Is Security Benefit a legit company?

Editorial team Published on

Yes, Security Benefit is a legitimate, long-standing financial services and retirement company rather than a scam.

đź“Š Company Overview

  • Established: Founded in 1892 in Topeka, Kansas, with over 130 years in business.
  • Ownership: Wholly owned by Eldridge Industries, a private holding company.
  • Scale: Manages over $50 billion to $60 billion in assets.
  • Focus: Specializes in retirement planning, 403(b) plans for educators, and annuity products (fixed, fixed index, and variable).

âś… Financial Strength Ratings

  • AM Best: A- (Excellent)
  • Fitch Ratings: A-
  • Standard & Poor's (S&P): A-
  • Note: These independent ratings indicate a strong financial capacity to meet ongoing policyholder and insurance obligations, though Fitch revised its outlook to negative in mid-2026 due to investment risk considerations relative to peers.

⚠️ Considerations & Criticisms

  • Complex Products: Like many annuity providers, some of their products feature steep surrender charges or complicated indexing structures that require careful review.
  • Past Legal Scrutiny: The company has faced historical and ongoing consumer class-action lawsuits regarding fee disclosures or product performance expectations, which is relatively common for large insurance and retirement carriers.

What kind of company is Security Benefit?

Security Benefit is a financial services and retirement company specializing in annuity products and workplace retirement plans.

Core Offerings

  • Annuities: Fixed, fixed index, and variable annuity products designed for tax-deferred growth and retirement income.
  • Retirement Plans: Workplace solutions including 401(a), 403(b), 457, and SEP/SIMPLE plans.
  • Investment Programs: Mutual fund programs and target portfolios for individuals and employers.

Company Background

  • History: Founded in 1892 in Topeka, Kansas, originally starting as a fraternal benefit society before transitioning into a life insurance and retirement services company.
  • Ownership: It operates as a subsidiary of Security Benefit Corporation and is owned by Eldridge Industries.
  • Scale: Manages nearly $60 billion in assets and serves educators, individual consumers, and institutional clients across the United States.

Who owns Security Benefit insurance?

Security Benefit Insurance (Security Benefit Life Insurance Company) is owned by Eldridge Industries, a holding company controlled by billionaire Todd Boehly.

Ownership Details

  • Parent Company: Eldridge Industries wholly owns Security Benefit as part of its Eldridge Wealth Solutions division.
  • Key Individual: Todd Boehly, CEO and Chairman of Eldridge Industries, holds a controlling stake in the firm.
  • History: The company was initially acquired while Boehly was at Guggenheim Partners in 2010, before he later spun off and built Eldridge Industries in 2015.

Has anyone ever lost money in an annuity?

Yes, people can lose money in an annuity depending on the contract type, fees, and how it is managed.

While fixed and indexed options protect your principal from market drops, several common scenarios can lead to financial losses.

Ways People Lose Money in Annuities

  • Market Downturns: With variable annuities, your money is tied directly to market investments like mutual funds, meaning a market drop reduces your account value.
  • Fees and Charges: High annual fees, administrative costs, and optional riders (extra features) can slowly chip away at your total account value.
  • Surrender Charges: Pulling your money out too early—usually within the first 5 to 10 years—can trigger steep early withdrawal penalties from the insurance company.
  • Inflation: If you choose a fixed payout without a cost-of-living adjustment (COLA), inflation will quietly reduce your purchasing power over time.
  • Early Death (Life-Only Payouts): If you pick a life-only payout option and pass away shortly after buying the annuity, payments stop, meaning you might collect less than you originally put in.
  • Insurer Insolvency: If the insurance company goes bankrupt and your losses exceed state guaranty association limits, you could lose a portion of your funds.

What are the current rates for Security Benefit fixed annuities?

Current fixed and multi-year annuity rates for Security Benefit range from 5.25% to 5.65% for the Advanced Choice Annuity, depending on your contract value and guarantee period.

Advanced Choice Annuity Rates

Effective September 28, 2026, the rates for the Advanced Choice Annuity are split by contract size:

  • Contract Value Under $100,000:
    • 3-Year Period: 5.25%
    • 5-Year Period: 5.45%
    • 7-Year Period: 5.45%
  • Contract Value $100,000 and Above:
    • 3-Year Period: 5.45%
    • 5-Year Period: 5.65%
    • 7-Year Period: 5.65%
  • Guaranteed Minimum Interest Rate (GMIR): 3.00%

Other Security Benefit Annuity Options

  • Total Interest Annuity: Initial interest rate is 4.00% with a 2.00% bonus rate for first-year purchases (effective through October 9, 2026).
  • RateTrack Annuity: Features a 1st-year total credited interest rate of 5.08% (5-year term) or 5.18% (7-year term) tied to the SOFR benchmark, capped at 6.00%.
  • ClearLine Fixed Account Rates: Ranging from 5.65% to 5.75% depending on purchase payment thresholds.

