Skip To Content
Blog Get a Quote

Getting to know: Moody’s

Moody’s is a ratings agency that reports on the financial strength of insurance companies. Learn why ratings matter and how Moody’s evaluates companies.

Get to know Moody's Ratings Agency

When shopping for life insurance, it can seem like the decisions are endless. You have to determine what kind of coverage you want to buy, how much you need, and which company to go with, to name a few.

One of the things that will (and should) come up frequently in your research is ratings. Researching the rating of your life insurance company is worth the effort. Similar to how your credit score is used to help determine your lending rate, insurance companies, too, get scored based on their financial strength and claims-paying ability.

Why life insurance company ratings matter

Any of us who have a family to support understand the importance of life insurance – having coverage in place helps us mitigate financial risks and sleepless nights. Needless to say, you wouldn’t want to make an important financial decision such as purchasing life insurance without evaluating the company issuing the policy.

Third-party agencies like A.M. Best and Moody’s do independent assessments of insurance companies to help you make an informed buying decision. Life insurance companies receive ratings from independent agencies based on their analysis of items such as customer complaints, available cash flow, and acceptable risk. A high rating indicates the agency’s assessment that the insurer will be around to pay out the policy to your beneficiaries.

You should choose a life insurance company that’s well respected and has received reputable ratings. If becoming a life insurance policyholder is like being in a long-term relationship, think of Moody’s, or other independent rating agencies, as one of your matchmakers.

A rating shouldn’t be the only piece of information you use to choose an insurance company, but it can offer valuable insight into a company’s financial health.

Haven Life: Life insurance that’s actually simple

We have your back (and MassMutual has ours)

The Haven Term policy is issued by MassMutual, an industry leader with over 160 years of experience.

Why Haven Life

The story behind Moody’s

Moody’s started out as a paper publication. John Moody launched Moody’s Manual of Industrial and Miscellaneous Securities in 1900. He provided information on the stocks and bonds for various companies, including manufacturing, government agencies, financial institutions, and food companies. The manual was a hit, selling out in two months.

After a stock market crash, Moody’s relaunched, this time assessing America’s railroads. Over the next five years, Moody’s continued to expand its base of companies to analyze, and Moody’s Investors Service was incorporated in 1914. The company kept widening coverage, and it earned a reputation in the global financial market for its assessments of corporations and even governments’ creditworthiness.

Moody’s has been rating companies’ financial health for more than a century.

How Moody’s reports on financial strength

Moody’s rating system uses both letters and numbers, and ratings range from Aaa to C. Here are a few important things to help you understand Moody’s ratings:

  • The more ‘a’s, the better. Aaa rating is Moody’s highest, followed by Aa1, Aa2, etc. Moody’s A, B and C ratings can also be followed by one or two lowercase ‘a’s that indicate position within the ranking.
  • Numbers show rank within the rating. Take Aa, the second-highest ratings level. An Aa1 rating means the company ranks in the higher end of the Aa level. Aa2 means the company is in the midrange, and Aa3 means the company falls on the lower end of the Aa level.

Moody’s ratings may look slightly different from other insurance rating agencies. Here’s the full list, so you can get an at-a-glance idea of how close to the top each company you’re considering is:

  •     Aaa
  •     Aa1, Aa2, Aa3
  •     A1, A2, A3
  •     Baa1, Baa2, Baa3
  •     Ba1, Ba2, Ba3
  •     B1, B2, B3
  •     Caa1, Caa2, Caa3
  •     Ca
  •     C

MassMutual’s Moody’s rating

Haven Life offers coverage issued by MassMutual, a more than 160-year-old life insurer with an Aa3 (High Quality) rating from Moody’s. That means MassMutual has received the fourth highest of Moody’s 21 ratings.

Other ratings to consider

Just as you wouldn’t buy a house without touring a few potential options, you shouldn’t aim to make insurance a one-stop shop experience, either. Get quotes from a few companies, and look at more than one source to assess the company’s rating.

