Life insurance is very much important for everyone because life is full of financial needs, and they must be satisfied to live a proper and happy life. Before beginning let’s see why life insurance is needed.
-For having savings for the future which will be useful for children’s education and other expenses.
-To have financial support after retirement.
-In case of sudden demise, at that time to cover the family financially.
– Unexpected accidents may happen at any time which we cannot predict at all, in case of that to support family’s financial needs.
But the unfortunate fact is that according to many reports many families in the US doesn’t have life insurance or the correct insurance coverage. If you have life insurance that would be useful
Now-a-days taking life insurance from a life insurance company is not that hard and many insurance companies are available to choose from as per your convenience. Now we have brought you the list of best life insurance companies in 2021 and the cheapest life insurance companies, so that you can choose from the comfortable segment.
Best Life Insurance Companies of 2021:
Northwestern Mutual stands out in the top position of the list with highest rating compared to other companies in our list. This company has lot of experience in the field as they are offering various financial services for the past 160 years, and they are trustworthy. They have various coverage and a lot of types in life insurance to choose as per the customer need. They also provide guidance so that customer can choose the best suitable coverage for them.
Haven Life company is new to the field as it was founded in 2014 in New York. They only offer term life insurance policy, but they offer various coverage types at costs which can be afforded by everyone. Their application process is done through online mode unlike old method which includes physical interaction with the agent that excludes the charge of commission, which is very simple, convenient and modern.
State Farm: State Farm is a very old company which was founded 100 years ago, in 1922. They have wide range options in Life Insurance not just limited s single one.
How to Select the Best Life Insurance Company?
Whenever you buy a life insurance, buying from a good insurance company is also very much important because you are paying your hard-earned money with the hope of having some good amount of savings in the future. That’s why before buying the policy checking out the company is must, to make that task ease for you we have given some parameters, based on them you can come to a conclusion that whether the insurance company from which you are buying is good or not.
Financial Strength: By examining the financial strength of a company we can come to know about the steadiness of their financial position, it is possible by going through the surveys of various agencies. If it is very healthy then the company is more likely to be free from debts.
Customer Service: How the insurance company and agent interact with the customer and respond plays an important role. For buying the insurance policy the communication is important, so you should find the companies that respond to customers quickly, have agents whose focus is to serve customers.
Policy types: There are various types of insurance policies, and the policies companies offer vary from each other. Instead of buying the policy, which is available, you should buy the policy from the company in which the policy is available that is best suitable for you.
Policy options and add-ons: Before buying you should check out some factors like how much amount you are going to pay for the policy and the payment modes available to pay the amount, how much amount of money will be added to your entire cash value in the end and selections for term periods.
Company Size: If the size of the insurance company is very large then the probability of the company going into financial crisis is very less. So, whenever you buy any insurance policy try to buy it from a large company, if you are planning to buy a large policy then this is must. Small insurance companies have their advantages like quick response and a more better customer service.
What are the Different Types of insurance policies?
There are many types of life insurance policies and people would be confused between if they don’t know what they mean. So, we have listed all the types with definitions below, so that you can have a better understanding about them.
Permanent Life Insurance: This is a life insurance policy which is the combination of both whole life insurance and universal life insurance and also the premium to buy this policy is high compared to them which also includes a greater number of benefits.
Whole Life insurance: In this policy the benefits are given upon the demise of the policy holder, which is also known as death benefit, not only that the overall cash value also accumulated in this policy.
Universal Life Insurance: It’s a permanent life insurance which offers similar type of benefits as term life insurance. Premiums are added to the overall investment of the beneficiary. There are some premium options available in this policy like single premium or scheduled premiums in which premiums that are added can be scheduled.
Indexed Life Insurance: In IUL multiple index options are provided from which the buyer must choose one like S&P 500 and they can select. The benefit of the policy depends on the performance of the index, which is very unstable. The interest rate is not fixed for the cash value, but the owner has also choice to choose fixed rate
Term life insurance: A life insurance policy which covers the beneficiary only for a limited range of time and that varies from 5 to thirty years, so the policy is only applicable till it ends and the beneficiary doesn’t receive any benefits of the policy after that, the range of time is determined while taking the policy. Its cost is less compared to permanent life insurance policy.
No-exam life insurance: It’s a life insurance policy in which the policy is provided without the requirement of medical exam and that makes the process of accepting the application of the process quick.
Cash Value: It’s a permanent life insurance policy which doesn’t have any limited range of time, in which the premium that is required to own the policy and other expenses are deducted from the overall cash value. The remaining cash value is accumulated over time.
Death benefit: When the insurance company pays the money after the demise of the person who owns the policy is known as Death benefit. The payments made for Death benefit policy are exclusive of tax. The change in the coverage of policy is possible even after taking the policy.
Variable life insurance policy: The policy in which the entire cash value is invested into multiple investment options which is also known as mutual funds. The overall final profit of the policy depends upon the performance of those investments.
Who should buy life insurance?
Life insurance should be taken by the people:
-who have family to support
-who have business
-who have children and want them to pursue higher studies.
-who are in financial crisis.
-who need source of income after retirement.
-who is the only breadwinner for the household.
The insurance is not necessary if:
-you are not in financial crisis.
-you have enough savings for the future.
-your family don’t depend on your income.
How much Life Insurance is Necessary?
Not all people need same kind of insurance coverage, well it varies from person to person depending on some factors which we have mentioned by which you can come to a conclusion that how much Life Insurance is necessary for you.
–How many people relying on you in your family? -Find out number of people who all are dependent on your income.
–Way of life you want to provide for your family: One can live life simple with simple requirements and rich with all the amenities. So, that determines the expenses you will have pay, based on which you can choose the coverage.
–Total expenses for your children’s education: If you have children then definitely one of your dreams would be to make your children pursue higher education. So, make a rough calculation of how much amount you will need.
–What are the properties you have? – This also helps to find out how much Life Insurance coverage is necessary for you by defining your affordability, so, list out what are all the properties you have.