In choosing a disability insurance company the first and most important consideration should be insurance company ratings. This concern should come even before one considers pricing and benefits. If the insurance company backing the disability insurance policy is financially incapable of giving you your benefits that were promised, then every other thought that was involved in the initial comparison will have proven to be unimportant.
When you’re rating insurance companies, there are a few steps to follow. Look into your choice of disability insurance by checking price, the wording of definitions of disability and policy design, but it’s a primary step to look into the insurance company ratings – its financial strength.
Rating Insurance Companies Is Important
Research the insurance company’s financial strength rating. There exist independent companies that make insurance rating simpler by grading the financial strength of financial institutions. This is done by a letter grade using an insurance rating system similar to school grades. The insurance rating analysts are independent companies that are paid to evaluate an insurance company’s financial strength. Below you will find a chart of the different financial ratings from the leading insurance company rating companies. We at LifeInsure.com can access and review any insurance company’s financial ratings with you.
Insurance Company Comparison
The insurance company comparison graphic includes information on the insurance company rating data from Standard & Poor’s, A.M. Best and Company, Moody’s Investor Service and Fitch.
|A.M. Best||Standard & Poor’s||Moody’s||Fitch|
|1||A++ Secure / Superior||AAA Extremely Strong||AaaExceptional||AAASecure / Highest|
|2||A+Secure / Superior||AA+ Very Strong||Aa1, Aa2, Aa3Excellent||AA+Secure / Very High|
|3||ASecure / Excellent||AA Very Strong||A1, A2, A3Good||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, B3Poor||A Secure / High|
|7||BVulnerable / Fair||A-Strong||CaaVery Poor||A- Secure / High|
|8||B-Vulnerable / Fair||BBB+ Good||CaExtremely 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||BBMarginal||BB Uncertain|
|13||D Vulnerable / Poor||BB- Marginal||BB-Uncertain|
|14||EVulnerable / Under State Supervision||B+Weak||B+ Possessing Risk|
|15||FVulnerable / In Liquidation||B Weak||Bpossessing Risk|
|16||SRating Suspended||B-Weak||B- Possessing Risk|
|17||CCC+ Very Weak||CCC Substantial Risk|
|18||CCC Very Weak||DDLiquidating|
|19||CCC- Very Weak||SR Suspended Rating|
|21||R Regulatory Action|
|Based on public information only.|