When looking for the best rate for life insurance in the state of Illinois, first make sure the insurance company is licensed to do business in the state by contacting the Illinois Division of Insurance. Secondly make sure the company is financially stable. If you have purchased a life insurance policy and the insurance company you purchase your policy from goes out of business you are protected up to $300,000 in life benefits per insured life. In other words, if you have 5 life insurance policies totaling $1,000,000, you will only be guaranteed $300,000 in benefits.
If your insurance company is no longer in business, contact the Illinois Division of Insurance to track down the original policy. They will do this by forwarding the name and address of the succeeding insurance company to you. If that information is inadequate to enable you to determine if the new insurance company has your policy, contact the Illinois Division of Insurance in writing. They will investigate and respond.
To avoid such an unfortunate situation, make sure you know the financial stability of your life insurance company before signing on the dotted line. You can find out their financial stability rating by checking their AM Best rating. AM Best tracks the financial stability of insurance companies for all lines of coverage (not just life insurance). Although checking the financial stability does not guarantee the company will be around 20 years from now, it will give you a good indication as to its current stability.
It is recommended to check their rating periodically during the policy term (which can span in excess of 15 years) to ensure the rating is still as originally purchased. If your company’s rating slips, you might want to keep an eye on it to see if it corrects itself. If not, and you find the trend continuing, it makes sense to shop around for more stable life insurance companies. You do not want your beneficiaries to be on the investigating end of finding who will pay death benefits in the case of your demise.