Is Security Benefit a good annuity company?
Yes, for buyers comfortable with an A- carrier. AM Best puts Security Benefit in its A- (Excellent) tier, the company has been operating since 1892, and it carries more than $45 billion in total assets as a not-for-share organization with no outside shareholders. Its Advance Choice MYGA rates are frequently competitive within the A- tier, and its Total Value Annuity offers an upfront bonus for buyers willing to commit to a full 10-year term. If your rule is A or better, look elsewhere; if A- clears your bar, Security Benefit earns a spot on the comparison list.
Security Benefit at a glance
| Legal name | Security Benefit Life Insurance Company |
|---|---|
| Corporate structure | Not-for-share organization, no outside shareholders |
| Headquarters | Topeka, Kansas |
| Founded | 1892 |
| AM Best rating | A- (Excellent) |
| Total assets | More than $45 billion |
| What it sells | Advance Choice MYGA; Total Value Annuity (fixed index annuity) |
| Typical minimum premium | $10,000, varies by product |
Where Security Benefit sits on the AM Best scale
A- is grade 4 of 13. Most buyers look for A- or better for a long-term contract.
- A++
- A+
- A
- A-Security Benefit
- B++
- B+
- B
- B-
- C++
- C+
- C
- C-
- D
Today's rates for Security Benefit
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.
Security Benefit Life Insurance Company has spent more than 130 years in the annuity business, dating back to a Topeka, Kansas program built for schoolteachers in 1892. Today it operates as a not-for-share organization, meaning it answers to policyholders rather than shareholders on a stock exchange, and it holds an A- rating from AM Best. Two products carry most of its retail annuity business: the Advance Choice MYGA and the Total Value Annuity, a bonus-driven fixed index annuity.
Security Benefit's financial strength
Because Security Benefit does not answer to outside shareholders, the company retains surplus to build reserves and support policyholders rather than paying it out as dividends to investors, an approach closer to a mutual insurer like TIAA than to a publicly traded carrier. That structure sits behind an A- (Excellent) rating from AM Best, matched by A- ratings from S&P and Fitch, and more than $45 billion in total assets.
The company's roots in the public-school market run deep: it was built to serve Kansas educators and still maintains close ties to school districts and public employee benefit programs nationally, even as its customer base has broadened well past that original group. State guaranty associations add another layer of protection on top of the carrier rating, up to limits that vary by state; see the state guaranty association directory for your state's figure.
What types of annuities does Security Benefit offer?
- Advance Choice MYGA. A conventional multi-year guaranteed annuity: pick a term, lock in one fixed rate, and there is no market exposure at all. Your full account value is available once the term ends.
- Total Value Annuity (fixed index annuity). This FIA pairs an upfront premium bonus with a 10-year surrender schedule. Leave during that window and a bonus recapture, plus potentially a market value adjustment, can apply on top of the ordinary surrender charge. After your first contract year, you can pull 10% of the account value annually with no penalty. Crediting runs on S&P 500 point-to-point strategies using a cap or a participation rate. Treat the bonus as a reward for staying the full decade, not as money you can walk away with early.
Who is Security Benefit best for?
Buyers drawn to the Total Value Annuity should plan on the full 10-year term; the bonus and the surrender schedule are a package deal, and anyone who thinks they might need the principal sooner should compare shorter-surrender FIAs first. MYGA shoppers evaluating carriers in the A- tier will often find Advance Choice rates worth a look, and the company's long history and not-for-share model add a measure of comfort for buyers planning a multi-decade relationship.
Security Benefit also fits naturally for educators and public employees, given how much of its book of business still runs through school districts and public-sector retirement programs. If policyholder-first governance matters to you as much as the rating itself, that structural detail is worth weighing alongside the numbers.
Other annuity companies to consider
- Security Benefit Strategic Growth: a closer look at the Total Value Annuity's accumulation-focused FIA
- Athene: A+ rated, the top seller of fixed annuities nationwide
- North American: A+ rated, bonus FIAs and MYGAs
- F&G: A rated, broad FIA and MYGA lineup
- Browse all annuity company reviews
Pros and cons
Pros
- A- (Excellent) rating from AM Best
- Not-for-share structure keeps policyholder interests ahead of outside shareholder demands
- More than 130 years of continuous operating history
- Advance Choice MYGA rates are often near the top of the A- tier
- Deep, long-standing relationships in the educator and public-employee retirement markets
- Over $45 billion in total assets
Cons
- A- sits one notch below A, which rules it out for buyers who set A or better as a floor
- S&P and Fitch also grade the company A-, so a step up to A or better would need to show up across all three agencies
- The Total Value Annuity locks in a 10-year surrender schedule, with a bonus recapture and a possible market value adjustment if you leave early
- Brand recognition is thinner outside the educator and public-sector channels where it built its name
- Product lineup is narrower than carriers that also offer SPIAs or multiple FIA series
Frequently asked questions
How solid is Security Benefit financially?
AM Best places Security Benefit in its A-, or Excellent, category, one step below its top A range. That rating reflects the insurer's ability to keep paying claims over time, and it sits on top of more than $45 billion in total assets. On top of the carrier's own strength, your state's guaranty association adds a backstop up to a set dollar limit that varies by state, so it is worth confirming both numbers before you commit a large sum.
What annuity products can I buy from Security Benefit?
Two main lines. The Advance Choice series is a straightforward multi-year guaranteed annuity: you lock in one fixed rate for the whole term with no market exposure. The Total Value Annuity is a fixed index annuity built around an upfront bonus, S&P 500 point-to-point crediting with a cap or participation rate, and a 10-year surrender period. A licensed strategist can check current terms for both against other A- and A-rated alternatives.
What is the buying process for a Security Benefit annuity?
You cannot buy directly from the company. Security Benefit sells exclusively through licensed insurance agents and financial professionals who are appointed to represent it. A strategist can request an illustration from Security Benefit and set it beside quotes from other top-rated carriers so the guaranteed numbers are easy to line up before you decide.
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.
