What term life insurance carrier is the best for you?
This is an important question and one that should be looked at before you apply to a carrier for life insurance.
Do you have any special underwriting circumstances? Medical issues? Dangerous avocations? Family history? Medications? Weight considerations?
Based upon various underwriting circumstances, different carriers will underwrite the issues differently. Therefore, it makes sense to use a company that underwrites for that particular situation the most favorably. That is what we try and help our clients identify what those companies are going to be.
A great example is Prudential who will give an occasional cigar smoker a non-smoker rating as long as it is admitted on the application. Most other carriers will give that client a smoker rating, so that is a huge piece of information to know. Recently we had a client who had lupus and after speaking with all the various carriers we actually found one that would consider her for preferred. Most all the other carriers would consider her at at table B rating at the best. This specialized knowledge will help you win as the consumer.
Another factor in picking the right term carrier for you is if they offer a good conversion option. Does the carrier have a good universal life conversion option or whole life conversion option? While you may only want term know, it is good to have a permanent option just in case. The permanent option can be exercised with no proof of insurability. It allows you to convert all or part of your term to some form of permanent insurance.
One of the important things to consider is whether the company you are buying from is underwriting conservatively and collecting the appropriate amount of premium. As a customer you want to work with a company that collects enough premium and doesn’t accept to many risky applicants. The basis of a life insurance company is the ability to pay out a benefit to you and your family. If they are not collecting enough premium now, will they have enough money down the road to pay the benefit.
We try and work with our clients to not only determine the length of the policy, but also the strength of the company and the companies evaluation process. Also, certain companies will underwrite for certain conditions more favorably and establish a niche with those types of candidates. For example, if you are a smoker than often times Prudential will be the best company for you to go with as they seem to underwrite favorably for that.
Make sure to consider if the company you are going to apply for is asking for enough premium. Typically they are, but don’t always assume the lowest price is the best way to go. Make sure you are looking at companies with at least an A rating.
