You are not alone if you are looking for important facts about life insurance credit ratings. Some people have argued that credit ratings are unreliable, but many experts disagree. This is because such metrics have helped many people around the globe to make informed decisions. Whether you agree or disagree, below are some of the essential facts about life insurance ratings:
- Insurance credit ratings are conducted by independent life insurance agencies and they rate the financial strengths of insurance companies.
- The top insurance rating agencies today are M. Best, Standard & Poor’s, Fitch, and Moody’s Investors Service.
- Insurance credit ratings help you to know the chances of getting your death benefits from your insurance service provider.
- Different rating agencies have different rating systems. For instance, A.M. Best’ rating is different from that of Fitch.
- Life insurance rating agencies are more trustworthy and honest than insurance companies.
- Whether you like it or not, most rating systems out there are susceptible to human bias
- Insurance credit ratings are nothing but a guide. They only give you a picture of what service you will get, not exactly what you will get, if you buy a life insurance policy from an insurance company.