The financial stability of the insurer is crucial—if the company faces financial trouble, it may struggle to pay out claims when needed.
- Tip:
Research the insurer’s financial rating—Look for ratings from agencies like AM Best, Fitch, or Standard & Poor’s to ensure the company is financially strong enough to pay claims in case of a disaster.- For Health Insurers: Ensure they have a reputation for handling claims fairly and efficiently.
- For Life Insurance: Check the long-term stability of the company, especially if you are purchasing a permanent life policy.
Check the Insurer’s Financial Strength