A++ Life Insurance Company Ratings are where it’s at if you want security right?
Imagine this scenario: You sign up for a 20-year term life insurance policy that promises great benefits and cheap premiums.
The Bad News: You make your payments on time every month and 15 years into the term and then you die in a tragic accident.
The REALLY Bad News: Your insurance company goes bankrupt and is unable to pay your family the death benefits they’re owed.
Psst: Just to provide a little comfort, quite often struggling life insurance companies are taken over by a healthier insurer…
…and just in case they’re not, each state has a Guaranty Association which is meant to protect policyholders from JUST this scenario!
…but that still doesn’t mean you’ll get what you signed up for!
So what if after all those years of paying your premiums, your family is still left struggling?
This nightmare situation is the one thing ALL policyholders dread so of COURSE, an A++ rated company is the answer to your worries…
Well maybe NOT!
Huntley Wealth Insurance Services
Before I dig into the ins and outs of choosing a GREAT life insurance company, I want to give you some sincere words of advice.
The best way to find a wonderful deal with an insurer that will stand the test of time is to work with an independent agent.
…and NO this isn’t because I am one. It’s because life insurance ain’t a one size fits all deal. No siree.
Not to mention the fact that some really awesome companies that are financially fit DON’T have A++ ratings.
If you want a customized policy, with the most affordable rates – get in touch with an independent agent and let them sift through the avalanche of information to uncover a gem of a deal created specifically for you.
Get started with a free life insurance quote now!
Remember, Cheaper Isn’t Always Better
Chris, cheap premiums are my primary concern. Hey, I’ve got kids to think about…
YES, you do – and this is why I would contend that you need to consider a whole lot more than saving a couple of shekels…
I wish I could tell you how many people have come into my office looking for “CHEAP” life insurance.
Let’s face it – NO one wants to spend a lot of money on life insurance premiums. Come on – why would you, when a trip to Cabo sounds like a whole lot more fun?
You know, I get it. We all want to save money and if you shop for life insurance properly you can save thousands and thousands over your term.
…BUT you should NEVER skimp on the quality of your policy because you want to save a couple of bucks.
Sadly LOTS of people underinsure themselves or go with the wrong company because it looks like a deal.
What Not To Do
Ok was I clear enough? hahaha.
Seriously. Cheaper is NOT always better. In fact, in life insurance, it can get you into a boatload of trouble…
…and that’s NOT to say you shouldn’t watch your pennies.
The thing is, you want to make sure that the company you sign on with is financially stable and that means you need to check out their rating.
Factors such as economic instability can impact whether a life insurance company can meet its obligations and pay its customers as needed.
What Should You Look For?
Ugh, Ok, I hear ya – but what exactly are good life insurance company ratings?
GREAT question – let’s dig a little further because it’s not all that straightforward!
Without knowing if a company is financially strong, you’re essentially punching in the dark and hoping for the best when it comes to selecting a life insurance company.
To help you sort through hundreds of options, financial rating agencies have implemented a grading system! Here are examples of the grades you need to know from the three of the top rating companies:
- Superior: A+ & A++
- Excellent: A & A-
- Good: B+ & B++
- Fair: B & B-
Standard & Poor’s / Fitch
- Very Strong Financial Performance: AAA
- Strong Financial Performance: AA
- Good Ability to meet Financial Commitments: A
- May be effected in an economic downturn: BBB
As you can see their systems differ but the message is the same.
By the way – don’t consider a company at all if the rating is less than those I listed above. Frankly, if I were you I’d never go below an A rating – there’s no need to take on the additional risk.
If you’ve heard of ‘A++ Rated’ life insurance companies maybe you are wondering what all the hype is about.
Just as life insurance companies assess the risk of insuring you, you should consider the risk of signing up with them.
Factors That Determine Ratings
Higher life insurance company ratings are meant to make consumers feel like they can sleep better with protection from a winning company!
Rating agencies use various factors to assess life insurance companies that include:
- Company financial holdings
- Management Style
- Amount of premiums collected and amount of benefits paid to customers