Check with your state insurance department to see how well a life insurance company lives up to its promises. Insurance departments keep track of and investigate complaints they receive against insurers. Those may include disputes over claims, policy cancellations, premiums, sales misrepresentations or other issues. Most departments post reports on their websites, showing the number of complaints for each insurer, relative to their number of customers. You can also look up complaints, licensing and financial information by company on the National Association of Insurance Commissioners website.
It’s important to choose a life insurer that’s financially strong. You want the company to be around to pay the death benefit to your beneficiary, whether you pass away in five years or 30.
One way is to look up the financial strength ratings to learn about the company’s financial stability. Independent rating firms such as; A.M. Best, Fitch Ratings, Moody’s Investor Services and Standard & Poor’s Ratings Services, issue grades for insurance companies. Keep in mind that each firm has its own rating system. You can review the ratings for free on the each firms’ website.