Wheeling, IL (PressExposure) April 30, 2010 -- AccuQuote, a leader in providing term life insurance quotes to people across the United States, explains life insurance company ratings.

“When you buy life insurance, you’re buying a promise from a life insurance company to supply your loved ones with the death benefit when you die,” says Byron Udell, founder and CEO of AccuQuote. “That’s why it’s important to understand how life insurance companies are rated if you’re in the market for life insurance.”

Financial rating companies such as A.M. Best, Standard & Poor’s, Moody’s and Fitch, regularly evaluate the long-term financial strength of life insurance companies across the country. These financial rating companies conduct a financial analysis by reviewing each life insurance company’s financial balance sheets, business profiles and overall operating performance. The ultimate goal is to determine whether a life insurance company is in a secure financial situation or a vulnerable one.

“It’s easy to understand,” says Udell. “A life insurance company in a secure financial situation will have a better rating and a higher likelihood of paying the death benefit when you die. Alternatively, a life insurance company in a vulnerable financial situation has a higher risk of defaulting on its payout obligations; leaving your loved unprotected.”

The rating system is simple. Financial rating companies appoint letter grades to each life insurance company based in its individual financial situation and performance level; similar to how grades are distributed in the school system. For example, the best life insurance companies have an A+ rating and the more vulnerable ones have a rating below a B+.

“Before you make a long-term financial commitment to a life insurance company, be sure to do your homework,” says Udell. “Getting a free life insurance quote from a multi-carrier life insurance brokerage firms, like AccuQuote, is an intelligent choice because they only represent the best life insurance companies in the industry.”

About AccuQuote

AccuQuote helps consumers find the best values in term life insurance by combining instant online quotes with the personal service of unbiased life insurance professionals that can help answer questions, identify important issues, and make meaningful recommendations. The company offers consumers an extensive selection of life insurance options, including term life, whole life, and universal life, as well as selected annuities. The website has many handy insurance tools, including a life insurance needs calculator to help you figure out how much to buy, a glossary that explains industry terminology, a collection of articles that cover the basics about life insurance, and a blog which answers many questions about life insurance. For additional information or to get quotes for cheap term life insurance, please call 1-800-442-9899.

Press Release Source: http://PressExposure.com/PR/AccuQuote.html