Annuity.org reviewed dozens of annuity providers, evaluating them in areas such as the strength of their products, history, customer satisfaction, financial strength and availability.
We also spoke to multiple industry professionals and agents about their take on these companies.
Annuity.org devised a methodology based on these factors to create a star rating system to rate the best annuity providers in the market.
The companies listed on this page represent the five carriers that actively sell annuities and have received the lowest star ratings from our methodology.
Bottom Line: Every company below carries an AM Best rating of B++ or lower, one to two notches under the A- floor Annuity.org uses to qualify a recommended provider, plus at least one added risk: a complaint index well above the industry median, standard features locked behind paid riders, or too little time in the annuity business to judge a track record. None of this means a policy from these insurers is worthless; it means the extra risk needs more scrutiny than most buyers can do alone.
Companies Compared
| Company | AM Best | Complaint index | States | Concern |
|---|---|---|---|---|
| National Security Life Group | B++ | Not public | 7 | New to market, 2023 |
| CL Life | B++ | Not public | 5 | High minimums, unrated by Fitch and S&P |
| Sentinel Security Life | B++ | 1.18 | 32 | Standard features require paid riders |
| Atlantic Coast Life | B++ | 3.38 | 35 | Far above expected complaint volume |
| Farmers Life | B++ | Not public | 12 | Charges for benefits others include free |
National Security Life Group
When evaluating annuity companies, one agent emphasized the importance of considering how long a carrier has been in the market, as it can be a crucial factor when purchasing a product that may last decades.
That said, National Security Life Group is an infant in the annuity space, first entering the market in 2023. It has also yet to establish much of a toehold, selling just $71 million that year.
Despite its initial founding in 1947 as an insurance company, National Security Life Group also holds an AM Best rating of just B++, which is well below that of many top providers in the industry.
One agent told Annuity.org they would not work with companies that do not hold an A rating from AM Best.
National Security Life’s annuities — limited to MYGAs — are currently only available in seven states.
States National Security Life Sells Annuities In
- Alabama
- Florida
- Georgia
- Mississippi
- South Carolina
- Tennessee
- Texas
Between its low financial strength score, lack of availability and youth in the industry, National Security Life Group may be a tough sell for many customers.
CL Life
CL Life, based in Fort Worth, Texas, doesn’t offer much in any major category.
It only sells two products, both simple fixed annuities that require high minimum premiums compared to other companies in the industry.
The company also sells a minuscule amount of annuities, recording just $3.2 million in sales in 2022. Part of this is because its products are not widely available, with NAIC reporting offerings only in Arizona, Ohio, Oklahoma, Texas and Virginia.
Additionally, CL Life holds a B++ rating from AM Best and is not rated by either Fitch or S&P.
CL Life’s history is also a bit of a question mark, as it operates as an affiliate of Crestline Investors. Crestline was established in 1997.
Compare Your Options Before You Decide
Sentinel Security Life
Sentinel Security Life, which is based in Utah and has operated in the insurance industry since the 1940s, is a relatively new entrant to the annuity industry with products that don’t stack up particularly well against more significant competition.
The company sells a solid mix of fixed, indexed, and income annuities. While most major carriers include standard features for these products, Sentinel Security Life requires you to purchase riders to meet the same standard.
For example, most industry-wide products allow you to withdraw up to 10% of your contract without penalty; with Sentinel Security, you would have to buy a rider for this same benefit.
While Sentinel Security Life did sell over $1 billion in individual annuities in 2023, its availability remains limited to 32 states.
The company, which holds a B++ rating from AM Best, also recorded an NAIC Complaint Index score of 1.18 on its annuities. This means there were more customer complaints against Sentinel Security Life than expected relative to its market share.
Atlantic Coast Life
Atlantic Coast Life is a name you may have seen before, partly because it has recently created a niche by offering stronger rates than many of its competitors.
However, if you wish to select this company solely based on its rates, you will need to make some notable tradeoffs.
Atlantic Coast Life is only available in 35 states and holds an AM Best rating of B++, which is below that of the major carriers in the industry.
Additionally, it holds a worrying NAIC Complaint Index score of 3.38 for annuities. Meaning there were more than three times as many customer complaints against Atlantic Coast Life as expected for its market share.
As far as the annuity products themselves are concerned, Atlantic Coast Life trails competitors in some industry-standard features. The company offers up to 5% free contract withdrawals, whereas virtually every legacy provider offers 10%.
Farmers Life
Farmers Life is based in Knoxville, Tennessee, and since its founding in 1997, it has remained a small annuity provider with limited availability.
The company sells annuities in just 12 states, and even states with access have few offerings to choose from. Farmers Life sells only one MYGA product and one indexed product.
Those annuities also charge for benefits made available for free by most major carriers, including enhanced benefits and 5% free withdrawals.
Farmers Life also holds an AM Best rating of just B++ and is not rated by either Fitch or S&P. Simply put, it is a small provider with a financial strength below that of its competitors and doesn’t offer stand-out products.
How to Vet Any Annuity Company
- Look up the company’s AM Best, S&P, or Fitch rating. Treat anything below A- as a yellow flag.
- Check the NAIC complaint index for individual annuities. A score meaningfully above 1.00 means more complaints than expected for the company’s size.
- Confirm how many states the company is licensed in, and that yours is one of them.
- Ask whether standard features, such as free withdrawals or a death benefit, are included or sold as paid riders.
- Get the free-look period and surrender schedule in writing before you sign anything.
FAQs
A- or better. Anything lower signals meaningfully weaker financial strength.
It measures a company’s complaints relative to its size. A score above 1.00, the industry median, means more complaints than expected.
Not always, but it adds risk worth a second opinion from a fee-only advisor.
No. Always check a company’s current rating and complaint index, even if it isn’t listed here.
