What Are the Best and Cheapest Life Insurance Companies in Pennsylvania?
Life insurance is a financial tool of different uses. One person may buy a life insurance policy to create an estate, the next person may want survivor protection. The best life insurance policy to provide an inheritance, may not be the right policy to provide income for daily living expenses. Therefore, the best company is the one that has the policy that best fits your needs and your budget.
After you have determined which policy is the best one for you and your loved ones it is time to look into life insurance companies. Independent rating services like A.M. Best, and S&P, evaluate life insurance companies ‘ financial strength, and give them a grade, usually from A to D, based on factors like the company’s ability to raise capital, strategic plans and their liquidity.
When examining life insurance companies, it is a good idea to know their financial strength. If a life insurance company does not have the funds to pay claims, they are not able to fulfill their contractual agreement. Not all rating services use grades to signify their financial strength, but when they do an A is a superior rating, a B is good, C fair and D means the company is in or nearing liquidation.
When a life insurance company is in liquidation and is insolvent in Pennsylvania, the Pennsylvania life & health insurance guaranty association, is in place to help out policyholders of insolvent life insurance companies. The guaranty association of Pennsylvania may transfer your policy to a solvent insurance provider, where your policy will remain in force as long as you continue paying your premiums.
If the Pennsylvania guaranty association is not able to transfer your policy to another insurer, they offer financial protection. They cover life insurance claims of insolvent life insurance companies up to $300,000 per life for a death benefit and up to $100,000 per life for a life insurance cash surrender.