How should I go about choosing a term life insurance broker/company?
I’m married with two children and have one more on the way (very early on in the pregnancy). I’m 29yo, but my father passed away of a heart attack when he was 39. I’m having trouble going the easy route… ie, online, and need some advice on how to choose someone. -Cathrine
Tags: Broker Company, Heart Attack, Insurance, Insurance Company, Pregnancy
November 23rd, 2008 at 7:39 am
You should choose a company with a good rating from AMbest (an insurance rating company) they rate a company on their assets and ability to pay a claim. I only deal with A+ or A++ companies, but any A or B rating is good to trust. When you are inquiring about companies you can ask what their rating is.
I always like to stick also with a company who is well known, Mutual of Omaha, Prudential, ING etc., There just seems to be a better comfort level for me when I deal with a company that has a name image over some other companies that I’ve never heard of.
As far as selecting an agent or broker; that’s just a matter of finding one you are comfortable with and trust. If you call an insurance company direct they’ll probably assign or connect you with an agent in your area. You can also ask family members or friends if they can refer one to you. Agents love to get referrals!
All that you have to do now is give either the agent, broker or insurance company a phone call, tell them you are looking for term life insurance… they will know what to do with you.
November 25th, 2008 at 3:24 pm
I’m wondering why “the easy route” is proving difficult. Most companies would keep you out of the best category with your family history, but not all. I would imagine any broker (online or in person) worth their snuff should be able to discern the two.
Please tell me about the difficulties your having either in additional info or by email. I’m just curious.
November 26th, 2008 at 2:01 pm
David & Eliz. gave great advice here. Just stay with a big company and tell them you only want term and nothing else and you will be fine.
And, remember just because your dad had a heart attack, doesn’t mean that you will. There may be other factors that do not effect you at all. But with a family you absolutely do need life insurance. Call your agent that handles your auto or homeowners insurance first. Companies usually give you most discounts when you have other business with them.
November 28th, 2008 at 12:59 am
In addition to David & Eliz, I would recommend sticking with an A or A+ or better.
However sticking with a name that is advertised everywhere may not be the best solution. You can not buy credibility.
Quoting Tommy Boy: “I can crap in a box and put a guarantee on it. It’s still crap.”
Also, never buy policies online. Without an agent to talk to, you are probably being screwed somewhere.
A few questions to ask though.
What happens at the end of the term?
Does the price go up?
Will it renew?
Will it Convert?
Will it Drop?
Do I have the option of choosing renewal over conversion?
Will I have to pass another medical exam?
Can I get a policy that will auto renew without a medical exam AND still be affordable?
With the medical history, I would find one that allows auto renew to another level term without taking a medical. Very few offer this, but they do exist.
November 28th, 2008 at 5:39 pm
Sorry to hear about your dad.
Couple of suggestions: First, try contacting your car insurance agent, chances are he/she carries life insurance and would love to help you. Or just find a local agent through Google Local, just type “your city,life insurance company”
Best of luck. If you’re in Texas I can help! My website is