The rating that a life insurance company has is very important and something that should be paid close attention to when buying insurance.   It is always tempting to automatically go for the policy that is the cheapest to save money, but the ratings are based on the company’s ability to pay the claim.  With insurance the ability to pay is the most important thing.

When looking for life insurance, I usually suggest looking at company’s with a rating of at least an A from rating services such as  Standard and Poors and AM Best.  Another way to look at it is like renting your house to a new tenant.  You certainly want to look at their past history as well as their ability to pay.

When selecting your new policy or examining the existing one you have, make sure the company has a strong rating.