life insurance for wealth transfer

The Best Term Life Insurance Companies

The Best Term Life Insurance Companies

If you are searching for life insurance, it is important to think in terms of which are the best term life insurance companies.

Why is it important which is the life insurance company you select to buy a policy from? What does “the best term life insurance company” means?

A life insurance policy is actually a contract between the life insurance company and the policyholder. It is a promise from the insurance company to the policyholder that it will pay a certain amount of money to the beneficiary upon the death of the insured in exchange for the timely payment of premiums due on the life insurance policy. As with all contracts, or promises, performance under the contract, or promise, is only as good as the person or entity making the promise or entering into a contract.

What this means, when buying life insurance, whether TERM, UNIVERSAL LIFE, WHOLE LIFE, etc., is that it is important to do research on the insurance company itself in order to have a high level of confidence that the insurance company you have selected to buy a policy from will in fact make good on the promise made in the life insurance policy, or life insurance contract. In other words, that the life insurance company will pay your beneficiary the face amount, or policy benefit, if you die while the policy is in force.

Generally speaking, there are two basic causes for life insurance companies not to pay the life insurance proceeds to the beneficiary of the policy upon the death of the insured. One is because the insured has, somehow, not done his part to comply with the terms of the life insurance policy, or contract. For instance, suicide and material misrepresentation on the part of the insured on the life insurance application are two valid reasons for insurance companies to refuse to pay benefits. More on this can be found on an article entitled “Don’t Kill Your Life Insurance Policy” by Claes Bell in Bankrate.com that you can read by clicking HERE.

The other reason why a life insurance company may not pay life insurance proceeds is if the life insurance company itself becomes financially unable to pay. If, for instance, the life insurance company goes bankrupt or out of business. The good news is that there are state guarantees that protect consumers in the event that an insurance company becomes financially unable to meet its liabilities, which may include not being able to pay life insurance proceeds upon the death of the insured.

If you wish to expand on insurer-related risks you can read an article entitled “What Happens When Your Insurer Goes Under” by Ron Lieber – New York Times by clicking HERE.

We all should be aware that “there are no guarantees in life”, as they say, and that it is always possible that something totally unexpected happens. There is a top-seller book called THE BLACK SWAN, by Nassim Nicholas Taleb, precisely on the subject of highly improbable events happening. You may want to read it.

The best a consumer can do to ensure he/she selects “the best term life insurance company”, is work with a reputable and licensed independent life insurance agent who, using a sophisticated program and database can not only select the best and most affordable policy for you, but also ensure that the insurance company issuing the policy has top rankings from the companies that specialize in rating life insurance companies. These rating agencies are A. M. Best; Fitch Ratings; Moody’s; and Standard & Poor’s.

Finally, the best term life insurance company is the one that can offer the type of policy that best fits your personal and financial situation. Ideally, you should do what is called in the insurance industry, a Needs Analysis, which a form (paper or electronic) that compiles your assets, liabilities, income and expenses and helps you decide the face amount and type of life insurance policy, or policies, you should purchase in order to have adequate protection against financial risks and to provide for the financial safety of your family. The Needs Analysis should be updated at least annually, or if a major event impacting your family or family financials, takes place.

We would like the opportunity to earn being your independent life insurance agent of choice. Call us at our Toll Free Number 888-950-8376;l or visit our website www.insuranceglobe.net .