For the fourth straight year, State Farm is the life insurance company America loves most, according to the latest annual J.D. Power U.S. Individual Life Insurance Study, which measures overall customer satisfaction with life insurance providers.
State Farm scored 843 out of 1,000 in a survey of 5,588 U.S. policyholders, with satisfaction being based on five factors:
- Product offerings
The average score among life insurance companies was 790. Companies that earned marks above that average were:
- State Farm: 843
- Nationwide: 840
- MassMutual: 809
- Mutual of Omaha: 805
- MetLife: 802
- Pacific Life: 799
- Globe Life: 798
- New York Life: 794
- Securian: 793
Meanwhile, a dozen life insurers fell below the industry average, including last-place finisher Brighthouse Financial.
J.D. Power notes that customer satisfaction with life insurance is much higher when policyholders engage with their insurer on a digital platform.
Policyholders are also much more likely to be satisfied with their experience when they purchase policies for both financial and final planning reasons rather than purchasing a policy for just one of these reasons.
Do you need life insurance?
Although 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 whether 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, “New Ways to Save Money on Insurance of Every Kind,” 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.