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Are there industry recognized ratings of an insurers financial strength that I should consider in making a purchase decision?

April 26, 2017decision financial Industry insurer purchase ratings recognized strength

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Are there industry recognized ratings of an insurers financial strength that I should consider in making a purchase decision?

1 Answer

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10 Posted

Yes. The buyer should pay special attention to the ratings given to life insurance companies. The major rating agencies, such as A.M. Best and Standard & Poor’s, use their own individual rating criteria to grade an insurance companys financial strength. Since the federal government does not guarantee life insurance products, the financial strength of the insurance company should be considered in evaluating risk.