Eagle Life Insurance Company, which is a branch of American Equity Investment Life Holding Company, is a new company in the life insurance business. This insurance company opened for business in the summer of 2008, when a lot of other banks and insurance companies were going out of business.
Eagle Life focuses on selling insurance and annuities through financial institutions. If you have a separate financial advisor, that person may be able to offer you an insurance policy and/or an annuity through Eagle Life.
American Equity Investment Life Insurance Company, which owns Eagle Life Insurance Company, is in good financial shape. It has more than $53 billion in assets. It is rated highly by the insurer rating agencies, with an A- (Excellent) from A. M. Best, and an A- (Strong) from Standard & Poor’s. As of year-end 2018, American Equity was the number three producer of fixed index annuities in the U. S.
Eagle Life Insurance Company offers both traditional fixed annuities and fixed indexed annuity products. Both of these types of annuities let you grow your money tax-free and turn it into a stream of income that lasts a lifetime.
Choosing a financially stable life insurance company is key to ensuring your policy will be there when your family needs it. This article takes an in-depth look at Eagle Life Insurance Company’s financial strength expert ratings, products, and more to assist in your purchasing decision.
Overview of Eagle Life Insurance Company
Eagle Life Insurance Company provides annuities and life insurance policies. They are based in West Des Moines Iowa and have been in business for over 10 years.
Eagle Life is a subsidiary of American Equity Investment Life Insurance Company. They focus on retirement planning, offering fixed index annuities, fixed rate annuities, and guaranteed lifetime income options.
The company underwrites and issues their own policies. They have a nationwide network of agents, brokers, banks, and marketing organizations.
Eagle Life’s products are designed to help grow retirement savings and provide guaranteed income later in life. But an insurance company’s financial strength is crucial as well.
Eagle Life’s Financial Strength and Credit Ratings
Several independent agencies analyze insurance companies’ finances to assign ratings and help consumers. Here are Eagle Life’s current financial strength and credit ratings:
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A.M. Best Rating: A- (Excellent)
This means A.M. Best has assessed Eagle Life as having excellent financial strength and ability to meet ongoing obligations. The “A-” rating is the 4th highest out of 15 total ratings.
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Standard & Poor’s Rating: A- (Strong)
S&P evaluates Eagle Life as having strong financial security characteristics. The “A-” rating is the 7th highest out of 21 total ratings.
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Moody’s Investors Service Rating: A3 (Good)
At Moody’s, insurance companies rated A3 are considered to have good financial security. This rating is the 8th highest out of 21 total ratings.
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Fitch Ratings: A- (Strong)
Fitch Ratings assesses Eagle Life as having strong capacity to meet financial commitments. The A- rating is the 7th highest out of 19 possible ratings.
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Comdex Ranking: 93
Comdex is a composite score from 1-100 summarizing all ratings. Eagle Life’s Comdex of 93 means they outperform 93% of insurers.
Overall, the ratings from the major independent agencies confirm Eagle Life’s strong financial standing. They have quality investment assets to support their products and manage risks.
Analysis of Eagle Life’s Recent Financial Performance
In addition to third-party ratings, we can look at Eagle Life’s recent financial statements and performance metrics:
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Total Admitted Assets: $19.3 billion (2020)
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Total Liabilities: $17.9 billion (2020)
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Statutory Capital and Surplus: $1.4 billion (2020)
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Net Income: $357.7 million (2020)
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Return on Equity: 25% (2020)
Eagle Life has grown premiums and assets steadily the past several years. Their return on equity of 25% indicates profitability. Overall, the financials back up the assessments of financial strength from the ratings agencies.
Eagle Life’s Life Insurance Products
Eagle Life offers the following life insurance products:
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Term Life – Temporary coverage with death benefit; length of 1-30 years
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Whole Life – Lifelong coverage with death benefit; builds cash value
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Universal Life – Flexible permanent coverage with adjustable death benefit
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Indexed Universal Life – Universial life with cash value tied to market indexes
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Final Expense – Small death benefit policies to cover funeral costs
Life insurance helps protect families and the options through Eagle Life provide income tax-free to beneficiaries upon the insured’s passing.
