What’s covered in this Review?
In this review we’ll cover the following information on the Athene Income Select Bonus Fixed Index Annuity:
- Product Type
- Current Rates
- Realistic long-term return expectations
- How this annuity is best used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you are currently in the process of considering an annuity, then it is important to know that these products can be a logical choice if you are seeking a lifetime income in retirement, along with other key benefits.
Before you dive head first into the purchase of an annuity, though, it is essential that you have a good understanding of just exactly what these products do – and don’t do – and that you also know how the type of annuity that you’re considering will work.
For example, the Athene Income Select Bonus Fixed Index Annuity can allow you the opportunity to earn a market index-linked return, while also keeping your money safe during market downturns. And, when it comes time to convert the annuity over into an income stream, you can choose the lifetime option and, in turn, receive a guaranteed stream of income for the rest of your life – regardless of how long that may be.
Over the past several years – due in large part to the constant volatility of the stock market – these types of annuities have become quite popular. And, because of this growing popularity, the number of insurance and financial advisors who are offering these products has also increased substantially. This, however, is not necessarily a positive thing.
Because there are so many new annuities coming to market – many with a myriad of various bells and whistles – these products can be very confusing. With that in mind, unless your financial advisor specializes in annuity products, it is a good idea to do some additional research on your own in order ensure that you know just exactly what you’re getting into.
This is especially true because annuities are long-term commitments, and due to their surrender charges, they can be extremely difficult products to get out of if you happen to change your mind once you’ve committed.
Annuity and Retirement Income Planning Information You Can Trust
If you have never visited our website before, then we would like to officially welcome you here to AnnuityGator.com. We are a team of financial and annuity experts who focus on providing comprehensive and unbiased annuity reviews online.
This has been our key mission for many years – and for much longer than any of our competitors. Due to our experience and the information that we provide, we have come to be a trusted source.
Over the past few years, there have been a fair number of copycat websites that have sprung up. However, if you look closely at the information they provide, many of these are just simply reiterating what our reviews already show.
If you’ve been trying to find as much information as you can about annuities on the Internet, it is highly likely that you have come across many conflicting details about these products. This is not at all surprising, as there are many annuities out there today – and everyone seems to have a different opinion about them.
You may also have recently attended an annuity seminar. There, in return for a complimentary dinner or lunch, the presenter may have gone into detail about the Athene Income Select Bonus annuity – or some other similar product. Following that seminar, you may even have made a follow-up appointment with the presenter or with another financial advisor, with the purpose of purchasing an annuity.
Going to that annuity seminar may even have been the catalyst that ultimately has brought you here to our site. Yet, as you scan the world wide web for more information, it is probable that you have stumbled across other sites that try to “lure” you in by making claims like the following:
- Guaranteed lifetime income
- Lowest fees
- Top-Rated Annuity Companies
- Highest Income Payouts
- Fast, Easy Annuity Quotes
Even though these claims may sound great initially, the truth is that they may not all be true. So, it is absolutely essential that you verify these claims before moving forward with the purchase of an annuity – just like you would likely do before you commit to any high-dollar product or service.
If you would like to learn more about the Athene Income Select Bonus fixed index annuity, then you are certainly in the right place now. In fact, we dare say that our site is the only place where you can truly get all of the details about annuities that you need.
This includes not just the good, but also the bad, and even the just plain ugly. And, while many financial advisors may leave out most of the drawbacks (especially if they are vying for a commission on the sale of the annuity to you), we believe that knowing the whole story is the only way for you to make a well-informed decision.
We do, however, also want to be clear in that we fully believe that annuities can, in fact, offer a long list of very good benefits – provided that they are a good fit for you and your overall financial goals.
With that in mind, this annuity review is here to provide you with more in-depth details about the Athene Income Select Bonus fixed index annuity.
So, if you are ready to proceed, then let’s get started!
Athene Income Select Bonus Fixed Index Annuity at a Glance
|Income Select Bonus
|Athene Annuity and Life Company
|Type of Product
|Fixed Index Annuity
|Standard & Poor's Rating
|A (Excellent) as of April 2017
Opening Thoughts on the Athene Income Select Bonus Fixed Index Annuity
While the name Athene USA is somewhat new in the industry, this entity has actually acquired several other insurance and financial companies that have a long-standing, positive track record – some having served their customers for more than a century.
Athene Annuity and Life Company is a subsidiary of Athene Holding, Ltd., and is part of the large family of Athene companies. It is licensed to conduct business in all 50 of the U.S. states, and as of early 2017, the company has sold more than 1.1 million policies.
Over the past several years, fixed index annuities have become much more sought after by consumers as a way to obtain a guaranteed income for life, as well as an opportunity to keep principal safe regardless of what the market does.
But, even though this may all sound enticing, the truth is that when something sounds too good to be true, then you probably need a bit more information in order to discover the whole story. This is particularly the case if your decision about an annuity could ultimately result in you committing a large chunk of your hard-earned retirement savings.
Before we get into the gritty details, here are some necessary legal disclosures…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Athene 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 out perspective when breaking down the positives and the negatives of this particular annuity. Before purchasing any type of insurance and/or investment product, it is important that you do your own due diligence, and that you consult a properly licensed professional if you should have any specific questions that relate to your individual situation. All of the names, marks, and materials that were used for this annuity review are the property of their respective owners.
