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If you are asking, "Which life insurance company?", your decision is likely based not only on products and prices but also the rating of life insurance companies. How are life insurance companies rated; and what does that mean for the consumer? Read the following tips to find out.
Life Insurance Ratings are determined by Independent Reviewers. Reviewers consider several qualitative and quantitative factors to arrive at life insurance company ratings. One such reviewer, A.M. Best evaluates the balance sheet strength, business profile, and operating performance to make a rating determination.
Life Insurance ratings are expressed as letter grades. Ratings range from A++ (which is superior) through F (in liquidation). It can be assumed that top rated life insurance companies enjoy higher ratings and foster more confidence among policy holders.
There are some companies that are not rated. There are several reasons a life insurance company may not be rated. The most common include: the company has not be in business long enough, there is not sufficient data available or the evaluation processed used is not applicable under the company's current circumstance.
It is wise to review the insurer's rating at policy inception and periodically throughout the life of the policy.