Is Investors Heritage Life a Good Insurance Company?
Is Investors Heritage Life a Good Insurance Company?
Jason Stolz CLTC, CRPC, DIA, CAA
Investors Heritage Life Insurance Company is a Kentucky-based carrier with a story that has changed significantly since 2018. Founded in 1960 in Frankfort, Kentucky by former Lieutenant Governor Harry Lee Waterfield, Investors Heritage spent its first six decades as a leader in preneed and final expense life insurance — the policies families use to pre-fund funeral costs. Then in 2018, private investment firm Aquarian Holdings acquired the company, injected capital, and began rebuilding it as a retirement and annuity platform. The transformation was rapid enough to land Investors Heritage on the Inc. 5000 list of fastest-growing private companies in both 2020 and 2022, with three-year revenue growth of 271%. Today it holds an AM Best B++ (Good) rating with a stable outlook — an outlook that was revised from negative to stable in July 2025 after a meaningful capital contribution from Aquarian and a reinsurance transaction with New Reinsurance Company (a Munich Re subsidiary) that improved the balance sheet substantially. Capital and surplus increased 52% to $281 million in 2024, and AM Best’s risk-adjusted capital measure — BCAR — improved from weak to strong over the same period. The honest picture: B++ is below the A- threshold that most independent financial advisors recommend as a minimum for long-term annuity placements, and buyers placing a 10-year commitment should weigh that carefully. The more appropriate fit for Investors Heritage is shorter-term annuity products, preneed and final expense life insurance, and fixed indexed annuities where the Heritage Growth Advantage’s distinctive feature — fully guaranteed participation rates during the surrender period — provides genuine product differentiation. At Diversified Insurance Brokers, Jason Stolz, CLTC, CRPC, DIA, CAA, evaluates Investors Heritage for clients where its specific product features and the dramatically improved capital trajectory make it a credible option for the right commitment length and goal.
See Real-Term Rates Side by Side
Life Insurance Quoter
Ensure you are receiving the absolute top rates
Current Fixed Annuity Rates
Compare today’s best fixed annuity rates from top carriers.
Current Bonus Annuity Rates
See which annuities offer the highest upfront bonus today.
Request an Annuity Quote
Submit our annuity request form to get personalized rate options.
Lifetime Income Calculator
Use our calculator to see how much guaranteed income your annuity can provide.
What Investors Heritage Offers and Where Each Product Fits
| Product | How It Works | Best Fit and Honest Limitation |
|---|---|---|
| Heritage Growth Advantage FIA | Fixed indexed annuity with fully guaranteed participation rates during the surrender period — most FIA carriers can reduce participation rates after issue; Investors Heritage locks them in contractually | Best for buyers who specifically value contractual rate certainty over the surrender period; the B++ rating is the trade-off against carriers with A- or better ratings offering similar features |
| Heritage Income Advantage FIA | Fixed indexed annuity with a guaranteed lifetime withdrawal benefit; includes an ESG index option and an income doubler feature that increases benefit payments when qualifying healthcare costs rise | Best for buyers who want healthcare cost protection built into their income rider; the income doubler is genuinely uncommon — most income riders do not respond to healthcare inflation specifically |
| Heritage Builder MYGA | Multi-year guaranteed annuity with competitive fixed rates and liquidity options — the product that launched Investors Heritage into the retirement savings market in 2018 | Best for shorter-term commitments where the B++ rating poses less duration risk; buyers placing a 10-year MYGA should compare against A-rated alternatives before committing |
| Preneed and Final Expense Life | Whole life and final expense policies — the core business Investors Heritage was built on for six decades before entering the annuity market; the company remains the largest Kentucky-domiciled multi-state life insurer | The legacy strength of the company; B++ is a meaningful consideration for long-term life insurance too, though final expense policies with modest face values carry different risk than large annuity commitments |
The Capital Story: What Changed in 2024 and Why It Matters
The most important thing to understand about Investors Heritage today is not where it has been — it is what happened to its balance sheet in 2024. Before that year, AM Best had placed the company’s Long-Term Issuer Credit Rating outlook on negative, a signal that the rating could be heading downward. Surplus notes were elevated, financial leverage at the Aquarian parent was high, and risk-adjusted capitalization was weak. Then in 2024, two things changed the trajectory. First, Aquarian Insurance Holdings injected fresh capital directly into the company. Second, Investors Heritage amended its reinsurance agreement with New Reinsurance Company — a subsidiary of Munich Reinsurance, one of the most creditworthy reinsurers in the world — to extend to new Heritage Growth Annuity product premium, providing ongoing surplus relief as new business comes in. The result: capital and surplus increased 52% to $281 million, and AM Best’s BCAR measure moved from weak to strong. The negative ICR outlook was revised to stable in July 2025. That is a genuinely meaningful improvement, not cosmetic. A company with weak risk-adjusted capital and a declining surplus poses real policyholder risk; a company that has rebuilt BCAR to strong and has a Munich Re subsidiary behind its reinsurance program is in a materially different position. The B++ rating still reflects constraints — elevated leverage at the Aquarian parent remains a partially offsetting factor, and the reinsurance reliance is rising — but the direction of travel is clearly positive. For buyers evaluating carrier financial strength in depth, our resource on what an AM Best rating means covers how to read B++, the outlook, and BCAR in the context of an actual placement decision.
