Is American Life & Security Corp. a Good Company to Buy From?
Short Answer: This company is usable for certain shorter-term annuity contracts, but it is not a top choice for long-term guarantees or large face-amount life insurance. Its rating profile shows limited strength compared to that of strong legacy life insurers, so be cautious and compare product details carefully before buying.
Our Professional Opinion on American Life
American Life is an OK company for a short-term annuity, but we would not choose it for a commitment of five years or longer. American Life & Security Corp. has a B++ (Good) AM Best rating. We are comfortable considering B++ insurers for terms shorter than five years; for longer commitments, we prefer an A− or better-rated company.
Some of its products have features we like, including fixed-rate guarantees and upfront bonuses. But not every bonus works the same way. Some credits are conditional and are not paid until the end of the term. Taking withdrawals can cause you to lose them, even when the withdrawal itself is free of surrender charges.
We also dislike the first-year access restrictions on some contracts. An RMD can be subject to charges, and some indexed annuities have lengthy surrender periods or provisions that can take back credited growth when you exit early.
What We Like
- A short-term choice: The three-year fixed annuity is worth comparing when its rate and features are competitive.
- Real upfront bonuses: Certain indexed versions add a premium bonus to the account, allowing the larger balance to earn interest.
- Traditional index options: Some products offer S&P 500 strategies.
What We Don’t Like
- The rating limits our longer-term recommendations: We prefer an A− or better-rated insurer for commitments of five years or longer.
- Some bonuses have strings attached: A credit may depend on market performance, keeping the contract through the term, or avoiding withdrawals.
- First-year access can be restrictive: Some contracts may charge for a first-year RMD.
- Early exits can be expensive: Depending on the product, surrender charges, market value adjustments, or recovery provisions can reduce what you receive.
Explore our individual American Life annuity reviews using the links below to see which products we would consider and which ones we would pass on.
Company Overview
American Life & Security Corp. was founded in 1960 and has operated for over six decades. It is a life insurance company headquartered in Lincoln, Nebraska, and is a subsidiary of Midwest Holding Inc., which was acquired by Antarctica Capital in 2023. The company underwent a major transformation in 2018, shifting toward a technology-enabled platform focused on efficiency and modernized annuity products.
Despite their rebranding and innovation efforts, American Life & Security Corp. currently holds a B++ (Good) rating from AM Best—but with a negative outlook, signaling potential financial concerns. In contrast, Weiss Ratings gives the company a D (Weak) rating. These scores reflect concerns about capital adequacy and investment portfolio strength, both of which should be top priorities when evaluating where to place long-term, protected assets like annuities.
- Founded: 1960
- A.M. Best Financial Strength Rating: B++ (Good)
- Long-Term Issuer Credit Rating: “bbb” (Good)
- Weiss Safety Rating: D+ (Weak)
- Comdex Score: Not publicly ranked
Why Company Stability Matters
When you purchase an annuity or life insurance contract, you depend on the insurer to:
- Honor promised interest rates or death benefits over many years
- Manage reserves, claims, liquidity, and contracts through different economic cycles.
Because American Life & Security has fewer publicly available strength indicators and a weaker Weiss rating, it’s riskier when the contract term is long or the benefit amount is large.
Why Strong Ratings Don’t Automatically Mean Good Products
Even if a company has a decent rating, you still must check:
- The contract’s surrender schedule and liquidity restrictions
- Crediting strategies (for annuities) or rider features (for life insurance)
How the product behaves in low-interest environments or rising-rate settings
Given this company’s weaker overall transparency, you must double-check the product design, as the margin of safety is thinner.
What Products Does American Life & Security Offer?
- Fixed Deferred Annuities – These pay a set interest rate over time. Ideal for conservative investors wanting guaranteed interest.
- Fixed Indexed Annuities (FIAs) – These offer growth linked to the performance of market indexes like the S&P 500 ESG and Goldman Sachs Xenith. They come with downside protection and a cap or participation rate on gains.
