Introduction on Insurance companies
Everyone faces different risks such as accidents, falling sick, being a victim of natural disasters and mainly the risk of life. All these risks not only give pain but also hurt financially. So, Insurance is one of the best ways to be prepared for the worst and it gives the surety to take care of the economic part.
The insurance industry has become dynamic and very competitive in recent years. Insurance companies have become a very important part of the life of many people and companies. Life insurance companies sell insurance, annuities and pensions products. Most of the insurance companies are now using technology like automation, AI/ML and Blockchain. Hence, the insurance marketplace is now redefined. The best insurance companies in the world are largely due to their market capitalization and they are part of big financial brands.
There are lots of insurance companies. So choosing the best one out of them is difficult. So, we have done some research and listed top insurance companies in the world to help you. Here is the list of top 10 insurance companies in 2020.
AXA is a very old insurance company that was established in Paris, France in 1817AD. The headquarter of the company is situated in Paris. This company has a branch in more than 56 different countries of Asia, North America, Western Europe, and the Middle East. It is the leading insurance company in the world with more than 150,000 employees base and 102 million customers.
In 2013, AXA becomes the largest international insurer in China. The non-life insurance operation of HSBC in Mexico is also acquired by this company. The company’s average revenue is about $100 billion per year.
1. Also works in banking, asset management, investment, and other financial branches.
2. Distribute their products through exclusive and non-exclusive channels.
3. It provides easy access to a wide range of mutual funds.
4. It can easily buy and sell stocks.
MassMutual was founded in 1851, one of the oldest and biggest life insurance companies in the US. With nearly about 170 years of experience in the life insurance business, it has edged out most of its competitors when it comes to policy options, coverage amounts, and customization.
While the company is too old but it works in a quite modern style. In 2019, it approved an estimated $1.72 billion payout which was it’s the highest payout yet. It provides some additional protection plans for long-term care and disability income. It has also a major perk if you have assets to protect, like a home.
• Sells term, whole, universal and guaranteed acceptance policies.
• Offer up to $10 million in coverage.
• Buy a permanent policy and boost your take-home earnings potentially.
• Enhance your policy with riders like a waiver of premium, an accelerated death benefit, etc.
3. Berkshire Hathaway
Berkshire Hathaway is the powerful company established in 1889 and is also associated with powerful personality Warren Buffet. The headquarter of the company is located in Nebraska, USA. It is one of the oldest companies in the world with a shareholder equal of $345 billion. You can also able to get their products and services from individual agencies and brokers.
It also works in other sectors such as finance, utilities and energy, manufacturing, services, rail transportation, and retail. The company’s market value is now reached $557.2 billion with assets of over $707 billion. Berkshire maintains its capital strength at a high level which makes them different from their competitors.
1. Provides primary insurance also with reinsurance of property and casualty risks.
2. Help to trades in the stock market.
3. The large investment portfolio of stocks in various major companies.
4. New York Life
New York Life also is known as Best Senior Life Insurance as it works and offers a strong policy lineup to those aged 60 or above. Senior may face some problems while purchasing life insurance policies including costs and coverage amount but you don’t have to worry now because New York Life breaks down those barriers and help to those.
In addition to life insurance policies, it also provides investment vehicles for annuities, mutual funds, ETFs, and 529 plans, retirement income services, wealth management, long-term care plans, etc. If you are looking for such an extremely large policy, it will provide you death benefits top out at the company’s “retention limits” which are reportedly in the tens of millions.
• Terms length has been stretched from 5 to 20 years with some policies of option to convert.
• Offers guaranteed universal life policy to those of age 85 without taking a medical exam.
• Policies come with the start of $25,000 for seniors on a budget or those who don’t need a lot of coverage.
5. China Life Insurance
China’s life is one of the largest state-owned insurance company of China which was founded in 1949. It is the key player in the Chinese capital market. It was started as Peoples Insurance Company of China in 1849 but later in 2003, it was reconstructed as China’s life insurance.
On today’s date, it has 7 subsidiaries that run its different key business. It is also in the list of the New York Stock Exchange, the Hong Kong Stock Exchange, and the Shanghai Stock Exchange. The company has a market cap of about $110 billion. It is the biggest public insurance company in the world in terms of market capitalization.
1. It provides a variety of insurance such as accident insurance, health insurance, fund investment and more.
2. Provides both types of short term and long term insurance.
3. Use a new business model and technological infrastructures.
4. Use of more than 20 applications to improve customer experience and operational efficiency.
It is one of the best term life insurance providers companies for those people having complicated medical histories like cancer or diabetes. It was also named #1 Life or Health Insurance Company by Fortune magazine in 2016. Before in 2015, it was also named as the World’s Most Ethical Company.
