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Checking Insurance Company Safety

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Any insurance company product you buy—whether it is an insurance policy or some type of annuity—is only as secure as the company that is issuing it. If you are buying an insurance company product, understanding the company’s underlying financial health should play an important role in your decision. And if you own a policy or an annuity, keeping track of the issuing company’s financial health should play an important role in your investment monitoring process.

How can you evaluate the financial health of an insurance company?

One approach is to check the financial safety ratings that have been assigned to the company by one of the ratings agencies.

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