- Multi-Year Guaranteed Annuities (MYGAs) – These offer a fixed interest rate for a specific period, often 3 to 10 years, and are ideal for laddering income or deferring withdrawals to avoid market timing risk.
These annuities can be funded using various accounts:
- Non-qualified savings
- Traditional IRAs
- Roth IRAs
- 401(k) or 403(b) rollovers
Compare American Life Annuity Income With 25+ Other Companies
Why Comparing Interest Rates and Income Payouts Is Critical
When choosing an annuity, it’s not enough to focus on the company’s branding or tech upgrades. The most important factors are the guaranteed interest rates, income payout rates, and overall financial strength. Even a slightly higher interest rate or payout factor from another insurer could lead to thousands more in long-term income.
American Life & Security Corp. may offer niche index strategies, but other insurers with stronger financial ratings often offer:
- Higher caps or participation rates on indexed annuities
- More competitive MYGA rates
- Income riders with higher guaranteed lifetime withdrawal benefits (GLWBs)
Annuity products are long-term commitments. If a company’s financial rating is weak, the risk of future reduced benefits or delayed claims increases. That’s why interest and income comparisons should always include the insurer’s long-term stability and ability to deliver on guarantees.
Compare American Life & Security Corp Annuity Rates
Pros and Cons of Choosing American Life & Security Corp.
Pros
- Over 60 years in business
- Technology-forward platform
- Access to exclusive index options (e.g., Goldman Sachs Xenith, S&P ESG)
- Offers common annuity types, including MYGAs and FIAs
Cons
- B++ rating from AM Best with a negative outlook, indicating financial instability risk
- Weiss gives it a D (Weak) rating, among the lowest in the industry
- No GLWB income rider available on most products
- Limited track record under its current tech-focused model
Who Should Consider This Company?
Who Needs It and Why
- People who prioritize unique index options over traditional market performance
- Individuals with short-term savings goals who don’t rely on long-term income guarantees
- Those willing to accept lower financial ratings for slightly more niche features
Who Doesn’t Need It and Why
- Retirees or pre-retirees who depend on annuity income for essential living expenses
- Individuals seeking GLWB income protection or high fixed interest rates
- Anyone concerned with long-term claims-paying ability or stability
American Life Annuity Reviews
- American Life Classic MYGA
- American Life American Fusion
- American Life MaxGrowth10
- American Life American Select Series
Other Insurance That May Help
If you’re exploring annuities but worried about long-term care or health expenses, consider pairing a fixed indexed annuity with a long-term care annuity (a fixed annuity with built-in LTC benefits). You may also want a term or whole life insurance policy to protect heirs from investment losses and provide a guaranteed death benefit. For income planning, prioritize annuities that include GLWB riders over annuitization, which is irreversible.
How to Evaluate American Life & Security Corp. Before Buying
- Compare its rates and contract terms with those of other A-rated or higher carriers.
- Carefully review surrender periods, withdrawal options, and bonus or crediting conditions for annuities.
- Check how long you plan to hold the contract, and whether the issuer’s strength aligns with that horizon.
- For life insurance, verify face amount limits, rider availability, and underwriting classes.
- Work with an independent broker to compare multiple carriers side-by-side.
Always Compare Before Buying
Even when choosing a carrier with a decent rating, you must evaluate:
- The contract’s features and cost
- Liquidity and surrender restrictions
- How the product fits your timeline and goals
- Issuer ratings and strength in relation to your holding period
Because stronger alternatives are widely available, you should assess whether the slightly higher risk with this company is worth any additional yield or product feature.
Final Thoughts
While American Life & Security Corp. has been in business for decades and offers modern annuity products, its current financial strength ratings raise concerns. The lack of a strong guaranteed-income rider, paired with financial uncertainty, limits its appeal to those seeking long-term reliability and high guaranteed income. Always compare annuity rates, income features, and insurer ratings across the board before making a decision.
Contact The Annuity Expert for free quotes and help comparing interest rates, income payouts, and insurer ratings so you can make the best decision for your financial future.
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