Life insurance is one of the best ways to make sure your family is protected if you were to pass away. When choosing a policy, it’s smart to compare quotes from multiple carriers to ensure you’re choosing the right plan for your needs. While shopping around, you may come across life insurance company ratings, but what exactly do these ratings mean? Here’s what you need to know about how life insurance companies are rated.
How are life insurance companies rated?
Life insurance companies are commonly rated by customer satisfaction, financial strength, and cost. Customer satisfaction and cost are more obvious, but financial strength ratings often come from independent agencies that have ratings based on the assessment of the life insurance company’s financial health. The higher the rating, the more likely an insurance company is to pay future claims.
How to Find Company Ratings
There are several major agencies that rate insurance companies. Consumers can view these ratings online at each agency’s website free of charge:
You can also typically find additional resources regarding insurance company ratings on your state’s government website or by reaching out to your state’s insurance commissioner.
Other Things You Should Know About Life Insurance Company Ratings
Keep in mind that the criteria used to assign life insurance company ratings will vary by agency; no two agencies will weigh ratings in the exact same way. While each rating agency has its own rating scale, ratings typically range from AAA (or A++) for the highest rating to D or below for the lowest rating, with modifiers like + or - to further differentiate.
If you’re interested in evaluating a specific carrier, looking at all the ratings available for that carrier from different agencies will help give you a full picture of its reputation and reliability. You should also remember that these ratings are subject to change. Reviewing insurance ratings periodically will provide you with the most up-to-date assessment of different carriers, helping you make informed decisions about insurance.
SelectQuote Partners With Highly Rated Life Insurance Companies
Reviewing life insurance company ratings is a helpful tool when making decisions about life insurance, but can leave you with more questions than answers. Let SelectQuote help you navigate the guesswork of the life insurance shopping process. We’ll make things easy and convenient by gathering a variety of unbiased quotes from trusted carriers on your behalf. Then, we’ll walk you through your options so you can feel confident about the policy you choose.
