The top rated life insurance companies are listed below. These are among the best life insurance companies in the USA.
In order to achieve a spot on the list the company must have high ratings from at least two of the top 3rd party rating agencies, A.M. Best, S&P, Moody’s, and Fitch.
Top Rated Life Insurance Companies
|Company||A.M. Best Rating||S&P||Moody's||Fitch|
|New York Life||A++||AA+||Aaa||AAA|
|Western & Southern Life||A+||AA-||Aa3||AA|
|Metropolitan Life (MetLife)||A+||AA-||Aa3||AA-|
|Prudential (Pruco) Life||A+||AA-||Aa3||AA-|
|American United Life||A+||AA-||n/a||n/a|
Why Does A Company’s Financial Rating Matter?
The main focus on these third party rating agencies is to locate any potential risks to a life insurance company’s financial health, in areas such as credit, underwriting, interest rate, economic and market risks.
For example, a credit rating analyzes a company’s business profile, strength of the balance sheet, operating performance, and how well the company manages risk.
And a company’s financial strength will examine how well positioned a company is to meet any ongoing insurance policy and contract obligations.
AM Best Financial Strength Rating Scale
What Does All This Mean for You?
We created this list so that our visitors could see who the current crop of top rated life insurance companies are.
But there are close to 1,000 life insurance companies in the US, so this is a very small sampling of all the companies out there.
The main takeaway should be that when you are looking for a life insurance company, one aspect you need to consider is how strong the company is financially.
After all, what is the point of getting a life insurance policy if the company cannot meet its obligation to pay your beneficiary when you die?
But the reality is, most (if not all) life insurance companies will pay out.
And if a company goes under (declares bankruptcy), typically its book of business will be bought out by a larger life insurance company.
Additionally, various states offer a guaranty fund that helps protect life insurance policyholders.
You can visit NOLGHA to learn more about how your specific state’s guaranty system operates.
B+ or better
However, our recommendation is to seek out companies that have an B+ rating or better. And it would probably be prudent to avoid any companies with a C or lower rating.