Insurance Company

The name of the company sponsoring a variable contract.

Benefits

Morningstar also provides insurance company ratings, to assist investors in evaluating the company's performance and potential.

Origin

This information is taken directly from the contract prospectus.

For the Pros

Because variable subaccounts are invested in an account separate from the insurance company's general account, a low insurance company rating does not imply that subaccount investors are likely to lose their money if the company is unable to pay its claims. Separate accounts are just that, legally separate from the assets the insurance company may use to pay claims. Money invested in a contract's fixed account does, however, go into the general account of the insurance company and thus may be withheld from the investor.