It comes with four-term life policies to suit a range of needs where all of them have predictable premiums for easy budgeting. The insurer should have backed by decades of financial strength and with a positive reputation for reliability.
1. Policies are available in terms of 10, 15, 20 or 30 years.
2. Quickly and easily check your rates through online quotes.
3. Offers an annual renewable term life policy with a return of premium rider.
4. Add-ons include an accidental death benefit, disability, serious illness, and waiver of premium riders.
7. Haven Life
Haven Life is a top-rated life insurance company that only offers term life insurance policies. It uses the online application process without any personal interaction. The leading company Mass mutual has backed this company. Its aim is to offers affordable and easy to manage term life insurance policies. It offers only term life insurance. So, you can’t convert term policies to permanent policies. It also considers the applicants who are U.S. residents or hold certain visas. It was specifically designed for easy online purchasing and the company also take no commission.
1. It offers an easy online application process.
2. It provides good customer service.
3. Online payment options are available.
4. Contain online tools including coverage calculator, quote estimate and document processing.
8. Navy Mutual
It is basically made for helping the servicemembers doing away typical military, war or terrorism clauses. It doesn’t take any medical exams for those who don’t want to give a physical test. It is active to those who are at duty, retired military members as well as honorably discharged veterans in Florida, Oregon, Hawaii, Texas, Virginia, etc.
1. Provide portable protection that means if you leave the military your coverage will stay in effect.
2. Policies are available in term of 5 to 30 years.
3. Able to issues whole life policies of up too $1 million.
9. Banner Life
Banner life is owned by legal and general America which mainly offers three life insurance products as a term, whole life, and universal life. It has relatively few options for customization so if you are seeking customizable life insurance solutions then it may not be best for you. But it is best for those who want to keep the process of buying life insurance simple. It offers OPTerm for term policies that have the most useful features of all of the banner life’s plans. You can easily apply for banner life’s products easily without any problems.
1. It offers guaranteed level premiums.
2. It can easily convert a term policy into a permanent policy without any fee or medical charge.
3. The renewable and convertible term life.
4. It offers tax-free death benefits.
Guardian well known as the best whole life insurance company comes with eight whole life policies to choose from. All those policies come with cash value and have such power to earn dividends over time. It provides you the option to pay off your policy over 10 annual payments. So that after that when you pay it directly goes to the cash value of your policy.
1. Provide a survivorship policy that can insure two people i.e. like spouses.
2. Some whole life insurance is also linked to the performance of an index.
3. Has some riders such as accidental death benefit, waiver of premium with guaranteed insurability rider.
How to Choose the Best Life Insurance Company?
Choosing a life insurance company is likely to choose a perfect house for living. Because in both cases you are paying for something that will be your part of life for many upcoming years. Just like you inspect a house before buying it, you should also evaluate different types of insurance companies before buying it.
Here are some tips through which you can make sure about the life insurance companies you are considering is a sound business that will flourish decades into the future.
• Financial Strength
Choose the well financial strength rating having at least one of the five independent agencies: A.M. Best, Fitch Ratings, Kroll Bond Rating Agency, Moody’s and Standard and Poors. These ratings show the financial health status of life insurance companies. You should select the best life insurance companies ratings on the basis of A.M. Best financial strength rating.
• Customer Service
Many companies prefer to use their websites to get some knowledge about their work process. Some best companies provide easy-to-use websites, short term calls, and agents who can give you some advice based on your needs but not on their commission. You can also get some information by reading professional and consumer review which can shed some light on what to expect from the life insurance company’s customer service.
• Policy Types
Select the right company that provides the policy of the kind that best fits your needs rather than choosing the company having a special logo or office headquarter. So choose the unique and best in the present world insurance company because not all companies provide every type of policy. Before selecting read the insurance terms and policies so that it will be easy to choose the right one.
• Policy Options and add-ons
Some basic conditions which are important while applying for insurance company contain the amount of premium, arrangements for premium payment, selection for term periods i.e. for a term life policy, and for return rate on the cash value i.e. for universal or whole life policy. So give a look at each and every terms, policy, and condition while stating insurance and make your future bright by saving the money for the future.
• Company Size
After looking at all the features, at last, don’t forget to give a look at the size of the company because large companies generally are more willing to give a high payout. Big companies are most solvent and less possible to run into a financial problem. So try to reach to the big one as it is more trustful than others.