Why Checking an Insurance Company’s Financial Rating Matters

Financial Horizons: Insights for Building Wealth and Securing Your Legacy 

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

When purchasing life insurance, many people focus on premiums, coverage amounts, and policy features. While those details are critical, there’s another factor that can make or break your decision: the insurance company’s financial rating.

Why? Because your life insurance is only as reliable as the company backing it. A financially strong insurer is more likely to pay out claims promptly, remain stable during economic downturns, and continue offering competitive products for years to come. At The C & R Group, LLC, we stress this point with every client—your policy isn’t just a promise on paper, it’s a contract that depends on the company’s financial health.

Who Provides Insurance Company Ratings?

Independent rating agencies evaluate insurers’ stability and ability to meet obligations. Here are the most respected sources:

• A.M. Best Co. (www.ambest.com) – The gold standard for insurance-specific ratings.
• Fitch Ratings (www.fitchratings.com) – Provides global credit ratings and outlooks.
• Moody’s Investor Service, Inc. (www.moodys.com) – Focuses on financial strength and creditworthiness.
• Standard & Poor’s (S&P) (www.standardandpoors.com) – Widely trusted for assessing risk and financial soundness.
• Weiss Ratings (www.weissratings.com) – Known for independent, consumer-friendly ratings.

Each agency uses a different scoring system, but the principle is the same: the higher the rating, the more secure the company is likely to be.

Why This Matters for Your Financial Plan

At The C & R Group, LLC, we integrate these ratings into our Expert Financial Analysis (EFA) to ensure your life insurance policy is more than a piece of paper—it’s a cornerstone of your tax and wealth strategy. Choosing a strong insurer helps you:

• Protect your legacy by ensuring benefits are paid when your family needs them.
• Safeguard your tax strategy, since life insurance often carries IRS-backed advantages (IRC §101 for tax-free death benefits, §7702 for policy definitions, etc.).
• Build confidence in long-term planning, knowing your coverage will withstand economic uncertainty.

We don’t just sell policies—we strategically align insurance with your retirement, estate, and tax planning so that every dollar works harder for you.

Bottom Line

Before you sign a policy, look beyond the glossy brochures and promises. Verify the insurer’s financial strength. When combined with a tailored tax and wealth strategy, your life insurance becomes not just protection—but a tool to grow and preserve your legacy.

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About the Author

Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 Disclosure

This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.