In today’s tough economy, it’s important to make sure you’re with a reliable life insurance company.
Let me start by saying in the history of life insurance, there has NEVER been an instance where a death claim wasn’t paid because of a life insurance company being insolvent. The troubled life insurance companies always get absorbed by the bigger guys. This has been going on for over 100 years. Don’t even let the thought cross your mind of a company not paying a death benefit because of their financials. It will never happen.
If it does happen and a life insurance company went insolvent for the first time in life insurance history and couldn’t pay their death claims, there are processes in place to make sure beneficiaries get paid in the form of a “State Guaranty Fund”. Think of this as insurance for the insurance companies. An insurance company is required to pay a percentage of the amount of insurance it sells to this State Guaranty Fund. IF (and this is a huge IF) a life insurance company goes insolvent, all beneficiaries will be paid by the State Guaranty Fund up to a certain amount.
Now that we have this out of the way, finding a reliable life insurance company is easy. You want to make sure their A.M. Best rating is at least an “A-“. A.M. These rating are made public and can be found easily by doing a Google search.
I consider every life insurance company that we offer to be reliable. We only offer “A” or better A.M. Best rated life insurance carriers. For reliable life insurance company quotes, fill out our form on the right.