Tyler, what type of company do we choose?
I was speaking earlier about the different types of product. In regards to the company, the importance of the company is you would want to focus and look at a mutual insurance company versus a stock insurance company. A mutual insurance companies are where the policy holders are basically the owners of the company. Whereas the stock insurance there’s actual stock, and shareholders are the ownership of the company. So there’s a conflict of interest there. There are basically four large performing mutual insurance companies where they have a proven track record on actual payouts not just illustrations and those for New York Life, Northwestern, Mass Mutual and Guardian are the top four companies when looking for that.
Again, it’s not only the company itself and each company has maybe its own different quirks and pros and cons. I don’t want people to get so caught up on the actual company because it’s the product. The process is also much more important than just the company itself. Policies within the same company or products within the same company if they’re not designed correctly will not serve your purpose. Might not be beneficial for you.
So the mutual insurance companies are those four that you mentioned?
Is there like a website we can go to? Where it’s like they are rated.
I think you could just go, you could Google top rated insurance companies, mutual insurance companies. A lot of times it’ll be a blend of the stock insurance and mutual insurance. It’s how they rate the companies could be different and even though at the top four a lot of them have their quirks. Some have flexibility in the sense of funding period allows a lot of flexibility there. Others have funding each within the year. You’re flexible. Some of the loans are handled differently between the companies. Some of them have different online portal so it’s not just the product itself. There’s some of those soft things that maybe make a company stand out for you personally.
And so the mutual insurance company is the ones that we’re used to. And I think some people will say, oh, they found this other company that has less requirements on the health screening and stuff like that. Those are like your lower level ones.
Very worried about a insurance company that doesn’t have a stringent underwriting process because it has a policy holder for a mutual insurance company. You are the owners of that, you want the insurance company to do well because you receive that back in dividends. And there may be some smaller insurance companies willing to forgo, maybe under medical underwriting, take a little bit more risky clients on. But that may hurt in the long run as far as the policies overall.
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