USAA Annuity Review (2026)

How strong is USAA financially?

AM Best places USAA at the very top of its scale, A++ (Superior). Only a small handful of carriers sit there, alongside names like New York Life and Northwestern Mutual.

Part of that strength comes from structure. USAA is member owned rather than publicly traded, so it answers to policyholders instead of shareholders looking for a quarterly return. Surplus stays inside the company to build reserves rather than going out as a dividend to outside investors. Add over a hundred years of underwriting a single, financially disciplined customer base, active and retired military and their families, and you get a carrier with an unusually predictable claims history.

Who can actually buy a USAA annuity?

USAA membership is the gate, and it is not open to the general public. You qualify if you fall into one of these groups:

• Active-duty members of the Army, Navy, Air Force, Marines, Coast Guard or Space Force
• Members of the National Guard or Reserve
• Veterans with an honorable discharge
• Spouses, children, stepchildren, widows and widowers of an eligible member
• Former USAA policyholders, for some product lines

There is no path around this list. USAA does not sell through independent agents, brokers or financial professionals of any kind. Every purchase runs directly through usaa.com or a phone call to USAA itself.

What annuities does USAA sell?

USAA keeps its lineup simple:

• Fixed and multi-year guaranteed annuities. A locked rate for a set number of years, aimed at IRA money or other savings you want to grow without market risk. See our guide to fixed annuities for how these work in general.
• Single premium immediate annuities (SPIAs). You hand over a lump sum and USAA turns it into a monthly paycheck, either for life or for a chosen number of years. Backing a lifetime promise with an A++ balance sheet is about as strong as this product category gets.
• Deferred annuities. Money grows tax deferred inside the contract until you decide to start income, giving you flexibility on timing.

Who fits USAA best?

Three kinds of buyers get the most out of USAA:

• Eligible members who put financial strength first. If you already qualify, an A++ rating backing a lifetime income promise is hard to beat on paper.
• Military families who already bank, insure and borrow through USAA. Adding an annuity keeps one more account under a roof you already trust.
• Buyers who would rather deal directly with the carrier. Skipping an agent appeals to people who want to handle paperwork themselves without a commission in the mix.

What if you don't qualify for USAA?

Most people reading this will not be eligible, and that is fine. If A++ strength is what drew you here, New York Life and Northwestern Mutual hold that same top grade and both sell through independent advisors, so you can compare them side by side with other carriers. Plenty of A+ and A rated companies, Midland National among them, price very competitively while still clearing a strong safety bar. We can walk you through how these compare.

How to compare USAA against other carriers

Even eligible members should shop before they sign. A few things matter more than the logo on the contract:

• AM Best rating. Most buyers set A- or better as their floor; see our guide to what makes a good AM Best rating.
• Guaranteed rate and term length. Small rate differences add real dollars over a five to ten year term.
• Surrender schedule. Know exactly when your money is free to move without a penalty; see how surrender charges work.
• Free withdrawal terms. Many contracts let you pull out roughly 10% a year penalty free.

Rates on any carrier change often, so ask for a current quote rather than relying on a number you saw online months ago.

Contact USAA

Other annuity companies to consider

If you do not qualify for USAA, or just want to compare it against the open market, these carriers are worth a look:

• New York Life: another A++ carrier, sold through independent advisors
• Midland National: broad MYGA and index annuity lineup with a strong rating
• Athene: large, rate-competitive issuer across several annuity types
• American National: long-established carrier with an A rating

We are appointed with dozens of carriers and can put USAA's structure and rate up against other top-rated companies so you see the tradeoffs clearly.