It’s not much fun to think about life insurance. But preparing for the day when you shuffle off this mortal coil is a good idea for many of us, especially if you have dependents.
Life insurance can provide funds for surviving family members or other loved ones to cover major costs ranging from mortgages and college tuition to your funeral expenses.
Finding the right life insurance provider can be an intimidating prospect for many people. Recently, J.D. Power offered help to those shopping for a policy when it released the findings of its latest annual U.S. Life Insurance Study, which measures overall customer satisfaction with life insurance providers.
For the 2020 study, J.D. Power measured satisfaction based on six factors:
- Application and orientation
- Product offerings
According to the survey, the top insurers are:
- State Farm: Overall satisfaction score of 838 out of 1,000 points
- Globe Life: 810
- Nationwide: 803
- Northwestern Mutual: 790
- Mutual of Omaha: 789
- New York Life: 784
- Pacific Life 776
- MetLife: 773
- Principal Financial: 772
- MassMutual: 769
Those 10 insurers were the only companies in the survey to beat the industry average of 763 out of 1,000 points.
Of all the insurers included in the 2020 study, Brighthouse Financial earned the lowest overall customer satisfaction score — 717 out of 1,000 points.
The study data included responses from more than 5,400 individual life insurance customers as well as some 3,600 annuity customers.
Do you need life insurance?
Though life insurance can be a great product, it’s not for everybody.
As we note in “7 Questions You Should Ask Before Buying Life Insurance“:
“… if you have no spouse or dependents, a life insurance policy might not be necessary. Also, if you have enough financial resources to provide for your dependents if you died unexpectedly, buying life insurance may be a waste of money.
Going through the list of questions in that story will help you determine if you need a policy — and, if so, which type of coverage you should buy, and how much coverage you would need.
Another Money Talks News story, “How to Save on Every Type of Insurance,” can help you drill down further on the type of coverage you need. As the story explains, life insurance comes in two main varieties: term life and whole life.
Term life is the better choice for many people. As we write:
“Term life insurance covers you for a fixed period of time and pays a death benefit if you die during that period. That money is tax-free, and your beneficiary can do whatever he or she wants with it.”
By contrast, a whole life policy will likely cost you more money, although it does offer advantages that might appeal to some people.
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