What Will Be Covered in this Annuity Review?
In this annuity review, we will be going into more details regarding the following components of the Brighthouse SecureAdvantage 6-Year Fixed Index Annuity:
- Type of annuity
- Charges and fees
- Current rates
- Realistic short- and long-term performance expectations
- How this annuity could be best used
- Where this annuity might not be a very good fit
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you have been thinking about purchasing a fixed indexed annuity because of the index-linked (and tax-deferred) growth you can obtain without any worry about market-related losses, then the new Brighthouse SecureAdvantage fixed index annuity could be a good option for you.
That’s because fixed index annuities can offer you the opportunity for both accumulation and principal protection, along with an ongoing, guaranteed lifetime income that you can count on when you retire.
In fact, index annuities have become extremely popular with investors who are tired of worrying about stock market losses, and who want to know that their money will be there when they need it – and for as long as they need it.
But, before you run out and purchase this – or any – annuity, it is important that you first have a good understanding of how the product works, so that you can anticipate any of the fees that you may incur, as well as knowing the ins and outs of the crediting of returns. That way, you won’t be disappointed if the annuity does not perform the way you anticipated that it would.
Annuity and Retirement Income Planning Information You Can Trust
If you have never been to our website before, please allow us to officially welcome you here to Annuity Gator.
Who exactly are we?
At Annuity Gator, we are a team of experienced financial and annuity professionals who focus on providing in-depth, and unbiased, annuity reviews on the Internet. We have been at this for quite a while now – far longer than our competitors have – even though there are now a number of “copycat” websites that are popping up. (Imitation is a form of flattery, isn’t it?!)
It is our mission to provide in-depth information and reviews about annuities to consumers – as well as to financial professionals – so that they know exactly what they may (or may not!) be getting into when considering and/or selling an annuity.
These products can be highly complex, so it helps to have someone who is adept in how annuities work, and who can pare down the massive amount of “fine print” into something that is more easily understood.
That’s where Annuity Gator comes in!
When looking for annuity information online, it is essential that you know who is trying to provide education on the products, and who is simply trying to sell you something…regardless of whether or not it is the right financial vehicle for you. It’s easy to be lulled into some of the other websites out there in cyberspace – especially when they make bold claims, like:
- Lowest fees
- High income
- Top-rated annuity carriers
- Income stream for life
Does this look at all familiar?
In addition, the more “bells and whistles” an annuity has, the more “small print” you are likely to come across that “explains” to you how it works. Not that it’s a bad thing – the more information, the better – but it can make shopping for the right annuity much more cumbersome.
That being said, if you have landed here on our website in search of more details on the Brighthouse Secure Advantage annuity, then you are definitely in the right place. In fact, we dare say that this is the only website where you can find all of the information you need.
This includes an honest review of the good, the bad, and yes, even the ugly about this annuity. But that way, you will be able to make a much better decision regarding whether or not this is truly the best annuity for you.
So, if you’re ready to get started, let’s dive right in!
Brighthouse SecureAdvantage Fixed Index Annuity at a Glance
|Type of Product||Fixed Indexed Annuity|
|A.M. Best Rating||A|
|Phone Number||(800) 638-5433|
Opening Thoughts on the Brighthouse SecureAdvantage Annuity
Brighthouse Financial is one of the largest providers of annuities and life insurance in the United States. This company specializes in products that are designed to help protect what investors have earned, and then to ensure that it lasts.
As of early 2020, Brighthouse held approximately $217 billion in total assets, and roughly $83 billion in its general investment accounts. With more than 2 million customers, Brighthouse holds in excess of 2.6 million life insurance policies and annuity contracts.
Due in large part to its financial strength and stability, Brighthouse has earned high ratings from the insurer rating agencies. These include a(n):
- A from A.M. Best
- A from Fitch Ratings
- A3 from Moody’s Investor Service
- A+ from Standard & Poor’s
Today, with so many employers getting rid of their defined benefit pension plans, it has really become the responsibility of individuals to make sure that they convert their savings over into an income stream – and that the income continues to last throughout the remainder of their lifetime.
A fixed indexed annuity can provide individuals with a “personal pension” of sorts, that offers tax-advantaged growth, along with a lifetime income stream that will last as long as it is needed. In order to expand its overall offerings, Brighthouse Financial has recently entered the fixed indexed annuity market with its SecureAdvantage FIA.
Before we get into the in-depth details, we have some legal disclosures to present…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Brighthouse Financial has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
Want to more about how annuities really work? Click here to receive our updated annuity report.
How the SecureAdvantage 6-Year Fixed Index Annuity from Brighthouse is Described
The Brighthouse SecureAdvantage annuity is described as a single premium 6-year deferred fixed indexed product that will be marketed by the IMO (Independent Marketing Organization) Market Synergy Group.
