's life insurance need with the company best for that type of policy along with the individual's age and health.