Double Check the Financial Integrity of the Company

In our earlier posts we mentioned that you want to give money only to companies that will be around when you need them.  Sadly, history shows us that this hasn’t always been the case.  Before you enter into ANY insurance contract, look up their insurance ratings online. You want to make sure you are with a company you can trust.

The main companies that evaluate the financial integrity of insurance companies are:

1.  A.M. Best – A United States based rating agency that focuses on the insurance industry. Unlike other companies, whose focus is on insurance as a business, A.M. Best focuses on the insurance marketplace. This means that they base ratings on whether or not a company is able to pay claims. They also focus on products such as bonds, notes and security products.

2.  Moody’s – A bond credit rating business and is considered one of the “Big Three” credit rating agencies. They provide international financial research on bonds issued by commercial and government companies. It rates the creditworthiness of borrowers using a standardized scale.

3.  Standard & Poor’s – An American financial service company that publishes financial research and analysis on stocks and bonds. The company issues credit ratings for the debt of public and private companies and gives them ratings based on whether or not they meet their financial commitments.

Bottom line, don’t give your money to a company who will not be able to pay the claim when you need them too. These are the companies that will help you see which insurance companies will be able to pay out when you need them most.

-Kristin Francy, Insurance and Financial Service Agent