If you’re in the market for life insurance it’s imperative that you check the insurance company’s A.M. Best financial rating before moving forward with an application. A.M Best is the preeminent life insurance rating agency in America and their letter grade will allow you to quickly asses the insurer’s ability to meet its future obligations. A.M. Best uses a ratings scale to gauge an insurer’s financial strength with A++ (Superior) being the best rating and going all the way down to an S grade for (Suspended). A general rule of thumb is to choose an insurer with an A (Excellent) rating or better for fully-underwritten policies and an A- (Excellent) for no-medical exam policies. More on the A.M. Best rating table here.
The smart way to use ratings
As stated, an A++ (Superior) rating is the highest rating a life insurance company can receive from A.M. Best. While it would be ideal to have your policy with an A++ rated insurer, in reality these companies are often mutual insurers and their prices are often much greater compared to other similar highly rated companies. This is why many smart and savvy shoppers choose a company that is A+ (Superior) or A (Excellent) rated. This way the insured gets the best of both worlds so to speak. They are still choosing a highly rated life insurance company but they are also receiving the best possible rates out of all 900+ insurers.
Additionally, some A (Excellent) rated insurers specialize in certain niches that offer the best possible rates. For example, if an applicant has Type I or II diabetes, a company such as American General or ING (both A rated) will often have the lowest rates in the nation. And for those looking for no-medical exam life insurance, an A- (Excellent) insurer often has the best rates and is still (Excellent) rated by A.M. Best.
Additionally, for extra security, all 50 states, including the District of Columbia have a state guarantee association. This is similar to an FDIC for banks and will cover the insurance policy up to a certain amount (varies by state).
Best Rated Life Insurance Companies 2015
Below is a list of some of the most popular life insurance companies in America categorized by their A.M. Best rating. As noted, while a company’s financial rating is very important when choosing an insurer, price and policy benefits should be the first thing you consider. In order to see what company has the lowest price and the best financial rating please feel free to use our instant quote engine.
A++ (Superior) Rated Life Insurance Companies 2015
- Teachers Ins & Annuity Association
- Northwestern Mutual Life Insurance Company
- New York Life Insurance Company
- Knights of Columbus
- Berkshire Hathaway Life of NE
- General Re Life Corp
- USAA Life Insurance Company
- MassMutual Life Insurance
- Thrivent Financial Lutherans
- State Farm Life Insurance Company
- Guardian Life Insurance Company
A+ (Superior) Rated Life Insurance Companies 2015
- Prudential Life (Pruco)
- SBLI (Savings Bank Life Insurance)
- Banner Life Insurance
- Protective Life
- Lincoln Financial Group
- Ohio National Life
- North American Co
- Pacific Life Insurance
- AXA Financial
- John Hancock
- Minnesota Mutual
- Principal Financial
- Mutual of Omaha
A, A- (Excellent) Rated Life Insure Companies 2015
- American General- AIG
- ReliaStar- ING
- Genworth Life Insurance
- Sagicor Life Insurance
- Fidelity Life
- American National Life Insurance
- Allianz Life
Choosing the right company
The best rated life insurance companies 2015 will provide you with added peace of mind knowing that your policy is with an insurer that was deemed (Excellent) or (Superior) by the A.M. Best Company in their ability to meet future obligations. And while financial rating is one of the most important items you should look at when choosing a life insurance company, price and policy features are paramount. It’s vital that you shop around and receive multiple rate quotes before deciding on a particular company. A good rule of thumb is to choose a company with the lowest price that has at least an A (Excellent) rating or better by A.M Best or it’s a no medical exam policy, A- (Excellent) or better.