YOU ASK:

What rating is a reliable term life insurance company likely to have?

WE ANSWER:

Finding a reliable term life insurance company was not easy: with over 1,600 life insurance companies in the United States, it seemed nearly impossible to compare them all in order to find the best term life quote.

Not until the world wide web was launched. The Internet gives you easy access to all the information about insurance companies that you need. Now you can not only compare quotes but also compare insurers within seconds just with a click of the mouse. This process has been made even easier by five organizations which have embarked on the uneasy venture of helping consumers by evaluating and grading life insurance companies for their financial strength and reliability. These organizations are considered to be very objective in rating insurers and they guard their reputation and public image.

The most significant life insurance rating agencies are the following:

  • Standard and Poor's Corporation (S&P) use the A-F assessment system, where F is the poorest and AA+ is the best mark. You should be looking for the highest term life insurance company ratings: AAA, AA+, AA, AA-.
  • Best provide you with each company's detailed history, alongside with an up-to-date rating of the insurer. Best's highest ratings are A++, A+, A.
  • Fitch's highest insurer financial strength ratings are AAA, AA+, AA, AA-.
  • Moody's highest ratings are Aaa, Aa1, Aa2, Aa3.
  • Weiss gives the best and most reliable insurers grades A+, A, or A-.

How to Compare Term Life Insurance Companies

  • Do not only compare two companies, compare different term life insurance quotes instead.
  • Check where each term life insurance company stands in the financial strength ratings.
  • It is strongly advisable that an insurer gets a high rating from a minimum of two independent rating agencies.
  • Always choose a top insurer. The companies with the highest ratings usually offer the best prices.
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