Checking out the top rated settlement companies is extremely important since a structured settlement annuity is only as good as the company that issues it. It makes sense that structured settlements would be offered by insurance companies, since a death benefit is often included in most structured settlement annuities. And, these are a major feature of life insurance contracts.
When looking at structured settlements, you should consider
- The performance track record of the funds within a variable annuity
- The index and interest calculation formula for an indexed annuity
- The credited interest rate offered
The strength of the company issuing the structured settlement annuity should never be overlooked. This is because you do not want your issuer to go bankrupt. This could mean an interruption of payments for an indeterminate amount of time. In the meantime, you might fall behind on bills.
How the Top Rated Settlement Companies Work
Over an extended amount of time, structured settlements pay out an income. With income from investments, the insurance company funds the annuities. You could face financial difficulties if the insurance company ceases to operate during the life of the settlement.
With variable annuities, where the client manages and chooses the investment products, the dependency on the strength of the insurance company also applies. This is despite the insurance company not having direct control over the annuity.
Your funds may be timed up when financial problems arise, since insurance companies are funding your structured settlement and doing the administration. Taking all of this information into consideration, you should first approach companies that can withstand financial tests. Below we list structured settlement issuers that can best handle your payments.
The Cream of the Crop
Jackson National Life Insurance Company – With a market capitalization of $10 billion, Jackson National’s parent company England’s Prudential PLC is the world eight largest life insurer. With all of the major rating firms, their financial strength ratings are at least A+.
Metropolitan Life Insurance – Ranked as one of the largest life insurance companies on Earth, MetLife is another industry giant. They are highly rated by all of the major rating firms and have the fifth largest market capitalization at more than $14 billion.
New York Life Insurance Company – In the United States, New York Life is the largest mutual life insurer. For all four of the major insurance rating firms, they hold the highest rating. Plus, they are ranked above all other companies for their financial strength.
ING – A Dutch financial giant, ING also offers retirement and investment services, insurance, and banking. With a market capitalization of $10 billion, they rank as the ninth largest life insurer on the planet. Plus, with all of the major rating firms, they have very high financial strength ratings.
John Hancock Financial – With good reason, everyone recognizes the name John Hancock Financial. John Hancock is owned by Manulife of Canada. And, with market capitalization of more than $16 billion, they are the fourth largest life insurer in the world. John Hancock is also highly rated by the big four major insurance company rating services.