GBU Life at a Glance: Rates, Products and Reviews

GBU Life has been a long-time life insurance and annuity provider since the 19th century.

It specializes in multiple forms of annuities, including fixed, index, immediate and deferred annuities. Terms are flexible, and rates are competitive, with a robust member program included with the purchase of an annuity.

With a community-first mentality, GBU Life puts a spin on the average annuity company, showing its members how much they are valued through numerous benefits. Members cannot only vote on company matters but also enjoy exclusive discounts, education perks and local events. This is in addition to certain protections like death, critical illness and home health care benefits.

With high ratings and easily accessible customer support, GBU Life remains a mainstay among annuity providers for its wide array of annuity products and fantastic member benefits.

German Beneficial Union (GBU) Financial Life is one of the oldest annuity companies. GBU Life started in 1892 as a fraternal benefit society founded by German immigrants and later became popular with other European immigrants. Today, it is a member-owned company with over 65,000 members across the US, offering life insurance and annuity products.

”We pride ourselves in being real long-term stewards of our members’ money,” says GBU CEO Bill Hunt.

GBU Life is recognized for its commitment to meeting member needs. One of its most appealing features is the absence of fees, as there are no service or administrative charges. As a member-owned company, GBU Life takes pride in its affordability, passing savings directly to its customers.

The company is also actively involved in community initiatives, such as the GBU Foundation Scholarship program, which aims to enhance children’s education. Another significant effort is Operation Reach Out (ORO), which supports over 10,000 deployed troops and veterans.

“Everyone should consider life insurance and annuities to grow and protect their savings and retirement,” says GBU National Vice President Matt Blistan of GBU Life retirement planning. “GBU just offers a little extra in the way of member benefits, community service and programs for its customers.”

GBU Life offers four types of annuities: fixed, index, immediate and deferred. This gives you a broader selection to find the right investment vehicle for your portfolio.

When planning for retirement, understanding the various types of annuities can help you choose the best option for your financial goals. GBU Life offers several annuity products designed to provide reliable income and growth opportunities, each with unique features to fit your needs. Here’s a quick overview of the main types of annuities GBU Life provides:

GBU Life offers a free look period for its products, allowing you to explore GBU annuities in greater detail without fear of penalty. You can cancel your purchase within a specific time period, which depends on the product you purchase. For example, the free look period for immediate annuities lasts 10 or 30 days.

GBU Life offers a diverse range of annuity products, including flexible premium deferred annuities (FPDAs), multi-year guaranteed annuities (MYGAs), immediate annuities and fixed index annuities, each designed to provide tax-deferred growth, flexible investment options and varying levels of protection against market fluctuations.

The flexible premium deferred annuity (FPDA) is a tax-deferred annuity available in two terms: the Future Flex Preferred 5, which lasts five years, and the Future Flex Preferred 8, which lasts eight years. These updated versions of the Preferred 5 and Preferred 8 allow you to choose between making a lump sum contribution or a series of payments. The Future Flex Preferred 5 is an excellent option for beginners, requiring a minimum deposit of just $1,000 and accepting up to $3 million in the first year. In contrast, the Future Flex Preferred 8 requires a minimum deposit of $10,000 and can accept up to $3 million. Both options include living benefits. For high net worth individuals (HNWIs), the Future Flex Classic Annuity is available, with deposits ranging from $500,000 to $5 million.

GBU Life’s Multi-Year Guaranteed Annuities (MYGAs) offer a guaranteed fixed interest rate for terms of two, three, four or five years, with purchase amounts ranging from $25,000 to $2 million. These annuities come with options for qualified and non-qualified investments and joint ownership. They also feature a free withdrawal option for greater accessibility and flexibility. Additionally, a death benefit is included, along with optional riders and benefits to further customize your annuity.

Immediate annuities offer exceptional flexibility when it comes to accessing your funds. You have several payout options to suit your needs. These include lifetime payments or the lifetime with refund option, which ensures that any unused principal is paid to your beneficiary. For couples, the joint and survivor option is available. If the term is your priority, the customizable period certain option lets you choose between five and 25 years. For joint owners, there’s also the option for income for life combined with the customizable period certain and life feature.

The Future Flex Fixed Index Annuity is based on a stock market index or indices with 19 strategy options. You can benefit from tax-deferred growth with penalty-free withdrawals. It also includes principal protection, which means you will not be affected by any dips in the market. Deposits range from $10,000 to $5 million for your initial premium, but you can add $1,000 contributions at any time during the four-year term. You can choose from three index options to reallocate your money every year or two.

The Asset Guard Fixed Index Annuity is a deferred annuity that provides built-in protection against losses while benefiting from market growth. Like the Future Flex Fixed Index Annuity, it offers 19 different strategy options and three indices with a fixed-rate option. The annuity has a four-year guarantee, and initial premiums range from $25,000 to $5 million.

GBU Life features competitive rates coupled with flexible terms.

Certain GBU Life annuities come with additional features and benefits. For example, the MYGA includes a death benefit. The FPDA goes further, including several thoughtful living benefits, such as protection against critical illness and cognitive impairment. There is also coverage for nursing home confinement and home health care, giving added peace of mind for your retirement.

In 2022, GBU Life reported $767 million in revenue and $4.4 billion in assets, with a surplus of $302 million and a solvency ratio of 107%. This indicates that the company is well-equipped to meet its financial obligations.

GBU Life is recognized for its financial strength and stability. The leading ratings agency AM Best has awarded it an A- (Excellent) rating, which it has maintained for several years. Additionally, S&P Global has given GBU Life a positive financial reliability rating of BBB+.

Customer service remains a priority for GBU Life as a member-owned company. Although it is not rated in J.D. Power’s 2023 Annuity Study, the Better Business Bureau (BBB) gives it an A+ rating.

GBU Life offers appealing benefits for members who choose to buy an annuity. There are two membership options available: Fully Insured and Social.

With a Fully Insured membership that includes all paid annuity and life insurance products, you can access a range of additional life insurance benefits, including the Orphan Benefit and Newborn Child Benefit. You can also make a donation to a partner organization of your choice through the Birthday Match program during your birthday month.

Other advantages include member discounts and access to GBU reimbursement programs. Education is prioritized through the Give Back University and GBU Community Support Programs. Plus, you have voting rights on important matters as a member-owned organization.

With a Social Membership, you can enjoy GBU Life benefits without purchasing an annuity. For just $25 per year, you gain access to GBU Reimbursement Programs, Community Support Programs, Give Back University, member discounts and charitable perks like a welcome donation and Birthday Match.

Editor Norah Layne contributed to this article.