Tips for Finding the Best Life Insurance Companies

a man reading a book

The first insurance companies in the United States were launched in the 1700s. Early insurance companies covered the cost of losses due to fires. In the 1800s, accident insurance followed.

Today, insurance companies sell multiple types of policies, including health insurance, auto insurance, homeowners insurance, liability insurance, and life insurance. More than 2.8 million people died in the United States in 2019. Those who had life insurance didn’t have to worry about burdening their family with their final expenses. Let’s take a closer look at finding the best life insurance policies and how you benefit from having a life insurance policy.

How can you find the best life insurance policies?


Using an insurance policy search tool is a great way to search for life insurance online. Start by verifying your gender and date of birth. The tool also asks for other critical information, such as your height, weight, and location. You indicate how much coverage you need and whether you want coverage for 10, 20, or 30 years. The tool also asks health-related questions, such as whether you smoke, have been treated for diabetes, asthma, or other severe health conditions, and engage in high-risk activities such as bungee jumping or sky diving.

The tool also asks about your driving history and family medical history. It uses this information to calculate your health risks and compile a list of the best life insurance companies offering plans you can consider. Once you supply your name and email address, you’ll receive a list of life insurance policy options from reputable companies such as Mutual of Omaha, American International Group (AIG), Prudential, and Lincoln Financial Group. You can use the list provided to compare coverage amounts and policy rates.

How do you benefit from having a life insurance policy?


When you pass away, your beneficiaries receive death benefits from your life insurance policy. Policy benefits aren’t taxable income, ensuring your beneficiaries can use the total amount to cover necessary expenses such as funeral costs. Your beneficiaries may also need funds to pay medical bills if you were ill or injured before passing. Your dependents can use the funds to pay for their education or cover their living expenses while finishing school.

Policyholders can access finances from their insurance policy while they’re still alive. One option is to pursue a viatical settlement. Individuals diagnosed with a terminal illness, such as cancer, may qualify for a viatical settlement. A viatical settlement company locates a buyer. The buyer pays a lump sum of cash to appoint a beneficiary for your policy.

Proceeds from viatical settlements aren’t taxable, and no restrictions govern how you can use the funds. You can use your viatical settlement funds to pay for medical treatment, pay off your mortgage, or travel the world.

You can pursue a life settlement if you aren’t terminally ill. Life settlements are similar to viatical settlements. A buyer pays a lump sum and assigns a new beneficiary for your policy. When you die, their beneficiary receives the death benefits.

There are a couple of differences between viatical and life settlements. Individuals must verify their medical condition to qualify for a viatical settlement, but no qualification requirements apply to life settlements. Buyers pay more for viatical settlements because they can anticipate recouping their investment sooner due to the seller’s health condition.

You can also opt to cash in your policy for its cash value. Both viatical and life settlements pay more than the policy cash value, making them a better financial option.

Using an insurance comparison tool is a great way to locate reputable insurance companies and compare life insurance policies. Having life insurance offers peace of mind because you won’t have to worry about your spouse or dependents covering your final expenses when you pass away.