Where Investors Heritage Is the Right Answer and Where It Is Not
The Heritage Growth Advantage FIA’s guaranteed participation rates are a real product differentiator. Most fixed indexed annuities are issued with current participation rates that the carrier can reduce on renewal — meaning the rate you see in year one is not guaranteed to continue. Investors Heritage contractually locks participation rates during the surrender period, which removes one of the most common sources of FIA buyer disappointment. For buyers for whom that guarantee matters more than the carrier rating difference between B++ and A-, the Heritage Growth Advantage belongs on the comparison. The Heritage Income Advantage’s income doubler for rising healthcare costs is also genuinely uncommon — most guaranteed lifetime withdrawal benefit riders do not include a healthcare cost trigger; this one does. For buyers evaluating lifetime income riders in the context of retirement healthcare planning, that feature is worth pricing. For buyers primarily shopping on financial strength rating — particularly those placing larger balances or longer-term commitments — Investors Heritage at B++ should be compared directly against A-rated alternatives. Our resource on best fixed indexed annuities covers the full A-rated FIA market, and our resource on best MYGA annuity rates covers where the Heritage Builder sits relative to A-rated MYGA alternatives. The state guaranty association provides a safety net behind any B++ carrier — our resource on state guaranty association protections covers the coverage limits and what they mean in practice for annuity holders. For buyers who want an independent review of any Investors Heritage illustration before committing, our resource on getting a second opinion on your annuity quote covers why that validation step is especially important when carrier rating is a consideration in the decision.
Talk With an Advisor Today
Choose how you’d like to connect—call or message us, then book a time that works for you.
Schedule here:
calendly.com/jason-dibcompanies/diversified-quotes
Licensed in all 50 states • Fiduciary, family-owned since 1980
Frequently Asked Questions: Is Investors Heritage Life a Good Insurance Company?
What is Investors Heritage’s AM Best rating and what does it mean for buyers?
Investors Heritage holds AM Best B++ (Good) with a stable outlook — revised from negative to stable in July 2025 after a significant capital injection from Aquarian Holdings and a reinsurance agreement with New Reinsurance Company (a Munich Re subsidiary). Capital and surplus increased 52% to $281 million in 2024, and AM Best’s BCAR risk-adjusted capital measure improved from weak to strong. The honest read: B++ is below the A- threshold that most independent advisors recommend as a minimum for long-term annuity placements. It is not a disqualifying rating — millions of policyholders hold contracts at B++ carriers and collect their benefits without issue — but it is a rating that calls for thoughtful product selection. Shorter-term commitments, final expense and preneed life insurance, and FIA products where the Heritage Growth Advantage’s contractually locked participation rates provide a specific advantage are the better fit. For buyers placing a 10-year MYGA or a large lump sum, A-rated alternatives deserve a side-by-side comparison first. Our resource on what an AM Best rating means covers how B++ fits in the full rating framework.
What makes the Heritage Growth Advantage FIA different from other fixed indexed annuities?
