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Posted: Insurance Policies on Dec 02 | life insurance
Life Insurance Company is the one which offers you the policy coverage for either a stipulated period of time or life long. The former is called term life insurance or temporary insurance while the latter is known as whole life or permanent life insurance. Apart from competitiveness and pricing structure of a life insurance company, it is the financial strength of the company that is more deciding. The company must be able to pay the benefits that they have promised in the plan.
The best way of choosing the life insurance company is to analyze the ratings of the company which is done by some of the leading rating services. Some of the renowned rating companies include A.M. Best and Company, Standard and poor’s, Moody investor Service and Fitch. These companies have their own categories of rating life insurance companies. Weiss Ratings, Inc is the rating service which categorize insurance companies according to grades like A, A+, A-, B, B+, B-, etc. which is similar to school grades.
The ratings may start from secure or superior, or excellent or exceptional to suspended rating, liquidating, vulnerable, etc. The top rating is A++ for A.M. Best, AA for Fitch and Standard and poor’s , and Aa3 for Moody investor Service.
The largest mutual life insurance company in the US and one of the largest life insurers in the world is the NYLIC or New York Life Insurance Company. They also got the highest rating in the Standard and poor’s assigns with the grading of AAA. It is also listed at #78 in the 2007 Fortune 100.
A comparison shopping is the mantra in present day world to choose the right insurance company. You may take the help of an agent who would offer you with many companies at competitive life insurance rates. This proves extremely effective when you have many choices at hand.
Some of US life insurance companies include Aetna, Pacific Life Insurance, Protective Life Corporation, Metropolitan Life Insurance Company, Kansas City Life Insurance Company, and Alfa Life insurance, etc. some of the companies may have geographical limitations while others cover all of the USA or even beyond that.
Life Insurance Company has its own code of ethics as laid by NAIFA or National Association of Insurance and Financial Advisors. A life insurance company must adhere to these guidelines to ensure smooth and progressive business.
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