How Can I Find The Best Insurance Company For Me?

by | October 25, 2017 | No comments yet

Some people make the mistake of assuming that because an insurance company provides the cheapest prices, it makes that company the best choice to buy a policy from.

There is more to finding the right insurance company and not just by how much insurers sell their policies.

Here are factors you need to look at in finding the best insurance company for you:


Companies who receive strong ratings from the major rating services indicate financial strength, which in turn shows the ability of the company to pay claims.

Such major rating service providers include:

  • A.M. Best
  • Fitch and Moody’s
  • Standard and Poor’s

Another interesting and significant score to consider is the Comdex ranking since it is a composite of all the ratings that a company has received.

Each rating service has its own score and the Comdex looks at all the ratings and assigns a carrier a score that ranges from 1 to 100 with 100 being the highest.

History of Rate Increases

Look at the history of rate increases when evaluating carriers since it is important to understand that all carriers have raised rates at some point, but some have done so at a higher frequency and larger percentages.

You can identify which company can work with your budget since you will be after the reliability to pay claims. You will also need to understand that some rate increases are reasonable and necessary for the company.

Claims Performance

How a company performs on the events of claim time can be considered the most important consideration when we evaluate an insurance carrier.

People decide to buy insurance because there is a significant risk of someday needing to access benefits and protect personal assets. It comes down to reliability and customer service.

Be sure to ask your insurance advisor what their experience has been with the carriers you have decided to include in your options and are thinking about considering.

You may also want to speak with a representative in the claims department to ask questions that may arise should you ever need to use your policy.

Years Selling the Type of Insurance

Insurance carriers that have been selling insurance for a minimum of fifteen to twenty years and demonstrate longevity in the marketplace are highly recommended.

Being able to stay in the insurance industry, with considerable good ratings and high claims performance makes a carrier a good choice to buy your policy from.

Check for Quotes

Since Medicare Supplement plans or Medigap and long term care insurance are the two most important type of insurance in retirement, it is best to check for quotes. Medicare supplement quotes often provide information about which insurance company provides the best prices on the ten standardized plans of Medigap. Looking at quotes will help you determine the competitive price that fits your budget while providing you the most comprehensive healthcare coverage, same with LTC insurance.

Remember, in the recent years, insurance companies have tightened their underwriting guidelines and made it even more difficult to qualify for a policy.

Although it may seem that insurers made it almost impossible for people to qualify, it also means that you will be sure that your provider will be able to pay your claim since the company does not indulge in taking too many customers – to a point that it may lead to bankruptcy and you not receive your benefits.

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