How Can I Assess The Financial Strength Of Life Insurance Companies?

Selecting a reputable, stable and reliable insurance company is increasingly important. Specifically true these day, in the troubled financial markets and times the economy is heading towards, with talks of recession and downturn globally. You need to know who your business partner of choice is and that they know what they are doing and will still be around in the future to do what they promise/commit to today, in order to get your business, agreement and contract - even for INSURANCE COVERAGE.

Do not accept company's own pat on the back ratings and performance claims. Investigate, verify, dig deeper and check in on what, whom and where the top-performers and bottom-feeders lie, everything in-between and those that go above and beyond. Favourable ratings, indicators can be chosen and less favourable ones ignored by companies, so get a broad-spectrum analysis, comparison and ask/shop around. Brands or well-known names, recognition, being in business for some time do not always ensure you get the best, top rate, service and products! SHOP AROUND! Check the underwriting of who is behind these for the real deal and scoop. Brands and name is one thing, price and performance, even fees and costs quite another.

Independent agencies and codes are used to compare and rate the industry and players. Top and plus ratings will vary greatly (compare them across the board, from different agencies, like A.M. Best, Fitch, Moody's, Standard & Poor's, and Weiss). These will give you the inside scoop on the depth, performance and MORE IMPORTANTLY the so-called financial strength of insurance companies.

Standards and scales will vary, but it will give you at the very least a baseline/average to use and base your decisions on. Variations (indicated by plus and minus signs), will also give you an idea of their market competitiveness.

Financial ratings is one thing - the depth and consistency of their performance over time another good indicator of performance and excellence (or the lack thereof)

Lowest premiums might not guarantee payouts and good customer service in the long run, when it does come time to file a claim - bear that in mind every step of the way as you make your decision.

Check regularly and annually at least, for any fluctuation in ratings and opinions in the market by others. Sources like the insurance forum can also help with statistics and ideas on how to put your finger on the pulse of the financial well-being, health and prosperity (or not), of these companies.

For most the Standard & Poor's index is the most reliable rating in the world or over 3000+ insurance providers/entities globally, among one of the largest insurance and related financial rating organizations.

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