What is Covered in this Annuity Review?
In this annuity review, we will be covering the following details regarding the Atlantic Coast Life Retirement Plus Multiplier 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’re in the process of considering the purchase of an annuity, it is important for you to know that these financial vehicles can be a logical choice for you if you’ve been looking for a lifetime income in the future, as well as other benefits – both short- and long-term.
Before you dive headfirst 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 instance, with the Atlantic Coast Life Insurance Company’s Retirement Plus Multiplier fixed indexed annuity, you have the opportunity to earn an index-linked return, while at the same time, ensuring that your principal is safe – no matter what occurs in the stock market. As with other annuities, you can also choose from several different income options, which includes one that pays you an income stream for the remainder of your life, regardless of how long that may be.
Throughout the past decade or so, fixed indexed annuities have actually become much more popular – particularly with those who are approaching retirement. One reason for this is their “best of all worlds” offerings – such as the opportunity for growth, protection of principal, and guaranteed income down the road.
Due to the increased demand for annuities over the past several years, the number of insurance and financial advisors who are offering them to their clients has grown substantially. This is not necessarily a good thing, though.
With so many new annuities coming into the market place – many with a long list of “amenities” – they can be quite confusing, for both consumers and financial representatives. Given that, unless the insurance or financial advisor that you work with has a focus on dealing with annuities, you really should do some additional research so that you know exactly what you might be getting into.
An annuity is considered to be a very long term commitment. And, while these products may offer a number of enticing features, you need to make sure that these features are right for you and your specific goals.
That’s where we come in!
Annuity and Retirement Income Planning Advice You Can Trust
If you have never visited our website in the past, then please allow us to officially welcome you to Annuity Gator. We are a team of annuity specialists who concentrate on offering unbiased, yet highly comprehensive annuity reviews.
We have been doing this for quite a long time now – far longer than our competitors – and because of that, we have become known as a highly trusted source of annuity information on the Internet.
Admittedly, though, over the past several years, there have been a number of “copycat” websites that have sprung up online. But, while these sites may at first seem informative, the reality is that many of them are only reiterating the details that you can find here.
If you have been seeking information on fixed indexed annuities via the Internet, then it is likely that you have run across a lot of conflicting details about these products. This is not really surprising, though, because there are many annuities available today, and just about everyone seems to have a differing opinion about them.
It is also possible that you have recently attended a seminar about annuities. There, in return for a complimentary dinner or lunch, the presenter may have gone into detail about the Atlantic Coast Life Retirement Plus Multiplier annuity, or some other similar financial vehicle.
Following the seminar, you may even have set a follow-up appointment with the advisor/presenter in order to purchase this annuity for yourself (or your and your spouse). We’re guessing that it is this process that has ultimately led you here to our site in search of additional information.
In any case, if you are seeking more in-depth details on the Atlantic Coast Life Insurance Company’s Retirement Plus Multiplier fixed indexed annuity, then you are certainly in the right place. In fact, dare we say that our site is the only place where you will find all of the information you need – the good, the bad, and possibly even the downright ugly – about this product. But by providing you with all of the details, we feel you will be in a better position to make a well-informed decision about it.
So, if you are ready to begin, let’s go ahead and dive in!
Atlantic Coast Life Insurance Company’s Retirement Plus Multiplier Annuity at a Glance
|Product Name||Retirement Plus Multiplier|
|Issuer||Atlantic Coast Life Insurance Company|
|Type of Product||Fixed Indexed Annuity|
|A.M. Best Rating||B+ Good|
|Phone Number||(888) 805-8680|
Opening Thoughts on the Atlantic Coast Retirement Plus Multiplier Annuity
Initially founded in 1925, Atlantic Coast Life Insurance Company is a closely held stock company. This insurer’s products are distributed primarily throughout the Southeast United States via funeral homes, as well as through a network of individuals agents across South Carolina. The company is actually licensed to do business in nine Southeastern states.
This insurer focuses on both fixed and fixed indexed annuities, as well as life insurance, and pre-need products that can help with securing the cost of one’s funeral and other related final expenses.
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 legal disclosures…
This is an independent product review, not a recommendation to buy or sell an annuity. Atlantic Coast Life Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance 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 circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.
For more information on how to compare annuities in order to determine which one may be right for you, click here to obtain our free annuity report.
How Atlantic Coast Life Describes the Retirement Plus Multiplier Annuity
According to the Atlantic Coast Life Insurance Company’s website, the Retirement Plus Multiplier annuity is a fixed index annuity that is designed for helping you to prepare for your financial future, and that provides greater earnings potential than fixed rate options.
The annuity’s growth is tax-deferred, which means that taxes are not due on the interest earned until a withdrawal is made. With this annuity, you can elect to allocate funds among several index crediting strategies, as well as a fixed rate option.
The indexes that are available to track with the Retirement Plus Multiplier annuity are the:
- S&P 500 Index
- Goldman Sachs Motif Aging of America Dynamic Balance Index
The index crediting strategies will grow along with the markets – and credits are applied to the contract’s accumulation value, subject to either a percentage cap or a participation rate. Even when market performance drops, your money is safe. The guaranteed interest rate is 0%, so if the market remains flat – or even if it goes down – your prior gains are protected from loss.
