Home > Life Insurance Education Center >

Life Insurance Company Rating Categories

When you choose a life insurance company the first consideration is the financial strength of that company, even before competitiveness and pricing. Obviously, if the company is unable to pay the benefits promised in the life insurance policy then every other consideration was unimportant. So, choose your company by price, benefits and design but always do a life insurance comparison of the company financial strength before you buy.

You can do this by checking the financial strength rating online. Life insurance companies are ranked by independent services according to the financial strength of the company. This is done by a rating system. These life insurance company ratings are determined by independent analysts that are paid to review a company’s financial strength. In this section we’ve provided a chart of the different financial ratings from the leading life insurance company rating services.

Your LifeInsure.com representative will be glad to review the financial ratings of any life insurance company with you.

The chart below shows the different rating categories from the leading rating services. These include A.M. Best and Company, Standard & Poor’s, Moody’s Investor Service and Fitch. There is another rating service not shown on the chart, Weiss Ratings, Inc. which rates companies similar to school grades from A+ to A to A- to B+, B, B- etc.

When you get a term life quote or a return of premium life quote on Lifeinsure.com’s quote engines, the A.M. Best rating shows up next to the insurance company quoted.

Life Insurance Company Rating Categories

Rank Number A.M. Best Standard & Poor's Moody's Fitch
  Financial Strength Financial Strength Financial Strength Financial Strength
1 A++
Secure / Superior
AAA
Extremely Strong
Aaa
Exceptional
AAA
Secure / Highest
2 A+
Secure / Superior
AA+
Very Strong
Aa1, Aa2, Aa3
Excellent
AA+
Secure / Very High
3 A
Secure / Excellent
AA
Very Strong
A1, A2, A3
Good
AA
Secure / Very High
4 A-
Secure / Excellent
AA-
Very Strong
Baa1, Baa2, Baa3
Adequate
AA-
Secure / Very High
5 B++
Secure / Very Good
A+
Strong
Ba1, Ba2, Ba3
Questionable
A+
Secure / High
6 B+
Secure / Good
A
Strong
B1, B2, B3
Poor
A
Secure / High
7 B
Vulnerable / Fair
A-
Strong
Caa
Very Poor
A-
Secure / High
8 B-
Vulnerable / Fair
BBB+
Good  
Ca
Extremely Poor
BBB+
Secure / Adequate
9 C++
Vulnerable / Marginal
BBB
Good  
C
Lowest
BBB
Secure / Adequate
10 C+
Vulnerable / Marginal
BBB-
Good  
  BBB-
Secure / Adequate
11 C
Vulnerable / Weak
BB+
Marginal
  BB+
Uncertain
12 C-
Vulnerable / Weak
BB
Marginal
  BB
Uncertain
13 D
Vulnerable / Poor
BB-
Marginal
  BB-
Uncertain
14 E
Vulnerable / Under State Supervision
B+
Weak
  B+
Possessing Risk
15 F
Vulnerable / In Liquidation
B
Weak
  B
Possessing Risk
16 S
Rating Suspended
B-
Weak
  B-
Possessing Risk
17   CCC+
Very Weak
  CCC
Substantial
Risk
18   CCC
Very Weak
  DD
Liquidating
19   CCC-
Very Weak
  SR
Suspended Rating
20   CC
Extremely Weak
   
21   R
Regulatory Action
   
 

Based on public information only.

 

Questions? Contact us

To learn more, click one of the following:

Term Life Policies
Return of premium
Whole Life Policies
Universal Life Policies
Survivorship Life (Joint and Survivor)

To get a quote for life insurance, click one of the following:

Term life Quote
Return of premium Quote
Whole life Quote
Universal life Quote
Survivorship life Quote (Joint and Survivor)