Is Manhattan Life a good annuity company?
It depends on what you value most. Manhattan Life has paid claims continuously since 1850, more than 175 years, but AM Best currently grades it B++ (Good), two steps below the A- tier that many buyers use as a cutoff. What you get in exchange is unusual: a 15% free withdrawal every year starting in year one, with no Market Value Adjustment, well beyond the standard 10% most MYGAs allow starting in year two. If B++ clears your bar and you want liquidity built into the contract, Manhattan Life is worth a look. If your rule is A- or better, it will not qualify.
Manhattan Life at a glance
| Legal name | The Manhattan Life Insurance Company |
|---|---|
| Founded | 1850, chartered in New York |
| Headquarters | Houston, Texas |
| Ownership | Privately held, under Manhattan Life Group, Inc. |
| AM Best rating | B++ (Good), upgraded from B+ in November 2022 |
| Secondary rating | A (Exceptional) from Demotech |
| Signature feature | 15% annual free withdrawal from year one, no Market Value Adjustment |
| State availability | Roughly 45 to 48 states; not California, New York, North Dakota or South Dakota |
Where Manhattan Life sits on the AM Best scale
B++ is grade 5 of 13. Most buyers look for A- or better for a long-term contract.
- A++
- A+
- A
- A-
- B++Manhattan Life
- B+
- B
- B-
- C++
- C+
- C
- C-
- D
Today's rates for Manhattan 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.
Manhattan Life's background and financial strength
Chartered in New York in 1850, Manhattan Life has kept paying claims through every major financial upheaval in the country's history since, a run of more than 175 years. That longevity is real, but it comes with a rating that trails the market leaders: AM Best currently grades the company B++ (Good), having moved it up from B+ in November 2022 on the strength of solid operating results. A B++ grade means AM Best sees a good ability to meet obligations, paired with more sensitivity to adverse conditions than a carrier in the A range would show. Demotech, a secondary agency, separately rates the company A (Exceptional).
Manhattan Life Group runs more than one issuing subsidiary, so it matters which entity is actually on your paperwork. Depending on the product, your contract will be issued either by The Manhattan Life Insurance Company, domiciled in New York, or by Western United Life Assurance Company, domiciled in Washington. Confirm which one applies to you, and verify both ratings directly at ambest.com and manhattanlife.com. As with any carrier, your state's guaranty association also backs annuity values up to a state-set limit; NOLHGA.com has the figure for where you live.
A 175-year run through wars, depressions and multiple financial crises is a genuine point in the company's favor, and it is easy to see why a conservative buyer would find that reassuring. Just keep that history in perspective alongside the current rating rather than in place of it. A carrier can survive for well over a century and still sit in a lower rating tier today; longevity tells you the company has weathered a lot, not necessarily how much of a cushion it is holding right now.
Manhattan Life's financial strength ratings
| Rating agency | Rating | What it means |
|---|---|---|
| AM Best | B++ | Good |
| S&P Global | Not rated | |
| Moody's | Not rated | |
| Fitch | Not rated |
B++ sits two notches below the A- threshold that many buyers treat as a minimum. If that gap matters to you more than the liquidity features below, an A-rated alternative will be a better fit.
What annuities does Manhattan Life offer?
- Premium Preferred MYGA, issued by The Manhattan Life Insurance Company in 5 and 7-year terms, with the signature 15% annual free withdrawal from year one, no Market Value Adjustment, RMD flexibility and a standard terminal illness waiver. Available in roughly 45 states, excluding California, New York, North Dakota and South Dakota.
- Preferred Choice MYGA, issued by Western United Life in 3, 5, 6 and 7-year terms, with the same 15% withdrawal and no-MVA structure, plus RMD accommodation, subject to the same state exclusions.
- New Horizon Fixed Indexed Annuity, issued by Western United Life with 7 and 10-year surrender periods, index crediting tied to the S&P 500 plus a fixed option, a zero floor against market losses, and a 10% annual free withdrawal.
- New Horizon Plus FIA, an income-focused variant with a 5% annual free withdrawal, also in 7 and 10-year terms.
- A single premium immediate annuity, with standard payout structures for buyers who want income right away.
Because rates move often, we do not list them here. Use the rate box on this page for current numbers by product and state.
To see what the 15% withdrawal actually means in dollars, picture a $100,000 deposit in Premium Preferred. In year one, you could pull out up to $15,000 without a surrender charge if you needed it, versus roughly $10,000 under a standard 10% provision that many competitors do not even open until year two. Multiply that gap across several years of a five or seven-year term and the liquidity difference becomes meaningful for anyone who is not fully certain they can lock the money away untouched.
Who is Manhattan Life best for?
- Buyers who want maximum access to their money, since the 15% annual withdrawal from year one, with no MVA, is more generous than almost anything else in the MYGA market.
- IRA holders who want simple RMD handling, since the lack of an MVA means required distributions will not trigger an unexpected adjustment.
- Conservative buyers drawn to a long operating history, even knowing the current rating sits below the A range.
- Buyers willing to trade some rate for flexibility, since Manhattan Life's crediting rates typically run below the top A-rated carriers.
It is not the right fit if you live in California, New York, North Dakota or South Dakota, if you are over the maximum issue age of 84, or if you would rather chase the highest available rate and do not need the extra liquidity.
Other annuity companies to consider
- Liberty Bankers: A- rated, with its own built-in health-event withdrawal waivers
- Sagicor: another option worth comparing on issue age and MYGA terms
- American Gulf: a further carrier in a similar competitive tier
Pros and cons
Pros
- A 15% annual free withdrawal starting in year one, well above the industry-standard 10%
- No Market Value Adjustment, which keeps withdrawal math simple and predictable
- 175 years of continuous claims-paying history, dating to 1850
- Built to accommodate required minimum distributions without extra charges
- No annual fees or up-front charges on its MYGA contracts
- A terminal illness waiver comes standard at no added cost
Cons
- B++ sits two full tiers below the A- range many conservative buyers require
- Crediting rates typically trail the top A-rated MYGA carriers
- Maximum issue age of 84, lower than several competitors that go up to 90
- Not available in California, New York, North Dakota or South Dakota
- Rated by AM Best only, with no S&P, Moody's or Fitch opinion
- Contracts can be issued by either of two entities, Manhattan Life or Western United Life, which is worth double-checking on your paperwork
Frequently asked questions
Why does Manhattan Life allow a 15% withdrawal instead of the usual 10%?
It is a deliberate trade-off the company uses to stand out. Most MYGAs cap penalty-free withdrawals at 10% a year, often starting only in year two. Manhattan Life allows 15% from day one of the contract, with no Market Value Adjustment complicating the math. The rate you earn tends to run a bit lower than at carriers offering the standard, more restrictive withdrawal terms, so this feature suits someone who genuinely expects to need access to a portion of their money.
Should a B++ AM Best rating worry me?
That depends on how strict your own cutoff is. B++ translates to Good on AM Best's scale, meaning the company can meet its obligations but has less cushion against adverse conditions than an A-range carrier would. Your state's guaranty association still backs annuity values up to a state-set limit regardless of the carrier's rating, which is worth factoring in. Confirm the current rating at ambest.com and weigh it against A-rated alternatives before deciding.
How do I buy a Manhattan Life annuity?
Through independent agents and regional producers who carry the product. A licensed strategist can put Manhattan Life's rate and liquidity terms next to A-rated alternatives so you can see exactly what you would be trading for the extra withdrawal flexibility.
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.