The leading rating agencies

Besides Moody’s, A.M. Best, Fitch, and Standard & Poor’s are a few other agencies known for rating the insurance industry. If a company has strong ratings across all four, that’s a good sign of financial health.

What customers have to say

While the insurance rating agencies can tell you about a company’s ability to meet long-term and short-term debt obligations, they won’t always give you information about other key factors, like customer service and user experience. Reading through customer reviews online, or even crowd-sourcing feedback within your own circles can tell you more about what it’s actually like to be a policyholder.

Third-party review sites like TrustPilot and Consumers Advocate are a great place to start when seeking real testimonials from real customers who’ve gone through the buying experience.

Using Moody’s ratings to find the right insurer for you

You can never be too selective when buying life insurance to help financially protect your family. Utilize the expertise of rating agencies like Moody’s to put your insurer through the paces and help you determine which life insurance company is best for you.

Once you’ve identified your top choices for an insurer, the next stop on your journey should be to get an estimate for how much a term life insurance policy will cost. And maybe after all of that, you’ll finally be ready to pop the question: Will you be my insurer?

Haven Life: Life insurance that’s actually simple5 Star Ratings

Easy + Simple + Affordable

“I'm so happy I chose Haven Life for my policy needs. The entire process was quick, easy, stress-free and convenient. Their customer service is top-notch.” - Sandra

Learn more

Jessica Sillers is a writer who specializes in financial services, business, and parenting. She lives near Washington, D.C. with her family.

Financial strength ratings are as of June 7, 2019: A.M. Best Company: A++ (Superior; top category of 15); Fitch Ratings: AA+ (Very Strong; second category of 21); Moody’s Investors Service: Aa3 (High Quality; fourth category of 21); Standard & Poor’s: AA+ (Very Strong, second category of 21). Ratings are for MassMutual (Springfield, MA 01111) and its subsidiaries, C.M. Life Insurance Co. and MML Bay State Life Insurance Co. (Enfield, CT 06082). Ratings are subject to change. 

Default author headshot

About Chelsea Brennan

Chelsea Brennan is the founder of Smart Money Mamas, a personal finance blog that focuses on family finance, investing, and reducing money stress. Chelsea is an ex-hedge fund investor whose work has appeared in a wide array of publications, including Forbes, Business Insider, and more.

Read more by Chelsea Brennan

Our editorial policy

Haven Life is a customer-centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.

Our editorial policy

Haven Life is a customer centric life insurance agency that’s backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe navigating decisions about life insurance, your personal finances and overall wellness can be refreshingly simple.

Our content is created for educational purposes only. Haven Life does not endorse the companies, products, services or strategies discussed here, but we hope they can make your life a little less hard if they are a fit for your situation.

Haven Life is not authorized to give tax, legal or investment advice. This material is not intended to provide, and should not be relied on for tax, legal, or investment advice. Individuals are encouraged to seed advice from their own tax or legal counsel.

Our disclosures

Haven Term is a Term Life Insurance Policy (DTC and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a Simplified Issue Term Life Insurance Policy (ICC19PCM-SI 0819 in certain states, including NC) issued by the C.M. Life Insurance Company, Enfield, CT 06082. Policy and rider form numbers and features may vary by state and may not be available in all states. Our Agency license number in California is OK71922 and in Arkansas 100139527.

MassMutual is rated by A.M. Best Company as A++ (Superior; Top category of 15). The rating is as of Aril 1, 2020 and is subject to change. MassMutual has received different ratings from other rating agencies.

Haven Life Plus (Plus) is the marketing name for the Plus rider, which is included as part of the Haven Term policy and offers access to additional services and benefits at no cost or at a discount. The rider is not available in every state and is subject to change at any time. Neither Haven Life nor MassMutual are responsible for the provision of the benefits and services made accessible under the Plus Rider, which are provided by third party vendors (partners). For more information about Haven Life Plus, please visit:

You might also like

Get our most-read stories, twice a month

.newsletter-msg-success, .newsletter-msg-error { display: none; }

What our customers are saying

Sign up for our newsletter

Get our most-read stories, twice a month

Thanks for signing up. See you in your inbox soon.