Is GBU Life Insurance Company a Good Company to Buy From?
Short Answer: Yes—GBU Life is generally a solid insurer with an A- financial strength rating and more than 130 years of operating history. It is dependable, but because it is a smaller fraternal organization with fewer product options and less transparency into ratings than major national carriers, you should always compare product terms, rider options, and contract durations before buying.
How Long Has GBU Life Been Around?
GBU Life, also known as GBU Financial Life, has been serving policyholders since 1892. As a fraternal benefit society, it operates with a not-for-profit mission, putting its members’ financial well-being before shareholders’ returns. With over 130 years of experience, it has built a reputation around financial conservatism and member-focused service.
What Are GBU Life’s Financial Ratings?
GBU Life is rated A- (Excellent) by AM Best, which indicates strong financial strength and a secure claims-paying ability. Their solvency ratio exceeds 100%, with assets more than sufficient to cover policyholder obligations. With billions in assets and a solid surplus, the company demonstrates long-term stability and prudent financial management.
Our Professional Opinion on GBU Annuities
GBU is an OK annuity company, but there is an important catch we would not overlook. GBU Financial Life has an A− (Excellent) financial strength rating from AM Best, which meets our minimum for an annuity company. But GBU is a fraternal benefit society, and its contracts generally are not covered by state life and health insurance guaranty associations.
That matters. Many people compare annuity companies assuming state guaranty association protection will be available if an insurer fails. We would not make that assumption with GBU. Depending on the contract and state law, a certificate holder may also be assessed a share of a reserve impairment. Before buying, confirm how these rules apply to your contract.
Some of GBU’s products have features we like. Its fixed indexed annuities offer choices for people who want protected growth, and some contracts let you lock participation rates for multiple years. But a large participation rate does not tell the whole story. Look at the index, any optional fees, and what happens when the contract renews.
We would also pay close attention to the fixed annuities. Some guarantee the starting rate for only one year even though surrender charges can last much longer. Others can renew into another surrender period if you miss the window to make a change. That stinks if you thought your rate was locked or your money would automatically be free to move.
Before choosing GBU, we would compare the actual rate or guaranteed income, access to your money, and the company’s protections with other insurers. Contact The Annuity Expert for a free comparison, and find links to our individual GBU annuity reviews below.
Our GBU Annuity Reviews
- GBU Asset Guard Fixed Index Annuity
- GBU Asset Guard Immediate Annuity
- Asset Guard MYGA
- GBU Future Flex Classic
- GBU Future Flex
- Future Flex Preferred
What Insurance and Annuity Products Do They Offer?
GBU Life offers a suite of insurance and annuity solutions geared toward conservative investors and long-term planners:
Life Insurance
- Select Choice Term Life: Temporary coverage at a lower premium for a set number of years.
- Secure Whole Life: Lifetime protection with level premiums and cash value accumulation.
Compare Life Insurance Quotes
Annuities
- Flexible Premium Deferred Annuities: Build value over time with the option to contribute as you go.
- Multi-Year Guaranteed Annuities (MYGAs): Lock in a fixed interest rate for a guaranteed term.
- Immediate Annuities: Start receiving income payments shortly after making a lump-sum investment.
- Fixed Index Annuities: Grow your investment based on market index performance while protecting against losses.
These products appeal to individuals looking for safe, predictable growth and guaranteed income options.
Compare Annuity Income
Why Comparing Premium Rates, Interest Rates, and Income Payouts Matters
Not all insurance and annuity contracts are created equal. Even among top-rated companies, there can be significant differences in:
- Premium costs for the same coverage
- Interest crediting rates on annuities
- Guaranteed income payout options over time
Comparing these variables is essential to avoid overpaying or locking into underperforming contracts. GBU Life often competes on strong crediting rates and payout structures, but each situation requires a custom comparison.
Pros and Cons of Choosing GBU Life
Pros
- Over 130 years in business with a strong financial foundation
- Member-owned structure focused on value, not profits
- Competitive fixed interest and payout rates on annuities
- Simplified product lineup with a focus on financial security
Cons
- Not available in all 50 states, limiting access for some
- No variable annuity options, which may reduce growth potential for aggressive investors
- As a fraternal company, certain features may be more limited compared to large national carriers
Who Should Consider GBU Life
GBU Life may be a good fit for:
- Pre-retirees and retirees looking for lifetime income with fixed or indexed growth
- Individuals who want to avoid market risk while building savings
- Buyers who value member-focused benefits and fraternal organization values
- High-net-worth individuals seeking strong fixed annuity rates
Who Should Look Elsewhere
It may not be a match for:
- Residents in states where GBU Life does not operate
- Investors seeking high-growth variable annuities with market exposure
- Those looking for the widest variety of insurance riders and advanced customization options
Additional Protection You Might Need
If you’re considering GBU Life’s annuities for retirement income, don’t overlook:
- Long-term care annuities: This protects your retirement income if extended care becomes necessary.
- Disability income insurance: Essential for income protection during your working years.
- Life insurance with living benefits: Useful for chronic illness and legacy planning.
Annuities can be funded using non-qualified cash, traditional IRAs, Roth IRAs, and rollovers from qualified retirement accounts. The flexibility of funding sources makes them a key pillar in income planning—if chosen wisely.
Final Thoughts
GBU Life is a stable and historically conservative insurer offering quality annuities and life insurance for risk-averse consumers. But just like any insurance company, it’s crucial to compare product details side-by-side—including premium costs, credited interest, and payout options—before you commit.
Contact The Annuity Expert for free quotes and a personalized comparison to help you find the right fit.
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