Moneyadviceblog » Insurance » How to Choose a Life Insurance Company?

Purchasing insurance can be overwhelming. Definitions, conditions, coverage and exclusions can cause confusion and possibly a headache. And purchasing insurance isn’t exactly exciting or fun. However, imagine your life without it. Imagine losing everything you own to a fire and not having insurance to help get your life back on track.

Here are a few things to consider when deciding where to get your insurance fro,:

Understand the Insurance Company’s Financial Strength

First and foremost, you want to be sure that you can rely on the company you choose. Life insurance is a long-term relationship (one that outlasts many marriages). If there is a problematic claim situation, you don’t want to hear your insurance company can’t pay your claim because of its poor financial results.

Fortunately, you don’t have to worry too much here as life insurance companies are highly regulated and supervised by the government at all levels. As a result, they are generally in excellent financial health.

You can also rely on Assuris. Assuris is a not-for-profit organization that protects Canadian policyholders if their life insurance company fails. Their job is to protect you by ensuring that your policies are quickly transferred to a solvent company where your benefits will continue. In the improbable scenario that your life insurance company does fail, Assuris guarantees that you will keep at least 85% of the promised insurance benefits. That being said, you rather not have the extra pressure and stress while having to make a claim.

Screen Complaints and Reviews

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One does not pay much heed to this factor but it does make sense to look out for the number of complaints or bad reviews a company may have. Although some of it may be fake and generated by competition, you should not ignore a volley of complaints of a similar nature against the same company. This should give you a fair idea about which companies to consider and which not to touch.


Of course, you cannot put a value on your life but you have got to do some number crunching when choosing an insurance company. If you have ever looked at life insurance prices, you will know that premiums can vary widely among companies, even for the same coverage. This is usually because some companies have higher costs than others for a particular policy or age group. Make sure that the insurance company you choose offers pricing that complements your financial plan and you do not overshoot your budget. Just like you shop around for the best prices on flights and hotel accommodations, you should take advantage of competitive pricing for life insurance policies.

Make Sure You Are Getting a Good Product

The actual life insurance product is essential to consider too. You want robust coverage, few exceptions and exclusions and the option to renew your policy in the future.

Service Quality

This is also a vital factor while choosing an insurance company. You must make a call based on the attitude the insurers have towards potential customers like yourself. Are they available to answer your queries, whether on the phone or in person? Are they patient in their approach or seem too busy trying to make a sales pitch without understanding your financial needs? These are some of the questions you must ask yourself before you make a final decision.

The Power of Referrals

Every day we are inundated with marketing and advertising messages that can be overwhelming. Talk to family, friends and coworkers to learn about their experiences with a particular insurance company.

Choosing an insurance company today may not be the easiest of tasks , given the plethora of insurance companies that exist. If you are having trouble choosing an insurance company by yourself, get help from a trusted family member or friend who has the financial acumen to help you make the right choice.

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