Is Security Benefit Life Insurance Company a Good Company to Buy From?
Short Answer: Yes—Security Benefit Life is financially solid with A-level ratings and a long operating history. However, its mid-tier Comdex score, lack of full rating transparency, and its history in the 2010s of overriding annuity contract terms and underdelivering on inflated return illustrations mean buyers should be extremely careful. Strong ratings alone do not guarantee that the product is good or that the company’s practices will always align with consumers’ best interests.
Financial Strength and Company Stability
Security Benefit holds respectable ratings from major credit rating agencies:
- A- from AM Best
- A- from Fitch
- A- from Standard & Poor’s
- A from DBRS Morningstar
These ratings indicate that the company is financially stable and able to meet its contractual obligations. However, it is not among the elite group of insurers with A+ or higher ratings. For clients who prioritize only the highest financial strength, especially when committing six or seven figures to a product, Security Benefit does not lead the pack.
Products Offered by Security Benefit
Security Benefit is not a full-spectrum insurer. Its focus is on retirement-focused annuities:
- Fixed Indexed Annuities (FIAs): Examples include Secure Income Annuity and Total Value Annuity. These allow for growth tied to an index (such as the S&P 500), with no risk of market loss to the principal. Some include optional riders for lifetime income.
- Variable Annuities: These offer subaccounts that function like mutual funds. They come with market risk and are better suited to individuals with higher risk tolerance.
- Traditional Fixed Annuities: These offer a declared interest rate for a set period, often used for safe accumulation over short terms.
Security Benefit does not offer life insurance, health insurance, long-term care insurance, or disability coverage. This narrow scope may work for some but leaves others needing to look elsewhere for comprehensive financial protection.
Our Security Benefit Annuity Reviews
- Security Benefit Advanced Choice Annuity
- Security Benefit Blueprint Annuity
- Security Benefit ClearLine Annuity
- Security Benefit Foundations Annuity
- Security Benefit RateTrack Annuity
- Security Benefit Total Interest Annuity
Compare Security Benefit Annuity Income With 25+ Other Companies
Pros of Security Benefit
- Over 130 years in business, indicating institutional longevity.
- Solid A-range financial strength ratings, meaning your annuity benefits are secure.
- A focused lineup of annuities designed for conservative investors and retirees.
- Lifetime income riders with guaranteed withdrawal benefits available.
Cons of Security Benefit
- Customer Service Problems: Numerous consumer reviews report long wait times, unresponsive support, and delayed service on withdrawals and policy changes.
- Delayed Payouts: Complaints indicate that annuity withdrawal processing can be slow, particularly during the surrender period or for beneficiaries following a policyholder’s death.
- Lack of Transparency: Disclosures about crediting strategies, fees, and rider costs are sometimes buried in fine print. Clients may not fully understand what they’re buying.
- High Fees on Riders: Optional GLWB (guaranteed lifetime withdrawal benefit) riders can carry high fees relative to similar offerings from competitors—reducing net returns.
- Limited Product Scope: No life insurance, health, or long-term care solutions. Clients need to piece together a financial plan using multiple companies.
- Not the Best for Rollover IRAs: While their annuities accept IRA and Roth IRA rollovers, they may not offer the best income benefits for the same premium compared to competitors.
- Low Return Potential in Some Indexed Options: Some annuities cap returns or limit participation in index growth, which can significantly underperform compared to other carriers with higher caps, participation rates, or better index options.
Who Should Consider Security Benefit?
Best for:
- Individuals approaching retirement who want protected growth with lifetime income options.
- Conservative investors looking to avoid market volatility while still earning more than a CD.
- Educators and nonprofit employees with 403(b) rollovers, which Security Benefit has historically specialized in.
Who Should Look Elsewhere:
- People looking for term or permanent life insurance to protect family income or build legacy.
- Those needing long-term care coverage or critical illness protection as part of a retirement plan.
- High-income earners seeking more tax-efficient or flexible products.
- Individuals with larger retirement portfolios seeking higher-income guarantees from premium carriers with better payout rates or stronger rider features.
- Anyone who places a premium on service quality, responsiveness, and client experience.
Other Coverage You May Need
Because Security Benefit only sells annuities, you may need additional types of insurance to round out your financial plan:
- Term Life Insurance: For income replacement and debt protection during working years.
- Permanent Life Insurance (Whole or Indexed Universal Life): For cash value accumulation and legacy planning.
- Long-Term Care Insurance: To protect your retirement savings from the high cost of nursing home or in-home care.
- Disability Insurance: Especially important before retirement to protect income if you’re unable to work.
An annuity alone won’t protect your family, pay for extended care, or replace lost wages. Pairing the right insurance alongside an annuity strategy creates a much more resilient plan.
Retirement Funding Sources for Security Benefit Annuities
Security Benefit annuities can be funded by:
- Non-qualified cash (after-tax savings)
- 401(k) rollovers
- 403(b) rollovers
- Traditional IRA and Roth IRA rollovers
- SEP or SIMPLE IRA transfers
- Inherited IRAs (for certain products)
But not all products are available for all account types. It’s crucial to work with a licensed expert who can ensure suitability and tax compliance.
Bottom Line
Security Benefit is a financially sound insurer with a long track record in retirement-focused annuities. But it’s far from a one-size-fits-all solution. While their fixed indexed and variable annuities offer useful options for income planning, there are serious trade-offs in customer service quality, product transparency, and pricing. Their lifetime income riders can be useful—but may be more expensive and less competitive than alternatives offered by higher-rated insurers.
Before committing your retirement savings, make sure you’re comparing all available options for interest crediting strategies, rider costs, payout rates, and flexibility.
Contact The Annuity Expert to get personalized annuity and insurance quotes. We’ll compare Security Benefit side-by-side with other carriers to find the best product for your income, protection, and retirement goals—so you don’t make an expensive mistake.
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