Reasons to Consider Eagle Life Insurance
Here are some of the key benefits Eagle Life offers to policyholders:
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Strong financial ratings – Eagle Life has consistently high marks from independent agencies for financial strength. This helps ensure they can pay out claims.
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Parent company experience – Backing from American Equity Investment Life, founded in 1995, lends additional stability.
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Range of policy options – Eagle Life provides diverse solutions for term, whole, universal, and final expense life insurance needs.
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Competitive pricing – As a mid-sized company, Eagle Life can often offer more affordable premiums than the large insurers.
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Customer service reputation – Feedback on Eagle Life highlights helpful, responsive customer service for questions and claims.
Potential Drawbacks to Consider
A few things to keep in mind as you weigh options:
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Limited brand recognition – Eagle Life has less name recognition than leading insurers that advertise heavily. But financial strength is most important.
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Shorter time in business – Founded in 2004, Eagle Life has a solid track record but a shorter history than century-old insurers.
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Smaller company – Large insurers have more agents and wider availability. But Eagle Life’s products are sold through independent channels.
For many consumers, Eagle Life represents a great combination of financial stability, competitive pricing, and excellent customer service. But researching multiple insurers is wise to find the best fit.
The Bottom Line: Is Eagle Life a Good Choice?
Eagle Life Insurance Company has strong financial ratings, quality products, and positive customer feedback. They offer competitively priced life insurance policies with financial backing from parent company American Equity.
A.M. Best, S&P, Moody’s, Fitch, and Comdex all rate Eagle Life as having excellent or strong financial strength. Recent financial metrics also demonstrate stability and profitability.
While not the most well-known brand, Eagle Life combines affordability with top-tier financial ratings. Their life insurance policies are worth considering if you want security at a reasonable cost.
Eagle Life Insurance Company’s Fixed Index Annuities
Fixed index annuities protect your principal and give you the chance to earn a higher rate of return than a regular fixed annuity. This is because they are based on the performance of an underlying market index, such as the S&P 500.
Eagle Life Insurance Company uses two common indexes for its fixed index annuity return tracking purposes. These include the:
- S&P 500
- S&P 500 Dividend Aristocrats Daily Risk Control 5% Index
You can pick either one or both of these indexes to track the return on your annuity. There is also a fixed account option.
There are a number of fixed indexed annuities offered through Eagle Life Insurance Company, including the:
- Eagle Advisory 8
- Eagle Select Focus 5
- Eagle Select Focus 7
- Eagle Select 6
- Eagle Select 8
- Eagle Select 10
You can also choose to add a lifetime income benefit rider to your Eagle Life fixed indexed annuity. This option can help you to secure a guaranteed lifelong income source. It lets you save money for a set amount of time without paying taxes on it until you get your first income payment. (Please keep in mind that if you add this rider, an extra fee will be taken out of the value of your annuity every year.)
For more details on the Eagle Life lifetime income benefit rider, or LIBR, go HERE.
To learn more about all of the fixed index annuities sold through Eagle Life Insurance Company, go HERE.
Traditional Fixed Annuities from Eagle Life Insurance Company
If you buy a fixed annuity from Eagle Life Insurance Company, you will get a competitive rate of return that is guaranteed at the time you buy the annuity. Your principal is protected, regardless of what happens in the stock market.
Many of the traditional fixed annuities from Eagle Life are MYGA (Multi-Year Guaranteed) annuities. This means that you can lock in an interest rate for a set period of time. The Eagle Platinum MYGA annuities offer a 5-year, a 6-year, and a 7-year option. Eagle Life also offers the Sure Rate fixed annuity.
These annuities also give you some cash flow and the option to withdraw money without any fees in some situations, like when you are told you have a terminal illness or need to move into a nursing home.
For more in-depth details on the traditional fixed annuities that are sold through Eagle Life Insurance Company, go HERE.
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