Have you decided to take out life insurance but are still concerned about the common terms and conditions and which insurance company is best suited to your needs? A decent life insurance policy may one day be essential to your family’s financial stability.
Stay tuned and I will help you make up your mind and give you an overview of different life insurance plans and the best life insurance companies in the US. The first is the first. A life insurance policy is a binding contract between an insurance company and a policyholder under which the policyholder pays periodic premiums in exchange for the insurance company paying a death benefit to plan beneficiaries.
Beneficiaries are the recipients of the death benefit in the event of the death of the insured person. The life insurance policy you purchase may be enough to replace your previous income and other expenses your family members may incur, such as: For example, funeral expenses, college tuition, and even caring for an elderly family member by adding additional coverage to the policy. Riders are provisions that offer additional benefits at an additional cost.
Tabs allow life insurance policy customization in a way that works best for the policyholder and supports the future of their families. Before we dive into the best life insurance companies in the US, I want to help you with your homework and establish some key terms that you need to know before proceeding with your US life insurance plan.
Life insurance sometimes referred to as “straight life” or “ordinary life” insurance, is a policy that provides, in exchange for premiums, coverage for the life of the policyholder. These premiums are generally paid by a due date when the amount paid equals the policy’s death benefit. Endowment life insurance requires constant premium payments and guarantees an increase in cash value. The present value accumulation is the sum of the initial investment and the interest earned so far that you would receive if you decided to surrender the policy to the insurer or forgo your insurance coverage.
The cash value differs from the death benefit in a way that your beneficiaries would not receive the cash value in the event of your death. Another type of life insurance is universal life insurance, which differs from whole life insurance in terms of flexibility in premium payments.
Universal life insurance typically offers greater flexibility in terms of premiums and death benefits that can be tailored to the particular needs of the insured. First, let’s start with Universal Life (UL) insurance. Universal Life (UL) insurance comes in many different flavors where the policyholder would pay the cost of insurance in exchange for what is known as a death benefit. In the beginning, the policyholder pays a premium, which is compared with the annual insurance costs and the difference between the two is deposited in a secondary account.
These sub-accounts can cover the increasing cost of insurance, which increases as the policyholder ages. Typically, it is desirable to work closely with an advisory team to review the performance of such a policy and its compliance with policyholder requirements. Another type is Indexed Universal Life (IUL), which allows the policyholder to allocate funds up to a limited amount to a stock index account such as Nasdaq or S&P. The major advantage of indexed universal life is its ability to take advantage of compound interest and generate large amounts of NON-TAXABLE cash within the policy.
Cash that can be accessed later to fund a well-planned retirement. Variable Universal Life (VUL) insurance policy allows its holder to invest their premiums in one or more accounts with various investment options including stocks, mutual funds, bonds, and many more investment options. The level and method of investment depend on the risk appetite of the policyholder and the investment objectives determine the level of risk taken. Term life insurance is inexpensive compared to other options because it has no cash value until the policyholder dies.
Term life insurance offers coverage for a set term, just other options that offer insurance for the life of the policyholder. However, be aware that if term life insurance expires and you decide to switch to a new policy, premiums may go through the roof. When deciding which company to buy life insurance from, looking at history, reputation and stability are paramount. Some companies will even help you make an informed and well-informed decision by offering personalized support, resources, and calculators.
Some companies like Prudential Financial even offer an online quote for up to $250,000. Now let’s dive in and take a look at the best life insurance companies in the US. Let’s start with Prudential Financial first. This company has been providing insurance for people for more than 140 years. This reflects the trustworthiness of this company. They offer term life insurance policies, universal life insurance, indexed global life insurance, and variable global life insurance, and you can add benefits to your plan that include an unexpected survivor’s benefit, a living expenses benefit, as well as a child protection tab.
The company has excellent financial stability when it comes to ratings from AM Best and also Standard & Poor. This helps the policyholder have some peace of mind that the company isn’t ripping them off. As mentioned, Prudential offers you online term life insurance quotes for up to $250,000.
Compared to other top life insurance providers, Prudential can meet the diverse needs of people applying for life insurance in the United States. Speaking of old and established companies, State Farm is another outstanding insurance company with a proven track record.
Founded in 1922 by a retired farmer, it has grown from its humble beginnings into a renowned Fortune 500 company offering a wide range of insurance products. It is financially robust, having received the highest possible rating from AM Best. They offer term life insurance, life insurance, and universal life insurance. Like Prudential Financial, State Farm offers potential customers free online quotes for various insurance plans, including permanent life insurance, by answering a few questions.
You can even extend term life insurance online without a medical examination and from the comfort of your own home. Another amazing contender for our overview is New York Life, which has been in business for a whopping 175 YEARS. If that’s not proof of their outstanding reliability, we don’t know what is. Similar to the other premium life insurance companies, New York Life has a very strong rating from AM Best and Standard & Poor.
They offer several insurance products such as term life insurance, whole life insurance, universal life insurance, and variable universal life insurance. One of New York Life’s best services is the policyholder’s ability to later convert the term policy into a life insurance policy, in addition to providing a wide range of customizable add-ons that can be valuable to policyholders.
However, New York Life does not offer you the opportunity to create an online offer instead you would enter your contact information and a financial advisor would get in touch with you. There are many other major insurance companies in the US including Transamerica, Northwestern Mutual, Mutual of Omaha, and USAA that offer excellent services and can provide you with even more life insurance and financial planning resources.
Be sure to check out their websites shown in the description of this video. Thank you for watching this video. I hope you have got a better idea of the insurance companies in the US and are in a better position to make an informed decision. If you liked this video, delete the Like button,