Many independent life insurance brokers and insurance companies now offer free online quotes for life insurance to get your business. Many will let you see how their prices compare to those of their competitors. But comparing rates isn't always the best thing to do. It is important to look into both the companies' rates and their ratings.
The financial strength of an insurance company is important because it gives you peace of mind that they will be able to pay your claims or your life insurance benefits. Independent companies also keep track of how insurance companies are rated. These ratings give you a general idea of how financially strong a company is.
Life insurance companies get grades
A+ Better than Best
This is the best grade that can be given to an insurance company. Companies with an A+ from Best's have shown that they can meet their financial obligations to their policyholders better than other companies.
Best's A Excellent
The financial performance of the companies in this group is also very good. Even though they are not as strong as an A+ company, they are still more than able to pay their bills.
Best's B+ Excellent
Again, going down the list, these companies have shown that they can meet their financial obligations to their policyholders in a "Very Good" way.
Best's B Good
With a B, an insurance company shows that it can meet its obligations, but not as well as with the higher grades.
Best's C+ Good enough
Again, a pretty good performance overall.
Best's C Fair
Lastly, a C means that the insurance company has a good chance of being able to pay their bills.
There are other rating sites besides Bests, of course. Standard + Poors and Moodys, another company, are also well known as companies that rate life insurance.
How to get the best coverage for your life insurance
Overall, you should look for a company with a rating of at least A, and preferably A+ or higher. Remember that you are spending your own money and that the benefits may not show up for a long time. These are two good reasons to make sure your life insurance is with the right company.
