- Ratings may vary among services and slight variations are normal, such as between AAA and AA. Be aware that not all companies choose to be rated by every service, since rating services charge a substantial fee for such comprehensive reviews.

A company's rating gauges its ability to pay a claim down the road. A high rating usually indicates the company has plenty of assets and reserves available to pay off claims. Since life insurance claims are usually made many years after you purchase the policy, it's important to keep an eye on your company's rating.

Any number of factors can influence a rating. If a company makes some bad financial decisions and begins losing money, the rating could drop. Mergers — or even the news of a merger — can influence ratings.

Trying to gauge the financial staying power of an insurance company is only part of the puzzle. As with any kind of insurance company, customer service is extremely important. The insurance industry is regulated at the state level. That means each state has a different way of dealing with insurers and the consumers who complain about them.

Many states compile a complaint report each year, tallying the number of complaints made against insurance companies and ranking them in relation to their market share. If your state has such a report, get it each time it's issued. That way, you can keep tabs on your insurer. If many of your fellow policyholders filed complaints, it's not a good sign. Check with your state insurance department to find out what all the complaints were about. How many complaints are too many? You really need to establish your own comfort level. Complaints can stem from a bad experience with an agent, to a misrepresented policy, to a problem with getting a claim paid.

The life insurance industry offers a “seal of approval,” the Insurance Marketplace Standards Association (IMSA) designation. After a number of years of bad choices, bad ethics and bad press in the 1990s, industry officials launched IMSA as a way to regain public trust. In order to gain membership in IMSA, a life insurance company must undergo rigorous scrutiny by independent, qualified evaluators. The IMSA designation indicates a company maintains high standards, particularly in sales, marketing, and customer service.

So what does this mean? Since it's a designation created by the industry itself, you shouldn't put too much emphasis on IMSA membership. For one thing, IMSA itself isn't an enforcement group. While the association can pull the designation should a member break the rules, it doesn't have any power to fine or sanction offending members. In practice, a company could garner numerous customer complaints and still be an IMSA member. Consumers should view IMSA membership as a plus, but only when considering all the other factors. While it's nearly impossible to find two companies that are otherwise equal, IMSA membership could be the thing that pushes one over the top. IMSA membership is granted for three-year periods, so find out when your company is up for renewal. If IMSA drops its endorsement of your company, that should raise a red flag.

So how about your policy? As long as it's doing what it was intended to do and your company stays on the straight and narrow, you've probably got nothing to worry about. It’s a good idea though, to check up on your insurance company from time to time.