Checking Up On Life and Health Insurance Companies
Michalis 'BIG Mike' Kotzakolios


Defined Tag: Life And Health Insurance.

Sickness and death are not subjects people enjoy bringing up at cocktail parties. However unpleasant the subject, preparation is a must. Life and health insurance are two of the major components of preparation. Therefore, it's imperative that you select a good life and health insurance company.

The most important consideration in finding a good life and health insurance company is its financial strength. When it comes time to file a claim, you want to make sure that your life and health insurance company has the financial wherewithal to handle your claim expeditiously and diligently. Obviously, your first step in finding such a company is to shop around and do research.

Check online for the life and health insurance company's financial rating. There are five independent agencies that rate the financial strength of insurance companies. These five are Weiss, Standard & Poor's, Moody's, Fitch, and A.M. Best. Each of these five have its own standards of rating life and health insurance companies. Because of this, it would benefit you to check the ratings of more than one independent agency to get a good overall picture.

Many life and health insurance companies who are rated by these independent agencies are quick to point out any positive reviews and ratings they receive. However, you should be cautious when reading life and health insurance company propaganda. They will only include positive reviews and exclude any negative ones. Also, it's important to keep in mind that the ratings scales will vary among the agencies. For example, an "AA" rating by one agency might not be as high as an "A++" rating by another.

Another thing to check when choosing insurance companies is their license. Not every company is licensed to do business in every state. You should always purchase life and health insurance from a company licensed to do business in your state. By doing so, you will be entitled to protection by your state's insurance department should you have a problem with the company.

Every state has a "guaranty fund" available in case of problems. A guaranty fund protects customers of life and health insurance companies should they become insolvent. When you do business with a licensed insurance company and they are financially unable to pay your claim, the guaranty fund provides a mechanism to have the claims of policyholders paid. Not all companies are covered by a guaranty fund, however. These companies include Health Maintenance Service Organizations, such as Blue Cross. As well, Insurance Exchange, Fraternal Benefit Society, and Health Maintenance Organizations are excluded. While all states have this fund established, some key points of the fund can vary by state. Check with your state's insurance department for details.

BIG Mike is a well known author, developer and Adsense expert as well as the owner of Niche Maniacs - a unique Adsense Marketing System designed to build long-term passive income streams from Adsense, YPN, Chitika and other PPC services.