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Understanding the term life insurance company ratings can be pretty easy once you dig a little bit into what they mean. If you were interested in a specific company instead of learning about how to look at the ratings head over to our list of the best life insurance companies HERE.
While there are many companies who rate insurance companies the one that rises to the top is AM Best. AM Best has been around for eighty years and is the top company for rating the financial strength of companies across the insurance industry. Companies receive a letter grade based off of how well they are able to meet their financial obligations. There are a total of sixteen ratings in the AM Best scale.
What makes the AM Best ratings great is their simplicity. There are six ratings that fall into the financially stable range for AM Best. They are:
Superior – Companies in this category received term life insurance company ratings of either A++ or A+. This puts them at the far top of the industry. It is very hard to get into this category and the company has to be one of the largest insurers in the country to get here.
Excellent – This category of companies receives either an A or A- rating. These are very strong companies with no worries of them not being able to pay. They tend to be smaller companies that the Superior rated ones but still nationwide and very large.
Good – Term life insurance company ratings of either B+ or B fall into the Good category. These are usually more regional companies and are still very strong financially.
I would personally not feel uncomfortable using any company that receives any of the above term life insurance company ratings. Where I would feel uncomfortable is any company that comes in below these top six ratings. Any company that low is in need of getting their financial house a little stronger before you should consider using them as your carrier. The good news is that most insurance companies and all the ones we recommend will fall into the higher categories. This means you do not have to go with one of the companies with lower term life insurance company ratings becauser there are literally tons of them with a good, excellent or superior rating.
TermLife360.com is happy to help you in your search for the right life insurance company for you. If you have any questions or if there is any way we can serve you and make this process easier please let us know.