Life Insurance Company Reviews – Know The Company That’s Right For You
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.
Moody’s Ratings Explanations
|AAA||Extremely Strong||Very unlikely to be affected by adverse economic conditions.|
|AA||Very Strong||Not significantly vulnerable to adverse economic conditions.|
|A||Strong||Low expectation for interruption of payments.|
|BBB||Good||May be affected by adverse economic conditions.|
|BB||Moderately Weak||Contractual obligations are now vulnerable.|
|B||Weak||Significant risk for interruption of payments.
|CCC||Very Weak||Strong likelihood for interruption of payments.|
|CC||Extremely Weak||Interruption of payments is probable.|
|C||Distressed||Interruption of payments is imminent.|
Review of Life Insurance Company Ratings
|Kansas City Life||-||A||-|
|Mutual of Omaha||Aa3||-||-|
|New York Life||Aaa||AAA||AAA|
|West Coast Life||A2||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.
- Banner Life Insurance Company Reviews
- SBLI Life Insurance CompanyReview
- ING Reliastar Insurance Company Review
- American General Life Insurance Company Review
- Principal Life Insurance Company Review
- Transamerica Life Insurance Company Review
- John Hancock Life Insurance Company Review
- Prudential Life Insurance Company Review
- Lincoln Financial Insurance Company Review
- Protective Life Insurance Company Review
- New York Life Insurance Company Review
- Metlife Insurance Company Review
- AARP Senior Life Insurance Review
- Fidelity Life Association Insurance Company Review
- Assurity Life Insurance Company Review
- Family Life Insurance Company Review
- Monumental Life Insurance Company Review
- United Home Life Insurance Company Review
- Global Life Insurance Review
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.