Our list of worst life insurance companies s compiled through the examination of thousands of records about the companies, on the following: court documents, FBI records, and testimony from former insurance employees.
According to the research, it was found out that the companies are known as the worst life insurance companies because they work against the clients that need them the most through the rejection of claims, coverage denial, and premiums jack up.
Table of contents
10 Worst Life Insurance Companies
Here’s a list of the 10 WORST insurance companies in America:
1. Allstate
Allstate is among the worst life insurance companies and explains that even the CEO of this company is in admittance that their loyalty does not lay with their customers. According to CEO Thomas Wilson, Allstate’s “obligation is to earn a return for their shareholders.”
They have been proven through documents they had to make public that while they boast “good hands” to the public they encourage right hooks from their employees against their own policyholders.
The AAJ has this to say about Allstate, “The company fundamentally uses a combination of lowball offers and hardball litigation.”
In order to illustrate just how much earnings this company is making off their tactics, Wilson received $10,700,000 in compensation in 2007, and his predecessor Edward Liddy received $18,800,000.
All of this contributed to their being known as one of the worst life insurance companies.
2. Unum
Unum is among the nation’s most known disability insurers and it has established a poor reputation with its insurers. They are well known for delaying and denying claims set forth to them.
In 2007, the CEO, Thomas Watjen, made $7,300,000. The media often investigates this company for their continual claim abuse, placing them in the number two spot.
Read this; 10 Worst Long Term Care Insurance Companies
3. AIG
AIG is among the worst life insurance companies and even with the dismissal of her former CEO Martin Sullivan, there’s still the expectation to earn $68,000,000.
It’s also the largest insurance company in the world, and in a way, they have gotten away with mistreating their clients for a number of years.
There have been allegations that the executives of this company in a strategic manner, try to increase prices in cases of a catastrophe.
According to the report by AAJ, “the company has been tagged the new ‘Enron’ as a result of charges of multi-billion dollar corporate fraud.”
4. State Farm
State Farm is among the worst life insurance companies and has invested some really deplorable acts towards the avoidance of the payment of their clients.
Engineering reports about damage from the storm were altered after Hurricane Katrina, and they have also taken up a forgery of the signatures on earthquake waivers after important earthquakes.
State Farm is the biggest property-casualty insurance company in the country. As is the case with most insurance companies, they will go out of their way in delaying and denying claims. All this took place in 2007 while paying their CEO Edward Rust Jr. $11,700,000.
5. Conseco.
The learning of Conseco’s tactics is really a thing of disturbance. They are basically in the service of the elderly with long-term care policies, and they are very knowledgeable about the fact that delaying is pivotal to not having to spend money for payment.
The report from AAJ has it that, “unfortunately, Conseco makes use of the deteriorating health of its policyholders to its advantage because the company has the knowledge that if it waits long enough to for claims payout, its customers will die.” In 2007, their CEO, C. James Prieur got $2,600,000 for his role 2007.
6. WellPoint
WellPoint is among the worst life insurance companies known in the world.
In 2007, CEO Angela Braly made $9,100,000 and didn’t even have to be fair to their clients. This company is known for its long-running history of cancellation of the policies of extremely ill or pregnant policyholders. Their interest is the bottom line rather than the well-being of their customers.
7. Farmers
Notwithstanding customers continually ranking the company low with regards to customer satisfaction, the CEO still was compensated $10,300,000 in 2007.
The employees of this company are entitled to incentives if they meet up with their low payment goals.
This company has been named among the worst auto and home insurance companies in the country due to both JD Powers & Associates and Consumer Reports.
8. UnitedHealth.
UnitedHealth is among the worst life insurance companies and is known for its tactics which does not only make them lots of money but also put patients in danger.
According to AAJ, “Physicians report that reimbursement rates are very low and delayed by the company that there’s compromise on patient health.” Stephen Hemsley, the CEO, received $13,200,000 for his ‘work’ in 2007—he has also been charged for criminal and civil offenses. They target their elderly customers with high premiums for apparently no other reason than because they can.
9. Torchmark
Torchmark is among the worst life insurance companies and is a southern company that has existed for more than 100 years.
It has been known for very unpleasant practices. For one, there has been scrutiny on them for charging higher premiums for their minority customers than the charge their Caucasian customers incur.
They also use various subsidiary companies boasting case-specific insurance which includes cancer insurance that is met with the same lack of customer care as is the case with the mother company.
Also, check this: Farmers Auto And Home Insurance Review: Everything You Need To Know
10. Liberty Mutual
Liberty Manual may not be as good at denying and delaying claims as State Farm and Allstate but while this is the case,
They sought the help of the same consulting firm that the other two companies did for the cost to be reduced.
In 2005, Edmund Kelly, the CEO of Liberty Manual made $27,000,000 — it doesn’t look like they are having problems keeping money in the company.
They have used the tactic of abandoning and refusing renewal to clients in high-risk areas which include those prone to hurricanes or floods.
These companies are in no way lacking the funds necessary for the proper compensation of their customers. AIG ranks high in the list with $6,200,000,000 in profits in 2007.
Only three of these companies earned below a billion dollars—which means that 70% of the worst life insurance companies made over a billion dollars yet they did everything possible to keep that money away from their clients.
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If you want to be successful at beating them, you are to hire a New Jersey personal injury attorney who is knowledgeable enough about the games insurance companies play and has the knowledge of how to destroy their attempts.
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FAQs Of The Worst Life Insurance Companies
Life insurance is a contract that is in existence between an insurance policyholder and an insurer or assurer, where the insurer commits to the payment of a sum of money upon the death of an insured person to a designated beneficiary.
The customers of Geico insurance were most likely to complain about claims (53.6%), while the clients of Chubb insurance were the least (38.6%).
Nationwide Insurance recorded the most favorable Complaint Index rating for auto insurance, while Chubb insurance had the best record for home insurance.
The best life insurance companies in India include:
Max Life Insurance
HDFC Life Insurance
Tata AIA Life Insurance
Pramerica Life Insurance
Exide Life Insurance Company
Reliance Life Insurance Company
Canara HSBC Life Insurance Company.
Some of the worst life insurance companies include:
AIG
State Farm
Conseco
WellPoint
Farmers
UnitedHealth
Torchmark
Liberty Mutual
The insurance companies that have the largest membership include UnitedHealth Group, Aetna, Anthem, Cigna and Humana, Cigna, and Humana.
Conclusion
As you’ve seen, these are the 10 worst life insurance companies. These companies are known as the worst life insurance companies because they work against their clients, are in need of them the most, reject claims, deny coverage, and accelerate premiums.
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