ELCO Mutual At a Glance: Rates, Products and Reviews
ELCO Mutual was founded in 1946 and has a strong history of providing personalized financial products that enhance your economic stability. The company sells whole life insurance policies and annuities, including Medicaid complaint annuity options.
- Written by Christy Bieber
- Edited By Rachel C. Murphy
- Published: February 14, 2025
- Updated: March 20, 2025
- 6 min read time
- This page features 3 Cited Research Articles
- ELCO Mutual offers annuities and life insurance policies.
- ELCO offers Medicaid complaint annuities, among others.
- You have flexibility to choose the annuity or life insurance policy that’s right for you.
ELCO Mutual was founded in 1946 as Employee Life Company. It expanded throughout the 1980s when it merged first with Crown Life and then with the Locomotive Engineers Mutual Life and Accident Insurance Association. Another expansion came in 1991 with the acquisition of Apollo National Insurance, followed by the adoption of its current name in March 2013.
Today, from its headquarters in Illinois, ELCO Mutual provides annuity and life insurance products with a focus on personalized service and stability. The insurer has solid financial strength ratings and sponsors charitable events in its community.
If you are interested in annuities or life insurance products, check out this ELCO Mutual review to see if it’s the right company to provide them.
Types of Annuities Offered by ELCO Mutual
- Flexible Premium Deferred Annuities
- Flexible Premium deferred annuities offer the option to make either a single payment or to make a series of payments over time. When you purchase a flexible premium deferred annuity, you can choose a one, two, three, five, seven or 10-year multi-year guaranteed annuity (MYGA). All MYGAs offered by ELCO provide tax-deferred growth and promise a guaranteed rate of return during the selected term.
- Single Premium Deferred Annuities
- You’ll fund the purchase of these annuities with a single payment. Like the Flexible Premium alternative, you will have a choice of how many years you want a guaranteed rate and will benefit from tax-deferred growth with these multi-year guaranteed annuities.
- Medicaid Complaint Annuities
- Medicaid is a means-tested benefits program, so those with too many financial resources cannot qualify. This becomes a problem for those with special needs, or for seniors who require nursing home care and want Medicaid to pay for it since Medicare will not offer coverage. ELCO Mutual offers single-premium annuities with fixed payments that can help to accelerate Medicaid eligibility. Medicaid-specific annuities must meet certain requirements, including being irrevocable and not assignable to third parties. They also must be for a fixed term. These annuities must make level payments, and the value of the contract cannot be accessed after the initial grace period.
Multi-year guaranteed annuities like those offered by ELCO can work similarly to CDs by locking in your rate for a set time. However, they offer advantages CDs do not, including longer terms and tax-deferred growth.
Learn More About Your Annuity Options
*Ad: Clicking will take you to our partner Annuity.org.
Life Insurance Products Offered by ELCO Mutual
In addition to annuities, ELCO Mutual also offers life insurance products. Available types of life insurance policies include:
- Whole Life Insurance
- These policies remain in effect as long as you pay premiums. Your policy accrues a cash value that you can use to help fund your retirement. Whole life policies also provide a death benefit for loved ones, and with ELCO’s living benefits policies, you also get protection during your lifetime.
- Final Expense Insurance
- Provide coverage for medical expenses, funeral expenses, and other financial obligations upon your death. They protect loved ones from having to cover these costs if something happens to you.
- Pre-Need Insurance
- Allows you to make funeral arrangements and cover the costs of your burial in advance so your family can avoid having to make difficult decisions and pay significant expenses upon your death.
ELCO Mutual also offers unique benefits, including an accelerated death benefit rider that is available on all policies at no extra cost. This makes funds available if you need home care, develop a chronic illness, are permanently confined to a medical facility or if you are diagnosed with a terminal illness.
Key Features and Benefits
ELCO’s annuity and life insurance products offer some standard benefits for similar products. These include annuities that grow tax-free, offer lifetime income to retirees and flexible payout structures. However, there are also some benefits unique to this company, including:
- Specialized annuities that are Medicaid complaint
- Final expense insurance included on all life insurance policies at no cost
- Many choices of terms for multi-year guaranteed annuities, so you can customize your investing timeline to meet your needs
- Annual dividends paid for single premium whole life insurance policies with dividends consistently paid since 1977
These are advantages many other insurers do not offer, and they make ELCO a top choice if you are concerned you may need Medicaid nursing home coverage or if you want your rate guaranteed for an extended period of time.
Fees and Charges
ELCO Mutual charges many of the standard fees common for annuity products. This includes surrender charges. These fees are charged for early withdrawals and go down over time. The specific fees vary by product.
The table below shows the surrender charges that could apply if you withdraw money from an ELCO Guardian Eagle Flex, flexible premium deferred annuity. These fees are in line with industry standards and are similar to those charged by most annuity providers.
| Annuity Year | Surrender Charge |
|---|---|
| 1 | 5% |
| 2 | 5% |
| 3 | 5% |
| 4 | 5% |
| 5 | 1% |
| 6 | 0% |
| 7+ | 0% |
ELCO does offer some opportunities to withdraw funds without incurring these charges. Interest can be withdrawn after the first 30 days with no penalties. Starting in the second contract year, you can also withdraw 15% of the principal once per year. This allows more flexibility if your investing or income needs change.
Financial Strength and Customer Reviews
ELCO Mutual has solid financial strength ratings. The credit rating agency AM Best awarded ELCO Mutual a B++, the 5th highest of 16 rankings. AM Best also said the company’s outlook was stable. Knoll Bond Rating agency assigns ratings to insurers to show how likely they are to meet policyholder needs. ELCO received a BBB rating from Knoll.
Beyond the rating agencies, ELCO also received an A- grade from the Better Business Bureau. However, the BBB did indicate one action against the company. The State of Minnesota Department of Commerce entered into a consent order with ELCO in which ELCO agreed to pay an $8,000 civil penalty for failing to provide notices of appointment for insurance agents selling in the state and paying commissions to unlicensed insurance agents.
*Ad: Clicking will take you to our partner Annuity.org.
Is ELCO Mutual Right for You?
ELCO Mutual offers a variety of solid financial products for those preparing for retirement. If you want a choice of terms for MYGAs, want to ensure you have a solid Medicaid plan in place, or are interested in a life insurance policy with a terminal illness or chronic illness rider included at no extra cost, ELCO Mutual may be right for you.
The company’s solid financial strength ratings and overall positive customer service reviews also make it a good contender if you want to pursue an annuity that will offer you financial stability in the future.
Editor Norah Layne contributed to this article.
Connect With a Financial Advisor Instantly
Our free tool can help you find an advisor who serves your needs. Get matched with a financial advisor who fits your unique criteria. Once you’ve been matched, consult for free with no obligation.
3 Cited Research Articles
- ELCO Mutual. (n.d.). About Us. Retrieved from https://www.elcomutual.com/about
- ELCO Mutual (n.d.). Discover the Importance of Life Insurance. Retrieved from https://www.elcomutual.com/life-insurance
- ELCO Mutual. (n.d.). Everything You Need to Know About Deferred Annuities. Retrieved from https://4026244.fs1.hubspotusercontent-na1.net/hubfs/4026244