Company Overview
Western & Southern Financial Group has been in business since 1888. With over 135 years of operating history, the company is one of the few mutual holding companies still independently owned in the United States. Its long tenure is backed by very strong financial ratings:
- A.M. Best: A+ (Superior)
- Standard & Poor’s: AA
- Fitch: AA
- Moody’s: Aa3
- Comdex Score: 96 out of 100
These ratings reflect a very strong ability to meet long-term insurance and annuity obligations, which is a critical factor when selecting a company you may rely on for income decades into the future.
Products Western & Southern Offers
Western & Southern provides both life insurance and annuity solutions, including:
- Term Life Insurance – Offers affordable death benefit coverage for a fixed term, but no cash value.
- Whole Life Insurance – Permanent coverage with guaranteed premiums, death benefit, and cash value growth.
- Universal Life (UL) – Flexible premiums and death benefit options; interest is credited based on declared rates.
- Indexed Universal Life (IUL) – Offers growth tied to a market index with downside protection and tax-deferred cash value.
- Deferred Fixed Annuities – Tax-deferred growth with a fixed interest rate guaranteed for a specific term.
- Fixed Indexed Annuities (FIAs) – Interest is credited based on the performance of a market index, with principal protection.
- Immediate Annuities – Provide income that starts within 12 months of purchase, ideal for immediate retirement income needs.
These products can be funded with non-qualified cash, IRA rollovers, Roth IRAs, and other qualified retirement plans.
Our Professional Opinion on Western & Southern Annuities
Western & Southern includes some great insurance companies, but several of their annuities have restrictions we don’t like. The issuing companies reviewed here, including Columbus Life and Lafayette Life, hold A+ (Superior) AM Best ratings. That is comfortably above our A− minimum, but a strong insurer does not automatically make every contract a good deal.
Our biggest concern with some fixed annuities is that the interest guarantee can end before the surrender charges do. We would generally choose a competitive annuity that guarantees its rate for the full commitment. Also, look past any first-year interest enhancement and compare what you will earn over the entire term.
For future lifetime income, some optional riders offer guaranteed growth in the calculation used to determine your paycheck. We like that feature, but the increase is not money you can cash out, and rider charges reduce your account value. Compare the actual guaranteed payment with other income annuities before deciding.
What We Like
- Great financial strength: The reviewed issuing companies have A+ AM Best ratings.
- Guaranteed income growth: Some optional riders increase the income calculation while you wait, without relying on index performance.
- Traditional index choices: Some indexed annuities offer S&P 500 strategies.
- First-year access: Several contracts offer a free-withdrawal allowance beginning in the first year.
What We Don’t Like
- Shorter guarantees with longer commitments: Some rates can change while surrender charges still apply.
- Temporary first-year enhancements: An attractive opening rate may not reflect what you earn in later years.
- Indexed caps can reset: The insurer can change some caps while your money remains subject to surrender charges.
- Income rider costs: Rider fees come from your actual account, while the growing income calculation is not cash you can withdraw.
Explore our individual Western & Southern annuity reviews using the links below to see which products we would consider and which restrictions deserve a closer look.
Our Western & Southern Annuity Reviews
- Columbus Life AccountMax Annuity
- Columbus Life Advantage Annuity
- Columbus Life Passport Annuity
- Lafayette Life Horizon Annuity
- Lafayette Life Marquis SP Annuity
- MultiRate Annuity
- SmartStep Annuity
Compare Western & Southern Life Insurance Against Other Companies
Why Comparing Rates and Income Options Is Essential
It’s not enough to pick a company based on brand recognition or longevity. Premium rates for life insurance, credited interest rates on cash value and annuities, and income payout rates all vary from carrier to carrier. Failing to shop around can cost you tens of thousands over the life of a policy or annuity.
- Premium Rates: Two carriers offering identical coverage may differ drastically in pricing due to underwriting or age banding.
- Interest Crediting: Some fixed annuities may offer higher guaranteed rates; others may offer better participation or cap rates on indexed options.
- Annuity Income Payouts: GLWB (Guaranteed Lifetime Withdrawal Benefit) income payouts and roll-up rates vary widely by carrier. Western & Southern tends to offer more conservative withdrawal percentages.
Always compare before buying.
Compare Western & Southern Annuity Income vs Other Companies
Pros of Western & Southern
- Over 135 Years in Business: Stability and experience across multiple economic cycles.
- Top-Tier Financial Ratings: Confidence in the company’s ability to honor claims and long-term contracts.
- Broad Product Line: Offers both insurance and annuities under one roof.
- Conservative Approach: May appeal to those seeking stable, predictable outcomes.
Cons of Western & Southern
- Limited Online Capabilities: No instant online quoting or digital application tools. Everything goes through agents or call centers.
- Below-Average Digital Experience: Lack of self-service tools to manage your policy or file claims online.
- Conservative Payouts: Annuity income withdrawal rates are lower than other carriers, even with a GLWB. Roll-up rates are more conservative.
- Lack of Innovation: Does not lead the market in index design, interest crediting methods, or annuity rider development.
- Few High-Performing Indexed Strategies: Most indexed annuity options rely on proprietary indexes or low-cap S&P 500 strategies. Limited traditional index options.
- Mixed Customer Service Reputation: Customer complaints often center around slow response times, vague communication, and claim processing delays.
- Limited Distribution: Not always available through third-party brokers, which reduces the transparency in pricing and product comparisons.
- Lower Flexibility on Riders: Fewer options for optional policy riders or customization compared to top competitors.
- Annuitization Options Emphasized: Some annuity structures lean toward annuitization for lifetime income, which is irrevocable—The Annuity Expert does not recommend annuitization.
Who Should Consider Western & Southern
Who needs it:
- Those who prioritize long-term financial stability over high growth.
- Buyers who prefer working with a local representative or captive agent.
- People with conservative goals who want guarantees and don’t need cutting-edge features.
Who doesn’t need it:
- Anyone seeking the highest income payouts in retirement.
- People who prefer modern, tech-driven customer experiences.
- Buyers wanting annuities with flexible GLWB features and high participation rates.
- Consumers comparing competitive options side-by-side—Western & Southern often underdelivers in comparison unless you’re loyal to the brand or agent.
Other Insurance to Consider
- Long-Term Care Insurance: Even if your annuity provides income, it won’t be enough if you face $100K+ in annual nursing home costs. Standalone LTC policies or hybrid life and long-term care products can help.
- Disability Insurance: If your income is still your most important asset, disability insurance can replace lost earnings before retirement.
- Annuities with GLWB Riders: These offer lifetime income without the risk of annuitization. They can be funded with IRAs, 401(k) rollovers, or non-qualified assets. Western & Southern offers GLWB options, but their income percentages are conservative. Comparing with other carriers can often secure more income and better roll-up rates.
Final Verdict
Western & Southern is financially stable and trustworthy, but it’s not the most competitive or innovative choice in today’s insurance and annuity marketplace. Its conservative nature may appeal to some, but you’re likely giving up better rates, higher income, or more user-friendly experiences by not comparing it with alternatives.
Contact The Annuity Expert for free quotes and help comparing premium rates, interest crediting options, and guaranteed lifetime income payouts before making your decision.
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.