Why the for-profit life insurance plans cost so much more than not-for-profit ones?

We will show you how for-profit life policies cost 20-50% more than their not-for-profit peers. It would be natural to ask why for-profit insurance plans cost so much more for Connecticut residents.

For-profit companies are stock companies whose sole objective is to make profits for the company’s stockholders. Too often, these for-profit companies spend tens of millions on advertising budgets to attract new policyholders, and an equal or greater amount on lawyers to deny claims when these same policyholders make claims. Policyholders pay not only in unnecessarily high premiums but also in claims handling designed to be challenging rather than compassionate.

Conversely, the not for profit insurance companies were built and are operated by the policyholders. Their focus is exclusively on making the life insurance affordable and profitable for the policyholder. Their goal is to keep the premiums as low as possible and cash value and dividends as high as possible. they do this by paying very conservative management compensation, making conservative investments with their reserves, and by spending little to no money on advertising. When they do spend money, its to make their customer service and claims handling efficient, human and compassionate.