Life insurance is an important investment to make in yourself. However, many persons feel as though Canadian insurance companies don’t have their best interest at heart. This makes doing your research on companies to see who the right one for you is very important. There are several Canadian insurance companies that offer various insurance products but working along with an independent life insurance advisor, authorized to sell on the behalf of insurance companies can make the process easier for you but always do your homework first.
Check the ratings
Always consider the financial health of an insurance company, you can do so by inquiring about their A.M. Best rating which basically shows financial strength ratings from Superior (A+) to In Liquidation (F). Canadian insurance companies are also required to maintain a certain amount of capital to their customers, according to the law. The Superintendent of Financial Institutions (OSFI) office requires Canadian life insurance companies to keep up a minimum amount of capital against its liabilities, this is known as the Minimum Continuing Capital and Surplus Requirements (MCCSR). Once you take a look at the A.M. best ratings and the MCCSR ratio you can have a better idea of the financial state of that insurance company. It’s important to have an idea of what’s going on with these companies financially because you want them to be able to pay out on your policy if something were to happen.
Check the claim payment history
Another important thing to consider is whether the life insurance company you’re looking to do business with has a good, timely payment history. The time frame an insurance company takes before it make a payout on a claim is significant. A two weeks payout is a best case scenario, given that provided the required documents and there were no setbacks. The process could be long and drawn out for months in a worst case scenario. At this point you want to make sure that the company you’re getting involved with has an efficient claims processing department.
Today, there are numerous Canadian life insurance companies, some of which have been around for many years. If you need assistance with making a decision you can consult with a life insurance advisor who can help you to analyze your needs and get you the policy that best suits it. Basically the right life insurance company will have a record of outstanding service, offers products and services that meet your needs and the financial capacity to pay claims when the time comes.