Finding the best life insurance is crucial no matter your financial situation. Especially during a pandemic, ensuring security and safety for your family should be a top priority. While many see life insurance as an expensive investment, it’s actually more affordable than you think.
Perhaps the most essential part of understanding your life insurance policy is how their payout system works. The timeline and formatting of payouts depend on the insurance company and the state. Knowing this information will help you figure out which policy is right for you.
How Payouts Typically Work
While details may vary, payouts are typically processed within 30-60 days after a claim is filed. However, there are certain exceptions and limitations. For example, if the policyholder purchased the policy less than two years before their death, an investigation may occur and delay the payout process. Other delays may include incorrect information on the policy or if the policyholder died while involved in illegal activity.
Payout options also vary depending on the insurance company. Most options include lump sums, retained asset accounts or installments. Lump sums are the most common form of payout, but modern insurance companies seem to value having more options available. Installment or annuity options work well for children of the policyholders since it allows for a steady payout stream over a set course of years.
Retained asset accounts work like having a bank account. Instead of a traditional payout, the beneficiary receives a checkbook and can write checks from the life insurance account. The life insurance company acts as your bank and supervises the account.
We know finding the right policy is overwhelming, so we compiled a list of the best life insurance companies that payout.
State Farm is a highly-rated insurance company that is especially well known (we all know the “Jake from State Farm ads). Along with their clever marketing, they also have pretty good life insurance policies.
They offer many policy options aside from the traditional term, whole and universal ones. The variety allows policyholders of all ages to find the right policy.
The best part is, you can get a free quote online for most policies without a medical exam. However, there are policy and age restrictions with no-exam policy applications.
State Farm also has riders available to attach to your insurance policy, including flexible care benefits or a children’s term rider. While all their policy options offer payouts designated by the policyholder, their term life insurance does not increase in cash value over time.
Haven Life insurance is a newcomer in the insurance world. Its main difference from other insurance companies is its simplicity and emphasis on online registration. Instead of meeting with a life insurance agent, all you have to do to obtain a quote online is fill out a questionnaire. Without working with an agent, your policy does not have a commission. Their big downside is only allowing term life insurance.
Term life insurance policies are great for younger policyholders who may not be ready for permanent life insurance. The major downside to term life insurance is your beneficiaries will not receive a payout if you die outside of the term agreement i.e there is no cash value.
Prudential is one of the highest-rated insurance policies around, with over 140 years in experience. They are known for having a wide variety of policy options with financial flexibility.
For term life insurance, get an instant quote online by filling out a questionnaire. For whole or universal life insurance, you must speak to an agent to get a quote. Unlike many insurance companies, Prudential offers different types of universal life insurance and allows for riders on policies. Typical riders may include a child’s protection rider, accidental death benefits or living needs benefits
New York Life
New York Life insurance has been around for over 175 years and is one of the most financially secure companies in the country. They are primarily known for their flexible term life insurance policies.
Policyholders can start out with term life insurance, then convert to permanent life insurance later on. Unlike most insurance companies, New York Life does not allow for free online quotes, so you must talk to an agent to get started.
They do have a lot of online resources for comparing policies so you are better prepared for meeting with your agent. New York Life offers a variety of payout options, including lump sums and annuities.
While Transamerica is not as well known as other insurance companies, it is an affordable option for policyholders of all ages. Since 1904, Transamerica has maintained fair prices and financial strength within the market. They offer term, whole and various types of universal life insurance including final expense life insurance.
Their universal life insurance policies come with a cash value component, ensuring your beneficiaries get the most out of their payout. Whole life insurance through Transamerica also has guaranteed death benefit but no cash value component.
One interesting thing to note about Transamerica is that they issue policies to smokers, while many insurance companies do not. If you are a smoker, be prepared to pay higher premiums.
Mutual of Omaha
Mutual of Omaha insurance has been around for over 100 years and has grown to be one of the highest ranking insurance companies in the country. They have seen tremendous financial growth within the past few decades, and pride themselves on convenience and flexibility for policyholders. Unlike many insurance companies, Mutual of Omaha does not require a medical exam to apply for certain policies.
You can also apply for any of their policies online, including term, whole and universal life insurance. They also offer extra policy options like children’s whole life insurance and accidental death insurance. Mutual of Omaha is a great option for those with pre-existing health issues or a history of smoking, as many other insurance companies will not accept those conditions.
As far as payout options go, Mutual of Omaha has a variety of options and issues payouts as soon as all the information in the policy is verified. The major downside to Mutual of Omaha is they do not offer dividends to policyholders.
Lincoln Financial Group
Another great insurance company that we work with at NextGen is Lincoln Financial. While not as much a household name, Lincoln is a highly-rated insurance company that also works well for those with a history of tobacco use or pre-existing health conditions. Many policies do not require medical exams and their application turnaround is especially speedy!
Lincoln is extremely affordable for younger policyholders as well. As far as payouts go, policyholders have a variety of options available. Lincoln Financial is especially highly rated on their financial strength, giving policyholders peace of mind that their money is in a safe place.
Compare Rates with NextGen Life Insurance
We know that picking the right insurance company is a daunting task, especially when choosing the right payout method. That is where we come in. At NextGen Life Insurance, we compare quotes from a variety of different insurance companies to find you the lowest rate possible.
Fill out a simple questionnaire to compare rates. With NextGen Life Insurance, you also have access to other experts as well. Contact us today or get a free quote here.
Bear in mind that some of the links in this post are affiliate links and if you go through them to make a purchase I will earn a commission. Keep in mind that I like these companies and their products because of their quality and not because of the commission I receive from your purchases. The decision is yours, and whether or not you decide to buy something is completely up to you.