Is The Standard Insurance Company a Good Company To Buy From?
Short Answer: Yes—The Standard Insurance Company (often referred to as “The Standard”) is financially strong, well-established, and suitable for long-term life insurance or annuity contracts. However, even a strong company can offer products that aren’t the best fit for every consumer, so comparing features and pricing is essential.
Company Overview
The Standard Insurance Company, officially Standard Insurance Company and part of StanCorp Financial Group, has been in business since 1906. With over 100 years of experience in the insurance and financial services industry, the company is well-established and operates nationwide. Its longevity and conservative financial management have earned it strong financial ratings:
- A (Excellent) from A.M. Best
- A+ (Strong) from Standard & Poor’s
- A1 (Good) from Moody’s
These ratings reflect a solid ability to meet long-term obligations, making The Standard a financially stable option for policyholders.
Products Offered by The Standard
- Life Insurance – The Standard primarily offers group life insurance through employer-sponsored plans. It also provides individual life insurance, although it’s not their primary focus. Term life and basic permanent life insurance are available but may lack the depth and flexibility of products offered by life insurance specialists.
- Disability Insurance – Their individual and group disability insurance offerings are highly regarded, especially among professionals such as dentists, physicians, and executives. Coverage includes short-term and long-term disability insurance with optional riders.
- Annuities
- Fixed Annuities – Provide a guaranteed interest rate over a set term.
- Fixed Indexed Annuities (FIAs) – Earn interest based on the performance of an underlying index (like the S&P 500), with principal protection.
- Immediate Annuities – Offer guaranteed income starting right away.
- Retirement Plans – Offers a range of qualified retirement plan services such as 401(k), 403(b), and pension plan administration. These are often offered in the group benefits space for small and mid-sized employers.
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The Standard Annuity Reviews
Why Comparing Premium Rates, Interest Rates, and Income Payouts Matters
Choosing an insurance or annuity product without comparing your options is like locking in a mortgage without shopping for rates. With annuities and life insurance, the smallest differences in:
- Premium rates affect how much you’ll pay monthly or annually.
- Fixed interest rates affect how much your money earns inside the contract.
- Income payout percentages (especially for GLWB riders) determine how much guaranteed income you’ll receive, and for how long.
Every insurance company uses its own pricing models and actuarial assumptions, so the only way to find the best deal is to compare side-by-side. Don’t just look at the base product—evaluate rider costs, surrender penalties, liquidity features, and the quality of index options.
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Pros of Choosing The Standard
- Longevity and Stability: Over a century of financial stewardship and client service.
- Strong Financial Ratings: Reliable claims-paying ability.
- Respected Disability Insurance: Especially for professionals and employer groups.
- Range of Annuities: Offers both fixed and indexed options with lifetime income features.
Cons of Choosing The Standard
- Limited Online Tools: Compared to other insurers, The Standard lags in online policy management, quote tools, and mobile capabilities.
- Customer Service Complaints: Reports of slow claim processing, lack of responsiveness, and difficulty resolving billing and policy issues are not uncommon.
- Narrow Life Insurance Options: The Standard focuses more on group benefits than on innovative or customizable individual life insurance products.
- Lower Cap Rates on Indexed Annuities: Their FIAs may offer lower participation rates or caps than competitors, reducing growth potential.
- Conservative Product Design: While stable, their products may lack modern features such as enhanced liquidity riders, hybrid long-term care, or multi-asset indexing options.
- High Rider Fees on Annuities: Some annuity income riders come with costs that can erode growth over time if not used properly.
Who Needs The Standard
You may benefit from The Standard if you:
- Are a professional looking for strong disability coverage with optional benefits.
- Work for an employer that offers The Standard’s group life and retirement packages.
- Want a fixed or indexed annuity from a financially stable company.
- Prefer conservative growth and income guarantees over higher-risk investment options.
Who Might Want to Consider Other Options
- Individuals looking for cutting-edge or customizable life insurance policies, such as indexed universal life (IUL) or whole life with dividend performance.
- Those needing fast claims processing or responsive, tech-enabled customer service.
- Consumers seeking maximum growth potential from annuities may find better participation rates or bonus structures elsewhere.
- Buyers interested in hybrid policies with long-term care or enhanced death benefits may find The Standard’s offerings too limited.
- People seeking non-qualified stretch options or flexible withdrawal features in annuities may want to consider competitors.
Additional Insurance That Can Help
- Long-Term Care Insurance: Even if your annuity or disability insurance provides income, it likely won’t cover the costs of full-time care. Consider standalone LTC coverage or hybrid life insurance with LTC benefits.
- Critical Illness Insurance: This can help bridge the gap between health insurance and lost income if you’re diagnosed with cancer, stroke, or other major illnesses.
- Deferred Income Annuities (DIAs): Suitable for those who want to delay income for 5+ years, offering potentially higher payouts than immediate annuities or GLWB riders.
- Supplemental Term Life: Consider layering coverage with low-cost term insurance from other carriers if The Standard’s group life isn’t enough.
How You Can Fund Annuities from The Standard
Annuities can be purchased using:
- Qualified accounts like IRAs, Roth IRAs, 401(k), or 403(b) rollovers.
- Non-qualified funds, such as savings, brokerage assets, or inheritances.
You can use a lump sum or structured deposits over time, depending on the contract. However, income guarantees and growth options will vary depending on funding source and type of annuity selected.
Final Verdict
The Standard is a financially solid company with a century-long track record. Its disability insurance and group benefits are highly competitive. However, it falls short in areas like technological innovation, customer service responsiveness, and advanced product design. Its annuity offerings are conservative, which may appeal to risk-averse retirees—but they often come with lower growth caps and higher rider fees than competitors.
Before buying, compare premium rates, payout structures, and interest crediting options across multiple insurers. The Standard may be a strong contender, but it’s rarely the best fit for everyone.
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