What to Know About First Security Benefit’s Annuity Products
How Long Has First Security Benefit Been Around?
First Security Benefit Life Insurance and Annuity Company of New York (FSBL) is a subsidiary of Security Benefit Life Insurance Company (SBL), a well-established insurance company founded in 1892. FSBL specifically serves New York residents and follows New York’s stricter insurance regulations. Despite being a smaller player under the broader Security Benefit brand, the company benefits from over a century of industry experience through its parent organization.
Financial Ratings Matter—And Here’s How They Stack Up
Security Benefit Life Insurance Company, including its New York entity FSBL, is rated:
- A- (Excellent) by A.M. Best – indicating strong financial health and ability to meet obligations
- A- by Standard & Poor’s – suggesting stable claims-paying ability
- A by Morningstar DBRS – reflecting strong overall financial footing
These ratings matter because they reflect the insurer’s ability to meet its guarantees, especially in long-term annuity contracts. A strong financial foundation gives confidence that your retirement income or investment value won’t be at risk due to company insolvency.
What Insurance Products Does First Security Benefit Offer?
FSBL specializes in annuity products for New York residents. Their offerings include:
- Fixed Annuities – Provide predictable growth with guaranteed interest over a set term.
- fixed indexed annuities (FIAs) – Credit interest based on market index performance with downside protection.
- Variable Annuities – Allow for market-based growth through subaccounts, with both potential gains and losses.
These annuities are designed for different stages of retirement planning—from accumulation to income. The right choice depends on whether you want guaranteed growth, market participation, or flexible income solutions.
Why It’s Critical to Compare Premium Rates, Interest Rates, and Income Payouts
Not all annuities are created equal. Some offer more attractive guaranteed interest rates, while others focus on high income payouts or better participation in market gains. It’s essential to compare:
- Premium Flexibility – Single vs. flexible premiums
- Interest Rates – Fixed annuities and fixed accounts within FIAs can vary dramatically
- Income Payout Options – Some products offer higher lifetime payouts or better guarantees through income riders
Even with strong ratings, you could overpay or under-earn if you choose the wrong product. That’s why getting quotes and comparing against multiple insurers is a critical step.
Pros and Cons
Pros:
- Backed by an insurer with over 130 years of history
- Strong financial strength ratings
- Product focus on annuities tailored for retirement needs
- Access to both fixed growth and market participation strategies
Cons:
- Limited product line focused only on annuities; no life or health insurance options
- Only available to New York residents
- Past customer complaints around service responsiveness
- Some annuity products may include long surrender periods or complex fee structures
Who Needs First Security Benefit’s Annuities—and Who Doesn’t?
Who Needs It:
- New York residents looking for retirement income solutions
- Individuals nearing retirement who need guaranteed income or principal protection
- People who want access to fixed indexed annuities with downside protection but market-linked growth
Who Doesn’t Need It:
- Residents of other states, since FSBL operates only in New York
- Investors seeking aggressive market growth through direct equity exposure
- Those who want diversified insurance coverage, such as life or long-term care policies
Other Insurance That Can Strengthen Your Plan
While FSBL specializes in annuities, your overall financial security often depends on having:
- Long-Term Care Annuities – To cover potential healthcare expenses without draining your savings
- Life Insurance – To protect family and pay off final expenses
- Disability Insurance – To protect your income during working years
- Medicare Supplement Insurance – To bridge coverage gaps in retirement
Annuities work best when they are part of a full protection strategy. Each product serves a different role in preserving your wealth and securing your lifestyle.
Always Include Annuities and Income Riders in Your Planning
If your goal is guaranteed income for life, annuities with a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider offer flexible, secure income without the need to annuitize your contract. Even if the annuity doesn’t offer a GLWB, you can still annuitize it for lifetime income, though this is typically not recommended because it’s irreversible.
Final Verdict
First Security Benefit Life Insurance and Annuity Company of New York is a financially stable provider offering New York-specific annuity products backed by over 130 years of experience. They’re a strong candidate for those focused on income security and retirement growth—but only if you compare their rates and income payouts to what other insurers offer. Not doing so could mean locking into a contract that doesn’t maximize your income or growth potential.
Get Personalized Quotes Today
Compare premium rates, interest strategies, and income payouts with the help of an expert. Contact The Annuity Expert for free quotes and guidance on the best annuity or insurance strategy for your situation.
Book A Free Consultation
Get help from a licensed financial professional. This service is free of charge.
Let Us Answer Your Questions
Not quite ready for a meeting, but you have a question that needs answering? We’re happy to help. Leave an inquiry below, and one of our staff will respond via email.