In today’s fast-paced world where consumers are hit with a plethora of information, does it really make sense to purchase an annuity online through companies like Gainbridge?
But that depends on several key factors, such as what you’re looking for in terms of your short- and long-term financial objectives, along with how well you understand the inner workings of annuities and the companies that offer them.That’s exactly what you’ll learn in this Gainbridge annuity review.
What is Gainbridge?
Referred to as an “insur-tech” company, Gainbridge is an online annuity agency. Unlike “traditional” financial companies, Gainbridge offers annuities and life insurance directly online. This can make it easy, fast, and convenient for investors to find and research the annuity that works best, and to then move forward with making a purchase.
New to the annuity arena, the company was founded in 2019, and it currently offers both deferred and immediate annuity options. Gainbridge annuities can be purchased in 22 states, including:
- North Carolina
- New Jersey
Products from Gainbridge can also be purchased in Washington, DC.
As a member of Group 1001 (formerly Delaware Life Holdings), Gainbridge is under the umbrella of a holding company that has amassed roughly $38 billion in combined managed assets. The annuities that are sold through the Gainbridge website are issued by Guggenheim Life and Annuity Company.
Guggenheim Life and Annuity is owned by Guggenheim Partners. The life and annuity division of Guggenheim has a B++ rating from A.M. Best. Because Gainbridge doesn’t have high overhead costs (due to its online nature), the company claims it can offer consumers higher annuity rates. (Ultimately, though, the rate you get will depend on how much money you contribute to the annuity, as well as the length of the guarantee period).
If you’ve heard the name Gainbridge in the past, it could be that you’ve come across some of the company’s advertising and sponsorships, such as the Indianapolis 500, where Gainbridge is the primary sponsor of the No. 26 Andretti Autosport Honda that is driven by Zach Veach. Gainbridge is also the official life insurance and annuity sponsor of INDYCAR and the Indianapolis Motor Speedway.
Gainbridge Annuities – How They Work and What You Can Expect If You Purchase One
With today’s volatile stock market, many who are approaching retirement are choosing “safe money” options. In doing so, they could give up the opportunity for a higher return. However, they can also be assured that their principal will remain safe, regardless of what happens in the market.
Gainbridge Multi-Year Guaranteed Annuity
The Gainbridge Multi-Year Guaranteed Annuity is a single premium deferred product that allows for tax-deferred gains over time. This deferral can allow your money to grow and compound exponentially.
In return for a single lump-sum contribution of $10,000 or more, this Gainbridge annuity allows you to choose a guarantee period of between three and ten years. After the guaranteed period has ended, there are several options available to you, including taking your full contract value (penalty-free), or receiving guaranteed monthly payments over a period of between five and ten years.
If you withdraw more than just 10% of your contract value prior to the end of the guarantee period, you could incur a surrender charge. In addition, if you are under the age of 59 ½ when you make a withdrawal, you could also incur an additional 10% “early withdrawal” penalty from the IRS.
Gainbridge Multi-Year Guarantee Annuity Surrender Charges
(Charges represented as a percentage of the amount being withdrawn or surrendered)
If you pass away during the income phase of the Gainbridge MYGA annuity, a death benefit will be paid out to a named beneficiary. Depending on the situation, a lump sum death benefit may be paid out, or alternatively, funds could be received as a series of payments.
To view the full review of the Gainbridge Multi-Year Guarantee Annuity (MYGA) from Annuity Gator, go HERE.
To check out the full product summary for the Gainbridge Multi-Year Guaranteed Annuity (MYGA), go HERE.
Gainbridge Single Premium Immediate Annuity (SPIA)
The Gainbridge Single Premium Immediate Annuity, or SPIA, allows you to turn your lump sum contribution into an income stream that runs for three to ten years, depending on which time frame you select. You can choose to contribute between $10,000 and $1 million.
Your immediate annuity income payments are divided into a portion of earned interest/gain (which is taxable at ordinary income tax rates), and another portion that is considered to be a return of your initial contribution (which is tax-free).
As with the MYGA annuity from Gainbridge, a death benefit will be paid out to your beneficiary (or multiple beneficiaries) if you pass away during the income period and you have not yet received back all of your initial contribution.
To view the full review of the Gainbridge Single Premium Immediate Annuity (SPIA) from Annuity Gator, go HERE.
For additional details about the Single Premium Immediate Annuity from Gainbridge, go HERE.
How to Buy an Annuity Online the Right Way
While the Gainbridge “click and buy” concept can certainly allow for fast annuity purchases, the speed with which you purchase financial products may not necessarily yield you the best results!
In fact, by getting into various products too quickly, you could actually run the risk of buying something that not only doesn’t meet your goals, but that could lock up a significant amount of your savings that could be better used in alternate financial vehicles.
Because all annuities have a myriad of moving parts, it is best to first discuss your financial objectives with an expert in annuities and retirement income. That way, you can be more assured that your entire financial plan is coordinated.
Should You Buy an Annuity Online with Gainbridge?
To purchase a deferred / MYGA annuity online with Gainbridge, you can simply choose the period of time for the guaranteed fixed-rate (which, as of fall 2019 range between 3.75% and 4%).
Then, once the guarantee period has elapsed, you can choose to either renew the annuity (at the then-current guaranteed rate), or instead to withdraw your fund either as a stream of payments or as a single lump sum.
But, while the features on the Gainbridge annuities may be enticing, these products may not necessarily be right for you. The best annuity can depend on multiple factors, including your goals, time frame, risk tolerance, and future income needs.
Certainly, one of the other key factors to consider before you purchase an annuity online – or anywhere – is the track record of the offering company. With Gainbridge being so new to the annuity world, it could make sense to look at some alternate options – particularly because some insurance carriers have much longer track records of paying claims to their policyholders for more than a century.
Shopping for annuities can be a bit confusing – not because there isn’t any information available, but rather because there can actually be “too much” information! This can make it difficult at best to determine whether or not a particular annuity is right for you.
That’s why it is important to discuss your short- and long-term goals with experts in the annuity and retirement income arena before you make what could be a long-term (and expensive) commitment.
If you’d like more information on the Gainbridge annuities – or for that matter, any annuity – please feel free to reach out to us and talk with one of your annuity specialists. We can be reached at (888) 440-2468, or you can send us an email via our secure online contact form to set up a convenient time to chat.
The Annuity Gator
P.S. If you would like to read more of our Gainbridge annuity reviews here are some links to check out:
- Independent Review of the Gainbridge Multi Year Guarantee Annuity
- Independent Review of the Gainbridge Single Premium Immediate Annuity (SPIA)