Best Whole Life Insurance

This article disputes what other authors say are the best whole life insurance companies. Learn why their list of best companies is flawed.

I have to admit I’m jealous of other websites that are given clout and authority by search engines despite their terrible advice. These websites don’t deserve the clout and authority given to them. One whole life insurance article touted New York Life and State Farm as two of the best life insurance companies. I will dispute this assertion.

New York Life has a particular life insurance product that is sold to seniors. This product is ridiculed by hundreds if not thousands of independent agents. Here is what makes it so bad: premiums increase every five years and the policy automatically cancels at age 80. So even if seniors on a fixed income can somehow afford the premium increases, the policy cancels just a year after their life expectancy. Yes, the policy is convertible to a permanent policy, but I suspect the vast majority of policyowners don’t attempt conversion until age 79, when they are greeted with an unpleasantly high conversion quote. What might not be explained well is the way conversion rates are calculated; they are based on the age of the insured at the time of conversion. Nearly everyone trying to get a permanent policy in their late 70’s or early 80’s will have to pick their jaw off the floor after reading the quotes. Seniors are much better off buying simplified issue whole life, where the premiums never change and the policy never cancels (as long as premiums are paid).

State Farm has many good things going for them, but competitive life insurance rates is not one of them. State Farm is well known for having some of the highest life insurance rates on the market. State Farm does have an impressive reputation for never missing a dividend payment, but I suspect that can be attributed to overpriced premiums. If companies charge too much in premiums, they will always have enough money to pay dividends. Non-participating policies (no dividend payments) seem to be the norm for companies with competitive premiums.

Searching for Houston Life Insurance

People often don’t know where to start when searching for Houston life insurance. Should you start your search in a brick and mortar life insurance office, or should you start your search on the web? Most brick and mortar offices are your nationally recognized car insurance agencies that also happen to sell life insurance. Although these locations have very good prices for car insurance, they are often the most expensive places to go for life insurance. One reason why they have more expensive policies is because of dividend payments to the policy owner (these payments are not guaranteed). Dividend payments can be converted to additional coverage. Over time, these small additions of coverage can really add up. However, you can forgo this expensive feature with a non participating policy (no dividend payments).

Non participating policies are very common outside the brick and mortar agencies. With a non participating policy, you choose the amount of coverage you want and that amount never changes. Contact us if you need to review your options for Houston life insurance.