Insurer important for term insurance?

[janjan16]

I got quotes from different insurance companies for a 1.2M Term insurance (30 yr coverage) + TPD and 200K critical illness coverage. I noticed that there are significant differences in the premiums. Is it worth it to stick with the big names like Prudential? Or would going with AVIVA be fine?

Here are the price gaps:
AVIVA: cheapest & has 50K more coverage in critical illness and covering 36 conditions

AXA: +$250/yr higher in premium than AVIVA (covers 30 critical illness conditions)

Prudential: +$680/yr higher in premium than AVIVA (covers 30 critical illness conditions)

AVIVA has lower credit rating than the other 2, so if anything happens to them in the next 30 years, I'm doomed. Are they cheaper for a reason? Is Prudential worth the extra premium??

Thanks!

 

[parallelyy]

My personal opinion is go for Aviva for the wider coverage.

In terms of name, all 3 have worldwide presence so it shouldn't really matter much

Besides, Aviva is also handling the group term for Mindef and mha, so that should say something

 

[Bigoya]

Insurers are insured by reinsurers.
Zurich left SG for example, but their client's policies are still in-force and insured by the reinsurer.

If you scared, you can also consider to diversify ur coverage with different companies, such as $600k with Coy A, $600k with Coy B.