The main goal of life insurance is to give financial support to dependents in the event of an insured person’s early passing. When the insured person passes away, the policy pays the designated beneficiary a certain sum known as a “death benefit.”
There are countless life insurance providers out there vying for your patronage. However, not every insurance provider offers the best services; some offer the worst services ever.
A life insurance provider should be chosen after taking into account a variety of variables. The company’s financial stability is probably the most significant factor. For your insurance coverage to be paid out if you pass away, you need to pick a financially sound firm.
Customer service provided by the business is a crucial feature to take into account. You should pick a business that is straightforward to deal with and offers excellent customer support. You may learn about some of the worst-rated life insurance.
Some of the worst life insurance providers
To help customers before they need to file a claim, the American Association for Justice (AAJ) carried out a thorough investigation to identify the worst life insurance providers in the country.
AAJ investigated court records, SEC and FBI data, investigations and complaints from state insurance departments, nationwide press stories, as well as the testimony and depositions of former insurance agents and adjusters.
A list of the worst life insurance providers is provided here. Make sure to research each of these insurance providers to ensure that they are a good fit for you and that they can meet your needs before selecting one.
- Midland National Life
Out of a total of 24 insurance companies, Midland National Life came in at position 23. They performed below average in every category except interaction and communication.
There are 28 complaints listed on the Better Business Bureau website. The subject of many of them is slow communication and cancellation processing.
Progressive comes in second place in this list of the worst life insurance providers.
According to their upbeat television advertising, Progressive comes across as a friendly, helpful, and customer-focused insurance provider. A completely different picture is painted by recent court decisions, nevertheless.
In recent years, policyholders and claimants have presented Progressive with several serious bad faith insurance claims. Other of these cases are still in court, while some of them have already been settled.
In some of these circumstances, Progressive is accused of failing to respond swiftly enough to pay claims involving significant injuries to children that were brought on by Progressive policyholders. One of these cases was ultimately resolved for $22 million, while the other is still unresolved and seeks $50 million in damages for Progressive’s wrongful claim processing.
Progressive managed to produce a net income of more than $5 billion in 2019, increasing over 44% from the previous year, while constantly ranking among the worst auto insurance providers on JD Power’s list. While reaping the riches, Progressive seems to have neglected many policyholders.
- Brighthouse Financial
Except for communication, J.D. Power rates Brighthouse Financial below average across all categories. A MetLife division that focuses on individual life insurance is called Brighthouse Financial.
They don’t have any reviews, however, in the last three years, 39 problems have been resolved. Most of them are discussing a policy matter. Make sure you read your insurance and comprehend what you’re getting. Some policyholders may not have been aware of certain provisions.
- AXA Financial
AXA Financial, formerly known as Equitable, is ranked number 22 out of 24 insurers. They only seem to be able to communicate costs effectively, or at least somewhat, in one area. In all other respects, things are lacking.
On the BBB website, there are 48 complaints and 20 reviews that are mostly one-star. Some of them are clients who were not pleased with the costs or the ease of canceling a coverage. Although their rates are competitive, their policies are not as flexible as those provided by some other insurance providers.
Transamerica received below-average ratings in all categories except pricing according to J.D. Power’s analysis. Out of 24 companies, they are rated 21st.
This might not seem like a big deal, but there have been 376 complaints and 65 reviews with an average rating of one and a half stars in the past three years, according to the Better Business Bureau. Many people criticize the lack of communication, and some ratings emphasize the difficulties of canceling. The comments included phrases like “worst company ever” and “zero help.”
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When Would It Be Best to Hire a Life Insurance Attorney?
You should contact a life insurance lawyer as soon as possible if your life insurance claim has just been denied or postponed. Work with a lawyer who has at least 15 years of experience handling life insurance appeals so that you may be secure in the knowledge that he is knowledgeable of the complex laws that apply.
Having a life insurance lawyer on your side will speed up the frequently difficult legal process, helping you to get your claim approved sooner rather than later if your claim is delayed. In the event of a flat refusal, a life insurance attorney can assist you in contesting the insurance company’s decision.
The Function of a Life Insurance Attorney
You can make the process much easier for yourself and your loved ones by hiring a life insurance attorney to help you with your delayed or denied life insurance claim. For instance, your life insurance lawyer will be able to take care of the investigation into the claim denial, gather all required paperwork, and file a 100–200 page life insurance appeal brief.
Do you recall ever having a life insurance claim rejected or put off? If so, get in touch with a lawyer for life insurance right away. Once you’ve reached that point, you may consider your options and decide on your course of action with confidence.
Over a trillion dollars’ worth of revenue is produced annually by the insurance industry in the United States. Due to their financial difficulties, some companies are not reluctant to settle claims. When you purchase a life insurance policy, you want to be sure that your beneficiaries won’t have to deal with insurance company bureaucracy.
Customers who believed they had received something only to discover they hadn’t been a common theme in consumer complaints. Ask as many questions as you need to completely examine your coverage. You are less likely to receive excellent service when the policy is put into effect if you don’t receive it before the transaction.