How Strong Is the Life Insurance Company I Applied With?

Life Insurance

When shopping for life insurance quotes there are many different factors to consider regarding the strength and stability of the carriers you are gathering quotes from. For some people there is a history of having life insurance policies with the same company for many years. Everyone has different comfort levels in what they look for to provide them with peace of mind when purchasing a life insurance policy. One of the ways to help you make a decision is to look at the rating profile of the life insurance carriers you are considering.

When researching life insurance companies you may come across a ratings page. There are companies that are known as rating agencies. What they do is research other companies in a variety of industries. They look at information about a company in order to assess things such as, financial strength of a life insurance company and its ability to pay debts or claims. They then assign a letter rating code such as A++, AAA, Aaa, B and so on. A life insurance carrier with an A++ rating means they have a superior rating and AAA means Exceptionally strong. Remember these ratings are not coming from the life insurance company themselves. The ratings are based on each rating company’s opinion from their research. The most common rating agencies you may see include:

1. A.M. Best Ratings

2. Fitch Ratings

3. Moody’s Investor Service

4. Standard & Poor’s

In my opinion, these ratings help give you additional data to consider when shopping for life insurance quotes. Just as the rating agencies listed above have developed their opinion, you can come to your own decision based on your research as to whether or not you feel a life insurance carrier is right for you. If you combine these ratings with looking at the history of the company and when they were founded, you will have a good sense of the of company’s core beliefs. Core beliefs meaning why are they in business? What do they believe about the services they provide? And what makes them different from their competition? When you do your research online, you may see ratings vary from company to company. This will give you a good idea of how the life insurance companies are perceived in the industry.

In my opinion, it is a smart move to research and learn more about the life insurance carriers you are applying with. 

About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.