Life insurance company quality/difference

[E.A. Poe]

What is the name of your state? Wisconsin

I am shopping for a 20 year term policy and am interested in knowing if anyone has knowledge about the quality of various companies. Since something very important to me right now is a low premium I have been shopping around. I've found the best rates with independent agents who seem to use a variety of companies (ie. Empire, First Colony, ANC, Zirick Temper). I've heard that there is a difference between auto insurance companies, in other words if you go with a very low premium you can sacrifice a good level of response if you get into an accident. I want to avoid a sketchy situation for my wife and son if I die. Any advice/knowledge would be helpful.

 

[DrewfromCA]

Go to a financial ratings company, like AM Best, and check them out. First Colony(VA) and Empire(Ontario, Canada) are rated highly.

You can get some premium quotes, and then do some research on the ratings of the companies. At AM Best, A++ is the highest, and basically anything B++ or higher is pretty good.

These aren't guarantees or anything like that, but they provide you the company's balance sheet strength.

 

[ALawyer]

If the policy is in the $250k range, there are State Life Insurance Guarantee Funds in each state that usually will protect the beneficiaries to that amount.

State laws generally prevent life insurance companies from disclosing them as it would tend to put a weaker life company on the same plane as a strong one.

The rating services include Bests, S&P, and the 2 toughest, Moody's and Weiss Ratings.

One thing. Each life insurance company has its own rules for deterimining who qualifies for its best rates -- ultra-preferred and what it takes to fall into its various other ratings that may include preferred, standard, and all sorts of "rated" classes for those whose health is impaired, as whell as what constituties a smoker and non-smoker. The classifications are critically important in terms of the rates, so unles you are a VERY GOOD risk -- aws the insurance companies define it -- you may be getting a false impression and comparing apples and oranges from company to company -- it may be more like oranges and elephants.