There are also additional rider options that can be added to the annuity. In this case, the growth benefit / Accumulation Buy Up Rider helps to increase the growth potential of the annuity’s index accounts. With that in mind, this can be a good option if accumulation is your main priority.
When this rider is purchased, the participation and cap rates are increased so the annuity benefits from more of the market’s positive performance. Plus, you will still have the benefit of a 0% guaranteed minimum crediting rate.
There is also the option to add the Guaranteed Lifetime Withdrawal Rider (GLWB) to this annuity. Here you can maximize the potential income from your annuity. This benefit essentially enhances your potential – which you will never outlive – even after all of your accumulation value has been withdrawn. With the GLWB, you can generate a stream of income for life.
To take a peek at the official product brochure, go HERE.
How an Insurance or Financial Advisor Might Pitch this Annuity
Because the Retirement Plus Multiplier is a fixed indexed annuity, it is probable that an insurance or financial advisor would key in on several benefits – starting with the opportunity to earn index-linked growth on your money. This could provide you with a higher return than if you were in a regular fixed annuity – yet without the worry about the loss of principal if the market index performs negatively at any given time.
In addition, you can also receive lifetime income from this product – which can help to alleviate the worry about running out of money in retirement. So, what could be so bad about that? Actually, there are several things – primarily in the “tradeoffs” that you need to make in order to receive the benefits of this annuity.
So, before you get out your checkbook and dive into a commitment to the Atlantic Coast Retirement Plus Multiplier fixed indexed annuity, there are a few other details that are important for you to know.
For instance, as with many other fixed indexed annuities, this one imposes a “cap” on some of its crediting methods. This means that, even if the underlying index that your plan is tracking has a stellar performance, the return that you actually receive will be “capped” at a certain percentage of that.
As an example, let’s say that you choose a crediting method that has return capped at 5%. If the underlying index actually attains an 8% return for a given time period, you’re stuck with only returning 5%. So, when you really think about it, the cap that is imposed could cause you to lose out on some really good performance from your underlying index.
Also, while the additional riders that you can add to this annuity can provide you with some great benefits, nothing in life is free – so be prepared to pay an additional amount of premium for these, if you opt to go that route.
What About the Fees on the Atlantic Coast Life Retirement Plus Multiplier Fixed Indexed Annuity?
Another item that you need to be mindful of before you purchase an annuity is the fees. In this case, in addition to the rider fees, you could be hit with a withdrawal charge if you take money out of the annuity during its surrender period.
Here, for instance, after the first contract year, you can withdraw up to 5% of the accumulated value – or your Required Minimum Distribution – whichever amount is greater. It is only after the fifth contract year that you can apply the accumulation value of the contract to purchase a settlement option to provide income.
You do, however, have an option as to which surrender charge schedule you’d like to go with. In this case, there is a 5-year, a 7-year, and a 10-year schedule. These are outlined as follows:
|5 Year Schedule %||10||9||8||7||6||0||0||0||0||0||0|
|7 Year Schedule %||10||9||8||7||6||5||4||0||0||0||0|
|10 Year Schedule %||10||9||8||7||6||5||4||3||2||1||0|
On top of that, if you make a withdrawal before you have turned age 59 1/2, then you might also be liable for an additional 10% IRS “early withdrawal” penalty. With that in mind, be sure that you know an annuity is a long-term financial commitment, and that you do not use money that you may need for an emergency in the future.
The Annuity Gator’s End Take on the Atlantic Coast Life Retirement Plus Multiplier Fixed Index Annuity
Where it works best:
This particular annuity will usually work the best for those who are looking for:
- The opportunity to obtain a higher rate of growth than that of a regular fixed annuity
- Safety of principal
- A long-term commitment to the product
- Lifetime income
Where it works worst:
On the other hand, this particular 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 chosen surrender period
- Do not intend to use the guaranteed lifetime income feature
There are a number of factors that should be considered when you are thinking about buying 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 Retirement Plus Multiplier annuity from Atlantic Coast Life might perform – based on your specific parameters. Then, once we have run these numbers, we’ll provide you with a detailed spreadsheet at no charge to you.
Do You Still Have Any Additional Questions? Did You Notice Any Mistakes in this Review?
While we realize that this annuity review was a bit on the long side, our feeling is that we would rather provide you with a lot of details than with not enough. This is really the only way to get the full picture. 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 and do 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 as well, and we will get on the revisions right away.
Are there any other annuities that you would like to see information about?
If you would like to see reviews on any other annuity (or annuities), our team of annuity “geeks” will get on the ball and get them on our website. Just simply click here to let us know which product (or products) you are interested in seeing. And, be sure to check back soon.
The Annuity Gator
P.S If you would like to read more of our Atlantic Coast Life annuity reviews here is a link to check out:
- Independent Review of the Atlantic Coast Life Safe Anchor Market Guarantee Fixed Annuity
- Independent Review of the Atlantic Coast Life Safe Haven 5 Annuity
- Independent Review of Atlantic Coast Life Insurance Company