With so many factors to consider when choosing the right insurance company, how do we set up the selection criteria? Price is obviously high on the list, but there is more to it than just selecting the company with the lowest premiums. Lister below are other important factors to keep in mind when selecting a life insurance company.

The products offered

Does the insurer offer a broad scope of policies? Many insurance companies focus on certain niche products, such as Long Term Care; many others have a mandate to provide complete and competitive products. If you get in touch with an independent broker, get the scoop on several companies – more than one may suit your needs.

Financial stability

Because life insurance is a long-term commitment, you want to make sure the company is on solid footing – financially. You can verify the insurance company’s stability by gathering information from rating services, such as AM Best (www.ambest.com). It becomes of increased importance if the policy exceeds $200,000, the maximum death benefit amount covered by Assuris (formerly Compcorp). Assuris protects Canadian life insurance policyholders against loss of benefits due to financial failure of a member company.

Claims

What sort of claims service does the company offer? How have their current clients been treated during the claims process? If in doubt, check with a national claims database to see if there are any significant customer complaints on the company.

Do they offer service across Canada?

Some insurance companies only operate in certain regions of the country, and this could make ongoing service difficult. What if, in the future, you move to an area where the insurance company does not do business?

Where does the insurance company find itself in its business cycle?

Numerous companies offering Life insurance in Canada go through phases where they are pursuing new businesses, which may be reflected in the company’s premiums. This is where an experienced independent broker, in tune with the marketplace, can save you a small fortune over your policy. Insurance companies often have differing guidelines on their acceptance protocol for different illnesses. If you catch a company at the right stage of their business cycle, it can mean the difference between qualifying for insurance, or being declined.

A captive, or an independent sales force?

Some insurance companies lack an independent sales force, which means their agents are only allowed to represent their company’s products. This skews the agent’s advice, and he or she cannot offer an unbiased opinion. Insurance companies that use independent brokerage create a level playing field and provide less biased advice for their consumers, allowing their sales force to work in the clients’ best interests.