Insurance companies in the United States range from industry giants with tens of millions of policies in force to small companies that sell only a few hundred policies each year. So once you've made the decision to purchase a policy, how do you know if the company you choose is the right one. Here are some tips to guide you through the process:

Doing some homework is always a good idea
Generally speaking, life insurance companies are in excellent financial health. All the same, you want to be sure you can rely on the company you choose. So even though insurance companies are required by law to maintain large reserves to guarantee they can meet their future obligations to their customers, it's always smart to do some homework before completing a purchase.

Check out a company's ratings
The best way to check the financial health of a company is by looking at its "rating." Several private companies conduct financial analyses of insurance companies and their reports can typically be accessed online, via the phone or by visiting your local library. Some will provide their ratings for free and others will charge a small fee. Keep in mind that not all agencies use the same ratings system. For instance, AAA is the top rating at Moody's, but A++ is the best ranking at A.M. Best. So be careful when comparing information from different ratings agencies. Also remember that a company's rating is just one of several factors to look at when considering a purchase.

Does size matter? Yes and no
Most of the largest insurance companies have been in business for decades and some date all the way back to the mid-1840's. When a company has been in business that long, you can be fairly certain that it understands the complexities of the insurance business, knows how to manage risk and grow assets, and has a history meeting long-term financial obligations.

Seek assistance from an insurance professional
Most people buy life insurance through agents or brokers, and for good reason: Determining how much and what kind of insurance to buy is one of the most important financial decisions you'll ever make, but it's also one of the most complicated. A qualified insurance professional will conduct a thorough insurance needs analysis and provide you with policy recommendations that are based on your needs and objectives.

The Bottom Line
The "right company" for you is the one that provides you with appropriate recommendations, products and prices, has a record of outstanding customer service, and the financial capacity to meet its financial obligations to you and your beneficiaries when they come due.