Clark Howard and A++ Companies Only?

[HealthGuy]

This should bring about a firestorm: Just saw Clark Howard today on Fox News. He literally said that those buying term life should now only consider A++ rated companies (rated by A.M. Best). Who only sells A++ rated term insurance companies, come on! I thought any companies A- or better were adequate. However, there are people who live and die by Clark Howard. Does he have a valid point, or no...

If he does, there are only like two A++ rated options probably: New York Life and/or Northwestern Mutual Life (if you want to overpay for your term and let them keep billions of your dollars in their safe 'mutually' held company vaults...all to puff up their A++ ratings...Opinions on this please.

Better to buy term with a 'mutual' company with 'perfect' ratings and overpay, or concede on an A- company or better?

 

[Mark]

My question is, about AIG that just borrowed 80 billion dollars. What was their rating again? What is their rating now?

 

[HealthGuy]

Mark: I don't know about AIG and maybe Clark Howard was saying this in light of the economy...He was referencing that many life companies have too many assets in crappy real estate, thus making them less stable..I don't know really if the guy has a valid point, but what if a prospective client brings this up...Just roll over and say, "Sure, go out and by Northwestern Mutual and make sure they give you a cup of green Kool Aid with that"...Are these A++ life ratings necessary? Really, just cause Clark Howard says so? Who made Clark Howard a life agent? Valid, and how can we sell against this argument if its not valid?

 

[moonlightandmargaritas]

In the history of insurance, no company has ever went out of business

A small grammatical note:

"no company has ever gone out of business..."

 

[Mark]

A small grammatical note:

"no company has ever gone out of business..."

Thank You!! I have to stop watching tv as I'm writing on here.
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just cause Clark Howard says so? Who made Clark Howard a life agent?

I've read some of his book and watch his tv show. He makes millions of dollars scaring the public and you better listen to every word he says, and tune in next week, or you might get ripped off.

I did a search and I can't find where he has an insurance lic. But I bet he did stay at a holiday inn last night.

 

[moonlightandmargaritas]

Clark is an excellent travel agent.

I am an excellent insurance agent.

I don't give advice on travel. Clark shouldn't give advice on insurance.

 

[Bob_The_Insurance_Guy]

He is not an excellent travel agent. He owns a travel agency, that was bequeathed to him, once his grandmother passed. Early in his career, he got a spot on WGST as a "Friday Flyer" guy, who would come on Friday afternoons, and tell folks who had the best travel deals to certain cities.

Neal Boortz, who was on WGST at the time, had a talk show in the morning, befriended him, and took him to WSB, where his popularity grew.

He began to be the "consumer reporter" we know now. Most of the background work was done by the women he wound up marrying. He's never held down a real job, and wouldn't know reality if it bit him in his hind parts.

He threw his hat in the ring to be Mayor of Atlanta, but rescinded the offer, once he figured out that his background would be dug up, and folks would see him as the phony he really is.

He is arrogant, and believes that he does not need to get a license for anything he talks about - insurance, real estate, pest control, etc., because he hides behind the "entertainment" shield.

I have turned down business, once I heard, "Well, I was listening to Clark Howard, and he said..." It's like getting an Anti-Semitic to eat potato latkes.

 

[HealthGuy]

Bob: A very funny yet historical post. Eloquent and thank you.

 

[Winter_123]

If you not sure, call your state's Ins Dept and ask them what will happen to your policy if the Life Insurance company goes under. Do you lose your money or policy.

The answer is, you will be okay. The death benefit will be there as long as you keep paying your premium on term insurance or a whole life policy.

That is true within reason. Be careful what you represent to the client. In my state, the state guaranty amount is capped at 250,000 so when you sell a million dollar policy you cannot just flat out say that the state backs everything. I would imagine every state caps the guaranty at some amount so the agent needs to know what that is before just telling clients that everything is guaranteed.

 

[Newby]

That is true within reason. Be careful what you represent to the client. In my state, the state guaranty amount is capped at 250,000 so when you sell a million dollar policy you cannot just flat out say that the state backs everything. I would imagine every state caps the guaranty at some amount so the agent needs to know what that is before just telling clients that everything is guaranteed.

Also some policies do not participate and are not protected by it. Groups like Knights of Columbas, Woodmen of the World and Royal Neighbors do not have such protection at all.