About Security Benefit Life | Security Benefit Life Annuities

9 related questions found

Is Security Benefit legit?

Yes, Security Benefit (Security Benefit Life Insurance Company) is a legitimate financial services and insurance company, not a scam.

Company Overview

  • History: Founded in 1892 and based in Topeka, Kansas, the company has over 130 years of operating history.
  • Financial Strength: It holds an A- (Excellent) financial strength rating from major credit agencies like AM Best, S&P, and Fitch. As a well-established carrier with tens of billions of dollars in assets under management, it is legally authorized and solvent.
  • Products: The company specializes in retirement planning products, including fixed annuities, fixed index annuities, variable annuities, and 403(b) plans often sold to public school teachers and non-profit employees.

Common Concerns and Criticisms

While the company is legitimate, consumers frequently raise questions or express frustration over specific aspects of their products:

  • Complex Products: Many complaints arise because annuities and 403(b) plans can be complex, feature high fees, and carry steep surrender charges if you try to withdraw your money early.
  • Customer Service: Online consumer review platforms feature low scores and complaints regarding slow processing times for rollovers, withdrawals, or beneficiary changes.
  • Past Legal Scrutiny: The company has faced lawsuits over the marketing and performance of its proprietary index accounts, which is common among large annuity providers.

How to withdraw money from Security Benefit?

You can request a withdrawal online by signing into your Security Benefit Account or by submitting a physical service form.

đź’» Online Request

  • Sign in to your Security Benefit Account.
  • Go to the dashboard and select your mutual funds or retirement plan option.
  • Open the Loans & Withdrawals tab.
  • Select Model a Withdrawal or submit your request directly.
  • Call the service center at 800-747-3942 if you need assistance with plan provisions.

đź“ť Form-Based Request

  • Download the Annuity Contract Withdrawal Request or custodial account form from the Security Benefit Service Forms page.
  • Complete your general account details, plan number, and social security number.
  • Specify your desired withdrawal amount and tax withholding choices.
  • Sign the document (obtain a signature guarantee if required).
  • Fax the form to 785-368-1772 or mail it to Security Benefit, P.O. Box 750497, Topeka, KS 66675.

⚠️ Important Considerations

  • Surrender Charges: Withdrawals above penalty-free limits may trigger carrier fees.
  • Tax Penalties: Distributions before age 59½ can incur a 10% IRS penalty.
  • Contact Support: Call 800-888-2461 for general questions or account help.

Who is the #1 life insurance company in the USA?

New York Life is the #1 life insurance company in the U.S. by direct premium market share, holding about 7.4% of the market.

Because "number one" can mean different things depending on how it is measured, top rankings vary by category:

Market Share (Direct Premiums)

  • #1 New York Life: Holds 7.40% of the market with over $15.5 billion in direct premiums.
  • #2 Northwestern Mutual: Holds 6.75% of the market.
  • #3 Metropolitan (MetLife): Holds 6.19% of the market.

Total Assets

  • #1 Prudential Financial: Manages over $568 billion in total assets.
  • #2 New York Life: Manages over $446 billion in total assets.

Customer Satisfaction

  • #1 Mutual of Omaha: Ranked highest for customer satisfaction in the J.D. Power Individual Life Insurance Study.

What is the credit rating of Security Benefit Life Insurance Company?

Security Benefit Life Insurance Company holds an A- (Excellent) financial strength rating from major credit agencies like A.M. Best and an A- (Strong) rating from Fitch Ratings and S&P Global Ratings.

Current Financial Strength Ratings

  • A.M. Best: A- (Excellent) with a stable outlook.
  • Fitch Ratings: A- (Strong), though the outlook was revised to Negative in August 2026 due to asset and investment risk concerns regarding its collateral loan portfolio.
  • S&P Global Ratings: A- (Very Strong view of capital and earnings).
  • DBRS Morningstar: A (Good).

Company Financial Snapshot (as of mid-2026)

  • Total Admitted Assets: $66.83 billion
  • Total Liabilities: $59.53 billion
  • Total Adjusted Capital: $8.6 billion

You can review complete details directly through the Security Benefit Investor Relations portal.

Who is the CEO of Security Benefit?

The Chief Executive Officer (CEO) of Security Benefit is Doug Wolff.

Background Details

  • Role: He took over as CEO in June 2022, succeeding long-time CEO Mike Kiley.
  • Experience: He joined the company in 2001 and previously served as its president starting in 2011.
  • Background: He has over 35 years of experience in the financial and insurance industry, with expertise in actuarial pricing, investment management, and product development.