How secure is your life insurance?
Given how important it is to an individual’s financial plan, it seems like something that would be guaranteed. Without a stable provider, this might not always be the case.
Consider the recent bankruptcy of retail giant Sears, which announced earlier this year that it would end life insurance benefits for many of its 90,000 retirees.
According to the leader of the retirees’ association chapter in upstate New York, Sears sent notices to people in their 80s who had maintained life insurance coverage for a significant period of time. Affected retirees were given few appealing options, and one reported that he will have to pay more than $3,000 annually to maintain current coverage with another company.
Granted, this is an unusual case, but no one wants to end up in that situation. So, regardless of how you obtain your life insurance, it is worth exploring its security and considering options.
It is critical to choose a financially strong life insurance company, because you want the company to be around to pay your beneficiary, whether you die in five years or 50.
You can research a life insurance company’s financial strength through independent rating firms, including Moody’s Investor Services, Fitch Ratings, A.M. Best, and Standard & Poor’s Ratings Services.
Ratings can be viewed for free on the firms’ websites, although registration may be required. Each of these firms has its own rating system, so you may not be comparing apples to apples.
You also may want to avoid judging a company’s stability based on its size. Smaller companies often offer the same longevity and reliability as the bigger insurance names.
Are you looking for a stable life insurance provider you can count on?
I’d be happy to review your options with you and ensure you have solid coverage to protect your future. Simply contact my office today.