Whole life insurance can be important for people wishing to provide for family members or loved ones in the event of their demise, whether eventual or untimely, to maintain stability for beneficiaries in the face of a loss of income and funeral/burial expenses.
Whole life insurance pays out a sum of money to an individual designated as beneficiary by the insurance policy holder in the event of the death of the insured. Funds are generally considered to be sufficient to support a family for a period of time in the event of unexpected death, and to cover the costs of a funeral and burial services.
As this policy is in force for the holder’s entire life, the payment of premiums is generally required every year, or on some kind of regular basis. However, certain arrangements are possible that allow the policy to be paid up, with no further payments required, in as few as five years, or with one large lump premium payment. Rates are determined by the age and health of the individual, with the lowest rates going to fit, young and single individuals. While these policies may be purchased at any age and stage of health, willing providers and favorable terms become more and more difficult to find in the event of a serious diagnosed illness or advancing age.
USAA: Best for military members
Military members and their families should strongly consider USAA for their insurance needs, though life insurance through USAA is available to civilians as well. Customers who have chosen this policy have reported exceptional customer service and no hidden fees. In keeping with the needs of their customers, USAA whole life policies do not exclude death caused by war. Customers in the market for whole life should also consider USAA’s Combination Life Insurance, a unique blend of term and whole life in one inexpensive policy.
State Farm: Best rated
Perhaps best know for its property and casualty business, State Farm is one of the largest mutual life insurance companies, with financial strength above the competition. State Farm is one of only four life insurance companies that hold an A+ financial strength rating by Weiss Ratings, a leading independent research firm. A.M. Best rates State Farm’s Life’s regulatory capital ratio among the strongest in the industry, which is supported by a conservative liability portfolio. State Farm has many benefits associated with its whole life insurance, including constant premiums all the way to age 100 with access to the cash value at any time. You can get $100,000 of coverage for only around $80 a month.
New York Life: Best for customer satisfaction
The American Customer Satisfaction Index ranks New York Life among the top major life insurance companies in customer satisfaction ratings. These strong ratings are a reflection of a highly satisfied captive agent force, which has given New York Life many awards including: “Working Mother 100 Best Company,” “Training Top 125” and “Top 50 Organizations for Diversity.”
Farmers: Best overall coverage
Farmers offers a wide variety of whole life plans, including simple whole life, graded death benefit whole life and premier whole life. Discounts are available for bundling policies, and many customers have reported saving money when switching to Farmers from other insurance companies. Customers have also reported helpful customer service agents who will go out of their way for you and fast claims service. Farmers offers a quality plan that you should not overlook.
Nationwide: Good basic policy
Whole life insurance through Nationwide offers good things to customers who select it. Benefits include no change in premiums up to the age of 100 and customized riders to make your policy tailored specifically for you. Reviews by customers with policies show average customer service and a standard rate within the industry.
MassMutual Financial Group: Best for dividend performance
MassMutual announced a 7.1% dividend for all permanent life insurance policies for 2014, up from 7% in 2013. MassMutual has consistently paid the highest dividend rate on whole life in recent years despite a very low interest rate environment due to an alternative investment strategy. Trailing close behind is Guardian Life, which announced a 6.25% dividend in 2014.
Metropolitan: Good basic policy
MetLife includes multiple benefits with their policies available to customers who get whole life coverage. These include guaranteed cash value, guaranteed death benefits and constant premiums that will never change on you. Reviews done by customers with policies show fast and knowledgeable customer service, some difficulty with submitting paperwork and reasonable rates.
Image via iStock.
No comments:
Post a Comment