Many consumers look at buying life insurance as just another insurance expense. You already have auto, home, and health insurance cost. So instead of looking at life insurance as just another single expense. Try and find a carrier where if you can combine 2-3 of your policies, you may actually save enough money to where the life insurance cost me not be an added expense. We have all heard the commercials about combining home and auto insurance. How many carriers can combine Home, Auto and Life insurance at a reasonable cost? Ok so you may be asking me about combining in my medical insurance as well? In most cases the way health insurance is structured today it will almost be impossible to add health insurance into the mix.
The first thing any consumer really needs to do is some homework on which carriers offer auto, home, and life insurance policies. Typically some of the bigger homeowners insurance carriers like Farmers, State Farm and Allstate can offer all 3 policies. Nothing wrong with any of these carriers. But typically you see these guys on TV constantly, which means they have large marketing bills that need to be paid. Those marketing cost are passed onto the consumer. Even though these are the most recognizable brand names, they typically do not offer the best rates when combining products. Recently we have been seeing Liberty Mutual get into the mix as well with Home, auto and life. But, again the large TV marketing campaigns are going to be passed onto the consumer.
Lets look at what other insurance carriers offer all 3 insurance products.
- American National
How I Chose the best less expensive insurance companies
There is no single least expensive insurance company for everyone. What you’ll pay varies dramatically based on demographics, lifestyle, and credit score. That’s why it’s especially important to comparison shop for insurance. Also work with someone you trust. Most good agents know what products they offer that are competitive.
That said, customers are more satisfied with the price they’ve paid with some companies versus others. At the very least, that can give you a starting point for your search. Possibly look at some of the following sources.
- Consumer Reports: The magazine surveyed readers on their satisfaction with auto insurers and home insurers in 2014. Respondents in the auto insurance survey were asked to rate insurers on factors including price satisfaction; respondents in the home insurance survey ranked their satisfaction with factors including premium paid.
- J.D. Power and Associates: The company’s 2014 household insurance studies are based on customers’ experiences with home, life, and auto insurance companies in several categories including satisfaction with price paid for the level of coverage received.
- Insure.com: The website’s 2016 rankings of the best home, life, and auto insurance companies asks customers about their satisfaction with value for price paid, among other questions.
- Companies’ websites: I checked each insurer’s website to see which discounts they advertise for each type of insurance. I also referenced Bankrate’s list of auto insurance discounts.
You can possibly put together a checklist of how each carrier ranks in terms of cost, service, recognition etc. Make sure you ask suitable questions in regards to your needs.
A smart way to buy term life insurance
I sell a lot of term life insurance and I am biased as to the best carriers with the best life insurance policies. I see life insurance as an important financial tool. With that being said make sure you not only look at cost, but also value. If you strictly go after the least expensive rate you may be incredibly under insured. Or you may not be adequately covered in one or more areas.
A good way to start is by using my term life insurance quote engine to get a starting point. Then add in your auto and homeowners insurance cost for a rough estimate of your total cost. Then start comparing insurance carriers from this point.