A well-constructed life insurance policy from a reputable insurer is a key ingredient of any effective financial planning strategy for working adults. If you’re employed and have financial responsibilities, it’s never too early to consider purchasing a term life policy. In fact, policies with generous payout terms are particularly useful for younger married couples who have yet to amass enough savings for a rainy day. If you want to enjoy the security a term life insurance policy provides, you need to find reputable insurers in your part of the world, which is what today’s post is all about. More specifically, we’re going to tell you how to avoid choosing the wrong type of life insurance company.
5 Types of Life Insurance Companies to Avoid
Refuse to consider any insurer that is not licensed, and you will improve your chances of choosing a strong organisation and policy. Avoid these 5 types of life insurance companies, and you are virtually guaranteed a successful outcome:
- Unresponsive – While it’s to be hoped that you never need to make a claim on a term life insurance policy, you may choose add-on cover such as income protection and critical illness cover. If you ever need to claim for an accident or illness, a responsive insurer will make the process much easier. It’s rarely worth pursuing an unresponsive insurer for a quote.
- Unintelligible – Never buy a policy you don’t understand. If a life insurance company can’t make their terms and conditions intelligible, it’s best to pass and take a look at policies from other insurers instead.
- Unstable – If you uncover any kind of financial issues or irregularities when researching a life insurance company, you should give them a wide berth. The money payable to the beneficiaries in the event of a claim will help keep your family safe and secure so it’s vital to ensure there won’t be any payout issues, as far as is possible.
- Unaffordable – The life insurance market in developed nations across the globe is highly competitive, so there is never any reason to pay over the odds for a new policy. If you find an insurer that offers a good range of products with attractive features but their premiums are too high, cross them off your list.
- Unprofessional – When you speak with representatives of life insurance companies, you should expect to be treated courteously. You should also expect your advisors to have excellent product knowledge and be capable of offering objective advice on policy terms and additional cover options. If any representatives fall below these standards, move on to the next company.
What you should be left with, after dismissing the above types of life insurance companies, is a small collection of organisations with long histories of meeting people’s needs at competitive rates. Older, very well-established firms like TAL Insurance are a good choice if you prefer to play it safe. Some of the newer entrants into the marketplace may also be worthy of consideration, but you will need to do more homework if you choose a smaller insurer.