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Life Insurance Company Reviews – Know The Company That’s Right For You

by Jeff Rose

It’s very common for consumers to not check the ratings of a life insurance company before they actually purchase their life insurance policy.

If you’re planning on paying on this policy, for the next 20 or 30 years, wouldn’t you want to know how strong the ratings are of the life insurance company that you’re getting ready to hand your money over to for the next couple decades?  One would think so.

Yet people don’t do it. It doesn’t take much time to do some research and find out how solid the insurance company is. A simple Google search will yield you a wealth of information.

What Should You be Looking For?

If you want to find out some information about your potential insurance company, here’s a few things you’ll want to consider.

First, check to see if your state has what is called a “insurance guaranty fund“. At this time I’m not aware of any states that don’t have this fund so you should be in the clear. If you’re not sure, be sure to check our Insurance State Commissioner’s resource page for contact info for your state.

What the this guaranty fund covers is if something did happen to your insurance company and it became insolvent, the state fund would kick in and pay the life insurance death benefit.

But for that to happen, verify that the caps on payout limits are large enough to take care of your life insurance policy. If you are purchasing some sort of policy that has a cash value build up, make sure that amount is covered, too.

This a last resort option, of course, as the process can be a bear. Don’t expect a quick turnaround on getting your money.

The second place you can get information is visiting A.M. Best (note: Moody’s and S&P also rank insurance companies and you can that info below).
A. M. Best is one of the most recognized that companies that rates the financial strength of all the different life insurance companies that exist.

How long have they been around? Ummm…a while. In fact, they’ve been around over 100 years so they are definitely considered the leaders in this space.

If your company is rated A, A+, or A++, it’s on solid ground. If your company is rated B or worse, it’s time to move on. Below you’ll find more about A.M. Best’s rating scale.

How Does A.M. Best Insurance Ratings Scale Work?

For a professional company, using a basic method of grading insurance companies has proven to be an effective and helpful tactic. Here’s how the A.M. Best Insurance ratings scale works:

  • A++, A+, A, and A- all identify the top insurance companies. Receiving an A for the company shows how financially strong they are, how capable a company is of guaranteeing your policy and keeping it secure.
  • B++, B+, B, and B- ratings rank companies as good for those who can’t afford what higher ranked companies offer their services for. With a B ranking you can depend on the company to provide a secure policy for affordable rates and rely on them to help your family get the help they need once you’re gone. For client’s knowing that your family has something to fall back on during difficult times is a welcome relief.
  • C++ and C+ are the only two scores for the C category, indicating an average insurance company. No bells or whistles attached, just a straightforward policy with straightforward premiums, a great choice for the first time you buy life insurance.
  • A ‘D’ rank is only reserved for companies that fall below A.M. Best’s minimum standards, an E rank means the company is under state supervision, and an F rank is only for companies going into liquidation. Any rating below a C shows how unreliable the company is.

If you don’t know where to look to get up to date ratings and reviews of all the life insurance companies, look no further. Below in the table you will see a comprehensive list of all the life insurance company possibilities.

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Moody’s Ratings Explanations

Rating:Description:Definition:
AAAExtremely StrongVery unlikely to be affected by adverse economic conditions.
AAVery StrongNot significantly vulnerable to adverse economic conditions.
AStrongLow expectation for interruption of payments.
BBBGoodMay be affected by adverse economic conditions.
BB Moderately WeakContractual obligations are now vulnerable.
BWeakSignificant risk for interruption of payments.
CCCVery WeakStrong likelihood for interruption of payments.
CCExtremely WeakInterruption of payments is probable.
CDistressedInterruption of payments is imminent.

Review of Life Insurance Company Ratings

Their are several different ratings agencies that review the stability and solvency of all the life insurance company ratings.   Of those, the most recognized is A.M. Best Rating Agency.

Company:Moody's:S&P:Fitch:
21st Century-AA+
AIG LifeA1A+A-
AllstateA1AA-A
AllianzA2AAAA
Amica---
American GeneralA1A+A-
Banner Life-AA--
American National-AA--
AvivaA1AA-A+
Axa EquitableAa3AAAA-
Colonial PennBa2BB-BB+
Empire General---
EquiTrust---
Farmers---
Fidelity-A+AA
Genworth LifeA2AA-
GeicoAa3AAAAA+
Hartford LifeA3AA-
INGA1A+AA-
Integrity LifeAa3AA+AA
Kansas City Life-A-
Jackson NationalA1-AA
Jefferson National---
John HancockAa3AA+AA
Liberty MutualBaa1A-A-
Lincoln NationalA2AA-A+
Mass MutualAa1-AAA
MetLifeAa2AA-AA
Midland National-A+A
Monumental LifeA1AA-AA
Mutual of OmahaAa3--
Nationwide LifeA1A+A
New York LifeAaaAAAAAA
North American-A+A
Ohio National---
Old MutualA1-BBB-
Pacific LifeA1AA-AA-
Penn MutualAa3--
Presidential---
ProtectiveA2AA-A+
PrudentialA2AA-A+
ReliaStarA1A+AA-
Riversource-AA-AA-
Standard Life-AA+
State FarmAa1-AA+
SunAmericaA1A+A-
The TravelersA2AA-AA
Transamerica A1AA-AA
West Coast LifeA2AA-A+
Zurich American-AA-A+

Below you’ll find links to all of our life insurance company reviews.  We’re constantly adding to these as things change in the industry.   If you don’t see an insurance company below that you think should be reviewed, please let us know.  We constantly want to provide value for customers.

To get a free analysis of quotes from the best life insurance companies, consult with an independent agent today. Get the cheapest term quote from the best insurance companies. Get Your Quote Here.

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Life Insurance Company Reviews - Know The Company That's Right For You
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Our in-depth life insurance company reviews will help out your decision on the best life insurance company to handle your insurance needs.

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