"Why are company ratings of extreme importance?"

Simply put, the ratings represent the likelihood of payment-capacity and willingness of the insurer to meet its financial commitment to you.

 

If a company is not going to be around when you need to make a claim, who will pay? Don't you need something more secure for something as important as your insurance plan?

 

Take a close look at some examples of the S&P's rating system:

• AA
  An insurer rated ‘AA’ has VERY STRONG capacity to meet its financial commitments. It differs from the highest-rated insurers only in small degree.
• A
  An insurer rated ‘A’ has STRONG capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than higher-rated insurers.
• BBB
  An insurer rated ‘BBB’ has ADEQUATE capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the insurer to meet its financial commitments.

Notice the differences? Would you settle for an "adequate" insurance company? Or would you prefer a "very strong" company? The choice is yours.

 

Always demand a to see a recent printed report showing the ratings of the company whose product is being recommended.

 

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Should I be getting quotes from 10, 20 or more insurance companies?

 

 

 

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I'm buying term insurance. Why should it matter what company I choose?

 

What are ratings?

 

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