As you shop for life insurance, keep in mind that there is no best life insurance company for all situations. Many life insurers have strengths and weaknesses that we’ll share with you here.
Our Best Life Insurance Companies Guide Reviews:
Life Insurance Company Overviews
How do you choose the best life insurance company and what criteria should you consider when shopping for life insurance?
At RiskQuoter, we answer your questions in this comprehensive guide to the best life insurance companies available.
Something for you to keep in mind is that there is no single life insurer in the industry that will be the best for every insured and situation encountered.
For that reason alone, it’s essential to work with independent agents who match you with the best life insurance companies, rather than captive agents who only represent one company.
The best life insurance companies we review include:
AIG – American General Life Insurance Company
Find out why AIG-American General is worth considering when you are looking for life insurance.
Banner Life Insurance Company
Banner Life (Legal and General America) offers competitive life insurance options that are worth considering.
John Hancock Life Insurance Company
John Hancock offers term life insurance and universal life insurance policies.
In addition to that, John Hancock is the only company with a program to reward healthy lifestyle behavior.
Read More: John Hancock Life Insurance Company Review
Lincoln Financial Group
If you’re looking for excellent life insurance whether it’s term life insurance or universal life insurance, Lincoln is very competitive, especially for higher face amounts and ages.
Protective Life Insurance Company
Protective Life offers competitively priced term life insurance and universal life insurance.
Read More: Protective Life Insurance Company Review
Prudential Life Insurance Company offers competitive term life insurance and permanent life insurance.
As a leader in life insurance underwriting, Prudential may be an excellent option for you.
Life Insurer Financial Strength Ratings
Rating agencies such as the below issue life insurer financial strength (IFS) ratings
- A.M. Best
AM Best was founded in 1899 by Alfred Best.
A.M. Best analyzes companies to determine the life insurance company’s claims-paying ability. A.M. Best is the only agency that focuses exclusively on the insurance industry and seems to be the easiest for most consumers to understand.
When evaluating a life insurer, AM Best looks at:
- Balance Sheet Strength
- Operating Performance
- Business Profile
- Enterprise Risk Management
Ratings offered by A.M. Best include:
- A++ and A+ = Superior
- A and A- = Excellent
- B++ and B+ = Good
- B and B- = Fair
- C++ and C+ = Marginal
- C and C- = Weak
- D = Poor
- E = Under Regulatory Supervision
- F = In Liquidation
We work with companies rated A- or better and feel that there is no need to work with life insurance companies rated less than this as those companies offer no benefit.
The main driver of Fitch’s Insurer Financial Strength (IFS) rating is the evaluation of the life insurance company’s performance under the Key Credit Factors defined by Fitch.
Some of the qualitative review factors include:
- Sovereign and country related constraints
- Business and industry profile
- Ownership and management
Some of the quantitative factors include:
- Capitalization, debt service, and financial flexibility
- Financial performance and earnings
- Risk mitigation
Fitch ratings include:
- AAA = Exceptionally Strong
- AA = Very Strong
- A = Strong
- BBB = Good
- B = Weak
- CCC = Very Weak
- CC = Extremely Weak
- C = Distressed
Additional Fitch rating information can be found on their website, although their site makes it very complicated to find life insurer ratings.
Moody’s provides forward-looking opinions of the relative credit risks of financial obligations issued by the life insurer
Moody’s ratings include:
- Aaa = Judged to be the highest quality
- Aa = Judged to be high quality
- A = Judged to be upper-medium grade
- Baa = Judged to be medium-grade and subject to moderate credit risk
- Ba = Judged to speculative
- Caa = Judged to be speculative of poor standing
- Ca = Judged to be highly speculative
- C = Lowest rated and typically in default
S&P rating is a forward-looking opinion about the life insurance company’s ability to pay its insurance policies under the terms of those contracts.
S&P ratings include:
- AAA = Extremely strong financial characteristics
- AA = Very strong financial characteristics
- A = Strong financial characteristics
- BBB = Good financial characteristics
- BB, B, CCC, and CC = Vulnerable financial characteristics, with each of these broken down further.
You can find more information here about S&P life insurance ratings.
Comdex is a composite score developed by Ebix software company that sells life insurance quoting software to life insurance companies.
It’s hard to use this score as a means to evaluate a company, so we don’t promote this score.
Best Life Insurance Companies for Health Problems
Many of our clients have health issues that may limit the availability of certain life insurers.
The first step is always to review your medical history to see which companies will do the best job in life insurance underwriting for your needs.
We’ll then work through how much life insurance you need to work on quotes for you.
We’ll put it all together for you, and then we can review the ratings of life insurance companies that interest you.
Please take a few minutes to submit your quote request today. Thank you.