Wheeling, IL (PressExposure) June 22, 2010 -- When someone buys life insurance, they are buying into a promise that the insurance company will pay the death benefit to an assigned beneficiary when the insured dies. AccuQuote, a leader in providing term life insurance quotes to people across the United States, provides consumers with enough knowledge to make an educated decision about a life insurance company's ability to keep its financial promise.
Consumers shopping for life insurance can easily determine a life insurance company's financial strength by checking out its financial ratings through agencies like A.M. Best, Moodys and Standard & Poor's. The ratings provided by these agencies will help consumers choose a company that is most likely to provide their family with the death benefit when they die.
"There is a lot of money involved in a life insurance policy, so don't buy coverage from a company with a questionable or even less than excellent rating," says Byron Udell, founder and CEO of AccuQuote. "If you do, you might be wasting your money. Or worse, your family could be left with nothing when you die. Don't compound your family's grief with financial loss."
How are life insurance company ratings determined?
Life insurance companies use the same rating system that schools use to grade homework, papers, tests, etc. For example, "B+" or better is good, or considered in a "secure" financial status. If a company is secure, it is more likely to honor a beneficiary's death/payment claim. Any life insurance company with a rating below B+ is generally financially "vulnerable." If a company is in a vulnerable status, the chances are higher that it could default on its obligations to policyholders and their families.
Some life insurance companies choose not to participate in an agency's rating program. These companies are given a rating of "PD." This could be a sign of financial vulnerability or a warning of things to come.
"When you're in the market for life insurance, be sure to remember that these rating tools are available to you. When you find them, only consider companies with a rating of B+ or better," says Udell. "AccuQuote.com only represents the top one percent of life insurance companies - all with ratings of A- or better. If you buy a policy from AccuQuote, you can be sure that your life insurance company will have the ability to keep its financial promise to your family."