Atlantic Coast Life at a Glance: Rates, Products and Reviews

Founded in 1925, Atlantic Coast Life offers fixed and fixed index annuities featuring competitive rates and customizable options. Their products provide consumers with flexibility through optional riders. However, potential investors should take into account the company’s smaller size and lower financial ratings when considering long-term investments.

Atlantic Coast Life provides two types of annuities: fixed annuities and fixed index annuities (FIAs). However, the company does not distinguish between these annuity types on its website, presenting all products in a combined list. It’s important to note that these products may not be available in all states, so consumers should verify availability based on their location.

The Guaranteed Income Annuity is a 10-year deferred product that allows premiums to be accumulated within the first 12 months. After this period, no additional premiums can be added. This annuity features three benefit riders, each offering a different rate of return: the guaranteed lifetime withdrawal benefit rider (GLWB), the legacy benefit rider and the accumulation benefit rider. Interest crediting is guaranteed at a minimum rate of 2.75%, with growth rates including an incremental fixed return above the base rate. Premium bonuses depend on age and the selected benefit rider. Additionally, waivers are available for required minimum distributions, terminal illness and nursing home confinement.

Safe Harbor is a single premium multi-year guaranteed product available in contract terms of three, five, six, seven, ten and twenty years. All contracts, except for the twenty-year term, include a simple interest bonus in the first year. The minimum premium required is $5,000. Additionally, a death benefit rider can be added, which reduces the interest rate by 0.25% and waives surrender charges and market value adjustments in the event of the owner’s death.

Like the Safe Harbor product, Safe Haven is a single premium multi-year guaranteed annuity available in terms of three, five, six, seven, ten and twenty years. All contracts, except for the twenty-year term, feature a compound interest bonus in the first year. Optional riders include the preferred 10% free withdrawal rider, which deducts 0.15% from the interest rate; the accumulated interest withdrawal rider, which deducts 0.05%; and the death benefit rider, which reduces the interest rate by 0.25%.

Atlantic Coast Life offers four types of fixed annuities, each designed to cater to different consumer needs.

The Accumulation Protector Plus is aimed at those focused on growth. It features a 10% premium bonus on the initial premium, which vests over a 10-year term, and requires a low minimum initial investment of $5,000. This annuity provides the broadest investment options among Atlantic Coast Life’s fixed index products, with three indices and various crediting options available. For consumers seeking higher growth, a rate enhancement rider can be added for an additional annual fee of 0.95%. However, one drawback is that penalty-free withdrawals are limited to 5% per year until the term concludes, which is lower than the industry average of 10%.

The Retirement Plus Multiplier annuity is tailored for retirees, offering more term options—five, seven or ten years—but fewer investment choices, with only two indices and a fixed-rate option. It shares the same crediting options as the Accumulation Protector Plus and includes two optional riders: a growth benefit that enhances potential returns by 1.25% annually and a guaranteed lifetime withdrawal benefit at an annual cost of 0.95%. Notably, the penalty-free withdrawal allows for the greater of 10% of the accumulation value or the required minimum distribution. Additionally, terminal illness and nursing home riders are included.

The Safe Anchor Annuity offers a straightforward five-year guaranteed term, allowing investors to choose between a fixed rate and an S&P 500 index option. The crediting methods available include annual point-to-point, monthly average and monthly sum, although cap rates are lower than those found in other annuity products. This annuity also features four optional riders, providing added flexibility for policyholders. For those expecting required distributions during the policy term, it’s essential to select the appropriate rider to avoid incurring surrender charges.

The Income Navigator Annuity is designed for consumers looking to secure retirement income, offering a 10-year term. It features an optional guaranteed lifetime withdrawal benefit available for a 1.5% fee, providing additional financial security. Both the base policy and income rider contracts are eligible for a 7% premium bonus, which vests over the 10-year term. Interest crediting can be based on the S&P 500 index or a fixed account, with various crediting methods to choose from, including annual point-to-point, monthly averaging, daily averaging or monthly sum. However, all crediting options are subject to caps.

