Most people, comfortable with their own sense of immortality, might look to a Life Insurance Company rating as an indication of the lowest premiums for x amount of Life Insurance. A bit more significant is the Companys financial stability and its ability to pay its claims.
When you are shopping for Life Insurance and feel all proud of yourself for being responsible and taking care of the risk management portion of your long term financial planning process, it is easy to concentrate solely on the cost of premiums. After all, most people are expecting to lost their wager with the Insurance Company and are acquiring Insurance for the what if and not the when.
Yet, although comparative premiums play a part in the Life Insurance Company rating, financial stability is a more significant consideration. If an Insurance Agent offered you a million dollar term policy for a couple of cents a year, it might seem like a very, really good deal. Yet, if the Company has folded up shop and moved to Central America when your beneficiaries come looking for their payout, it was really a wasted couple of cents.
In the world of permanent Life Insurance and the combination of Life Insurance with savings and investment, financial stability and a good track record in selecting and managing your investment are the factors that constitute a good Insurance Company Rating. The ratings and evaluations of any single Company are subject to change during the life of your policy. The need to understand ratings and to follow them closely does not end when the policy is purchased.
There are several reputable Rating services and they present their ratings online, so it is easy to obtain them. In addition, the Insurance regulatory agencies of most States could offer additional information on Company performance. The Insurance Marketplace Standards Association (IMSA) offers a Seal of Approval to Companies with ethical standards and a good performance records.
Remember, the Life Insurance Company Rating is a combination of a number of factors. These include competitive rate comparisons, but more significant are the ratings that indicate long term financial stability and a good performance and investment track record. The ratings are tools that could be used to make the significant options involved in the selection of the best Company for your Insurance needs. be sure you use them and do not be afraid to discuss them and their meaning with your Insurance Agent.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment