How Safe Is Your Insurance Carrier?

You may be paying premiums for 30 or 40 years before a claim is ever filed. You need to be reasonably confident the carrier will still be in business – and financially healthy – at that point.

Four major ratings companies evaluate the financial strength of insurance carriers. Before purchasing a policy, ask your agent to provide documentation of the carrier’s current rating. If an agent is unwilling to share that information, find a different agent.

Keep in mind that high ratings don’t guarantee financial health. Major carriers have failed despite strong ratings only days before collapse. Also, don’t dismiss a carrier simply because it’s unfamiliar. There are thousands of life insurance companies in the United States, and the great majority of them don’t sponsor sporting events or run national advertising campaigns. Obscurity is not the same as instability.