It can be overwhelming to search for the best life Insurance company to receive coverage from. I mean where does a person start? What are the ways I can judge for myself who is a good company and who isn’t? If you were wondering how to find the best life insurance company that pay out, because who wants a life insurance company that does not? You have come to the best page because we believe it is only fair for everyone to understand how to differentiate a good vs bad company. The following are some key points we will be discussing in this article;

1. Something to consider when looking for the life insurance company is the ratings of the insurance company you are contemplating about.
2. It is very important for a company to have a fantastic rating such as AA+, A+, or even an A-, because these ratings show how stable the company is with their financials and it also reassures the consumers that their money isn’t going to complete waste.
3. A.M Better is a professional company who uses a basic method of grading insurance companies.
4. Moody’s is another company who also do ratings for insurance companies.
5. If the company’s ratings are pretty good, you should check their reviews to see if their product line is for you.
6. It is also important to educate yourself on additional riders or policies because the riders can allow you to do different things while being insured.
7. Term Life is the most basic form of life insurance protection.
8. Whole Life provides a set amount of coverage for your entire life.
9. Universal Life earns credit as your premiums are paid.
10. Permanent insurance provides a lifelong protection.
11. Shopping around is so important and we all know how time-consuming it is to browse through different insurance companies and policies trying to DIY. The truth is you can cut your time in half by speaking to an independent licensed agent.

Why is it important to look at insurance company ratings?

Something to consider when looking for the life insurance company is the Ratings of the insurance company you are contemplating about. It is very important for a company to have a fantastic rating such as AA+, A+, or even an A- because these ratings show how stable the company is with their financials and it also reassures the consumers that their money isn’t going to complete waste. For example, if you decide to get coverage from company ABC because they offered you the cheapest premium opportunity. Company ABC have been around for the maximum of five years and they have a pretty bad rating from A.M Better, but that didn’t matter when you decided to receive coverage from them because well, money speaks.

Let’s say that next year disaster happens and an earthquake shakes the building out of place or the stock market changes drastically and company ABC decide their best option is to pull out. Do you know what happens to all the premiums you have paid? Well, in this case, you’re a lucky person because you only put out a year of premiums and all that money went down the toilet along with your policy. In most cases people are not as lucky as you were in this pretend scenario, sadly people put up so many years of premiums and get shut out when disaster occurs. Don’t be that person because of a simple mistake you could have fixed simply by shopping around. Now you are stuck having to find another company with less money in the bank and more disappointment than anything. This is why it is so important to do the correct amount of research and look into the company’s ratings and reviews.

Let’s say that next year disaster happens and an earthquake shakes the building out of place or the stock market changes drastically and company ABC decide their best option is to pull out. Do you know what happens to all the premiums you have paid? Well, in this case, you’re a lucky person because you only put out a year of premiums and all that money went down the toilet along with your policy. In most cases people are not as lucky as you were in this pretend scenario, sadly people put up so many years of premiums and get shut out when a disaster occurs. Don’t be that person because of a simple mistake you could have fixed simply by shopping around. Now you are stuck having to find another company with less money in the bank and more disappointment than anything. This is why it is so important to do the correct amount of research and look into the company’s ratings and reviews.

How does Insurance Ratings Scale Work?

Companies have to provide their ratings to consumers, but do the consumers understand these ratings? More than half don’t understand the grading system and I like to blame the school system of grades. It’s almost like our minds are trained to look at a grade of “A” is excellent and a “B” is still great and in most homes very acceptable in fact most will be proud to show off their “B” in math! Even a grade of a “C” is considered average and for those struggling students, that didn’t stop their parents from showing off their amazing straight C’s for doing all their work! The following will go into detail of the A.M Better grading scale. A.M Better is a professional company who uses a basic method of grading Insurance Companies.

• A++, A+, A, and A-: These rates mean that the company shows how financially strong they are and how capable the company is of guaranteeing your policy and making sure it is secure. Receiving an A in the company reassures consumers that their policies are in the right hands! Only top insurance companies receive an A as their ratings.
• B++, B+, B and B-: These ratings are ranked as good for those who can’t really afford what higher ranked companies offer their services for. With a B ranking, you can depend on the company to provide a secure policy for affordable rates.
• C++ and C+: There are only two scores for the C category. This shows that this is just an average insurance company. Nothing exciting attached, just a straightforward policy with regular premiums.
• D: A ‘’D’’ rank are for the companies that fall below A.M BEst’s minimum standards. After this rating, there is an E rank which simply means that the company is under state supervision and an F means that the company is going into liquidation.

