Be "Life Smart," Says I.I.I. Learn How to Shop for Life Insurance -- I.I.I. Adds Life Insurance to its Popular Web-based "Find a Company" Tool

Contact: Press Offices
New York: 212-346-5500; media@iii.org
Wash. D.C.: 202-833-1580

NEW YORK, July 15, 2004 - Life insurance is the cornerstone of sound financial planning. It provides financial security for your loved ones when you die, so picking the right life insurance company is an important decision, according to the Insurance Information Institute (I.I.I.).

"The goal is to find a financially stable company with a solid reputation for customer service," says Jeanne M. Salvatore, vice president for consumer affairs at I.I.I. "With nearly 1,500 insurers offering policies, life insurance is a highly competitive business so consumers have a number of companies and policies to choose from."

To help you select a life insurance company that is licensed in your state, the I.I.I. recently added a "Find a Company" tool on its Web site, www.iii.org. In addition to life insurance, the site helps you select an auto, home or business insurance company. It also provides easy-to-understand information on insurance to help you make an informed buying decision.

A random selection of insurance companies is displayed with links directly to individual company Web sites, providing further information about company products and services. Many life insurance companies also offer personal financial planning tools on their websites that can be extremely useful.

To begin shopping for a life insurance company, ask your friends, relatives and business associates for recommendations. You should also ask your auto and home insurance agent, along with your financial planner and accountant for their advice. When assembling your list of possible insurers, find out whether you qualify for a group policy, which may offer some savings. Ask your employer, professional association or alumni organization whether it offers life insurance.

After compiling a list of insurance companies, I.I.I. suggests that consumers check the following:

1. Price
   Premiums for life insurance vary among different companies. Compare prices before buying a policy to make sure you are getting the best value. Compare similar insurance plans based on:
   • Your age
   • Type of policy
   • Amount of insurance you are purchasing

2. Budget
   Make sure that you can continue to pay premiums. Paying for life insurance is a long-term commitment. If you can't afford to continue the premium, you may be forced to drop the coverage, which can be costly.
3. Insurer stability
   In addition to a fair price, the company you buy from should be financially stable so it will be around to pay claims. The following organizations rate insurance companies' financial strength:
   
   • A.M. Best Company, Inc.
     Ambest Rd.
     Oldwick, NJ 08858
     908-439-2200
     www.ambest.com
   • Fitch Ibca Inc.
     1 State Street
     New York, NY 10004
     212-687-1507
     www.fitchibca.com
   • Moody's Investor Services
     99 Church Street
     New York, NY 10007
     212-553-0300
     www.moodys.com
   • Standard & Poor's Insurance Ratings Services
     55 Water Street
     New York, NY 10004
     212-438-2000
     www.standardandpoors.com
   • Weiss Research
     4176 Burns Road
     Palm Beach Gardens, FL 33410
     800-289-9222
     www.weissratings.com

4. Service
   The insurer you select should offer excellent service. Your agent or company representative should clearly explain all of your options, so you can make the best choice for your needs. If you have a claim or question, your insurer should handle it promptly. Your state insurance department may also be able to tell you if an insurance company has many consumer complaints about its service relative to the number of policies it sold.

If you already have life insurance, contact your current insurance company or agent before canceling your current policy and buying a new one. Sometimes switching to a new policy may be in your best interest. However, surrendering a policy to buy a new one may be very costly.

Also, if your health status has changed, you may no longer be insurable at the same rate. If you purchase a policy and decide you did not make the right decision, you can have your money refunded within the "free-look" period, usually 10 days from the date the policy is delivered for your review.

Lifestyle changes such as marriage, divorce, the birth or adoption of a child and even starting a business may alter your life insurance needs. Let your insurance agent or company representative know about these changes and make sure that it is properly reflected in your insurance.

I.I.I.

The Insurance Information Institute is a non-profit, communications organization supported by the property/casualty insurance business.