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Is Your Insurance Carrier Financially Strong?

When shopping, we always look for the best. We read reviews, ask friends, and conduct extensive research before making our purchases. 

The internet makes it easy to be misled when it comes to finding the “best.” This is especially true for life insurance. If you Google “best life insurance,” you will hit upon thousands of results – all from companies claiming to be the cream of the crop. 

So: how do you know if your life insurance company is providing you with the best policy out there? Better yet: how do you know if your life insurance company is trustworthy?

In this article, we will give you insight into the mind of an independent life insurance agent. The goal is to arm you with the knowledge you need to find the top life insurance companies out there.  

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If you do not want to do the heavy lifting of researching life insurance carriers, you should work with an agent!

We understand that you have many options when it comes to life insurance. We want to make shopping for a policy easier for you. 

Our independent agents work with multiple carriers. This means we have the most accurate picture of the financial strength of the top life insurance companies. We can also provide an accurate financial picture of lesser-known companies that may suit your needs. 

Our agents will not work with – or recommend – a carrier with multiple poor reviews or with less-than-stellar financial strength ratings. 

The easiest way to find the most reliable information on life insurance companies is to go to an expert. We help you find the best life insurance policy for your needs. Additionally, we can help you understand what reviews and ratings say about a company’s financial strength. 

The best part? Independent agents work for you – not individual insurance companies. This greatly increases your odds of finding affordable coverage to suit your needs from a top life insurance company. 

Bottom line: if you are uncertain as to whether you are getting the best rates, or if the company issuing your policy is reputable, speak to an independent agent.

What is Financial Strength?

Life insurance companies assess the risk of anyone applying for coverage. Often, your health is the main factor insurers look at when determining your risk for coverage.

You should take a page out of their book and look into a company’s financial health before purchasing a policy. 

Financial health refers to a company’s ability to pay out its claims. Sometimes referred to as financial strength, this is the ability of a company to protect itself against financial hardship. 

For example, you are looking to purchase coverage from Life Insurance Company A. Research indicates this company has a good history. In this scenario, you are considered low risk. This means you’ve earned a great price on your 20-year term life insurance policy. 

Affordability and good reviews are on your side. But how do you know that Life Insurance Company A is the most solid choice?

If for some reason, the company goes out of business, your family could be left without protection should the worst happen. This is why the financial health, or financial strength, of life insurance carriers, is so important. 

You may still be protected for up to $300,000 if your insurance company goes out of business. This is more than adequate if you’ve purchased a term life insurance policy. But what if you’ve invested in a whole life insurance policy? Or a policy with a larger benefit?

Your Insurer’s Health Matters

Reviewing a carrier’s financial strength is a critical part of finding the best insurance policy. While we always recommend using an agent to help you review/research a company, it doesn’t hurt to conduct research independently. 

Moody’s and A.M. Best are the industry’s leading financial benchmarks for financial strength. These companies use a fairly straightforward grading system to determine the financial stability of an insurer. Anything with an “A” rating or above is considered financially strong. 

The ratings of insurance companies are based on a comprehensive evaluation – both qualitative and quantitative.

This evaluation covers everything: from the business profile, to a rated debt security, to operational performance and the strength of the company’s balance sheets. 

While the reviews from these companies are great research tools, they may not tell the story. Occasionally, companies pay for better customer reviews or the full customer service picture may not be presented in these reviews.  Your best bet is to conduct your own research with the help of an agent. 

Consumer Reports for Insurance Companies

One of the most important resources when determining what products to buy is consumer reviews. Frequently, customers are ruthlessly honest, which can help you get a more accurate picture of a company. While these reviews are based on an individual basis, looking at them as a collective can give you a more accurate picture of a company’s practices.  

Consumer reports deliver the good and the bad aspects of a company in detail. Because most life insurance companies offer a variety of coverage options, these reviews can be excellent tools to let you know which companies cater to their clients and payout in a timely fashion, and which companies provide unsatisfactory service. If you want to look up for yourself

If you already know what kind of life insurance you need, these reviews are particularly helpful, as you can search for reviews of niche insurance carriers. 

When looking for life insurance coverage, you need to make sure that your company is going to take care of you and your loved ones. A trusted agent and the right research can help you ensure that you are taken care of through every process of life insurance shopping. Give us a call today. We can help you determine which financially strong and highly-rated company is best for your needs!