Is Loyal American Life a good annuity company?
It is a solid company, but not really an annuity company. Loyal American Life Insurance Company carries an A (Excellent) AM Best rating and sits inside The Cigna Group, one of the largest health services businesses anywhere. Its everyday work is Medicare supplement plans, hospital indemnity coverage and critical illness policies, not fixed or indexed annuities. If you already hold a Loyal American product through a workplace benefits plan, the rating gives you real reassurance. If you are shopping for a new annuity with fresh money, you will get more choice and typically better rates from a carrier that specializes in the annuity market.
Loyal American Life at a glance
| Legal name | Loyal American Life Insurance Company |
|---|---|
| Headquarters | Houston, Texas |
| Parent company | The Cigna Group (NYSE: CI), through its Cigna Healthcare arm |
| AM Best rating | A (Excellent) |
| Main business | Medicare supplement, hospital indemnity and critical illness coverage |
| Annuity availability | Limited; not a dedicated MYGA or FIA carrier |
| Distribution | Worksite and employer group plans, plus individual channels |
| State availability | Most states; confirm for your specific location |
Where Loyal American Life sits on the AM Best scale
A is grade 3 of 13. Most buyers look for A- or better for a long-term contract.
- A++
- A+
- ALoyal American Life
- A-
- B++
- B+
- B
- B-
- C++
- C+
- C
- C-
- D
Today's rates for Loyal American Life
Rates change often and vary by state, term and deposit size. Get today's numbers for your state, side by side with other top-rated carriers. Free, with no obligation.
Loyal American Life's background and financial strength
Loyal American Life Insurance Company is headquartered in Houston and has spent decades focused on supplemental insurance rather than retirement products. Its bread-and-butter lines include Medicare supplement plans, hospital indemnity coverage, lump-sum cancer benefits, critical illness policies covering events like a heart attack or stroke, and accident coverage. That is a very different core business from the carriers that dominate today's MYGA rate tables.
The company operates within Cigna Healthcare's supplemental benefits division, part of The Cigna Group, one of the largest health services organizations in the world. AM Best assigns the annuity-issuing entity an A (Excellent) financial strength rating. Because a parent company's overall size does not automatically transfer to every subsidiary, it is worth checking the specific rating on the entity that would actually issue your contract rather than assuming Cigna's scale applies directly. Confirm the current number at ambest.com before you commit any funds.
Loyal American Life's financial strength ratings
| Rating agency | Rating | What it means |
|---|---|---|
| AM Best | A | Excellent |
| S&P Global | Not rated | |
| Moody's | Not rated | |
| Fitch | Not rated |
An A rating from AM Best is a solid mark on its own, even without a second agency's opinion to compare it against. Keep in mind that a large parent company's strength does not automatically flow down to every subsidiary in the same way, so the rating shown here belongs to the specific entity that would issue your contract, not to The Cigna Group as a whole.
What annuities does Loyal American Life offer?
Fixed annuities exist in Loyal American Life's product set, but they are not the company's focus, and you will not find them widely listed on independent rate-comparison platforms the way you would with a dedicated MYGA carrier. If you came across Loyal American Life through a workplace benefits program, the right move is to review the specific contract terms you were offered, confirm the current financial strength rating, and compare the rate against what is available elsewhere before deciding.
This is worth spelling out plainly: a carrier built around Medicare supplement plans and hospital indemnity coverage is optimized for underwriting health risk on relatively short policy terms, not for managing decades of guaranteed interest crediting the way a MYGA specialist does every day. That does not make Loyal American Life untrustworthy, it just means annuities are a side note in its business rather than the main event, and pricing tends to reflect that.
How Loyal American Life stacks up against dedicated annuity carriers
If maximizing your guaranteed rate or accessing an income rider is the goal, it is worth lining Loyal American Life up against carriers built specifically for that:
- Oceanview: A (Excellent) rated, consistently competitive on MYGA rates
- Athene: A+ (Superior) rated, national reach, a full product shelf
- MassMutual Ascend: A++ (Superior) rated, among the highest financial strength grades available
- Midland National: A+ (Superior) rated, strong fixed index and MYGA lineup
Who is Loyal American Life best for?
- Existing policyholders who picked up a Loyal American Life product through a workplace benefits program and want background on the carrier behind it.
- People comparing a broad field of carriers who want honest context on where this one fits.
- Medicare supplement shoppers interested in a Cigna-affiliated carrier, a separate decision entirely from buying an annuity.
New money looking for a fixed or indexed annuity is generally better served by a carrier built around that product, where rate transparency and product choice are both wider.
Contact Loyal American Life
| Contact method | Detail |
|---|---|
| Website | www.loyalamerican.com |
| Customer service | 1-800-457-4654 |
| Mailing address | Loyal American Life Insurance Company, P.O. Box 4399, Houston, TX 77210 |
Pros and cons
Pros
- A (Excellent) AM Best rating, backed by a large, well-capitalized parent in The Cigna Group
- Long operating history as a Texas-based specialty carrier
- Sold through both workplace group plans and individual channels
- Established name in Medicare supplement and hospital indemnity coverage
Cons
- Not a meaningful presence in the retail MYGA or fixed index annuity market
- Fixed annuity options are limited and harder to find than at dedicated annuity carriers
- Rated by AM Best only, with no S&P, Moody's or Fitch opinion on the annuity-issuing entity
- Better known, and better suited, for supplemental health coverage than for retirement income products
Frequently asked questions
Is Loyal American Life a safe company for annuities?
Its A (Excellent) AM Best rating and Cigna ownership both point to yes. Because the company issues relatively few annuity contracts, it is still worth confirming the current rating directly at ambest.com before you commit money. State guaranty associations add a further backstop on annuity values up to a state-set limit; check NOLHGA.com for your state's figure.
What types of annuities does Loyal American Life offer?
Mainly fixed annuities, sold through independent agents and financial professionals on a limited basis, since the company's core focus is supplemental health coverage rather than retirement products. Availability and terms vary by state, so confirm what is actually on offer before assuming a product exists in your area.
How do I buy a Loyal American Life annuity?
Through a licensed insurance agent, the same way you would buy most fixed annuities. Given how limited the lineup is, it is worth pricing Loyal American Life against carriers that specialize in annuities before deciding, so you can see what the broader market offers for the same deposit.
Written and reviewed by
James Forren Warren
Licensed Retirement Income Strategist · License #20551202
James Forren Warren is a licensed Retirement Income Strategist with Tax Free Wealth Plan. For the past five years he has helped individuals and families turn their savings into retirement income they can count on. He writes and reviews the annuity research on this site and keeps it plain: what a product does, what it costs you, and who it actually fits.
Sources
Educational only, not investment, tax or legal advice. Tax Free Wealth Plan LLC is a licensed insurance agency, not a registered investment adviser or broker-dealer. Annuities are not bank deposits, are not FDIC insured and are not guaranteed by any government agency. Guarantees are backed solely by the claims-paying ability of the issuing insurance company. Features, rates and availability vary by state and change over time; the contract and disclosure documents govern.
