How Do Life Insurance Companies Get Rated?

Choosing the right life insurance policy can seem complicated but it really is not. For many people, selecting the company is the first important step, and then deciding on the amount of life insurance they want and for how long. You should know that all life insurance companies are rated— for their financial performance, stability, claims-paying ability, and more. While researching life insurance policies, take a look at these ratings to get an idea of the top-rated companies. Obviously, if the company is unable to pay the benefits promised in the life insurance policy, then every other consideration is unimportant. But the country’s major life insurance carriers are some of the most financially solid financial institutions in America. Of course, your first step in searching for life insurance should center around price, terms and benefits but it’s always smart to review the company’s financial strength before signing on the dotted line.

The easiest way to check a life insurance company’s rating is to go online. Life insurance companies are ranked by independent services, such as A.M. Best, according to their financial strengths. The life insurance company ratings are determined by independent analysts that are paid to review a company’s financial strength. Besides A.M. Best, other leading life insurance company rating services include Standard & Poor’s, Moody’s Investor Service and Fitch. You might want to review multiple rating services as each one may focus on slightly different aspects of a company´s financial performance.

You can also check out our post on “best life insurance companies” for more details.

When you get a term life quote on LifeQuote.com, the A.M. Best rating shows up next to the insurance company quoted to give you an idea of how the company is rated. LifeQuote places so much importance on these ratings that generally our site recommends companies that carry at least an A+ rating from A.M. Best. Occasionally, an A rated company may be quoted if price and company performance justifies the selection.

Need help on selecting the top-rated life insurance company? We are glad to help. Give us a call at 1-800-521-7873 or send us an email at info@lifequote.com