For more information on how to compare annuities in order to determine which one may be the best for you and your financial circumstances, click here
to obtain our free annuity report.
How Athene Describes the Income Select Bonus Fixed Index Annuity
The Athene Income Select Bonus is a fixed index annuity that gives you choices of interest crediting strategies to take advantage of stronger market conditions, while at the same time, providing guarantees that will protect your retirement savings during down market conditions. This annuity will also provide you with income options that you cannot outlive.
This annuity has six different crediting strategies, as well as a first-year premium bonus that is credited immediately, rather than incrementally. According to the product literature
, a 5% first-year premium bonus will be credited upon receipt of each premium during the first year of the contract.
There are two types of interest crediting strategies. These include:
- Interest credits that are credited daily on any premium allocated to the fixed strategy
- Interest credits on any premium allocated to an indexed strategy are based on the growth, if any, of an external index each term period (excluding dividends)
The product is also fairly flexible during the accumulation period, as it allows you the flexibility to move money between different strategies.
As with other annuity products, the Income Select Bonus annuity from Athene allows tax-deferred interest accumulation – which means that you will have no tax to pay on the gain as long as it remains in the account. This can, in turn, allow your money to grow and compound exponentially over time.
There are also some other features on this annuity that can make it attractive – especially in the case of the unexpected. That is because it also offers a death benefit that is paid out to a named beneficiary, and that will also avoid the time-consuming and costly process of probate.
How a Financial Advisor Might Pitch this Annuity
Today, because there are many retirees and pre-retirees who are concerned about keeping their principal safe, and having an income that is guaranteed for life, a financial or insurance advisor is likely to focus on the protection and income features of this annuity.
Yet, while growing your money, keeping it safe, and knowing that you will have an income for life can initially sound like the best of all worlds, there are also some things that you need to know about the Income Select Bonus annuity from Athene before you dive in head first.
For instance, while you’ll have the opportunity to earn a nice rate of return that is based on the performance of the underlying index, this return can be limited due to the cap that is in place. For instance, in return for allowing your principal to remain safe, your upside potential is limited by being capped. So, as an example, if the cap on the annuity is 4%, and the underlying index had a return of 6% in a given year, then your return, based on the cap, would be limited to 4%.
In addition, as with most other annuities, this contract is somewhat illiquid in that you are only allowed to withdraw up to 10% of the annuity’s value during the first ten full years of the contract.
What About the Fees on the Athene Income Select Bonus Fixed Index Annuity?
If you look far and wide, you would still be hard pressed to find any financial product or services that did not charge a fee. The Athene Income Select Bonus annuity is no different. In addition to fees for adding its optional benefits, you can also incur a fairly hefty surrender charge throughout the first decade of owning the annuity if you decide to take some or all of your money out.
Athene Income Select Bonus Fixed Index Annuity Surrender Charge Schedule
The Annuity Gator’s End Take on the Athene Income Select Bonus Fixed Index Annuity
Where it works best:
This particular annuity will usually work the best for those who are looking for:
Where it works worst:
- The opportunity to obtain a higher rate of growth
- Safety of principal
- A long-term commitment to the product
- Lifetime income
Conversely, the Athene Income Select Bonus Fixed Index Annuity may not fare so well for those who:
- Want to fully participate in market gains
- Want or need to access their funds penalty-free within the first ten years of purchasing the annuity
- Do not intend to use the guaranteed lifetime income feature
There are many factors that should ideally be taken into consideration if you are thinking about purchasing an annuity. These should include – but are not limited to – how the annuity can produce a return, how safe your money will be, how the income will pay out, and whether or not there are any other optional features that may be added to the annuity (as well as any added costs).
If you are in fact considering the purchase of a fixed index annuity, then you can be assured that your principal will be safe, regardless of what occurs in the stock market, or even the economy as a whole. These annuities will also provide you with an opportunity to grow your retirement funds, and to receive a guaranteed income in the future for as long as you need it.
But there can still be some questions left unanswered – and, the only way to really know if this particular annuity could be right for you is to test it with an annuity calculator. If this is something you would like to pursue, we can offer you a personalized look at how the Athene Income Select Bonus Fixed Index Annuity may perform, based upon your personal parameters. Then, once we have run these figures, we will provide you with a detailed spreadsheet at no charge.
You may find that, if you run a test with this Athene Annuity, there may be some nice benefits that it will offer. However, you may also find that it can fall somewhat short and that there could be some other alternatives out there that are better for you.
So, if you still have any additional questions about the Athene Income Select Bonus annuity, then please feel free to contact us directly here, through our secure contact form.
Any Additional Questions? Did You Notice Any Mistakes in this Review?
While we do realize that this annuity review was a tad bit long, our feeling is that we would much rather provide you with a lot of details than with not enough. Therefore, if you did find that this annuity review was beneficial to you, then please feel free to forward it on and to share it with anyone else that you think may benefit from it, as well.
In addition, we also know that details about annuities – and other financial products, too – can change somewhat quickly. With that in mind, if you happened to notice anything in this review that needs to be corrected and/or updated, please let us know
that, too, and we will get on the revisions right away.
Are there any other annuities that you would like to see information about?
No problem! If you would like to see reviews on any other annuity, our team of annuity geeks will get on the ball and get them on our website. Just click here
to let us know which products you are interested in seeing. And, be sure to check back soon.
The Annuity Gator.