Is National Western Life Insurance Company a Good Company to Buy From?
Short Answer: Yes—National Western Life Insurance Company (NWLIC) is financially stable enough for many buyers and has decades of operating history. However, its mid-range financial strength and Comdex score of 62 mean it is not among the top-tier insurers. For long-term contracts or large face amounts, you should compare it carefully with stronger competitors.
How Long They’ve Been in Business
National Western Life Insurance Company has been in business since 1956. Based in Austin, Texas, the company has served individuals and families across the United States for nearly 70 years. In 2024, they were acquired by S. USA Life Insurance Company, part of the Prosperity Life Group, marking a new chapter in its operations.
My Personal Complaint with National Western Life Annuities
I’ve personally owned a National Western fixed index annuity for about 10 years, and I can honestly say it has been the biggest piece of shit annuity I’ve seen in a long time. I’ve averaged about 2% to 3% annually using an uncapped S&P 500 monthly averaging strategy with a spread. The results have been terrible.
On top of that, National Western would dramatically change the fees and upside potential each year. Those changes typically worked against me, reducing how much interest I could potentially earn. For those reasons, I’ve personally moved money out of that annuity and into another annuity.
My recommendation is straightforward: If you want lifetime income and National Western’s guaranteed payouts are competitive, fine. That can make sense because your goal is lifetime income, not growth. But for safe accumulation, I wouldn’t touch a National Western annuity with a 10-foot pole.
Financial Ratings You Should Know
Understanding an insurer’s financial ratings is critical when evaluating its ability to pay claims and honor long-term guarantees. National Western currently holds the following ratings:
- A.M. Best: A- (Excellent), indicating a stable financial outlook but reflecting a recent downgrade from A
- S&P: A-, showing strong financial capacity but some vulnerability to economic shifts
- Comdex Score: 62, placing them in the 62nd percentile of all rated insurers, down from 71 a year ago.
These ratings are still respectable, but recent downgrades suggest you should carefully compare their stability with that of top-rated carriers before making a commitment.
What National Western Life Insurance Company Sells
Life Insurance
- Term life insurance
- Whole life insurance
- Universal life insurance
- Indexed universal life insurance (varies by state)
Annuities
Insider Tip: I personally own a National Western Ultra Classic fixed index annuity, and it has performed poorly (roughly around a 3% return). I would not recommend NWL for growth annuities, but only income annuities.)
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Why Comparing Premiums, Interest Rates, and Income Payouts Matters
Rates and payouts vary dramatically between insurers, even when the coverage looks similar on paper. Choosing a product without comparing:
- Premium Rates: You might pay more for the same coverage
- Interest Rates: Your annuity or permanent life policy could earn less over time
- Income Payouts: Your retirement income might fall short of expectations, especially if you’re relying on an income rider or guaranteed lifetime income
Always compare these figures with other insurers, especially those with stronger financial ratings, to ensure you’re not sacrificing long-term value.
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Pros and Cons
Pros
- Operating history since 1956
- A- ratings across AM Best, S&P, and KBRA
- Broad mix of life insurance and annuity products
- Known for serving international and domestic markets
Cons
- Comdex score of 62 is below average compared to top-tier carriers.
- No Moody’s or Fitch rating
- Product designs may lack competitive riders or growth features.
- Not an ideal choice for large face amounts or very long-term guarantees
Who Should Consider National Western Life Insurance?
- Individuals looking for both insurance and annuity solutions in one place
- Buyers who value a long-standing company with a mix of traditional and modern products
- Those open to working with a company recently acquired and in transition, provided they meet other selection criteria
Who Should Look Elsewhere?
- People who prioritize the highest possible financial ratings for long-term contracts
- Buyers who are concerned with customer service quality and responsiveness
- Individuals who want premium flexibility, stronger interest rates, or more competitive income riders from the top-rated companies in the market
Other Insurance and Annuity Options to Consider
If you’re focused on guaranteed income, protected growth, or tax-deferred accumulation, you should compare:
- Fixed Indexed Annuities (FIAs) with income riders from highly rated carriers
- Immediate Annuities if you’re seeking immediate lifetime income
- Permanent Life Insurance for estate planning or cash value growth, with better customer satisfaction ratings
Get Expert Help
If you’re evaluating whether National Western is the right fit—or if there’s a better option available—contact The Annuity Expert for free quotes. We’ll help you compare premium rates, interest rates, and income payouts to ensure you don’t overpay or lock into an underperforming contract.
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