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What should I look for when comparing insurers?
There are many things to consider when you compare life insurance companies. Unfortunately, most people restrict their comparison simply to the price of the premiums, which could be a big mistake in the long run. Here are a few more things to consider when you compare life insurance companies:
- Number of years in business. While a long-running business history is no guarantee of company stability, it does increase the odds that that company will be able to pay out in the event that you have to make a claim. Find out how long your insurance company has been in business before you buy.
- A.M. Best ratings. A.M. Best is an insurance rating company that investigates the financial security of insurers. A high rating indicates that your potential insurer will be able to pay your claim should it need to.
- Customer service policies. When you have a question about your policy, your insurance company needs to be accessible in whatever way you're comfortable with. If you prefer internet customer service, make sure that your insurance company allows you to see your policy online and chat with customer service via email. If you'd rather call to get questions answered, make sure they have operators who answer the phone.