FOR IMMEDIATE RELEASE:
Choosing a Life Insurance Company That Is Well-Established
A Well-Established Life Insurance Company Also Must Be Financially Stable
September 4, 2009 — Once you have made the decision that a Term Life Insurance Policy is the right policy for you, your next step should be to find out which company you want to deal with to take this policy out. Choosing the right company is just as important and choosing the right policy. If you don’t have the right amount of knowledge and background on a company, you should not deal with them. You need to make sure the company you choose is well-established and will be able to provide the benefits you paid for when the time comes.
Researching the companies’ record of paying out claims in a timely fashion is a great way to find out if a company is reputable and reliable. Knowing that when the time comes, you loved ones will receive the benefits that you have established should do a lot to put your mind at ease.
This, of course, is not the only factor you should consider when choosing your company. It is just as important to make sure that the company is financially stable and secure. If the company is not secure, even though they have done the payouts in the past, will not mean they will be able to provide your benefits at the time of need.
In today’s economy, a lot of insurance companies are finding it harder to stay competitive in the world of insurance and keep their businesses in good standing financially. Keep in mind that just because a company has been around for years and years, this does not guarantee their financial stability. There are three rating services where you can check the financial stability of an insurance company. They are:
• A.M Best
• Standard and Poor’s
• Moody’s
These companies use a letter grading system to show you how stable and secure a company is financially. A company with an “A” is the best. It is also good to remember that all policies through different companies will vary. Term Life Insurance is a low profit product. If an insurance company only offers this type of insurance, it should raise questions with you. Most well-established companies will offer both types of life insurance especially since Permanent Life Insurance is much more profitable.



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