Manhattan Life Insurance Company has been continuously operating since 1850 – over 175 years – making it one of the oldest insurance companies in the United States. The tradeoff for that history: a B++ AM Best rating rather than the A range, and MYGA rates that run below the market-leading tier. What Manhattan Life offers in return is the most generous free withdrawal provision in the MYGA market: 15% annually from day one with no Market Value Adjustment.
Manhattan Life at a Glance
| Detail | Information |
|---|---|
| Full Legal Name | The Manhattan Life Insurance Company |
| Founded | 1850 (175+ years of continuous operation) |
| Headquarters | Houston, Texas (charter state: New York) |
| Ownership | Privately held under Manhattan Life Group, Inc. |
| AM Best Rating | B++ (Good) – upgraded from B+ in 2022; verify at ambest.com |
| Demotech Rating | A (Exceptional) – secondary rating agency |
| Primary Products | MYGA, Fixed Indexed Annuity, SPIA |
| MYGA Minimum Premium | $10,000 |
| Maximum Issue Age | 84 |
| Free Withdrawal | 15% annually from year 1 – no MVA |
| State Availability | ~45-48 states (not CA, NY, ND, SD) |
Manhattan Life’s Financial Strength and Background
The Manhattan Life Insurance Company was chartered in New York in 1850 and has paid claims through every major financial crisis in American history. That longevity is genuine – but it comes alongside a B++ (Good) AM Best rating, two notches below the A- tier. AM Best upgraded Manhattan Life from B+ to B++ in November 2022, citing strong operating performance. The B++ rating means AM Best views the company as having a good ability to meet obligations while being more vulnerable to adverse conditions than A-range carriers.
Manhattan Life Group operates multiple issuing subsidiaries. Annuity products are issued by either The Manhattan Life Insurance Company (New York domicile) or Western United Life Assurance Company (Washington domicile). Confirm which entity is issuing your specific contract. Verify current ratings at ambest.com and manhattanlife.com.
Your state guaranty association provides protection up to $250,000 per carrier regardless of AM Best rating – this matters more with B-range carriers.
What Annuity Products Does Manhattan Life Offer?
- Premium Preferred MYGA (issued by The Manhattan Life Insurance Company) – 5 and 7-year terms. Current rates approximately 4.00-4.25%. Free withdrawal: 15% of accumulated value annually beginning year 1. No Market Value Adjustment. RMD-friendly. Terminal illness waiver included. Available in ~45 states (not CA, NY, ND, SD).
- Preferred Choice MYGA (issued by Western United Life) – 3, 5, 6, and 7-year terms. Current rates approximately 4.15-4.60% depending on term and premium tier. Same 15% free withdrawal, no MVA. RMD-friendly. Same state exclusions as Premium Preferred.
- New Horizon Fixed Indexed Annuity (issued by Western United Life) – 7 and 10-year surrender periods. S&P 500 linked crediting strategies plus fixed option. Zero floor. 10% annual free withdrawal.
- New Horizon Plus FIA – Income-focused FIA variant with 5% annual free withdrawal, 7 and 10-year terms.
- Single Premium Immediate Annuity (SPIA) – Standard payout structures.
Manhattan Life MYGA and Annuity Products
Live rates from AnnuityRateWatch · Rates updated April 21, 2026
| Product | Term | Rate (APY) | Min Premium | Last Rate Change | |
|---|---|---|---|---|---|
|
Preferred Choice 3 NY
AM Best B++ |
3 Years | 4.15% | $10,000+ | Dec 8, 2025 | View Details → |
|
Preferred Choice 3
AM Best B++ |
3 Years | 4.1% | $10,000+ | Dec 8, 2025 | View Details → |
|
Preferred Choice 3 CA
AM Best B++ |
3 Years | 4.1% | $10,000+ | Dec 8, 2025 | View Details → |
|
Preferred Choice 5 NY
AM Best B++ |
5 Years | 4.6% | $10,000+ | Dec 8, 2025 | View Details → |
|
Preferred Choice 5
AM Best B++ |
5 Years | 4.3% | $10,000+ | Dec 8, 2025 | View Details → |
|
Preferred Choice 5 CA
AM Best B++ |
5 Years | 4.3% | $10,000+ | Dec 8, 2025 | View Details → |
|
Premium Preferred 5
AM Best B++ |
5 Years | 4% | $10,000+ | Dec 8, 2025 | View Details → |
|
Premium Preferred 5 CA
AM Best B++ |
5 Years | 4% | $10,000+ | Dec 8, 2025 | View Details → |
|
Premium Preferred 5 NY
AM Best B++ |
5 Years | 3.65% | $10,000+ | Dec 8, 2025 | View Details → |
|
Preferred Choice 6
AM Best B++ |
6 Years | 4.35% | $25,000+ | Dec 8, 2025 | View Details → |