Moody’s is another company who also do ratings for insurance companies. The following is an explanation of their ratings;

• AAA, AA, A: Extremely strong, unlikely to be affected by adverse economic conditions
• BBB: Good, may be affected by adverse economic conditions.
• BB: Moderately weak, contractual obligations are vulnerable.
• B: Weak, show significant likelihood for interruption of payments.
• CCC, CC, C: Very weak-Distressed: Interruption of payments is imminent.

Standard & Poor’s is another company who do ratings for insurance companies, the following is an explanation of their ratings:

• AAA: Extremely strong capacity to meet financial commitments.
• AA: Very strong capacity to meet financial commitments.
• A: Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.
• BBB: Adequate capacity to meet financial commitments, but more subject to adverse economic conditions.
• BB: Speculative Grade, Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions.
• B: Speculative Grade, More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments.
• CCC: Speculative Grade, Currently vulnerable and dependent on favorable business, financial and economic conditions to meet financial commitments.
• CC: Speculative Grade, Highly vulnerable; default has not yet occurred, but is expected to be a virtual certainty.
• C: Speculative Grade, Currently highly vulnerable to nonpayment, and ultimate recovery is expected to be lower than that of higher rated obligations.
• D: Speculative Grade, Payment default on a financial commitment or breach of an imputed promise; also used when a bankruptcy petition has been filed or similar action taken.

“Understanding Ratings – S&P Global Ratings.” Understanding Ratings – S&P Global Ratings. N.p., n.d. Web. 13 Mar. 2017.

Why is it important to look at insurance company reviews?

It is important to read insurance company reviews because it is really hard to narrow down the best insurance company to receive coverage from. Especially if their ratings are pretty good, you will have to check their reviews to see if their product line is for you. Reading online reviews about insurance companies will point out if they have poor customer service or simply the wrong products for you. It doesn’t take much to read a review and this way you can come to your own conclusions and opinions!

Why should I look into a company’s product line and policies they offer?

It’s important to educate yourself about the many products that a company offer because it can give you a look into what kind of insurance you want from them. There are so many products that a company can have and all of them are a little bit different from the last. If you are having a hard time between two different companies that look like good companies to get coverage from, then just take a look at both their product lines.This method can help narrow down your choices by products. It is also important to educate yourself on additional riders or policies because the riders can allow you to do different things while being insured. For example, there are some riders that let you, under certain conditions gain access to your benefits before you die which can be very beneficial for you and your family.

Some common types of insurances

• Term Life; What is term life insurance? Term Life is the most basic form of life insurance protection. It only offers death benefit and has no type of cash value or investment build up. You can’t really make money off this kind of life insurance, that is why this type of insurance is the most affordable.
• Whole Life; What is whole life insurance? This type of policy provides a set amount of coverage for your entire life. Your beneficiary will receive the full benefits as long as you pay your premiums, and this type of insurance accumulates cash value that can also be accessible.
• Universal Life; What is universal life insurance? This life insurance policy earns credit as your premiums are paid. Every month, various deductions, such as a charge for insurance protection, are then made from the account value. With this type of insurance, you can take out loans or make withdrawals to help you pay bills or really anything you need the immediate money for.
• Permanent Life; What is permanent life insurance? Permanent insurance provides a lifelong protection. It also has the ability to accumulate cash value on a tax-deferred basis. This means as long as you continue to pay your premiums your policy will remain intact.

Shopping with an independent agency to get the best rates

Life insurance agents are licensed by the State and may represent one or more companies. If you use an agent you should choose wisely because agents earn a commission on your business and they do more than just sell you life insurance, they can sell an annuity contract as well. That being said, if an insurance agent is given an opportunity to give you an expensive, unreasonable policy, just to make commission, you better bet they will. Plus, shopping around is so important and we all know how time-consuming it is to browse through different insurance companies and policies trying to DIY. The truth is you can cut your time in half by speaking to an independent licensed agent and don’t worry here at InsureChance we put our clients first and our commissions last. We differentiate ourselves by the service we provide to our clients, we only give the best rates because we believe in helping you and your families save some money. Let us save you time and money and give us a call at 888-492-1967.

Final Thoughts

In conclusion, there are more than 850 life insurance companies in the United States. Finding the best company to fit your needs can be difficult so when you are looking for the best one consider their policies, premiums, customer service and ratings. Don’t let anybody pressure you into a life insurance company with no stability, big mistake! Don’t waste any more time stressing about life insurance, time is money and the more time you waste stressing, the less time you will be able to spend and appreciate with your family. The good news is that InsureChance is an independent life insurance brokerage and are here to widen your choices, help you save money, provide unbiased advice, and help with claims. In addition to that, we also offer a lifetime support if you ever need to make changes to your policy. Call us at 888-492-1967. Welcome to InsureChance!

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