Is Thrivent a good annuity company?
Yes, if you are comfortable buying through Thrivent's own advisors. Thrivent Financial for Lutherans carries AM Best's top A++ (Superior) rating and an AA+ from S&P, placing it among the strongest life insurers in the country. It sells solid multi-year guaranteed, fixed index and income annuities backed by a fraternal, member-owned structure. The trade-off is access: Thrivent only sells through its own licensed professionals, so you cannot get a Thrivent quote alongside quotes from other carriers in one conversation. If top-tier strength and a long-term advisor relationship matter more to you than shopping the whole market, Thrivent belongs on your list.
Thrivent Financial at a glance
| Legal name | Thrivent Financial for Lutherans, doing business as Thrivent |
|---|---|
| Structure | Fraternal benefit society (not-for-profit, member owned) |
| Formed | 2002, from the merger of two Lutheran fraternal insurers dating to 1902 and 1917 |
| Headquarters | Minneapolis, Minnesota |
| AM Best rating | A++ (Superior) |
| S&P rating | AA+ (Very Strong) |
| Moody's rating | Aa2 (Excellent) |
| What it sells | MYGA, fixed index annuity, SPIA, deferred income annuity, variable annuity |
| Distribution | Thrivent's own licensed professionals only |
Where Thrivent Financial sits on the AM Best scale
A++ is grade 1 of 13. Most buyers look for A- or better for a long-term contract.
- A++Thrivent Financial
- A+
- A
- A-
- B++
- B+
- B
- B-
- C++
- C+
- C
- C-
- D
Today's rates for Thrivent Financial
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.
A fraternal insurer built from two century-old societies
Thrivent traces back to two Lutheran fraternal organizations: Aid Association for Lutherans, started in 1902, and Lutheran Brotherhood, started in 1917. The two merged in 2002 to form Thrivent Financial for Lutherans. Being a fraternal benefit society puts it in its own legal bucket, apart from stock companies and mutuals such as Northwestern Mutual. The society exists to serve its members, runs without a profit motive, and historically required members to share a common bond.
For Thrivent, that bond was Lutheran Christian faith. The organization opened its doors to all Christians in 2013 and to the general public in 2019. Anyone who buys a Thrivent product today becomes a member automatically, and the company still carries an explicit Christian identity in its mission and charitable programs even though a shared faith is no longer required to buy a contract.
The fraternal structure changes how surplus flows. Instead of paying shareholder dividends, Thrivent returns value to members and funds charitable grants members can direct themselves. It also means the company does not pay federal income tax on its insurance operations under the rules that apply to fraternal societies, which can support competitive pricing. Your guarantee, in the end, rests on Thrivent's balance sheet, and a rating agency measures the company, not the specific contract.
Thrivent financial strength ratings
| Rating agency | Rating | What it means | Notes |
|---|---|---|---|
| AM Best | A++ | Superior | Highest of AM Best's ratings |
| S&P Global | AA+ | Very Strong | Second-highest of S&P's ratings |
| Moody's | Aa2 | Excellent | Third-highest of Moody's ratings |
| Fitch | Not rated | Thrivent does not maintain a Fitch rating |
An A++ puts Thrivent in the same top tier as Northwestern Mutual, New York Life and MassMutual. It reflects a large, diversified balance sheet, a long operating history and a conservative investment book, the same qualities AM Best rewards in any carrier. Confirm the current rating directly at AM Best's site before you sign anything, since ratings can move.
A rating measures the company's ability to pay claims. It does not tell you whether a specific annuity fits your goals.
Your state's guaranty association adds a second layer of protection up to a state-set dollar limit. See our guide to state guaranty associations for the limit where you live, and remember it is a backstop, not a reason to skip checking carrier strength in the first place.
What annuities does Thrivent sell?
Thrivent's lineup covers the main annuity use cases: locking in a fixed rate, growing with index-linked upside, and converting savings into guaranteed income, either immediately or later in life.
- Thrivent Fixed Annuity: a multi-year guaranteed annuity with terms generally running from 3 to 10 years, single premium, tax-deferred, with a standard 10% annual free withdrawal. Accepts both IRA and non-qualified money.
- Thrivent Advantage Plus fixed index annuity: credits interest based on the performance of the S&P 500 and other approved indices, subject to caps, participation rates or spreads, with principal protected from index losses. An optional lifetime income rider is available. Surrender schedules typically run 7 to 10 years.
- Thrivent Income Annuity (SPIA): converts a lump sum into income that can start within a year, with life-only, life-with-period-certain, and joint-and-survivor payout choices.
- Thrivent Deferred Income Annuity: designed for income starting later, commonly between ages 70 and 85, and can be structured as a QLAC inside an IRA to defer part of your required minimum distribution past age 73, up to the QLAC limit.
- Thrivent Variable Annuity: a tax-deferred contract invested in Thrivent's own mutual fund subaccounts, with an optional lifetime income rider, aimed at buyers comfortable with market risk.
