Home - About - Contact Toll Free (888) 916-7070

TrustMakers

96 Insurance Companies Recently Downgraded
Take the Free Quiz
Change the Font-Size on this pageLargest Article Text SizeLarger Article Text SizeNormal Article Text Size

Email Article Print Article

96 Insurance Companies Recently Downgraded!

By Roccy M. DeFrancesco, JD, CWPP™, CAPP™ - Email Editor

Date : April 02, 2009

Dear Valued Reader,

Trustmakers ran a newsletter yesterday that elicited quite a few responses from readers. As a follow up, we thought we would do a newsletter listing the downgrade list/watch list and see if you are due for an insurance checkup.

The Downgrade or Watch List

During the month of February 2009, ratings for the insurers shown below were downgraded or placed on the watch-list by one or more of the rating services that evaluate the financial strength and claims-paying ability of insurance companies. I’ve highlighted the ones I find interesting.

AGL Life Assur

Hartford Life & Acc

Pruco Life Ins Co

AIG Annuity Ins Co

Hartford Life & Ann

Pruco Life of NJ

AIG Life Ins Co

Independence Life & Ann

Prudential Ann Life Assr

AIG SunAmerica Life

Integrity Life

Prudential Ins Co of Amer

American Comm Mutual Ins

John Hancock Life

Prudential Retire Ins & Ann

American General Life

John Hancock Life & Heath Ins

Reassure America Life

American Genl Life & Acc

John Hancock New York

Reliable Life

American Intl Assur

John Hancock U.S.A.

Resource Life Ins Co

American Life Ins

John Hancock Variable

Scottish Re (US) Inc

Americo Financial Life & Ann

Lincoln Life & Ann of NY

Scottish Re Life Corp

Bankers Conseco Life

Lincoln National Life Ins Co

Security Benefit

Bankers Life & Cas

Merrill Lynch

Security Mutual  Of NY

Banner Life

MetLife Ins Co of CT

Shenandoah Life Ins Co

Celtic Ins Co

MetLife Invest USA

Slovene National Ben

Colonial Penn Life Ins Co

MetLife Investors

Stonebridge Life Ins Co

Columbus Life Ins

Metropolitan Life Ins Co

Sun Life & Annuity

Conseco Health Ins

Midland National

Sun Life & Health Ins US

Conseco Ins Co

ML Life on NY

Sun Life Assur (US)

Conseco Life

Monumental Life

Sun Life Assurance

Continental Life Brentwood

National Integrity

SunAmerica Life Ins

EquiTrust Life Ins

National States Ins Co

Swiss Re L&H Amer

Farm Bureau Life

New England Life Ins Co

Transamerica Financial Life

First MetLife Investors

North American Co L&H

Transamerica Life Ins

First Penn-Pacific

Orkney Re Inc

Union National

First Security Benefit L&A NY

Pacific Life

United Family Life

First Sunamerica

Pacific Life & Ann

United Ins of America

General American

PHL Variable Ins Co

United States Life

Genworth Life & Annuity

Phoenix Life

Variable Annuity

Genworth Life Insurance Co

Principle Life

West Coast Life Ins Co

Genworth Life Insurance NY

Professional Ins Co

Western & Southern

Hartford Intl Life Re

Protective Life & Ann

Western Reserve

Hartford Life

Protective Life Ins Co

Western-Southern

Do you have an insurance policy issued by one of the companies on this list?

Are the companies listed above going to go bankrupt?

I doubt that many or even any of them will go bankrupt. Remember, these are tough financial times and many companies are hurting. A downgrade or being put on the watch list is not a death nail. It happens quite often, but because so many have been downgraded or put on the watch list in such a short period of time, it’s making press.

The goal of this newsletter is not to “freak out” readers who have policies issued by the above mentioned companies. It’s meant to make you aware that it might be a good time to do a financial check up on your policy and the company that issued it.

An insurance policy checkup!

Are you due for an insurance policy checkup?

After reading the above, I think the question is more of a rhetorical one at this point in time.

Should you get rid of a life insurance policy if it is with a company that’s been downgraded or put on the watch list? Not necessarily. Just because the company who issued your insurance policy may not be doing as well financially, it doesn’t mean you should switch companies.

The biggest impediment to changing from one insurance company to another is:

1) You have to go back into underwriting (so if your health has changed the costs of your new policy will be more expensive).

2) Surrender charges (for cash value policies not term). Depending on the policy you purchased, you may have a 7-15 year surrender charge.

Who’s going to review your life insurance policy?

This may be the toughest question of all. Keeping in mind that I educate insurance advisors as a primary part of my business, I can tell you that most of them are not qualified to review the policy they sold you in the first place. This may shock you but most insurance agents know very little about the vast pool of products available to their clients. Unfortunately, most insurance agents sell policies from 1-2-3 companies and that’s what they know. Such agents, which make up the majority, can’t possibly do a good job of reviewing your policy.

I know Trustmakers works with a team of advisors on a national basis who are qualified to help you review your policy if you have an interest (no charge).

Summary

It is vitally important to work with a company that you can trust. Ironically, in this industry, it’s very difficult to find a company that is trustworthy. I personally do not get caught up in the “Ratings” of a company. Instead I try to find out about the people running the company (if possible) and try to determine for myself if the company is run in a “conservative” manner.

If you have questions about your current life insurance company or policy, please feel free to contact info@trustmakers.com

Until next time,

Roccy M. DeFrancesco, JD,CWPP, CAPP, MMB

RELATED ARTICLES:

ABOUT THIS EDITOR:

Roccy DeFrancesco, JD, CWPP, CAPP, MMB - Author and lecturer, Roccy specializes in advanced estate and asset protection planning. Roccy's passion is to teach advisors how to implement lawful strategies that will hold up for the test of time.

Full Bio - Email Roccy