Is Unum a good annuity company?
For individual annuity buyers, Unum is not really an option at all. Unum Group holds an A (Excellent) rating from AM Best and manages tens of billions in assets, but its business is built around group disability, group life and voluntary benefits sold through employers, not individual MYGAs, fixed index annuities or SPIAs. Its only annuity activity is institutional pension risk transfer, where an employer moves a whole pension plan's obligations to an insurer. If you are shopping for a personal annuity, Unum's rating is solid, but there is no individual product to actually buy.
Unum Group at a glance
| Legal name | Unum Group |
|---|---|
| Founded | 1848, as Unum Life Insurance Company of America, in Chattanooga, Tennessee |
| Headquarters | Chattanooga, Tennessee |
| Ownership | Publicly traded (NYSE: UNM) |
| AM Best rating | A (Excellent) |
| Primary business | Group disability, group life, voluntary benefits |
| Individual annuities | Not offered to retail buyers |
| Annuity activity | Institutional pension risk transfer only |
Where Unum Group 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+
- AUnum Group
- A-
- B++
- B+
- B
- B-
- C++
- C+
- C
- C-
- D
Today's rates for Unum Group
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 disability insurer, not an annuity company
Unum Group took its current shape when Unum Corporation and Provident Companies came together in 1999. Provident's own history included some individual disability coverage and a small annuity business, but Unum shed most of what fell outside its core focus in the years that followed to concentrate on group disability insurance, the segment where it now leads.
Today, group long-term disability, short-term disability and group life insurance make up nearly all of Unum's revenue. If you came across Unum while searching for a MYGA, fixed index annuity or income annuity, that search will come up empty. Unum simply is not built as a retail annuity carrier, and that is not a knock on the company; disability insurance is its specialty, and it is a major player there.
The one place annuities show up in Unum's business is institutional: pension risk transfer transactions, where a corporate plan sponsor terminating a defined benefit pension hands the obligation to an insurer in a wholesale deal. If your former employer's pension was moved to Unum through one of these transactions, your ongoing payments continue on the same terms, backed by Unum's balance sheet.
What annuity products does Unum actually offer?
For an individual, retail buyer, the honest answer is none. Unum does not distribute MYGAs, fixed index annuities or SPIAs through independent agents, IMOs or comparison platforms of any kind. Its only annuity-adjacent activity is the institutional pension risk transfer market described above, which involves employers and plan sponsors, not individual purchasers walking in the door.
If you were pointed toward Unum for an annuity through a workplace benefits package, it is worth confirming directly with Unum or your HR department exactly what product is being discussed, since it is unlikely to be a personal annuity contract you selected yourself.
Who is Unum actually a good fit for?
Unum is a strong option for employees shopping for disability coverage through their employer, where it is one of the largest providers in the country and operates in its actual area of expertise. It is also a legitimate counterparty for corporate plan sponsors looking to transfer pension risk off their own books, competing there with larger insurers such as Prudential and MassMutual.
For anyone whose former employer's pension ended up with Unum through a risk transfer deal, the guaranteed payments are backed by Unum's A-rated balance sheet, the same rating that supports its group benefits business.
What Unum is not a good fit for is anyone shopping for a personal MYGA, fixed index annuity or income annuity. Its distribution simply does not run through the independent channels that individual buyers use.
Other annuity companies to consider
- Athene: rate-focused MYGA and FIA carrier sold through independent agents
- Protective Life: A+ rated, broad individual annuity lineup
- American Equity: a fixed index annuity specialist with a wide product menu
Pros and cons
Pros
- A (Excellent) rating from AM Best supports its group benefits obligations
- One of the largest group disability insurers in the country, its actual core business
- Sizable balance sheet built to support long-term group benefit commitments
- Participates in the institutional pension risk transfer market alongside other large insurers
Cons
- Does not sell individual MYGAs, fixed index annuities or SPIAs to retail buyers
- No path to buy an annuity through an independent agent or brokerage
- Not a useful comparison point for anyone shopping the individual annuity market
- Has faced regulatory scrutiny over group claims handling in recent years
Frequently asked questions
Can I buy an individual annuity from Unum?
No. Unum's annuity activity is limited to institutional pension risk transfer deals, where an employer hands off its pension obligations to an insurer. There is no individual MYGA, fixed index annuity or SPIA sold through independent agents or comparison platforms.
If my old employer's pension moved to Unum, is my payment secure?
If your former employer transferred its pension plan to Unum through a risk transfer deal, your guaranteed payments rest on Unum's A-rated balance sheet, with your state's guaranty association providing a further backstop up to that state's limit. Unum holds tens of billions in assets supporting these obligations.
What should I look at instead if I want an individual annuity?
Carriers built around the individual annuity market, such as Athene, American Equity, Midland National or Protective Life, offer competitive MYGAs and fixed index annuities through independent agents. A licensed strategist can pull quotes from dozens of these carriers side by side.
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.