Atlantic Coast Life provides a diverse selection of fixed and fixed index annuities, catering to a wide range of consumer needs. The optional riders enhance flexibility, making these products suitable for both investors and retirees.

With competitive rates often leading the market, fixed annuities present an appealing choice for consumers seeking guaranteed yields and alternatives to traditional CDs. The tax-deferred growth inherent to annuities further adds to their attractiveness.

For those interested in fixed index annuities, Atlantic Coast Life offers various index and crediting options that many competitors may lack. Sophisticated annuity shoppers can benefit from the ability to choose between monthly sum, monthly average or daily average crediting methods, allowing them to align their choices with their individual risk tolerance.

Atlantic Coast Life provides some of the highest rates on fixed annuities in the market. However, it’s essential to note that not all insurance agents may offer Atlantic Coast Life products due to its lower credit rating compared to many other insurers. When selecting an annuity, it’s important to balance rates, financial security and flexible options to determine which provider and product best align with your needs.

For fixed index annuities, rates and returns vary based on product type, including factors such as riders, bonuses and underlying indices. Conducting direct product comparisons is necessary to assess the suitability of each offering for your retirement and income objectives.

Understanding the financial strength and stability of an insurance company is important when considering annuity products. This section explores the key indicators of Athene’s financial health, providing insights into their ability to meet policyholder obligations and maintain long-term viability in the annuity market.

Atlantic Coast Life has not been rated by three of the four major rating agencies, which raises some concerns about its stability. AM Best, the only rating agency covering it, has slowly improved its scores over time, which is a positive development for the company. However, it remains a slightly higher-risk option for insurance and annuity policyholders. Consumers choosing Atlantic Coast Life should review state guaranty association coverage to ensure their policy size does not exceed the amounts guaranteed by the state agency.

Atlantic Coast Life reported total assets of $693 million and Capital and Surplus of $91.6 million as of December 2022. Notably, the company has seen substantial growth, with net investment income increasing by over 550% and Capital and Surplus rising by more than 650% since 2013. While this growth is impressive, Atlantic Coast remains relatively small compared to industry giants like MassMutual or New York Life. However, the stability that comes from being family-owned since its inception sets Atlantic Coast Life apart, providing a sense of purpose and continuity that many larger insurers may lack.

The National Association of Insurance Commissioners (NAIC) Complaint Index serves as the standard measure of client satisfaction within the insurance and annuity industry. This annual report evaluates insurers based on the number of complaints they receive relative to the industry as a whole. In the most recent 2023 report, Atlantic Coast Life’s score is noteworthy. The index is benchmarked at 1.0, where a score of 2.0 indicates double the average complaints and a score of 0.5 indicates half the average complaints.

The complaint index scores indicate a notable improvement for Atlantic Coast Life compared to the previous years, 2022 and 2021, when their scores were significantly above average. While Atlantic Coast Life’s insurance and annuity divisions were not included in J.D. Power’s 2023 Customer Satisfaction Index Ranking—which assesses overall customer satisfaction among insurance companies and annuity providers—other reviews present a mixed picture of the company’s customer service performance.

It’s important to approach user-submitted ratings on platforms like Trustpilot or Yelp with caution, as these may not accurately reflect the experiences of all consumers.

When considering Atlantic Coast Life annuities, it’s essential to weigh the advantages and disadvantages. While the company offers competitive rates and a variety of products, there are factors such as financial ratings and customer service that may influence your decision. This overview will highlight the pros and cons to help you determine if Atlantic Coast Life is the right choice for your retirement planning needs.

Atlantic Coast Life offers attractive growth rates and some of the highest payout options available in the market. However, these enticing rates should be carefully considered alongside the company’s smaller size and lower creditworthiness. Compared to larger, well-established national insurers, Atlantic Coast Life has weaker credit ratings, primarily due to its lower reserves and financial capabilities.

While the organization of information on their website may make it challenging for consumers to discern specific policy details, all relevant information is included in the policy guidelines. Given the company’s lower credit ratings, it’s important for consumers to be mindful of their state guaranty association limits when contemplating the size of annuity purchases with Atlantic Coast Life.

Editor Norah Layne contributed to this article.