Life insurance companies are rated in a number of different ways.  Their products are rated in terms of their features and benefits and the companies are rated for their customer satisfaction.  As financial institutions they also receive company ratings from the ratings agencies.

Each of the different ratings can have an influence over which life insurance company you choose to look after your insurance needs.

Life Insurance Product Ratings

Product ratings are given by a number of different research and consumer groups.  Some of the major groups issuing product ratings include Canstar Cannex and Money Magazine.

Ratings are also provided by research houses to help financial advisers when recommending a product, but generally these ratings are not made available to the general public.

The life insurance product rating takes into account various factors including the features and benefits of the policy, the policy definitions and claim flexibility, and in some cases the value for money provided by the cover.

When looking at product ratings you need to remember that the same features and benefits are not important to all people.  For example one policy may have a higher overall rating, but the other policy may have other unique features which are more important to you.

Insurance product ratings are certainly helpful when choosing a life insurance policy, but you shouldn’t base your decision entirely on this rating.

Life Insurance Customer Service Ratings

Customer service ratings for life insurance companies are generally not issued formally, however there are a growing number of websites that allow people to rate companies and services, and that includes life insurance companies.

A few minutes of searching online will generally reveal a number of different reviews and ratings for the various life insurance companies.

When thinking about the customer service ratings for the insurance companies, remember that it’s about more than just the initial consultation.  Arguably the most important customer service you will receive is at claim time.  This is when you’ll really know whether or not you’ve chosen the right insurer.

Life Insurance Company Ratings

As large financial institutions, all life insurers are issued company ratings by the various ratings agencies.

These ratings have little to do with the products and customer service offered by the insurer.  Instead they are looking at the financial strength of the company and its ability to pay all of its claims.

These company ratings are generally issued in the form of letters.  For example the very strongest of companies will be awarded AAA ratings, moving down through AAA- and AA+ etc.

Many Australian life insurance companies are owned by the big banks, most of which have AA company ratings.  All Australian life insurance companies are also regulated by the government department APRA, which provides additional peace of mind for customers.

Using the life insurance company rating

When selecting an insurer to look after your life insurance needs there are a number of ratings to consider, but it is important to base your decision on your own personal needs and objectives rather than relying solely on the ratings.