Affordable Life Insurance Protection for Your Family
If you are considering buying life insurance you should also consider the Term Life Insurance Company Ratings before you choose an insurer.
Why? Because, the rating of the insurance company you choose is important to you and your family.
What is a Financial Rating of an Insurance Company?
The Financial Rating is an indicator of the financial strength and ability to pay claims of the insurer. The better the 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 Insurance Companies?
There are several rating services that review and analyze insurance companies. These firms include A.M. Best, Moody’s and Standard & Poor’s.
Each rating firm 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 Term Life Insurance Company Ratings?
When you request quotes for life insurance 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.org. 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.
If you want to learn more about term life insurance, read this article explaining how term life insurance works.
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