The Ohio State Life Insurance Company: A Comprehensive Review
The Ohio State Life Insurance Company, founded in 1906, has over a century of experience in the insurance business. It currently operates as a subsidiary of NexAnnuity and focuses primarily on annuity contracts designed to help retirees and pre-retirees grow and protect their savings. While its longevity in the industry and specialized product focus are notable, its lower financial ratings and narrow scope present potential risks to policyholders who value long-term security and diversification.
Financial Ratings and Stability
A.M. Best Rating: B+ (Good)
- This rating indicates that the company is capable of meeting its insurance obligations but does not offer the level of financial strength seen in companies rated “A” or higher.
- A B+ rating places it in the lower tier of insurance carriers, which can be a concern during prolonged economic downturns or periods of market instability.
Weiss Safety Profile
- Profitability: Weak, with a score of 1.7 out of 10. This suggests the company has ongoing challenges generating sustainable profit.
- Return on Equity: Negative, averaging -23.6%, which implies operational inefficiency and questionable long-term growth potential.
- Bond Portfolio Risk: Over 54% of capital is invested in junk-rated bonds. This increases risk exposure and lowers investor confidence in the company’s asset base.
Products Offered
Ohio State Life specializes in multi-year guaranteed annuities (MYGAs). These are fixed annuity contracts that guarantee an interest rate for a specific period, usually between 3 and 7 years. The company does not prominently offer term life, whole life, or indexed universal life (IUL), which significantly limits its reach for consumers who need diverse insurance solutions.
Key Product: MYGAs
- Fixed interest rates for a set number of years
- Capital preservation focus
- Competitive short-term rates for conservative savers
No known offerings of:
- Permanent life insurance (Whole Life, IUL)
- Term life insurance
- Indexed annuities with lifetime income riders
- Hybrid long-term care annuities or life + LTC combos
Annuity Reviews
Why Comparing Premiums, Rates, and Income Options Is Crucial
When you’re shopping for an annuity or insurance product, you should always compare:
- Premium requirements (single vs. flexible)
- Guaranteed and declared interest rates
- Income payout options (lifetime income riders vs. annuitization)
- Surrender charge schedules and free withdrawal allowances
- Tax implications depending on qualified vs. non-qualified funding
Not doing so could result in lower interest earnings, limited liquidity, or locked-in products that don’t match your evolving financial goals.
Compare Annuity Income From Ohio State Life vs 25+ Companies
Pros and Cons of Choosing Ohio State Life
✅ Pros
- Over 100 years in business: Indicates long-standing operational experience in the insurance industry.
- Competitive MYGA rates: Strong short-term fixed rate offerings, ideal for conservative investors who want capital protection.
- Backed by NexAnnuity: Affiliation with a retirement-focused investment platform provides access to capital and scale in the annuity market.
- Simple product structure: Easy to understand offerings with limited complexity, reducing the chance of consumer confusion.
❌ Cons
- Low financial strength rating (B+): Many other carriers offer A or A+ ratings, suggesting better long-term safety and claims-paying ability.
- No income riders on MYGAs: These annuities don’t offer Guaranteed Lifetime Withdrawal Benefits (GLWBs), which limits income planning flexibility.
- High junk bond exposure: Over half the capital is invested in low-rated bonds, increasing risk to policyholders in times of economic stress.
- Very limited product range: No term life, whole life, IUL, or LTC options. Consumers must look elsewhere for comprehensive financial protection.
- No robust online tools or consumer education resources: Limited transparency and educational material available directly from the company.
- Weak profitability and negative returns on equity: Raises concerns about long-term financial health and operational sustainability.
- No hybrid annuity and long-term care options: Consumers concerned about long-term care costs will find no bundled solution here.
Who Should Consider Ohio State Life?
Good Fit For:
- Individuals near or in retirement seeking fixed, short-term growth with no market risk
- Those who want to lock in competitive guaranteed interest rates without concern for future income flexibility
- Conservative investors funding non-qualified annuities to protect principal
Not a Good Fit For:
- Consumers seeking strong financial ratings for long-term peace of mind
- Those who want robust income solutions through GLWB riders or flexible indexed annuity strategies
- Anyone looking for a one-stop shop for life insurance, income protection, and long-term care planning
- Younger individuals needing low-cost term or permanent life insurance options
What Other Insurance or Annuities Might Be Needed?
- Long-Term Care Insurance: Even the best MYGA won’t cover the $100K+ annual cost of nursing homes. A standalone LTC policy or hybrid life and long-term care product helps protect assets and avoid Medicaid spend-down.
- Fixed Indexed Annuity with GLWB Rider: If lifetime income is the priority, consider an FIA with a Guaranteed Lifetime Withdrawal Benefit. Unlike Ohio State Life’s MYGAs, these offer income that lasts as long as you do—even after the account value runs out.
- Permanent Life Insurance: Whole life or IUL policies provide cash value growth, estate planning benefits, and long-term death benefit protection. Ohio State Life does not offer this type of coverage.
- Term Life Insurance: For temporary needs such as income replacement or mortgage protection, term life offers low-cost, high-coverage protection not available from Ohio State Life.
How Can You Fund These Annuities?
Annuities from Ohio State Life can be funded through:
- Qualified accounts: Traditional IRAs, Roth IRAs, SEP IRAs, and 401(k) rollovers
- Non-qualified funds: Personal savings, CDs, brokerage accounts
Just keep in mind that non-qualified funds will grow tax-deferred, while qualified funds already have tax advantages. Always plan around how Required Minimum Distributions (RMDs) and annuity withdrawal rules may affect you.
Final Thoughts
Ohio State Life is a narrowly focused insurer offering competitive MYGAs but not much else. Its lower financial strength rating and high-risk investment strategy may not appeal to those who demand safety and broad product access. It’s best for short-term savers with simple goals, not long-term planners needing guaranteed lifetime income, flexible growth, or full-spectrum insurance protection. For a tailored insurance strategy and to compare top-rated companies with stronger financials, contact The Annuity Expert for free quotes and product recommendations.
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.