They are an indication of the insurer's financial strength - the insurer's ability to meet their financial obligations and pay their claims.
How can I compare life insurance company ratings?
There are several independent rating agencies that review and issue a financial rating of insurance companies. These rating agencies include AM Best, Moody's, Dun & Bradstreet, among others.
The financial ratings help you to determine how financially secure the insurance company is so you can choose an insurer that will hopefully be around to pay any claim on your life insurance policy.
Where can I review life insurance company ratings?
You can visit ambest.com to look up financial ratings of insurance companies.
Also, here's a list of the top 10 life insurance companies and their AM Best financial strength ratings.