Posted on: Sunday, December 11th, 2011

You may be familiar with A.M. Best, which is the leading provider in ratings, news, data and financial information for consumers.  Were you aware they are one of the leading raters in the life insurance industry?  This is useful to know as you begin shopping around for life insurance quotes, whether it be for term life insurance or whole life products.

The A.M. Best website provides A.M. Best generated information on life insurance directly.  The economic up and down cycles drive the level of life insurance activity, revenue and income causing some volatility.  Common business dynamics such as competition, consumer demands, and regulatory updates cause significant changes in the life insurance landscape and A.M. Best is a consistent resource to evaluate these changes.  As risk profiles change and market participants fluctuate, the life insurance consumer needs constant information.  This is where A.M. Best comes in.

Best’s Credit Ratings are independent, educated opinions regarding how credit worthy an insurance company is at any given time.  Best’s Credit Ratings are calculated after careful evaluation of the company’s balance sheets, portfolio strength and business profile.  When appropriate, they also review the specific nature and details of debt security.  You can obtain a complete list of Best’s Credit Rating methodologies on their website.  They claims to offer unparalleled quantitative and qualitative research on insurance companies throughout the industry.  It’s good to understand the financial strength of an insurer before signing a contract that holds you more accountable.  Meet with a financial expert to go over the results of a particular insurer so you can best understand what their ratings may mean to you.

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