State Farm life insurance tops customer satisfaction, says JD Power
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When you hear the name State Farm, you probably think of home or auto insurance. But according to a new report, the company is also a serious competitor for your life insurance needs.
State Farm was awarded the # 1 spot for customer satisfaction among best life insurance companies selling individual life in the latest annual study by consumer research group JD Power. The insurer also won top honors in 2014.
To measure satisfaction, JD Power surveyed nearly 6,800 individual life insurance customers and asked them for their satisfaction with price, policy offerings, interaction, billing and payment. State Farm received five “circles of power,” the JD Power version of the stars, in all four measures. It was the only company to do so.
Who got the highest honors
Here are the top-rated companies for overall satisfaction, based on JD Power’s rating system of five possible “circles of power”.
|Best Life Insurance Companies, 2015|
(out of 1000)
|Circles of power
(out of five)
|1||State farm||823||☻☻☻☻☻||Among the best|
|2||North West Mutual||820||☻☻☻☻☻||Among the best|
|3||Allstate||801||☻☻☻☻||Better than most|
|3||At national scale||801||☻☻☻☻||Better than most|
|5||Mutual of Omaha||791||☻☻☻☻||Better than most|
|5||New York life||791||☻☻☻☻||Better than most|
|7||The life of the guardian||788||☻☻☻☻||Better than most|
Source: JD Power. The industry average score was 770.
The three lowest-ranked companies among the 20 included in the survey were:
Communication is a hot spot
Among the main results of the survey: Communication is a sensitive point for life insurance companies, according to Valérie Monet, director of insurance practice for JD Power. Almost half (46%) of clients surveyed said they did not fully understand their life insurance policies and almost 20% never heard from their agent again after the purchase.
In a perfect world, an insurance agent would make sure that no questions go unanswered. But as a consumer, it’s important to seek clarification if you don’t fully understand the details of what you’re buying, Monet says.
Insurance agents should also communicate at least once a year, as a client’s life insurance needs can change dramatically in a relatively short time. For example, newlyweds who buy a house may have enough insurance to help the surviving spouse pay off the mortgage in the event of death. But if they have a child a year later, they can suddenly be underinsured.
“It’s about having the right product for you,” says Monet. “Customers always have options. “
Even with the top spot in customer satisfaction, State Farm says the report will help them continue to “find specific areas where we can improve.”
# 2 ranked Northwestern Mutual spokesperson Betsy Hoylman said, “We are grateful to see the recognition of the commitment we make to our 4 million policyholders, who rely on us to help them plan. and achieve financial security.
The bottom line
The top insurers in JD Power’s survey have many happy customers, but no matter who covers you, don’t hesitate to ask if you need help understanding your policy and assessing your changing needs.
If you don’t have enough coverage, compare quotes from different companies. The insurer you purchased from previously may no longer have the best deal for you. NerdWallet’s life insurance comparator can help you find prices easily.
Donna Freedman is a former contributor to NerdWallet.