The annuity contract allows investors to link the performance of two widely used indexes – the S&P 500 Index or the Russell 2000 Index. A point-to-point crediting method can be used, which can provide investors with a net gain – if any – at the end of a six-year period.
Alternatively, an annual sum crediting method may be used, where the gains or the losses of each contract year are added up to produce the total interest credit. Investors who opt for this strategy are guaranteed not to incur a record loss greater than 10% in any contract year.
What truly differentiates the SecureAdvantage annuity from some of the other FIAs in the marketplace is this annual sum indexing strategy, which offers a method of calculating and crediting index performance that may not be available with other fixed indexed annuities. As a result, the SecureAdvantage annuity could provide a greater opportunity for growth – but there is no guarantee.
What further distinguishes the SecureAdvantage FIA from Brighthouse is the “daily difference” feature, which provides investors with more transparency into the changing values in their contract each business day until the end of the index term.
How an Insurance or Financial Advisor Might Present the SecureAdvantage FIA
Because people are living so much longer today than ever before, having enough income in retirement has become a top concern for many retirees, as well as those who are approaching retirement.
With that in mind, the guaranteed income concept of the SecureAdvantage fixed indexed annuity from Brighthouse Financial is most likely where an insurance or financial advisor would focus when presenting this product to clients or prospects.
In addition, the tax-deferred growth of your money inside of the contract can also be a bonus – and it could even allow for an additional option for tax-advantaged accumulation, even if you have “maxed out” other alternatives like an IRA and/or employer-sponsored retirement plan.
However, returns can also be limited – particularly if the underlying index performs poorly. So, it is important to be mindful of the difference between projected and actual performance. Plus, as with other annuities, if you need access to more than 10% of your funds in the contract during the first six years of owning this annuity, you could be hit with a surrender fee, in addition to any taxes that are due.
Plus, if you are under the age of 59 ½ when/if you access these funds, you could also incur an additional 10% “early withdrawal” penalty from Uncle Sam. With that in mind, it is essential that you only use money that you won’t need in the near future for emergencies or other obligations.
The Annuity Gator’s End Take on the Brighthouse SecureAdvantage Fixed Index Annuity
Where it works the best:
Although this indexed annuity offers some unique crediting methods, it may or may not be attractive to everyone. But it will typically work the best for those who are seeking the following attributes:
- Safety of principal
- Tax-deferred growth
- The opportunity for additional, index-linked growth, which can provide a higher return than a regular fixed annuity
- Guaranteed income for life
Where it works the worst:
Conversely, there are some areas where this particular annuity may not be the best option. That may be for people who:
- Will need access to their funds within the annuity’s surrender charge period
- Do not intend to use the lifetime income feature
If you are still considering the purchase of the newly offered SecureAdvantage fixed index annuity from Brighthouse, but you’re currently on the proverbial fence regarding whether or not it will be right for you, we can help you to “test” it, based on your specific scenario, at no cost or obligation.
Just simply let us know if this is something that you are interested in doing, and we’ll get on the case right away!
While there are many factors that need to be taken into consideration when you are buying an indexed annuity, one of the biggest concerns is making sure that the annuity is truly right for what you want – and need – it to do.
With regard to the Secure Advantage annuity from Brighthouse, you can rest assured that you will have an income for life. But at the same time, depending on your other goals and needs, this product may still fall a bit short – and there quite frankly could very well be something else out there that is a better fit for you.
If you have any additional questions on this or other income-related products, we are here to help. We can also run side by side annuity comparisons in order to determine how various annuities might perform. So please feel free to contact us directly via our secure online contact form here.
Do You Have Any Additional Questions About this Annuity? Did You Happen to Notice Any Mistakes in this Review?
We realize that this annuity review may have run a bit long. But quite frankly, we would much rather that you have “too much” information on this annuity than to not have enough. So, if you found this information on the SecureAdvantage annuity to be beneficial, then please feel free to pass it on and to share it with other people who could also find value in it. (And, if you found it to be confusing, please also let us know that, too.)
In addition, we are aware that information regarding annuities can, and often does, change. So, if you happened to notice anything in this review that should be updated or revised, let us know and we will be happy to make the necessary edits.
Are there any other annuities that you would like to learn more about?
If so, just give us a shout and let us know, and our team will get to working on them right away.
The Annuity Gator
P.S. If you would like to read more of our Brighthouse Financial annuity reviews here are some links to check out:
- Brighthouse Financial Shield Level Selector Annuity – [February 2019 Update]
- Brighthouse Financial Fixed Annuity
- Brighthouse Financial Fixed Annuity MVA
- Brighthouse Financial Income Annuity