Term Life Insurance Rating

There are over 400 companies in the United States alone that offer term life insurance. Popular companies like Met Life, Prudential, Liberty Mutual, New York Life, Globe and Metropolitan are among the more famous. There's a way for you to find out because there are companies who's sole purpose is to rate Term Life Insurance Providers. A.M. Best is the main one, but Moody's Investor services, Standard and Poor's Insurance Rating Service, Weiss Ratings and Fitch Ratings are all good companies that provide an objective look at insurers and their ability to pay out claims.

What is the Rating System?
Financial institutions are given a rating very much like our grading system in school. Financial institutions that get an A or above are the ones to go with as they are more likely to have honest terms and better pay out options. There are places that you can go online to research a companies rating for free. Completing a simple search for Term Life Insurance Rating is all it takes to find a rating lookup tool.

Insurance companies are also required to be licensed by the state and by contacting your local State Insurance Department you can determine whether or not the companies you are looking into are licensed. Your insurance broker or agent should also know if the company is licensed by the state.

Term Life Insurance Agents are also Rated and Certified
Most states require insurance sales agents to pass certain courses and take tests to prove that they are aware of the processes involved in providing honest and accurate insurance to the consumer. Agents who pass a Series 6 or 7 licensing exam are the most qualified to offer financial planning and insurance policies. The National Association of Securities Dealers is the institution that administers these exams.

The National Association of Insurance and Financial Advisors offers continuing education to agents as well as professional credentials. Some of the credentials an agent or broker may have are Charted Life Underwriter (CDL should appear after their name), Life Underwriter Training Council Fellow (LUTCF), Certified Financial Planner (CFP) and Personal Financial Specialist (CPA (Certified Public Accountant) – PFS).

So, when you look for a term life insurance agent, ask to see credentials and licenses to make sure you are dealing with a professional that is certified to offer you competitive term life insurance at an affordable rate. In regards to financial institutions, you might want to ask how long the company has been in business. You'll want to find a company that has been in business for at least 5 years. By looking for a term life insurance agent that is certified, licensed and credentialed, as well as a financial institution that is licensed and has an A or better rating, you stand to get the best, lowest priced term life insurance policy for your needs.