Check Insurer Strength

Many forms of insurance, especially life insurance and annuities, represent a relationship between an insurer and a customer that can last decades.

It's important to make sure a company is likely to survive that long. You can check on the financial strength of insurers through rating agencies such as Moody's, Standard & Poor's and A.M. Best.

Headley, the insurance agent, recommends picking only companies with the top three or four ratings from each agency. Companies receiving A.M. Best's top financial strength rating of A++ include USAA, State Farm, Northwestern Mutual, New York Life, Chubb Group, and Berkshire Hathaway.