Some of the insurance companies selling life insurance and annuities have been around for a long, long time. They have weathered many storms—including of the most recent financial turbulence.
While commendable, the long histories say little or nothing about a company’s ability to maintain stability and viability in the future. However, a proven and long-standing track record is a good data point—especially when a purchase decision involves large amounts of money and long-term contracts.
History is important because it provides you with some insight into the company’s culture, philosophy and values—particularly if the company has been consistent and stable over the years.
While notions such as company culture and values are less tangible than an A.M. Best rating, they deserve meaningful consideration in light of such an important financial decision.
In many ways, our financial lives have become increasingly depersonalized. When it comes to annuities, though, you need to be comfortable with the character of the companies you are considering because the relationship needs to last many years.
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