<p>H forgot to pay my life insurance premium, and he missed the reinstatement period. I called Wm Penn – I basically have to apply all over again (including medical), which makes me think I might as well start shopping for life insurance. All I need to cover is the college years (!) so I’d be happy with 5 year term if it was offered, but I think I’m going to have to get 10 year term.</p>
<p>I am extremely healthy – low cholestoral, low blood pressure, non-smoker, no weight issues. I went on a website that gets you quotes, but is there any difference between companies? Should I go for the lowest quote or are some companies known for not paying out on claims? Anyone have any experience (sort of a ghoulish question – sorry) with one company or another?</p>
<p>It’s kind of important because I’m the breadwinner. H has no life insurance.</p>
<p>Try to find the financial strength ratings of insurance companies from Weiss Research (most paranoid), S&P, Moody’s, Fitch, and AM Best (most common, but also has a reputation for “grade inflation” in that insurance companies have failed while holding an A+ rating from them).</p>
<p>second the advice to look at the “claims paying rating” of the company from S&P/Moodys/Fitch, not the debt ratings. </p>
<p>Do you belong to any group that offers cheap term insurance, such as a professional organization or credit union? They often offer great rates through solid companies.</p>
<p>ucbalumnus – great idea – I had no idea such a thing existed. I will definitely check it out.
nj2011mom – another great idea – I belong to a few – I’ll see if they offer any deals on term insurance.</p>
<p>I always start by checking Consumer Reports.</p>
<p>DH’s life insurance is through TIAA-CREF. If you can use them (work for univ, research, or non-profit orgs) their prices are VERY good - WAAAYY cheaper than the previous policy he had through MetLife.
And term insurance is the way to go, but it appears that you already know that!</p>
<p>some of the cheapest term insurance available is offered by the AICPA. I guess CPAs are not typically risk takers! </p>
<p>When you look at group policies, find out what the cost net of dividends has been. Even though these policies are typically with stock (vs mutual) companies, the programs are set up as pools, with the unused premium returned to all policyholders annually. (H & I have AICPA insurance and the dividend is close to 50% of the annual premium).</p>
<p>I work in a life insurance brokerage office. There really are no competitive 5 year term policies, 10 year should be fine. The top competitive companies are similar and other than one which i cannot say here, but will PM if asked, they all are quite civilised about paying out.</p>
<p>The differences you will experience are in underwriting, there are some differences which would allow some people to get a better rate class at one company than another and in customer service. In my years of experience, you don’t need the big mutual companies (NY LIfe, Mass Mutual, etc) for simple term. The very best customer service depts to deal with are 1} West Coast Life/Protective Life, 2} American General Life (yes, it is owned by AIG, but is it s wholly separate subsidiary) and 3} ING ReliaStar. When people call in with issues and problems, sometimes complex ones, these are the ones that are willing to go the extra mile to make things better for the client. Since that contact is part of my job I appreciate the companies who have employees who are actually capable of thinking ;)</p>
<p>Feel free to PM me if you have any specific questions</p>