The Heritage Growth Advantage offers fully guaranteed participation rates during the surrender period — contractually, not just at current rates. Most fixed indexed annuities are issued with participation rates that the carrier is permitted to change on renewal. The insurance company can reduce how much of the index gain you receive after the first term if market conditions change or the carrier decides to reprice. The Heritage Growth Advantage removes that risk during the surrender charge period by locking participation rates in the contract. For buyers who have been burned by FIA rate reductions at other carriers — or who have done enough research to understand that current rates and guaranteed rates are different things — this contractual lock is a meaningful feature worth pricing. The B++ rating behind the guarantee is the trade-off; an A- carrier offering the same feature would be preferable, but Investors Heritage is currently among the few carriers offering this structure at all.
What is the Heritage Income Advantage income doubler and how does it work?
The Heritage Income Advantage is a fixed indexed annuity with a guaranteed lifetime withdrawal benefit rider that includes an income doubler feature tied to healthcare cost increases. Most income riders pay a fixed benefit for life and do not adjust based on how your expenses change in retirement. The Heritage Income Advantage’s doubler is designed to respond to qualifying healthcare cost increases — when those costs rise above a defined threshold, the income benefit can increase to help cover the additional expense. It also offers an ESG (Environmental, Social, Governance) index option for buyers who want their accumulation linked to a socially responsible index rather than a standard market index. These are genuinely uncommon features — most GLWB riders do not include a healthcare trigger, and ESG index options remain rare in the FIA market. For buyers who specifically want healthcare-inflation-responsive income built into their lifetime withdrawal benefit, the Heritage Income Advantage belongs on the comparison even at B++.
How did Investors Heritage go from final expense insurance to annuities?
For its first 58 years, Investors Heritage was primarily a preneed and final expense life insurance company — it was the largest Kentucky-domiciled, multi-state life insurer in that space. Then in 2018, Aquarian Holdings acquired the company, brought in new management, and used the existing insurance infrastructure and Kentucky regulatory relationship as the foundation for a retirement products expansion. The Heritage Builder MYGA launched in 2018 as the first product — a multi-year guaranteed annuity targeting competitive rates. The Heritage Income Advantage FIA and Heritage Growth Advantage FIA followed in 2021 and 2022. By 2020 and 2022, the growth rate was fast enough to earn two Inc. 5000 appearances. The transformation worked in terms of top-line growth but required ongoing capital support, which is why AM Best placed the ICR outlook on negative — the balance sheet was under strain from rapid growth. The 2024 capital contribution and Munich Re reinsurance arrangement addressed that strain. The company is now genuinely different from what it was in 2020, which is why evaluating Investors Heritage using older reviews can be misleading in either direction.
Is Investors Heritage Life a good choice for a larger retirement rollover?
For buyers rolling over a substantial 401(k), IRA, or pension balance, the honest answer is to compare Investors Heritage against A-rated alternatives before committing a large position. B++ means the company is financially sound and meeting its obligations — it is not a warning sign of imminent problems, especially given the material balance sheet improvements in 2024. But for a buyer deploying a 10-year annuity commitment of $300,000 or more, the incremental financial strength difference between B++ and A- is worth a side-by-side comparison to see whether an A-rated carrier offers competitive enough features and rates to justify the higher rating. The state guaranty association covers annuity holders if an insurer becomes insolvent — our resource on state guaranty association protections covers the specific limits applicable in each state. For a smaller initial commitment, a shorter term, or a buyer specifically drawn to the Heritage Growth Advantage’s locked participation rates or the Heritage Income Advantage’s healthcare doubler, Investors Heritage at B++ is a reasonable choice with eyes open.
About the Author:
Jason Stolz, CLTC, CRPC, DIA, CAA and Chief Underwriter at Diversified Insurance Brokers (NPN 20471358), is a senior insurance and retirement professional with more than 25 years of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, Group Health, Travel Medical and Evacuation Insurance, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, as well as his agency's featured coverage in Kiplinger— highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient. Visitors who want to explore current annuity rates and compare options across multiple insurers can also use this annuity quote and comparison tool.
Review More Carrier Reviews: Browse our complete Burial Insurance Company Reviews — covering Mutual of Omaha, Americo, Globe Life, Colonial Penn, and more burial insurance carriers.
Editorial Standards: Diversified Insurance Brokers maintains rigorous editorial standards to ensure accuracy, clarity, and independence in all content. Learn more about our editorial standards and commitment to transparency.
