Our Professional Opinion on Clear Spring Annuities
We would use caution before buying a Clear Spring annuity. Clear Spring Life and Annuity Company has an A− (Excellent) financial strength rating from AM Best, which meets our minimum. But the company’s negative outlook gives us pause, especially when you may be relying on an annuity for income decades from now.
In July 2026, AM Best changed Clear Spring’s outlook from positive to negative while affirming its A− rating. As explained in Clear Spring’s update on its affiliated investments, a significant portion of those investments had to be reclassified from unaffiliated to affiliated. AM Best cited the reclassification, reduced risk-adjusted capital, and concerns about financial reporting controls. This was an outlook change, not a rating downgrade, but it is enough for us to take a closer look at the company behind the promise.
Clear Spring offers some annuity features we like, including account bonuses and guaranteed income options. But an attractive bonus or paycheck does not erase our concerns about the insurance company. Before committing your money, we would compare the actual benefits with annuities from other financially strong insurers.
If you already own a Clear Spring annuity, do not rush to surrender it. Check the surrender charges, benefits you would give up, and available alternatives first. Contact The Annuity Expert for a free, no-obligation comparison.
Find links to our individual Clear Spring annuity reviews below.
Company Background
Clear Spring Insurance is part of Group 1001, a privately held financial services organization managing over $67 billion in assets. While some Clear Spring entities provide competitive annuity and life insurance solutions, others—particularly in the health segment—have experienced customer service problems and regulatory sanctions. If you’re considering Clear Spring for your retirement income or insurance planning, this guide lays out the facts without sugar-coating anything.
Clear Spring Life and Annuity Company has been around since 1985. The broader Clear Spring brand also includes Clear Spring Property and Casualty Company and Clear Spring Health. These companies operate under Group 1001, which also owns other insurance carriers. Clear Spring Life carries an A- (Excellent) rating from AM Best, signaling a strong ability to meet ongoing insurance obligations. However, not all Clear Spring entities share the same level of reliability or customer satisfaction.
In the News
Products Offered by Clear Spring
- Fixed and Indexed Annuities
- How it works: You invest a lump sum or make periodic contributions, and the contract earns interest based on a fixed rate or market index, with no exposure to market losses.
- Who it’s for: People who want to protect their retirement savings and receive a guaranteed income later in life.
- Who it’s not for: People looking for aggressive growth or those who need full liquidity in the short term.
- Funding sources: Annuities can be funded with qualified accounts (like IRAs and 401(k) rollovers) or non-qualified funds.
- Helpful Resource: Compare Clear Spring fixed rates and income payouts with other annuity companies
- Life Insurance
- How it works: Pay premiums in exchange for a death benefit and, in some cases, cash value accumulation.
- Who it’s for: Individuals needing estate protection or supplemental tax-deferred savings.
- Who it’s not for: Those needing flexible, short-term coverage or low-cost term options.
- Property and Casualty Insurance
- Who it’s for: Small- to mid-sized businesses.
- Who it’s not for: Individuals looking for personal home or auto insurance.
- Medicare Advantage and Part D Plans
- Who it’s for: Medicare beneficiaries, although caution is strongly advised.
- Who it’s not for: Anyone wanting stable, complaint-free health insurance.
Compare Clear Spring Life Insurance With 25+ Companies
Why Comparing Premiums, Rates, and Payouts Matters
Before committing to Clear Spring—or any company—it’s critical to compare:
- Premium Rates: A lower premium doesn’t always mean better value. Evaluate the cost vs. benefit.
- Interest Rates: Fixed and indexed annuities vary widely in how interest is credited. Compare declared rates, participation rates, and caps.
- Income Payouts: Not all annuities provide equal income. Check guaranteed lifetime withdrawal benefit (GLWB) projections and payout factors.
Without comparing these key factors, you risk locking into a product with lower performance, fewer liquidity features, or smaller long-term income potential.
Compare Clear Spring Annuity Income
Pros and Cons of Choosing Clear Spring
- Pros:
- Over 35 years in business (since 1985).
- A- AM Best rating for financial stability (Clear Spring Life).
- Competitive annuity product lineup with tax deferral and market protection.
- Cons:
- Medicare division (Clear Spring Health) has serious regulatory and customer service issues.
- No BBB accreditation for Clear Spring Property and Casualty.
- Limited consumer transparency and few publicly available reviews.
Other Insurance That May Improve Your Plan
- Long-Term Care Annuities: These are fixed annuities with enhanced withdrawal benefits for qualified long-term care expenses. They may be a better alternative to unreliable health insurance.
- Income Annuities with GLWB Riders: If you’re focused on lifetime retirement income, an annuity with a GLWB rider ensures predictable income for life, growing the income base annually if you delay withdrawals.
- Term Life Insurance: For those still accumulating wealth, a cheap term life policy can protect your estate while you let your annuities grow.
Clear Spring Annuity Review
- Clear Spring Preserve MYGA
- Clear Spring ClearFlex
- Clear Spring Highlander
- Clear Spring Provider SPIA
- Clear Spring ViStar
Should You Consider Clear Spring?
You Might Consider It If:
- You’re focused on guaranteed income from annuities or permanent life insurance.
- You’re working with a broker comparing interest rates, participation rates, and income projections across multiple insurers.
You Should Avoid It If:
- You’re looking for Medicare Advantage plans—Clear Spring Health has had major performance and customer service failures.
- You want a provider with strong consumer-facing transparency and service reviews.
Get Help Comparing the Best Annuities and Life Insurance Options
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