The top life insurers of 2016

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The top life insurers of 2016
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When it comes to life insurance, you want to be with a provider who has the financial stability to be around for the long haul and take care of your family in the event of a tragedy.

Read more: Top 6 auto insurers in 2016

Top life insurers in new brand equity rankings

The 2016 Harris Poll EquiTrend study has just come out with new insights into the life insurers with the most brand equity:

4 top life insurers for 2016

At the top of the list is State Farm Life Insurance, which has been named Life Insurance Brand of the Year by Harris Poll for 2016.

After State Farm Life Insurance, you have American Family Life InsuranceAAA Life Insurance and Transamerica Life Insurance Company.

4 top life insurers for 2016

4 top life insurers for 2016

4 top life insurers for 2016

Other life insurance brands in the study ranked below category average, including AIG Direct Life Insurance, Allstate Life Insurance, Guardian Life Insurance, MassMutual Insurance, MetLife Life Insurance, New York Life Insurance Company, Northwestern Mutual Life Insurance, Pacific Life Insurance, Prudential Life Insurance, USAA Life Insurance (listed alphabetically).

The Harris Poll asked more than 97,000 of us about 3,800 brands in 500 categories. Rankings were then based on three factors: familiarity, quality and purchase consideration.

What you need to know about shopping for life insurance

Insurance industry research group LIMRA reports that a third of American households have no life insurance to provide for kids in the event of an income earner’s death. That’s a real stunner. Overall, ownership of life insurance policies is at a 50-year low. Of course, not everybody needs it

Does somebody depend on you? Do you have young kids or a spouse or significant other that depends on you financially? Then you need life insurance!

And don’t forget about stay-at-home spouses. Should a stay-at-home spouse pass away, the remaining parent would have to suddenly pay for childcare and everything else a stay-at-home parent does on a day-to-day basis. That’s why it’s essential the parent at home have a policy too.

Keep these tips in mind when shopping…

Buy level term insurance

With level term insurance, you pay one flat rate year after year for the length of the policy. This policy will replace your income should you die unexpectedlty. A $250,000 policy for a 35-year-old man can price out for as little as around $3 a week. But note this well: Level term insurance only provides a death benefit. It does not have a savings or investing component. It’s like car insurance for your life, but instead of buying it annually or in six month increments, you buy it for 20 or 30 years and the premium stays the same during the life of the policy.

Use the Internet to shop for level term coverage

You can comparison shop for quotes at any of a number of sites like Quotacy.com, PolicyGenius.com, 1stOptionInsurance.com Insure.com, AccuQuote.com, or QualityTermLife.com. By shopping online, you avoid an insurance salesperson trying to up-sell you from level term coverage to another insurance product that may be unsuitable for you.

Buy only from companies that are rated A++

The authoritative ratings body for insurance is AMBest.com. Most comparison shopping sites will show you the A.M. Best rating next to the quote.

Know how much coverage to buy

When it comes to the question of how much you should buy, people can get crazy with all kinds of complicated formulas. The simplest rule of thumb says that you should buy six to ten times your annual income.

Only buy through work if you have health problems

It’s better to qualify and go through medical underwriting so you can buy a policy on your own. That’s because most of us don’t stay at the same place forever and you may not have a right to take that insurance with you.

Read more: Top health insurers for 2016

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Theo Thimou About the author:
Theo is director of content for clark.com. He has co-written 2 books with Clark Howard, including the #1 New York Times bestseller Clark Howard's Living Large in Lean Times.
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