Americo at a Glance: Rates, Products and Reviews

Americo Financial Life, also known as Great Southern Life Insurance Co., has been in the annuities and life insurance business for almost 80 years, based in Kansas City, Missouri. The company has an A rating from AM Best and provides products nationwide. Americo’s annuities receive positive customer reviews, with a 4.2 out of 5-star rating on Trustpilot.

The holding company also owns Great Southern Life Insurance, United Fidelity Life Insurance, National Farmer’s Union Life Insurance and Investors Life Insurance.

Americo mainly provides fixed index annuities, which are split into two distinct series. Additionally, the company offers a multi-year guaranteed annuity (MYGA) option, available with six different term lengths.

Americo’s fixed index annuities are available in two groups: the Americo Elite 5 and the Ultimate One Index Series.

Americo also offers another fixed index option called the Americo Elite 5, which is distinct from the Ultimate One Index Series. This annuity provides 10 index options and is available with surrender periods of either five or 10 years. The interest rate is guaranteed not to fall below zero, and it includes the same standard benefits, such as waivers for nursing home and hospital confinement, as those offered in the Ultimate One Index Series.

The Ultimate One Index Series offers three annuity options with varying surrender charge schedules, ranging from five to nine years based on factors like age. These annuities track the performance of the S&P 500 and provide four credit rating options. The minimum issue limit is $10,000, with a maximum of $1 million.

Key benefits include the ability to withdraw up to 10% of the annuity’s value each year after the first year without penalty. Additionally, if you’re confined to a nursing home or hospital for an extended period, the surrender charge is waived.

The Ultimate One Index 9 Bonus offers a 5% premium bonus, but it comes with a higher initial surrender charge.

Americo also offers MYGAs through its Platinum Assure Series.

The Platinum Assure Series offers flexibility with six guarantee periods: two, three, four, five, six or seven years. It provides tax-deferred growth, allowing earnings to compound without immediate taxation.

The interest rate is guaranteed for the entire selected term, and after the term ends, you can withdraw your full account value without penalty. Americo allows you to withdraw a percentage of your account annually without surrender charges or market value adjustments, with limits depending on the guarantee period.

The annuity includes a nursing home waiver, letting you access your full account value without charges if you’re confined to a qualified facility for 90+ consecutive days (availability varies by state).

In case of your passing, beneficiaries will receive the full account value. Early withdrawals beyond the penalty-free limit or policy term will incur surrender charges, but after the guarantee period ends, withdrawals are penalty-free.

A market value adjustment (MVA) applies if you surrender funds or annuitize during the guarantee period, based on interest rate changes. This does not affect penalty-free withdrawals.

Americo’s annuities come with several notable advantages, making them an attractive option for investors seeking stability and growth.

First, Americo offers competitive rates, with fixed interest rates that may outperform high-yield savings accounts and certificates of deposit (CDs) over the same period. For instance, their two-year fixed annuity offers an interest rate of 4.80%, while some of the best two-year CDs yield an annual percentage of 4.25% or less.

Americo’s annuities grow on a tax-deferred basis, meaning annuitants are only required to pay taxes when they begin making withdrawals. The company also allows penalty-free withdrawals of up to 5% once per year, depending on the guarantee period, providing flexibility for those in need of access to funds.

For individuals facing a nursing home or hospital confinement, certain annuities offer a nursing home waiver, exempting them from surrender charges and helping preserve their savings.

Americo does not charge annual or management fees, which allows more money to remain in the account for tax-deferred growth and future withdrawals.

Americo’s high surrender fees are a significant downside. Withdrawing money during the surrender period could result in a charge of up to 13%.

Americo allows penalty-free withdrawals of 3% to 5% once a year. The percentage varies depending on the guarantee period. This feature can come in handy during an emergency, but note that withdrawing more than the allotted amount can result in high fees.

Credit ratings for annuity providers offer insight into a company’s financial strength and stability, signaling its ability to honor future payment obligations. Various rating agencies use different scales to assess this strength.

The company is in strong financial standing, with $7,165,488,931 in assets and a 112.58% assets-to-liability ratio.

To contact an agent from Americo, visit their website at www.americo.com/contact or call 855-431-0502.

When comparing Americo to other companies offering similar products, it’s important to consider a few factors. If you’re interested in what Americo has to offer, you may want to speak with an agent to learn more about their fixed index or multi-year guaranteed annuities. However, it’s worth noting that Americo may not be the best choice for those seeking variable annuities.

Americo allows penalty-free withdrawals, offering one withdrawal of 3% to 5% per year. While they don’t charge management or annual fees, it’s important to remember that their surrender fees tend to be higher than those of many other companies.

Annuities are highly customizable to meet various needs and financial goals. If you’re unsure about your retirement plan, it might be helpful to consult with a financial advisor. An expert can guide you in determining which annuity best fits your long-term strategy.

Editor Norah Layne contributed to this article.