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The 10 Worst Life Insurance Companies In America

by Scott G on April 7, 2013 · 0 comments

The 10 Worst Life Insurance Companies 2013

Here are the 10 lowest ranked life insurers in America (by Comdex Ranking)

Recently I posted a list of the best life insurance companies America by admitted assets which has been well received so far.  After reading the list, a few people have asked me out of curiosity “so who are the worst life insurance companies?”  That got me wondering as well.  Since there are many different ways an insurance company can be evaluated, (i.e. admitted assets, amount issued, customer service, etc.)  for the purposes of this list, the Comdex ranking was used.

What is a Comdex Ranking?

Comdex actually doesn’t issue ratings itself, rather they merge all of the ratings a company has received from the major rating agencies-A.M. Best, Standard & Poor’s, Moody’s and Fitch.  A company needs to be rated by at least two rating agencies to be eligible for a Comdex score.   As you can imagine, there are an enormous number of life insurance companies in America and not all of these companies were rated by two of the major rating services, or have any ratings at all.  For the purposes of this list, they were excluded since they do not have a Comdex score.

Company                                           Comdex Ranking           State    

1. Equitable Life & Casualty                     33                                    UT                         

2.  New Era Life Ins Co Midwest              37                                    TX                          

3. Guarantee Trust Life Ins Co                 37                                     IL

4. New Era Life Ins Co                             37                                     TX

5. Phoenix Life & Ann Co                         39                                    CT

6. American Pioneer Life Ins Co               39                                    FL

7. Union Labor Life Ins Co                        44                                   MD

8. Health Net Life Ins Co                           45                                   CA

9. American Progressive L&H   NY           46                                   NY

10. Pyramid Life Ins Co                             46                                    KS

 

What does it all mean?

As you can see by the list, most of these companies are not household names like a MetLife or a State Farm.  All of the companies do have one thing in common; they all received a rating below an “A-” better by A.M. Best.  A.M. Best is the premier resource and gold standard for assessing the financial strength of insurance companies.  So if a company has a rating below “A-” or doesn’t haven’t a rating at all from Best, you may want to choose a different company.  

See what rate you qualify for from a highly rated financial insurance company, click on the “Get Free Life Insurance Quotes” box and type in your zip code and compare.

Photo: striatic

“10 worst insurance companies was assessed by lowest Comdex ranking 4th qrtr 2012, and 1st qrtr 2013.  The worst life insurance companies in an opinion and ratings consistently change so these companies ratings could improve.” Other companies may be rated lower but they weren’t on the Comdex scale if they only received one or no ratings.

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