Selecting An Insurer
The first factor in selecting a reliable company should be to evaluate the company based on its financial strength ratings. The top three ratings services and a brief description of their history and ratings services are…
A.M. Best
Established in 1899. The largest and longest established company devoted to rating the financial strength of insurance companies in the United States, Canada and the United Kingdom. Its flagship publication Best’s Insurance Reports is the “bible” for industry professionals and consumers looking for the financial strength of any insurance company.
Standard & Poor’s
Established in 1941. S&P is one of the leading and most widely recognized provider of financial market intelligence. It is considered by most to be the world’s foremost source of credit ratings, indices, investment research risk evaluation and data, most notable the S&P 500 Benchmark Index.
MOODY’s
Established in 1900. One of the world’s most respected and widely utilized sources for credit ratings, research and risk analysis in more than 100 countries around the world.
The second factor in selecting an insurance company is more objective. It may depend on a variety of factors when you apply and are underwritten as to which company has the particular product that is best for your situation.
- 1) Product availability - whole life, versus universal life versus term insurance.
- 2) If you have a current medical condition or medical history that raises concerns, different companies may be more
lenient in the underwriting process than others.- 3) Smoking - some companies treat smokers better than others.
- 4) Age and Gender - some companies provide better rates than others even among the same age groups and gender
categories.
Solution:
The most efficient way to see if you qualify and what your actual premium will be is to submit a trial or what is known as an informal application to a number of companies. Each company will get back to us with a tentative offer so you can make an informed decision on which ones would be best to apply to before you commit to the formal process.