If you are considering buying a term life insurance policy you should also consider the Term Life Insurance Companies Ratings before you choose an insurer.
Why? Because, the rating of the life insurance company you choose is important to you and your family’s future.
What is a Financial Rating of an Insurance Company?
The Financial Rating is an indicator the insurer’s financial strength and ability to pay claims. The better the financial rating, the better the chance your insurer will be able to pay your beneficiary the life insurance claim (death benefit of your policy) if you should die.
Who Rates the Financial Strength of Insurance Companies?
There are several financial rating agencies that review and analyze insurance companies. These firms include A.M. Best, Moody’s and Standard & Poor’s.
Each rating agency has its own rating system for analyzing the financial strength of an insurance company. Each firms individual rating system is explained on their web site.
What is considered A Good Financial Rating for a Life Insurer?
Usually, a life insurance company with a financial strength rating of "A" or better is considered to be safe, secure and able to meet its financial obligations and pay its claims.
Where can I find Life Insurance Company Ratings?
When you compare life insurance rates online, the quotes will usually show the financial rating of each insurance company quoted. Or, you could go to the A.M. Best web site at www.ambest.com to look up the rating of the insurer.
Another option might be to contact the Department of Insurance in your state and ask about a life insurance company’s financial rating.
Or, you could look up the insurance company web site online – they should state their financial rating on their web site or you could call or e-mail them to find out.
Remember, it’s good to find affordable life insurance coverage that fits your budget. But, be careful to examine the financial rating of your life insurance company, too.
Many life insurers become insolvent, unable to meet their financial obligations each year. That means they are not able to pay their claims.
So it’s important to make sure you buy your life insurance policy through a safe, financially secure insurance company.
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