If you follow online insurance trends like we do, you’re sure to have noticed that very recently just about everyone has posted a Top 10 Best Life Insurance Companies article to help potential clients try to determine which life insurance company is best.
If you actually take the time to read all of these articles, what you’re going to find is that it doesn’t seem like everyone is of the same opinion as to which life insurance companies are the best!
For this reason…
We’ve chosen to write today’s article in an effort to explain why it is IMPOSSIBLE to create a truly accurate Top 10 Best Life insurance Companies list!
And stress to you “The Consumer”…
…just how important it is for you to do your own due diligence!
Which Life Insurance Company is Best for you?
Why you should be skeptical of Best Life Insurance Companies Lists
In our own Top 10 Best Life Insurance Companies article we’ve tried to stress this point, as you can see by this excerpt:
|Have you ever wondered who the top 10 best life insurance companies in the United States are? The answer you get will vary depending …
The criteria we are using to determine who offers the “best life insurance” is based on the (1) prices offered, (2) products offered and the (3) unique niches the company fills.
… We would like to state for the record that this list is a “fluid” one. Fluid because, on any given day, any one of the dozen different carriers that we represent may in fact change one of its underwriting guidelines. This is why it is important to choose an agency that focuses primarily on placing term, universal and whole life insurance, instead of other types of insurance, such as health and auto.
We introduce our Top 10 list with this introduction to help our readers understand that while we want to help them in their research, they also need to be aware that there really isn’t one “Best” life insurance company.
Additionally, we know that all too often when someone searches out a “Top 10 List” on the internet most of the time people just skip to the bullet points and don’t read the introduction!
For this reason…
We figured this time, we’d take an opposite approach and use the bullet points to stress why any Top 10 Best Life Insurance List should be viewed with a healthy bit of skepticism.
So here go!
Top 5 reasons why it’s impossible to create a truly accurate “Top 10 best Life Insurance Companies List.”
The Baskin-Robbins Effect
For those of you that are like us and have a serious addiction to ice cream, you’ll know right away that, aside from awesome ice cream cakes, Baskin-Robbins is best known for their 31 flavors.
Now ask yourself, “why 31 flavors?”
It’s probably because if you were to decide to ask the next 10 people you meet on the street:
“What’s your favorite flavor of ice cream?”
Chances are, you’re going to get 10 different answers!
Which is the same when it comes to life insurance. Ask 10 different life insurance agents what’s the best life insurance company out there and …
…there’s a very good chance you would get 10 different answers!
For example, at TermLife2Go, in addition to having a Top 10 Best Life Insurance company list, we also have a:
- Top 10 Best No Medical Exam life Insurance Companies list,
- Top 10 Best Whole Life Insurance Companies list,
- Top 10 Best Universal Life Insurance Companies,
- Top 10 Best Final Expense life Insurance Companies list, and
- Top 10 Best Senior Life Insurance Companies list.
And guess what?
Each list is a little bit different!
Now what might affect an agent’s opinion of an insurance company?
- What area of life insurance he/she specializes in.
- Term, Whole life, Final Expense, Employer Based.
- What types of clients does the he or she typically work with:
- Old vs Young,
- Healthy vs Sick.
- Is the agent technically savvy; is his or her clients technically savvy?
- We speak with agents and clients all the time that will have their preferences when it comes to technology. Some clients only want to deal with paper applications and only want to mail in their premium payments. While other clients, want everything done electronically.
- Some agents are the same way.
So if one insurance company limits how they’ll allow their agents or clients to do business with them, well then, that company isn’t likely to make any Top 10 List written by that agent… are they?
The Independent agent vs Captive Agent Dilemma
“I suppose it is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail” -Abraham Maslow.
This is the dilemma of a “Captive” agent. Captive agents are agents that work with a specific insurance company and in most cases are only able to sell their employer’s policies (or just a handful of their competitors).
In cases such as these, it’s easy to understand why a “Captive agent” would likely recommend the one or two companies that they can sell when asked “which is the best insurance company out there,” rather than ramble off a list of companies that they can’t offer?
And who could blame them, right?
Conversely, there are many companies that will only allow captive agents to sell its products.
Which means that, for agencies like TermLife2Go, who aren’t able to sell these “captive” products, we’re also not likely to list them on “OUR” Best Life Insurance Companies article.
Clearly these are great insurance companies, but since we’re not able to offer their products, it would be difficult for us to include them in OUR Top 10 List.
That being said, we are in the process of creating a list of life insurance companies for our clients to check out and review. We’re doing this because we have found that our best clients are the ones that are best informed.
Think of it this way….
If we’ve helped you do your research and you’ve found that we’re offering you a great deal, in most cases, you’ll quickly become one of our best clients!
When it comes to life insurance, not all men are created equal
Everyone (particularly married individuals who are looking to buy life insurance at the same time) needs to understand that there is a very good chance that the best type of life insurance policy for you isn’t going to be the best life insurance policy for someone else (married couples take note, it may make sense to apply with different insurance companies than your spouse).
So… When we create a Top 10 Best Companies list, are we creating a top 10 best life insurance company list for….
- The super healthy
- Those with pre-existing conditions such as:
- Those who are larger builds
- Those who have issues on their driving record
- Those with credit issues or history of bankruptcies
- Those that are looking for a no medical exam versus taking an exam
- Those looking to just cover final expense or burial
- Those looking to cover a mortgage with level term life insurance
- Those looking to collateralize a small business loan
Who knows who a specific top 10 list is for? And see, that’s the problem!
See, we can pretty much guarantee that based on…
You’re looking to create a Top 10 Best Life Insurance Company list for,…
Greatly influence which insurance companies make it on that list!
Like all the stars in the Milky Way!
With literally 100’s of different life insurance companies out there, it’s basically impossible for us to offer them all.
After all, even Baskin Robbins cut it off at 31 flavors right?
So while we at TermLife2Go are always looking at different insurance carrier options, at some point you just have to say “Enough is Enough.” It’s just not practical to try to become an “EXPERT” on 100’s of different insurance companies.
After a certain point, everything just becomes a blur.
So… Conceivably, there could be a perfect life insurance company out there, that literally meets the needs of every possible client at the very best possible price, but to be honest with you, if there is such a company, we haven’t found them yet!
Guess what, it’s not what we think that matters, it’s what you think!
The first question that we train all of our agents to ask is:
“What got you thinking about buying life insurance?”
We ask this because, we have no idea what’s best for you until you tell us about what you’re looking for.
How you answer this question is going to tell us pretty much everything we need to know about where to start.
What got you thinking about buying life insurance?
“I want to pay off a mortgage”
“Ok, how much do you owe and how many years do you have left?”
“I’m looking to protect my kids”
“Sure thing, how many kids do you have and what are their ages?”
“I’m just looking to cover my final expenses”
“Perfect, how much coverage do you think you’ll need?”
Each response could potentially lead to a different “Best Life Insurance Company.” So as you can see, how can anyone create an accurate Top 10 Best Life Insurance Company list?
Now we can tell you that in our experiences, as independent life insurance agents, we’ve done extensive research looking for the top rated life insurance companies that will most often meet our client’s needs, but beyond that, the ultimate decision will be yours.
So what are you waiting for? Give us a call today and see what we can do for you!
Thank you for reading our article, Which Life Insurance Company is Best for you? Please leave any questions or comments below.