Term Insurance Companies & Their Financial Stability

Have you ever wondered which life insurance companies are the most secure? Or have you ever sat down to consider a life company’s financial stability before you purchase their policy? Either way, we will be reviewing over several resources you can use in looking up life insurance company ratings to see their financial stability for the short term and long term outlook.

The two most reliable sources for reporting insurance company information pertaining to company stability are A.M. Best (www.ambest.com) and Moody’s (www.moodys.com).

Most insurance agents will refer to A.M. Best when giving a client the financial rating of an insurance company. A.M. Best’s grading scale is F – A++. Any insurance company with a B+ rating or higher is considered a “SECURE” company and any insurance carrier with a B rating or lower is considered “UN-SECURE”. Most term insurance companies have extremely high ratings with both A.M. Best and Moody’s – usually “A” or higher.

Understand that these rating companies should not be your one and only judgment call. In 2008, A.M. Best rated Shenandoah Life Insurance Company out of Virginia as an “A+” rated company which is about as high as you can get. Well next thing you know Shenandoah was in receivership and policy holders were scrambling left and right to see if there policies would be ok. I say this not to scare you, but to advise you to speak with a qualified insurance agent that can answer your questions pertaining to life insurance companies.

If you would like more general information pertaining to insurance carriers and their financial stability don’t hesitate to email us at the address below.

senior division manager Article added 08/16/2011 by Ryan Eaton
Senior Division Manager: Morgan White Group

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