Because Thrivent sells only through its own professionals, its MYGA and index annuity rates do not appear on the public rate feeds that power most comparison tools. You will need to ask a Thrivent professional directly for current numbers, or compare Thrivent's tier against MYGA rates that do publish.
Thrivent annuity pros and cons
Thrivent's biggest strength is financial strength itself: an A++ rating, a fraternal ownership model that answers to members rather than shareholders, and more than a century of combined operating history behind the current company. Its income annuities are genuinely competitive against other top-tier carriers, and the QLAC-eligible deferred income annuity is a useful tool for IRA owners managing required distributions.
The tradeoff is access. Because distribution runs only through Thrivent's own advisors, you cannot put a Thrivent quote next to quotes from 20 other A-rated carriers in a single conversation, and the crediting strategies on its index annuity are narrower than what specialist index annuity carriers offer. None of that makes Thrivent a weak product; it simply means the buying process looks different from working with an independent agency.
Who is Thrivent best for?
Thrivent fits three kinds of buyers well. The first is someone who already has a relationship with a Thrivent professional and wants to keep retirement income planning under one roof, backed by top-tier strength. The second is a buyer who specifically wants the fraternal, member-first structure and is shopping for a strong SPIA or deferred income annuity, where Thrivent prices competitively against other A++ carriers.
The third is an IRA owner using the QLAC strategy to push part of their required minimum distribution later into retirement. An A++ carrier backing a payout that will not begin for 10 or 20 years is a meaningful comfort, since that guarantee has to hold up for a long time.
Thrivent is a weaker fit if your priority is finding the single highest MYGA or index annuity rate on the market this month. Carriers such as Athene or Aspida publish rates to comparison tools and are easier to shop head to head. Thrivent's edge is strength and a long-term relationship, not the top short-term rate.
How to buy a Thrivent annuity
You can only buy a Thrivent annuity through a Thrivent Financial Professional; there is no independent-agent or direct-to-consumer channel. The process runs like this:
- Locate a Thrivent professional through Thrivent's own advisor directory.
- Complete a fact-finding conversation covering your broader financial picture, since Thrivent professionals typically look at insurance, investments and giving together.
- Choose a product and term, then complete the state-specific application.
- Fund the contract by check, wire or IRA transfer, and use your free look period to review the paperwork once it arrives.
Buying a Thrivent contract makes you a member of the organization automatically; there is no separate membership fee or application.
Other annuity companies to consider
If you want a broader comparison of top-tier carriers before you decide, these are worth a look:
- Northwestern Mutual: A++ rated mutual insurer, also captive distribution
- New York Life: A++ rated mutual insurer known for strong SPIA pricing
- MassMutual: A++ rated mutual with a broad product lineup
- MassMutual Ascend: independent-channel MYGA and index annuity specialist with public rates
Pros and cons
Pros
- A++ (Superior) from AM Best, the top tier a life insurer can hold
- AA+ from S&P Global, the second-highest tier on that scale
- Fraternal, not-for-profit structure returns surplus to members rather than shareholders
- Roots go back to 1902 and 1917, with the modern company formed in 2002
- Deferred income annuity can be structured as a QLAC inside an IRA
- Members can direct charitable dollars through the company's giving program
Cons
- Sold only through Thrivent's own licensed professionals, not independent agents
- MYGA and fixed index rates are not published on public rate feeds, so quick cross-shopping is harder
- Narrower crediting-strategy and rider menu than dedicated index annuity specialists
- Buying any product makes you a member of the organization
- Fewer variable annuity subaccount choices than carriers built around that product
- Membership carries a values-based identity that will not suit every buyer, even though eligibility is now open to everyone
Frequently asked questions
Is Thrivent a good annuity company?
Yes. It holds AM Best's top A++ rating and an AA+ from S&P, ranking it among the strongest carriers selling annuities today. Its multi-year guaranteed and income annuities are competitively built. The main limit is distribution: you can only buy through a Thrivent professional.
What does it mean that Thrivent is a fraternal benefit society?
It is a member-owned insurer, not one that answers to outside shareholders. Federal tax law gives a qualifying fraternal an exemption on its insurance income in return for running a lodge-style membership structure and steering leftover surplus back to members and charities instead of stock dividends.
Does Thrivent still require you to be Lutheran to buy an annuity?
It has not since 2019. Membership opened to all Christians back in 2013, then to anyone in 2019. Buying a contract today enrolls you as a member automatically, whatever your faith background.
Is Thrivent's rating as strong as Northwestern Mutual or New York Life?
Yes, on paper. All three carry AM Best's top A++ tier, though the companies differ in structure: Northwestern Mutual and New York Life are policyholder-owned mutuals, while Thrivent is a fraternal with roots in Lutheran churches. The two mutuals each hold more than double Thrivent's assets, yet all three route sales exclusively through their own captive advisor force, so shopping any of them feels similar.
Can an independent insurance agency sell me a Thrivent contract?
No, that channel is not open. Every Thrivent annuity has to be placed by one of Thrivent's own licensed professionals; brokerages and independent agents have no access to the paper. Want several A-rated carriers quoted together instead? An independent agency can do that, just without Thrivent as one of the options.
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.
