Whether you’re looking to cover funeral expenses or replace your spouse’s income, pay off debts or cover the cost of estate taxes, life insurance is an essential part of your long-term financial planning. Our partners at ConsumerAffairs researched the best life insurance in Detroit to help you with this critical decision.
Death is unpredictable. If you want to make sure your loved ones are cared for when you’re no longer here, it’s crucial to purchase a life insurance policy that can cover their financial needs. Depending on the amount of the death benefit, life insurance will cover your burial expenses, estate taxes, mortgages, replacement income for your spouse and your children’s expenses.
Many businesses and organizations offer term life insurance to their employees, but the amount is likely insufficient to replace your income and support your family if you die unexpectedly. These policies also generally terminate when you stop working for the company, leaving your family unprotected.
There are two main types of life insurance policies in Detroit.
Term life insurance provides life insurance coverage for a specific time period, usually between one and 30 years. These policies are affordable but give no return on investment if you live beyond the term of the policy.
Whole life insurance provides life insurance coverage for the span of your entire life and earns interest at a predetermined rate. These policies generally have higher premiums but a guaranteed return on investment.
Another option available in Detroit is universal life insurance, a form of whole life insurance. Universal life insurance is more flexible and has lower premiums than standard whole life insurance. With universal life insurance, a portion of the premium goes to the cost of the policy, which provides the death benefit to beneficiaries, and another part goes to a cash value account that gains interest at market rate.
If the investment savings portion does well, you have the option to use the accumulated excess to cover or reduce the cost of future premiums.
The cost of life insurance depends on many variables, but your age and medical history are two of the most critical factors. Additional factors that will affect the price of your life insurance premiums are:
Family health history
Planned travel to dangerous parts of the world
Risk factors, such as hazardous professions
Most life insurance providers require an in-person or over-the-phone interview and signed forms verifying the information provided on your medical history, medications and history of nicotine and drug use. The provider might also request your driving record, credit report and that you undergo a medical exam. The process can take several weeks.
Because of the importance of a life insurance policy, it’s crucial to work with a financially stable provider. Providers such as MetLife, Prudential Financial, State Farm and New York Life Insurance Group are reputable providers that work with Detroit residents. In 2018, credit rating agency A.M. Best gave their highest financial strength rating of A++ to Guardian Life, MassMutual, New York Life, Northwestern Mutual and State Farm.
While ratings are a good indicator of a company’s fiscal health and longevity, Michigan also requires life insurance providers maintain cash assets in an amount equal to their liability—enough for them to pay on the policies they’ve sold in the state.
Policygenius provides quotes for consumers and brokers deals with life insurance providers. The company has a calculator on its website that lets you find the right amount of coverage. Customers in Detroit appreciate the smooth and easy process, quality online tools and the ability to have all their insurance needs met at one place.
EverQuote lets you receive multiple quotes without spending hours contacting individual insurance providers. The company makes it easy to find the right insurance by using the information you provide to collect quotes for you. Customers in Detroit say the company helped them find low-cost, quality policies, but many did not like EverQuote’s information sharing practices.
Allstate: Shauna Johnson
Shauna Johnson is an Allstate Insurance agent who strives to provide the personal touch of a small business with the comfort of working with a national insurance agency. Customers in Detroit rate her agency highly and praise her and her employees for their professional, knowledge and willingness to take time to get to know their customers.
State Farm: Charlotte Knight
Charlotte Knight has 30 years of experience in insurance and a history of putting customers first. Knight also offers home, auto and health insurance, making her agency a one-stop shop for your insurance needs. Online reviews say the friendly, knowledgeable and professional service make this insurance provider their top choice.