Financially Stable Insurer

• Avoid purchasing life insurance products from any company with a rating below "A" or "A-" from the two main insurance carrier rating agencies, Moody's and Standard & Poor's. Insurance companies with lower scores have demonstrated to the rating agencies that the potential for financial problems is worse than industry-acceptable levels. If a carrier's situation deteriorates to the point of bankruptcy, policy holders may find themselves with little or no remaining coverage and no way to recoup their lost premium dollars.
  
  

Product Provisions

• Assuming the insurance carrier demonstrated acceptable financial stability, an analysis of the actual product becomes necessary. Consumers should obtain and review an exact replica of the insurance contract their considering purchasing, looking for language describing any limitations, restrictions, or other prohibitive scenarios. Consumers must understand these limitations or exclusions, and still be comfortable spending the money on the policy.
  
  

Customer Feedback

• Look for customer feedback from sources outside the insurance company. Search for independent, unsolicited opinions and descriptions of experiences by past and present customers. Note any consistently appearing issues or problems faced by multiple people.