It’s easy to get into the habit of assuming that all large insurance companies are the same. In many ways, they are similar because they have huge portfolios and they come with the stability needed to give you peace of mind.
The large insurance companies do have differences between them, though. Take Colonial Penn Life Insurance and Transamerica as two examples. They both have different terms within their policies and different reputations.
Time in Operation
Particularly in an industry like life insurance, the length of time an insurance company has been in operation is a huge factor. Newer insurance companies, even if they are large, may not have the experience to instill confidence in you. For example, with an AARP life insurance program they may not have paid out much money yet. The time in operation can differ between large life insurance companies, and this is a big issue for customers who are taking out a policy.
Where they Operate?
Not all companies operate in the same areas of the world. Some large insurance companies provide coverage internationally. Other companies operate purely on a domestic basis. There are even insurance companies that only operate in a select few states. This is why you need to check where the insurance company provides coverage for before attempting to take out an insurance policy.
Support for Your Policy
There are a lot of insurance companies that have yet to enter the smartphone revolution. On the other hand, other large companies have. They allow you to see your policy at a glance and make changes from your smartphone on the go. As you can see, many companies differ in the way that they operate. They provide support for your policy in different ways.
The Policies Themselves
Now you need to take into account how different the policies are. While you will notice many similarities between the larger companies, the way they bundle them and the package deals they provide are what makes them stand out. But you have to look beyond the superficial in order to see the differences.
Do they Pay?
There’s little point in having an insurance policy if it refuses to pay out when you actually need it. Some large insurance companies already have a bad reputation for not delivering on their promises. They come up with some clause that supposedly prevents the policy holder from claiming. While from a legal standpoint they have done the right thing, it’s hardly in the spirit of customer service. You can find out which insurance companies have a habit of doing this by simply looking at the customer reviews. And this is your main tool for picking out an insurance company that works for you.
The large insurance companies do come with a number of differences, but you have to go out of your way to find them. By looking closely at each policy on offer, you can see the differences and make an informed decision on which policy is best for you.
Which insurance policy will you take out today?
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