The easiest way to be sure an insurance company is stable is to check their life insurance ratings.
Ratings evaluate a company's reliability in paying claims at anytime necessary.
This rating is very contingent on a company's financial strength.
You might wonder where these ratings come from? Who determines what rating a company gets? There are three predominant companies that issue trusted insurance ratings: Moody's, A.
M.
Best, and Standard and Poor's.
These companies assign a letter grade to life insurance companies based on the financial reliability and strength of that company.
This is a traditional grading scale, with A being the best grade assigned.
When you are searching for an insurance company, only consider a company with an A rating.
You can probably assume that this is basically a stable company.
You need to know that they will be around to pay out claims, should you have any in the future.
If not, the policy is only a piece of worthless paper.
Besides investigating the life insurance ratings, you can also find information that is in the public domain on the Internet.
Usually, the company includes some of this on their web site, but only in a synopsis form.
Find other sources of similar information, such as current customers.
You can go to the insurance company themselves and request information about their company's financial stability.
The customer service department or an agent can probably give you some important background on the company's strength.
If neither employee is eager to discuss the company's financial situation, be aware! This is a danger sign.
After you have gathered all the life insurance ratings on different companies, you now can make a well-informed selection.
You can be confident with all of this data in your resource arsenal that you can choose a company with whom you are comfortable doing this important business transaction.
This is not only a financial investment, but an investment in your future.