What does BBB Accreditation Mean for Life Insurance Companies?

September 20 07:33 2022

In 1912, BBB was founded as a nonprofit organization, which helps customers find businesses they can trust.  A lot of third party companies rate this insurance company based on their ratings of customer satisfaction and financial strength of the company. BBB rates life insurance companies entirely on trustworthiness and customer satisfaction. This allows them to provide unbiased suggestions about life insurance options. Sometimes, they include information from the Better Business Bureau as well. Also, it provides complete consumer information about a company so one can make an informed purchasing decision, and it also helps to resolve official complaints against that company.

How to Find the Right Life Insurance Company for Anyone

In the process of searching and comparing life insurance policies, it can be quite challenging to find the right one for them. One will always need to select a company with the most reasonable premiums as well as trustworthy financials. But, one thing to remember is that their beneficiaries will be working with the life insurance provider while grieving their passing. This BBB usually awards life insurance companies A pluses or Fs depending on the insurer’s customer service value.

As a general rule, the BBB ratings assess not only customer service interactions, but also how much trust one can place in the business. Ratings can also reflect information about a company’s transparency. Among these are any government actions taken against the company, how many complaints the company has received, and how quickly those complaints have been resolved. These are all helpful information to understand for any business, but especially if they are considering a newer or smaller life insurance company that has fewer customer reviews.

What to Consider When Buying a Life Insurance Policy

Businesses are always assigned a number of points, from zero to hundred, based on their reputation for trustworthiness and reliability. The results are translated into a letter grade from F ranges from 0 to 59.99 to A Plus ranges from 97 to 100. This means that the higher the points and the better the grade, the more reliable BBB considers this business. BBB also compiles the data offered by businesses from consumer complaints as well as from other public data sources to examine the companies by using the following seven major criteria that includes:

  • A complaint history of BBB: There is a need to determine the number of consumer complaints, if there are some patterns, how fast the complaints are resolved and if the complaints are resolved.
  • Kind of business: Businesses that might violate a law and cause problems to customers and a marketplace will lose those points.
  • Advertising problems: This includes the accuracy of claims made in customer advertising.
  • Time in business: The businesses that have been in business longer receive a top score.
  • Licensing and government actions: This includes licensing requirements and certifications for businesses and any government actions against a business, which imitate badly its consistency and principles.
  • Transparent business practices : The businesses that do not even provide obvious data on their services and products or fundamental data such as business addresses will achieve lower.
  • Failure to honor the commitments to BBB: Businesses that are unable to follow through from beginning to end on conflict resolutions handled by the Better Business Bureau will lose that point.

How to Find the Best Rate and Coverage on Their Next Policy

Some businesses may be accredited by the BBB while others may not. These businesses are simply those that have been accredited by a company that requires the businesses to meet and maintain a set of BBB standards. Despite this, the business is not unavoidably unreliable; in part because it is not listed with the BBB. At present, the BBB strongly suggests doing additional research into any organization before providing them with their business. A company’s ratings are just a sign of its reliability, but certification from the Better Business Bureau is not an assurance.

Choosing the highest rated BBB life insurance company requires one to consider many factors, such as which companies offer the services they need and what policies are available. Their highest needs would be met by this. Also, it is very critical to look at consumer reviews and compare the costs of different insurers.

Sara Routhier, Director of Outreach at ExpertInsuranceReviews.com, lists key factors one should consider when selecting the right life insurance company:

  • Riders
  • Policies
  • Cost coverage
  • Customer satisfaction
  • Financial strength

In spite of the fact that a well-built BBB rating is always preferable, it can be difficult to discover a reliable rating that accurately reflects the service one will receive from their specific insurer, due to the differences between local and national branches. A number of major insurance companies partner with life insurance companies that have several BBB ratings according to their location. By simply working with an independent broker, one can obtain dependable consumer service and it does not matter where they live. Therefore, they have to select a life insurance company with a reputation for handling complaints as well as claims as fairly and effectively as possible. This could give their family complete peace of mind.


A BBB accredited Business is a business that has demonstrated a commitment to adhere to the highest business standards in its community and marketplace. BBB Accreditation is achieved through a rigorous, voluntary process that requires a high level of professionalism and reliability. The BBB’s most popular influence is in online reputation because they provide a list of accredited businesses that one can trust. If a life insurance company is accredited by the BBB, it means that they’ve stood the test of time, have a proven history of good business practices, and have a proven track record. Abiding by their standards can be a great model for life insurance companies to follow.

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