More on Life Insurance
More on Life Insurance
Published November 9, 2020
TABLE OF CONTENTS
At Policygenius, our life insurance reviews include financial health and consumer satisfaction ratings by a number of third-party organizations, including A.M. Best and the Better Business Bureau (BBB).
The Better Business Bureau is a nonprofit organization founded in 1912 focused on helping consumers find businesses they can trust. The BBB provides information about a company’s reputation to help you make informed buying decisions and helps to resolve official complaints against companies. The organization rates companies A+ to F based on the service consumers are likely to receive.
When researching life insurance companies, it’s important to look for a company that’s financially stable so it can pay your death benefit, and one with a strong BBB rating to ensure your loved ones receive consistent and expedient customer care in the event of your passing.
The Better Business Bureau assigns companies a score of 0-100, which translates to a grade of A+ (best) to F (worst)
Scores and grades are based on public and privately sourced information, including consumer complaints and government actions against a business
BBB ratings can help you choose a reliable life insurance provider to handle your policy and claims with care and expertise
When you’re comparing life insurance policies, it can be hard to decide which provider is the best one for you. You’ll want to choose a company with affordable premiums and reliable financials, but remember that your beneficiaries will be working with your life insurance provider while grieving your passing. Choosing a company with a strong record of handling claims and complaints quickly and fairly can provide your loved ones with peace of mind.
BBB ratings don’t just measure customer service interactions, but how much you can trust a business to serve you overall. The ratings reflect data including complaints a company has received, how quickly and successfully they resolve those complaints, the company’s transparency, and any government actions against the company. This information is good to know for any business, but it’s especially useful if you’re considering a smaller or newer life insurance company that has fewer customer reviews to rely upon.
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The Better Business Bureau assigns every business a number of points from 0-100 based on their reliability and trustworthiness, which translates into a letter grade from F (0-59.99) to A+ (97-100). The higher the points and better the grade, the more dependable the BBB considers a company.
The BBB compiles information provided by businesses, from consumer complaints, and from other public data sources to evaluate companies using seven main criteria:
BBB complaint history — including number of complaints, whether complaints are resolved, how quickly complaints are resolved, and whether there are patterns in customer complaints
Type of business — businesses that may violate the law or frequently cause issues to consumers and the marketplace will lose points
Time in business — businesses that have been operating longer receive a higher score
Transparent business practices — businesses that don’t offer clear information about their products and services or basic information like business addresses will score lower
Failure to honor commitments to the BBB — businesses that fail to follow through on settlements in disputes settled by the BBB will lose points
Licensing and government actions — including certifications and licensing requirements for businesses and any government actions against the business that reflect poorly on its ethics and reliability
Advertising issues — including accuracy of claims made in consumer advertising
While some businesses are accredited by the BBB and others are not, accredited businesses are simply those that have gone through the organization’s accreditation process, which requires businesses to meet and maintain a set of BBB standards. However, a business is not necessarily untrustworthy just because it’s not accredited by the Better Business Bureau.
Note that the BBB strongly recommends doing additional research into any company before giving them your business. The organization’s ratings are one indicator of a company’s dependability, but a BBB rating is not a guarantee.
The table below reflects each category the BBB considers and the minimum and maximum number of points a business can earn in each category.
|Complaint volume (weighted by age)||0 to 15|
|Unanswered complaints||0 to 40|
|Unresolved complaints||0 to 30|
|Complaint resolution delayed||0 to 5|
|Failure to address complaint pattern||-31 to 0|
|Type of business||-41 to 0|
|Time in business||0-10|
|Transparent business practices||-5 to 0|
|Failure to honor mediation/arbitration||-41 to 0|
|Competency licensing||-41 to 0|
|Government action (per action)||-34 to 0|
|Advertising review (per incident)||-41 to 0|
|BBB trademark infringement||-41 to 0|
The table below shows how point totals translate into the BBB grade for a company. Businesses without a rating (marked NR by the BBB) have not provided enough information for the organization to assign a score.
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Policygenius uses an extensive rubric and comprehensive data sources, including BBB ratings, to determine its life insurance company reviews. We are not paid for our reviews and strive to provide accurate, unbiased information to help you find the best life insurance company for you.
The Better Business Bureau rating factors into our Customer Ratings category, which tracks satisfaction from consumer sentiment institutions and complaints to state insurance boards. Policygenius evaluates data from the BBB, National Association of Insurance Commissioners, and J.D. Power, among others, to assign a score out of 10 in this category.
Consumer satisfaction is just one important factor in choosing an insurance company. Learn more about Policygenius’ ratings methodology and consult with an independent insurance broker to find the right provider for you.
The Better Business Bureau rates life insurance companies based on their dependability and trustworthiness using public data and company-provided information such as consumer complaints and licensing records.
The BBB assigns companies a score of 0-100 based on several factors, such as number of consumer complaints and accuracy in advertising, then translates that score into a letter grade from A+ (best) to F (worst).
Life insurance ensures financial protection for your loved ones after you die. A reliable and trustworthy company can handle a death claim with efficiency and sensitivity while your beneficiaries are grieving.
Amanda Shih is a life insurance editor at Policygenius in New York City. She has a passion for making complex topics relatable and understandable, and has been writing about insurance since 2017 with specialities in life insurance cost and policy types. She's previously written for Jetty and LegalZoom.
Amanda has a B.A. in literature and communication from New York University.