How can I find out the rating of HSBC Insurance?

Question

I'm considering buying a term policy thru HSBC Insurance, but I don't know much about them. I have a credit card thru Orchard Bank, and received an offer of term insurance at a good rate, but want to be sure they have a good reputation.

I need to know if there's any site that gives ratings on insurance companies, and also if I can find what other people say about their experiences with them -- either good or bad.

If anyone can help, I'd really appreciate it. Thanks!

Answer 1

The insurance rating companies are AM Best, Fitch, and Standard and Poors (ambest.com, fitchratings.com, standardandpoors.com).  They will make you register to the rating, but you can get it there.  Although if you are getting a legit offer the rating from at least one of those companies (usually the one that rates them best) should be buried in the information you got.  HSBC is pretty big and pretty well rated.  Check around before you get this one though, rates can vary a lot.  The fine print no doubt explains that the rate depends on your health.

Also, make sure what you are buying.  A lot of banks offer Accidental Death & Dismemberment insurance which does not pay if you die from pretty much anything other than getting hit by something.  If you are getting 10 year term insurance think about how old you will be in 10 years.  What is your plan for insurance then?  I laugh every time I see a commercial that says "You can get $100,000 of 10 year term insurance for just $10 a month at age 30."  Really?  What do you think the odds are of you dying by age 40?   Why do you think it is so cheap?

If you have kids, make sure you get a term that covers you until they are 20 years old or so.  (So if you have kids under 10, get 20 year term, if they are between 10 and 18 then 10 year works.)   Check a company called Empire (or something like that).  I seem to remember them have low rates.