You have decided that you want to purchase a life insurance policy, but still wrapping your head around the commonly used terms, conditions and which insurance company would be the most suitable for your need. A decent life insurance policy may one day be essential for your family’s financial stability, stick around and I will help you make up your mind and provide you with an overview of different life insurance plans and the best life insurance companies in the us.
First things first, a life insurance policy is a binding contract between an insurance company and the policy holder, where the policy holder pays regular premiums in exchange for the insurance company paying a benefit to the plans beneficiaries. The beneficiaries are the recipients of the death benefit if the insured person dies. The life insurance policy you purchase may be sufficient to replace your previous income and cover other costs your family members may face, such as funeral expenses, college tuition fees and even taking care of an old family member through adding riders to the policy.
So writers are provisions that offer additional benefits in exchange for an additional cost. Writers enable the customization of the life insurance policy in a way that is most suitable to the policy holder and sustaining the future of their family. Before we get into the best life insurance companies in the us, let me help you with your homework and pin down some key terms that you must know before going forward with your plan to purchase a life insurance policy in the us.
Whole life insurance, which is sometimes referred to as straight life or ordinary life insurance is a policy that covers the policy holders entire lifetime in exchange for the payment of Free premiums. These premiums are typically paid up to maturity date, which is when the paid amount matches the depth benefit of the policy. Whole life insurance requires consistent premium payments and guarantees cash value accumulation. The cash value accumulation is the sum of the initial investment and interest earned to date, which you would obtain if you decided to give up the policy to the insurer or you decided to forfeit your cover. The cash value is distinct from the death benefit in a way that your beneficiaries would not receive the cash value if he died.
Another type of life insurance is the universal life insurance policy which differs from the whole life insurance in terms of premium payments flexibility. Universal life insurance typically provides higher flexibility when it comes to premiums and death benefits in a way that can be tailored to the particular needs of the insure party. First, let’s start with the universal life insurance. Universal life insurance comes in a lot of different flavors where the policy holder would pay a cost of insurance in exchange for what is known as a de benefit. In the beginning, the policy holder plays a premium which is compared to the annual cost insurance and the difference between both is deposited in a side account. These side account funds may cover the rising cost of insurance as it rises with the aging of the policy holder.
It is typically desirable to work closely with an advisory team to check the performance of such policy and its alignment with the policy holders require.
Another type is index universal life which allows the policy holder to allocate funds to an equity index account, such as Nasdaq or SNP to have restricted them. The huge advantage of the index universal life is its capacity to exploit compound interest and generate large amount of non taxable cash within the policy. Cast that can be later access to fund a well planned retirement.
Another type is a variable, universal life insurance policy. It allows the holder to invest their premiums in one or multiple accounts with various investment options, including stock, mutual funds, bonds and many more investment. The amount and method of investment are dependent on the policy holders, risk tolerance and investment object to determine that amount of risk to be under.
Now term life insurance plans are inexpensive when compared to other options since it has no cash value until the policy holder passes away. A term life insurance provides coverage within an established term only unlike the other options that provide insurance over the whole life of the policy holder. But it is worth noting that the premiums will possibly go through the roof when the term life insurance lapses and you want to commit to a new policy.
When deciding on which company you would like to get a life insurance policy from, looking into the history, reputation and financial stability are of utmost importance. Some companies even help you make an educated and well informed decision by providing one on one support resources and even calculators. Some companies such as prudential financial even provide an online quote for up to two fifty thousand dollars. Now let’s dive in and take a look at the Top life insurance companies in the us.
First, let’s start with prudential financial. This company has been providing people with insurance for more than 140 years as of the state. This reflects the company’s trustworthiness. They provide term life insurance policy covers, universal life insurance policy, index global life insurance cover and variable global life insurance policy. You could also add writers to your plans that include any unexpected survivor benefit. A living needs benefit as well as children’s protection writer. The company has outstanding financial stability. This helps the insurance holder to have some piece of mind in a way that the company won’t put them off. As mentioned previously, prudential provides you with online term life insurance quotes for up to two fifty thousand dollar. When compared to other Top life insurance providers, Prudential can satisfy the biggest range of needs when it comes to people’s requesting life ensuring in the us.
Talking about old and well established companies, State Farm is another outstanding insurance company with a proven success. It was astonished in 1922 by a retired farmer and has grown from its humble beginning to a highly reputed fortune 500 that offers a wide range of insurance products. It is financial robust as it secured the highest possible rating from A.M. best and Standard & Poor’s. they offer term life insurance coverage, whole life insurance and universal life insurance. Like potential financial, State Farm also provides potential customers with Free online quotes for various insurance plans, including permanent life policy by answering some questions. You can even extend term life insurance online without the need for a medical exam and from the convenience of your home.
Another amazing contender for our overview is New York life which has been in business for a whopping one hundred and 75 year. If this is not proof of their outstanding reliability, we don’t know what is. Similar to the other Top to your life insurance companies, New York life has a very strong rating from A.M. best and Standard & Poor’s. They offer several insurance products such as term life insurance, whole life, universal life, and variable, universal life policies.
One of the best services provided by New York life is the ability of the policy holder to convert the term policy to a whole life policy later, in addition to providing a wide area of custom, quite able to add on that may be valuable for the policy holders. Nonetheless, New York life does not provide you with the convenience of generating an online quote. Instead, you would fully fill in your contact Information and a financial adviser would get in touch.
There are many other great insurance companies in the us including TransAmerica, NorthWestern Mutual, Mutual of Omaha and USWA. That provides terrific services and can provide you with even more resources about life insurance and financial plan. Make sure to check out their websites. I hope you got a better idea about the insurance companies in the us and have a better ability to make an informed decision.
