GCU USA at a Glance: Rates, Products and Reviews

GCU USA is a fraternal benefit society dating back to 1892. Originally formed by 14 independent lodges associated with the Greek Catholic Church, today GCU USA is a multi-billion dollar company that has maintained the same values that have guided the company during its 100+ year history. 

As a non-profit life insurance provider, GCU USA offers a wide variety of affordable annuity and life insurance products. Their products aim to offer financial stability for members within the community while protecting against risk. GCU USA products are available to all Christians, and the company remains active within the Byzantine Catholic Church. 

If you are considering purchasing life insurance or annuity products from this organization, this GCU USA review can help you decide if the company’s products deserve a place in your portfolio. 

Products Offered by GCU USA

GCU USA offers several different types of annuities. The right one for you depends on your risk tolerance and income needs. All annuities from GCU USA are customizable, with options to select riders to enhance the protections your annuity provides. 

Fixed Deferred Annuities

Fixed deferred annuities provide stability and predictability for those looking for a reliable income source. The fixed deferred annuities offered by GCU USA provide tax-deferred growth and returns at a fixed rate that cannot drop below a guaranteed minimum. 

GCU USA has several fixed deferred annuities to choose from, including:

• One Plus Four Choice: This is a five-year product intended to compete with a one-year CD. It allows you to surrender the contract penalty-free during a 30-day window after each contract anniversary. 
• Triple Advantage PLUS Deferred Annuity: This product offers a rate guaranteed for three years and also provides a competitive rate after the contract matures. During the second and third contract year, you have the option to take limited withdrawals without paying a surrender fee. 
• Flex 5 Advantage: This product is a five-year investment product. It provides a guaranteed rate for the first year and allows fee-free surrenders each contract year thereafter. It can also be used for qualified plans that come with special tax benefits.
• Flex 8: This is an eight-year investment product that pays the highest interest rate of any GCU USA product as of the end of January 2025. The interest rate is guaranteed in year one and can respond to increasing market rates in subsequent years. Each contract year, you can make some withdrawals without paying a surrender fee. 

Fixed Index Annuities

Fixed index annuities offer exposure to the market but with protections against losses. You’ll earn a guaranteed minimum rate and your ROI can increase up to a set limit based on upward movement of a financial index such as the S&P 500. 

GCU USA provides two fixed index annuity products: the GCU Aquila X and the GCU Aquila V.

With both products, you’ll have a fixed rate guaranteed for the first year. After that, the rate will be declared at the beginning of each contract year, with a guaranteed minimum of 1.0%. The value of the annuity can grow through indexed returns, and the performance of the annuity is linked to the Barclays Zorya 5% index and Barclays US Tech 12% index.

Income Annuities

GCU USA offers a single premium immediate annuity (SPIA) called Option B, designed to provide a reliable income stream. Payments are made on a set schedule and consist of both interest and principal. You can choose to receive fixed payments for a period of five to 20 years or opt for guaranteed lifetime income.

Features and Benefits

Like most annuity products, GCU USA’s annuities provide significant advantages for investors including tax-deferred growth as well as the ability to earn a guaranteed minimum rate of return. Virtually all annuity providers offer these features.

There are, however, also some benefits specific to GCU USA that are worth considering when deciding whether to buy fixed-deferred annuities, fixed index annuities or annuities for income from the fraternal benefits organization.  

Here are some of the biggest advantages:

• Fixed deferred annuities are available with unprecedented flexibility, including a choice of terms and the opportunity to surrender after a year without surrender charges
• Low minimum initial deposit of just $300 for many annuity products
• Long-term care and critical illness waivers are available with many products, including Flex 5 Advantage

Fees and Charges

Like most annuity providers, GCU USA charges certain fees, including surrender charges, if you decide to withdraw funds early.

Surrender charges vary by product, but the charges on some GCU USA products are higher than some competitors, For example, Flex 5 Advantage has a surrender charge that starts at 9%, then goes down to 7%, 5%, 3% and 1% over time.  Some other providers start surrender charges at 6% or 7%.

Financial Stability and Reputation

GCU USA has over 50,800 members across the United States, and has $2.64 billion in assets. Its solvency rating of 109.9% puts it above the majority of competitors. The insurer has received solid ratings from the credit agency, AM Best, although AM Best did revise its outlook to negative on GCU USA in 2023.

GCU USA has an A- (excellent) rating from AM Best and an A- rating from KBRA, suggesting that GCU USA is a stable provider for purchasing an annuity.

Evaluating GCU USA Annuities

GCU USA Annuities are an excellent option for those seeking guaranteed fixed deferred annuities, consistent income payments or fixed index annuities that offer market exposure with protection against losses. As a fraternal benefit organization with strong financial strength ratings, GCU USA provides a reliable and attractive investment choice.

Editor Norah Layne contributed to this article.