Company Characteristics

Your long term care insurance contract is a mutual promise of premium now for protection in the future, potentially many years from now. For this reason it is important to choose a strong insurance company with a good rating.

Regarding a company's reputation you can look on the Better Business Bureau or contact your state's department of insurance. Regarding financial strength you can take a look at your company's rating as provided by the nation's top ratings agencies – AM Best, Moody's, and Standard & Poor's (S&P).

A sample of the AM Best ratings are below. Your insurance company and agent will be able to give you these ratings as well.

The A.M. Best Company:

A.M. Best is one of the better known of the insurance rating companies. Here is an overview of what the A.M. Best rating system means.

  • A++ and A+ (Superior): The company has demonstrated superior overall performance and has a very strong ability to meet its obligations to policyholders over a long period of time.
  • A and A– (Excellent): The company has demonstrated excellent overall performance and has a strong ability to meet its obligations to policyholders over a long period of time.
  • B++ and B+ (Very Good): The company has demonstrated very good overall performance and has a good ability to meet its obligations to policyholders over a long period of time.
  • B and B– (Adequate): The company has an adequate overall performance and can meet its obligations to policyholders but may be vulnerable to unfavorable changes in underwriting or economic conditions.
  • C++ and C+ (Fair): The company has demonstrated fair overall performance and can meet its current obligations to policyholders but is vulnerable to unfavorable changes in underwriting or economic conditions.
  • BC and C– (Marginal): The company has demonstrated marginal overall performance. It can meet its current obligations to policyholders but is very vulnerable to unfavorable changes in underwriting or economic conditions.
  • D (Very Vulnerable): The company has demonstrated poor overall performance. The company can meet its obligations to policyholders but is extremely vulnerable to unfavorable changes in underwriting or economic conditions.
  • E (Under State Supervision): The company is under state insurance regulatory authority supervision, control or restraint, such as conservatorship or rehabilitation, but not including liquidation.
  • F (In Liquidation): The company has been placed under an order of liquidation by a court of law, or its owners have voluntarily agreed to liquidate. Companies that voluntarily liquidate or dissolve their charters are generally not insolvent.

Have Questions?

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