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5 Things Physicians Should Look for in a Life Insurance Company

Feb 26, 2015 3:15:00 PM

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Life insurance is an important aspect of financial planning and something on the mind of many Texas physicians. While you may already be aware of why a life insurance policy is crucial to the protection of your family, you may be wondering which life insurance provider may best for your needs. With so many companies offering quality products with good benefits, it can be difficult choosing one over the other.

To help you in this decision, here are five points to keep in mind when you are choosing a life insurance company.

5 Things Physicians Should Consider When Choosing a Life Insurance Provider

  1. Financial Stability – No matter which company you obtain your life insurance policy from, consider it a long-term arrangement. When choosing a life insurance provider, select a company that has been financially stable for a long period of time and one that has a solid reputation. You can also view independent ratings of each company through rating agencies such as Moody’s Investor Services, Standard & Poor’s, Fitch Ratings, and A.M. Best Company, Inc. Sometimes these independent agency scores vary dramatically, so be sure to check more than one.

  2. Cost and Premium – The premium is the amount you will pay monthly or annually in return for that policy’s life insurance benefits. Keep in mind, premiums can also vary greatly from provider to provider, so be sure to compare several options. When doing this assessment, make sure you are inputting the same initial information, so the premium price is an accurate comparison between companies. Initial information includes:

    1. Type of policy (Term or Permanent)

    2. Policy features and benefits

    3. Death benefit amount

    4. Age

  3. Trusted Identity – There are hundreds of companies you can purchase life insurance through, many of which have similar and confusing names. Some of these names are selected to suggest a solid financial product, such as “Security” or “Reserve,” while others want to show maturity, using words such as “Pioneer” or “First.” While the name may make the company seem legitimate, always do your homework. Be sure the provider has a home office location, verifiable contact information, reputable endorsements and independent reviews.

  4. Product – With the incredible amount of life insurance companies available, comes a wide range of products and features. Because of this fact, you should have every opportunity to pick the exact product you want and need in your desired price range. Partnering with a trusted advisor can be your best bet when it comes to choosing the right product. He or she can search the open market for you in order to find the ideal product that will come with each feature you want.

  5. Claims Handling – A life insurance policy may seem like a great decision - it is in your budget and has all of the features you were searching for. But how will the provider respond when it is time for your loved ones to receive the benefits? This is where it pays to do a little homework. Check claims databases to see if there is any complaint information on the particular company you are considering. Also, check with your state’s insurance department to learn more about consumer complaints. Just be sure to compare the number of complaints in relation to the number of policies that have been sold by the company, in order to get a good idea of service.

While these are five main points to consider, there are always additional things to keep in mind. For instance, if a company becomes bankrupt, policyholders may be helped by their state’s life insurance guaranty fund. Your adviser can provide more information about this for you. Other points to research are customer service reviews, endorsements and affiliations, conversion options, and innovative products.

Choose a life insurance policy today and show your family how much you care about their future stability by helping protect the lifestyle you have worked so hard to create. If you need help with determining the right life insurance plan for you, feel free to reach out to us. We’ll partner you with an experienced advisor who can provide answers to any questions you may have and design a plan that’s tailored to your specific needs.

Topics: Life Insurance, Disability Insurance

Posted by the TMA Insurance Trust Team
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