Skip to the content

Why are financial strength ratings worth checking?

Why are financial strength ratings worth checking?

When you look for life insurance, it is important to consider the financial strength rating of the insurer.

This rating expresses the insurers opinion to meet its financial obligations in full, and on time. All insurers need to have a rating, and also have a responsibility to make sure it's displayed to you before you start a policy.

As part of the decision making process when choosing your life insurance policy, we’ve made accessing this information as easy as possible for you at LifeDirect.

How do I check the financial strength rating?

Once you’ve filled out a quote, you’ll be shown a range of comparisons from New Zealand’s leading insurers. If the financial strength of an insurer is of particular interest to you, you can sort policies by the financial strength of the insurer.

If you’re still unsure about this information, you can click on each rating for more details. This will bring up information on which ratings agency provided the rating. In New Zealand, ratings are provided by either Standard and Poors who rate companies from A++ which is the highest rating. The other ratings company is AM Best Company who rate companies from AAA which is their highest rating.

This information is made available to you in order to assist in the decision making process. If you’d like to compare the financial ratings of New Zealand’s leading insurers we’d love to hear from you. Head on over to our homepage. Alternatively, you can use our livechat on our website or chat with us on 0800 800 400.

About the author

At LifeDirect, our core belief is that Kiwis deserve clear and straightforward choices when buying insurance. We hope this little bit of information will help you to make smarter decisions with insurance.  

If you want to get in touch, our Customer Care team based in Wellington is here to take the pain out of setting up your insurance.