LIFE INSURANCE RATINGS

Life Insurance Companies are rated by five different services. As companies compete for business They will often show only the services that give them the highest ratings. The consumer needs to know that all five have different methods of rating.

For example the Fitch service has a highest rating of AAA. That means that a rating of A is actually their third best rating. Meanwhile Weiss start with a rating of A+.

Each service uses different criteria to reach their conclusions. Rather than listing the criteria for each service, it is best for a consumer to look at all five services as they rate the companies.

Consider how they grade the Insurance Companies.

AM BEST
A++ THROUGH F

FITCH
AAA THROUGH D

MOODYS
Aaa through C

STANDARD & POORS
AAA THROUGH R

WEISS
A+ THROUGH F

Each service has their own website so a consumer can check on their without relying on Company brochures. Their websites are:

A.M. Best – www.ambest.com
Fitch – www.fitchratings.com
Moody’s – www.moodys.com
Standard & Poor’s – www.standardandpoors.com
Weiss – www.weissratings.com

For the most part the Life Insurance has an excellent history of solvency. When AIG had all their problems recently, their Life Insurance Company always remained strong. Having said that if a consumer is making a purchase and is impressed by two or three companies, a thorough review of the ratings could provide the ingredient to help make a wise purchase.

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