Most people focus on the rates and policy type when choosing a life insurance policy. No doubt these are important factors but before you make a final decision, you need to know certain things to look for in your insurance company as well. Life insurance is an important decision to make and one with far-reaching consequences, so keep in mind the following guidelines when choosing your life insurance company:

Ratings: All life insurance companies are generally rated by at least one of the five top rating agencies. These are A.M. Best, Fitch, Moody's, Standard & Poor's, and Weiss. These agencies each use their individual rating system and quite often one company could have two differing ratings from different agencies. Also what information is shared with you the consumer might not be totally transparent if you approach the company directly. Therefore, when checking the ratings of an insurance company make sure you look at a minimum of two agency ratings to get an average idea of the financial strength of the concerned company.

Ratings also determine the credibility of your insurer. Ratings of an insurance company are influenced by profits of the insurance company, the performance of their stock, and any other major financial decisions such as mergers of takeovers.

State's Assistance:The state is an important resource to check the credibility of ife insurance companies. There are State departments that regulate these insurance companies and you can confirm from your specific state department if the company's credentials are true. You can also check on the company's license and other certifications.

Product:Choose a life insurance company not based on reputation and name alone but rather
one offering a variety of products, policies and features. And more importantly, a product, which suits your individual needs and requirements.

Market ethics: The Insurance Marketplace Standards Association is a non-profit organization. It promotes ethical conduct in life insurance marketing and there are some life insurance companies that subscribe to these principles and codes of conduct.

Financial advice: Life insurance can be very confusing to many people so it would be helpful to have an insurance company with representatives who are available to answer all your questions and encourage communication.

Claims: There is a national claims database that is available to all consumers so that they can check the complaint information of a particular company. Your state insurance department can also inform you about the ratio of complaints to policies sold of your insurance company. It is also essential to check the quality of claims in terms of how fast they have been paid. This will indicate that the company has sufficient resources to settle claims as well.

Premiums: Different life insurance companies use different formulas to calculate premiums on their policies and products. So, don't assume that you will get the same rate from another company. Check the policy premiums available, make comparisons and choose a provider with competitive pricing and a solid financial background.