GCU USA At a Glance: Rates, Products and Reviews

Since 1892, GCU USA has operated as a Pennsylvania-based fraternal benefit society. It has member lodges in nine states. The company focuses on serving communities through volunteering, giving to charities, and offering life insurance and annuity products that boost financial security. Its goal is to improve members’ lives rather than maximize profits.

GCU USA has around $2.77 million in total assets based on its most recent quarterly report. According to the 2023 report from the National Association of Insurance Commissioners, the insurance company brought in $376 million in individual annuity premiums, making up around 0.015% of the U.S. market.

GCU USA offers multiple types of annuity products, including fixed deferred, fixed index and single premium immediate annuities. Its fixed deferred annuity selection is the largest.

Fixed deferred annuities are low-risk products that provide stable returns, tax-deferred growth, flexible withdrawal options and guaranteed retirement income. All four of GCU USA’s options include death benefit waivers and currently guarantee a minimum rate of 2.65%. Check the company’s rates list for the latest information.

Fixed index annuities provide growth potential tied to the performance of a market index. They might suit your needs if you want to limit the risk of loss in market downturns but enjoy higher growth than you might get with regular fixed annuities.

GCU USA’s two fixed index annuities — Aquila V and Aquila X — offer multiple crediting strategies, including a first-year fixed rate and the ability to earn interest based on the Zorya and U.S. Tech indexes. While your index-related returns will vary, they won’t be negative.

Aquila V has a five-year contract period, while Aquila X is for 10 years. Both annuity options are available for customers up to age 90 and have a minimum initial premium of $10,000. The maximum initial premium is $1 million.

These fixed index annuities offer living benefit riders for terminal illness, nursing home confinement, wellness and guaranteed lifetime income. Plus, you can withdraw up to 10% of your funds without surrender charges from the second year onward.

SPIAs provide a quick retirement income source in exchange for a one-time premium. You might prefer immediate annuities if you are of retirement age or plan to retire soon. However, there’s the downside of limited growth potential compared with deferred annuities.

GCU USA’s Option B SPIAs include two income payout options. The first is fixed period certain income, which offers guaranteed monthly payments for a fixed period, usually five to 20 years. The second is lifetime income, which offers the stability of receiving fixed annuity payments for life. It’s more flexible since it allows joint annuitants.

You’ll pay surrender charges for early withdrawals from your GCU USA annuity beyond any annual penalty-free amount, which is typically 10% to 20%. The fee depends on the annuity you buy and usually decreases each contract year. For example, surrender charges range from 2% to 9% for the Flex 8 annuity and 0.5% to 9% for the Aquila X annuity.

Other annuity fees, including administrative charges, may apply. GCU USA also charges a fee for certain riders, including Income Pro and Income Elite for Aquila V and Aquila X. Carefully review the annuity’s rates and fee schedules or contact a GCU USA agent to learn more about how costs will impact your returns.

GCU USA has an A- (excellent) rating from AM Best and an A- rating from KBRA. These agency ratings suggest that GCU USA is a stable provider for purchasing an annuity. The other rating agencies — Fitch Ratings and Standard and Poor’s — haven’t rated this company.

While GCU USA hasn’t received Better Business Bureau accreditation, it has an A+ BBB rating and only one customer complaint on the site. Additionally, its 2023 NAIC Complaint Index is far below the 1.00 industry average; the last two complaints came in 2021. This suggests high customer satisfaction with GCU USA.

For more than 130 years, the company has also built a good reputation for focusing on ethical practices, volunteering locally and giving to charitable causes.

GCU USA stands out for its strong financial strength ratings, diverse annuity product selection with rider options and commitment to helping members improve their financial security. Its annuity rates are competitive, and the early withdrawal options can help you avoid surrender charges. However, you’ll need another option for variable annuity offerings.

To decide if GCU USA makes sense for your retirement income needs, carefully review its product options, including their rates and fees, and compare them to annuities from competitors. You might also want to seek a financial advisor to help you determine the right financial products for your goals and answer questions about how different annuities work.

Editor Norah Layne contributed to this article.