|
Preferred Choice 6 CA
AM Best B++ |
6 Years | 4.35% | $25,000+ | Dec 8, 2025 | View Details → |
|
Preferred Choice 6 NY
AM Best B++ |
6 Years | 3.75% | $25,000+ | Dec 8, 2025 | View Details → |
|
Preferred Choice 7
AM Best B++ |
7 Years | 4.4% | $10,000+ | Dec 8, 2025 | View Details → |
|
Preferred Choice 7 CA
AM Best B++ |
7 Years | 4.4% | $10,000+ | Dec 8, 2025 | View Details → |
|
Premium Preferred 7
AM Best B++ |
7 Years | 4.25% | $10,000+ | Dec 8, 2025 | View Details → |
|
Premium Preferred 7 CA
AM Best B++ |
7 Years | 4.25% | $10,000+ | Dec 8, 2025 | View Details → |
|
Preferred Choice 7 NY
AM Best B++ |
7 Years | 3.95% | $10,000+ | Dec 8, 2025 | View Details → |
|
Premium Preferred 7 NY
AM Best B++ |
7 Years | 3.7% | $10,000+ | Dec 8, 2025 | View Details → |
Rates apply to standard products. State availability varies. Not an offer or solicitation. Always verify current rates before purchasing.
Who Is Manhattan Life Best For?
- Buyers who prioritize maximum liquidity within the contract – the 15% annual withdrawal from year 1 with no MVA is best-in-class and suited for buyers who want a MYGA but are uncertain about their cash flow needs.
- IRA holders who want RMD flexibility without complexity – no MVA means your required distributions won’t trigger additional adjustments.
- Conservative buyers who value historical longevity – 175-year operating history provides psychological reassurance, even if the rating is not top-tier.
- Buyers willing to accept lower rates for better access – Manhattan Life’s 4.00-4.30% MYGA rates are below market leaders, but the 15% withdrawal and no-MVA structure justify that trade-off for the right buyer.
Manhattan Life is not the right choice for buyers who need a CA or NY product, buyers over 84 (the maximum issue age is lower than most competitors), or rate-maximizing buyers who don’t need the additional liquidity.
Manhattan Life Pros and Cons
Pros
- 15% annual free withdrawal from year 1 – best-in-class, higher than the standard 10% most carriers offer
- No Market Value Adjustment – more predictable and buyer-friendly
- 175-year operating history – continuous operation since 1850
- RMD-friendly – important for IRA holders over 73
- No annual fees or front-end charges
- Terminal illness waiver included at no extra cost
Cons
- B++ AM Best rating – two full notches below the A- tier; the most significant concern for buyers who require A-range financial strength
- MYGA rates are below the market-leading tier (4.00-4.30% vs. 5.00%+ at competing A- carriers)
- Maximum issue age 84 – more restrictive than Sagicor (90) or Liberty Bankers (90)
- Not available in California, New York, North Dakota, or South Dakota
- Only AM Best rated – no S&P, Moody’s, or Fitch
- Multiple issuing entities (Manhattan Life, Western United Life) can create confusion about your actual contract counterparty
Frequently Asked Questions About Manhattan Life
Why is Manhattan Life’s free withdrawal 15% instead of the standard 10%?
Manhattan Life uses a 15% annual free withdrawal as a competitive differentiator. Most MYGAs offer 10% per year starting in year 2. Manhattan Life allows 15% starting in year 1, with no Market Value Adjustment – meaning the calculation is simpler and the liquidity is greater. The tradeoff is that the base interest rate is lower than carriers offering standard liquidity provisions. For buyers who genuinely need more access to their money, the 15% provision has real value.
Is the B++ AM Best rating a concern?
It depends on your situation. B++ means “Good” on AM Best’s scale – the company can meet obligations, but is more susceptible to adverse conditions than A-range carriers. Your state guaranty association covers up to $250,000 per carrier regardless of rating, so keeping your allocation within that limit is an important risk management step. Verify the current rating at ambest.com before purchasing, and compare against A-rated alternatives using our rate comparison tool.
How do I buy a Manhattan Life annuity?
Manhattan Life sells through independent agents and regional producers. My Annuity Store can show you Manhattan Life rates alongside A-rated alternatives so you can weigh the liquidity trade-off directly. Request a free quote or call 855-583-1104.
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