What is Covered in this Annuity Review?
In this review of the Atlantic Coast Life Insurance Company’s Safe Anchor Market Guarantee Fixed Indexed Annuity, we will discuss the following information:
- Product type
- Fees
- Current rates
- Realistic long-term return expectations
- How it is 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’ve been seriously thinking about purchasing an annuity because you want to assure yourself of long-lasting retirement income in the future, then the Safe Anchor Market Guarantee fixed indexed annuity from Atlantic Coast Life could be a good financial vehicle for you.
That’s because this annuity offers you an index-linked opportunity for growth – which could, in essence, be higher than that of a regular fixed annuity – yet without danger to your principal (regardless of what occurs in the market), unlike a variable annuity.
But, prior to diving right in and signing on the dotted line to buy this annuity, it is always a good idea to learn more about how the product works, and whether or not it will even fit in with your other financial goals and objectives.
Throughout the past decades or so, annuities have become an increasingly popular option for providing guaranteed lifetime income in retirement. Because of this, the insurance and financial professionals who offer these products to their clients has greatly expanded.
However, believe it or not, this might not be a good thing. One reason is that, even though most financial professionals will work hard in order to do what is right for their clients, they may not necessarily be offering you the very best information regarding a fixed indexed annuity that you’re considering purchasing.
Also, due in large part to annuities’ growing popularity, insurance companies have been expanding their product lines to include “hybrid” and other types of products that can come with a lot of bells and whistles. This can make these already complex products even more confusing – even for well-educated individuals.
With all of the “small print” that can be associated with annuities, it is essential that you know exactly what you are getting into because in many cases, the purchase of an annuity may require you to deposit a large chunk of your retirement savings. And, if you do find out too late that the annuity you purchase is not the right one for you, then it could be quite costly for you to get out of it.
This is where the Annuity Gator can help.
Annuity and Retirement Income Planning Information that You Can Trust
If you have never been to our website before, then please allow us to officially welcome you here to Annuity Gator. We are a team of annuity professionals who are focused on providing you with the most comprehensive – and non-biased – annuity reviews. We have been doing this for quite some time now – and much longer than any of our competitors. Because of this, we have become a highly trusted source of annuity information.
If you have been searching for more information about annuities online, then it is very likely that you have run across a lot of conflicting details about these products. This is not at all surprising, as there is a great deal of confusion about annuities and how they work.
It may also be that you have attended a seminar about annuities where, in return for a “free” lunch or dinner, the presenter provided you with details about the Atlantic Coast Life Insurance Company’s Safe Anchor Market Guarantee Fixed Indexed Annuity or some other similar annuity. In fact, it may even have been your attendance at that event that was the catalyst leading you here to our website for additional information.
While there are a number of websites out here on the Internet that focuses on marketing their annuities, some of these may try to “lure” you into providing them with your contact information by making bold claims such as:
- Highest annuity payouts
- Low fees
- Guaranteed income for life
- Top-Rated Annuity Companies
- Get an Annuity Quote Now!
Look familiar?
But even though these claims about fixed indexed annuities may sound good, it is important that you find out just how many of them are true before you move forward with the purchase of an annuity. In order to do that, though, it could mean that you have to read through a myriad of fine print – which in turn, could make annuities even more confusing.
If you have landed here at Annuity Gator looking for more details about the Atlantic Coast Life Insurance Company’s Safe Anchor Market Guarantee Fixed Indexed Annuity, you are certainly in the right place.
In fact, dare we say that right here is the only place online where you will be able to pick up all of the nitty gritty details about this annuity – which includes the good and the bad, and possibly even the ugly.
We don’t do this to slam annuities by any means, because we feel that these financial vehicles can be good and valuable products – provided that they are purchased for the right reasons, and that they do what they’re supposed to do.
That being said, this annuity review is here to help you with obtaining a more in-depth understanding of the Safe Anchor Market Guarantee Fixed Indexed Annuity from Atlantic Coast Life Insurance Company. So, if you are ready to begin, let’s get started!
Atlantic Coast Life Safe Anchor Market Guarantee Fixed Index Annuity at a Glance
| Product Name | MEMBERS Index Annuity |
|---|---|
| Issuer | CUNA Mutual |
| Type of Product | Single Premium Deferred Index Annuity |
| S&P Rating | A |
| Phone Number | (800) 356-2644 |
| Website | https://www.cunamutual.com/ |
Opening Thoughts on the Safe Anchor Market Guarantee Fixed Indexed Annuity
Atlantic Coast Life Insurance Company is a closely held stock life insurance company that was founded in 1925. The company’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.
Based in large part on the continued volatility of the market over the past several years, the demand for fixed indexed annuities has expanded substantially – particularly as a way for people to obtain higher potential index-linked returns, while at the same time maintaining the safety of principal.
However, even though this might initially sound like the best of both worlds, when something sounds too good to be true, it typically is. So, it is important that you take some precautions before you move forward with the purchase of this, or any, annuity, as you do not want to find out the negatives when it’s too late to get out without a hefty penalty.
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, to obtain our free annuity report.
How Atlantic Coast Life Describes the Safe Anchor Market Guarantee Annuity
Atlantic Coast Life Insurance Company describes the Safe Anchor Market Guarantee product as an annuity that offers a five year fixed rate with indexing option plan.
This annuity gives you the power to decide how your savings grow through the indexing strategies that are offered. Overall, this annuity provides the following features and benefits:
- Fixed interest rate – with the initial rate being guaranteed for five years, and compounded daily. At the end of this rate guarantee period, there are several options available to you, such as surrendering the contract without surrender charges, continuing the contract for another guarantee period, applying the contract to a settlement option, or taking a partial withdrawal – with no market value adjustment or surrender charges – and then applying the remaining value to another guarantee period.
- Monthly averaging – here, the interest rate will be based upon the average of the 12 monthly closing values in the S&P 500 index over the contract year, which in turn has the potential to yield higher earnings during periods of significant market increases.
- Annual point-to-point crediting – this refers to the fact that the interest rate is based on the change in market value over the policy year, which allows you to get as close as possible to investing directly in the market, yet without exposure to losses.
- Monthly Sum crediting – here the interest rate is based upon monthly changes in the market, which offers the opportunity to earn the highest interest, and to reap the benefit of the market, but with no risk.
There are also some additional bells and whistles available with this annuity, such as a death benefit. With this benefit, remaining funds are paid out to a named beneficiary if the annuitant dies before receiving back all of his or her income. Surrender charges are waived on these funds.
For a full outline of the Safe Anchor Market Guarantee Annuity – including an example of how the enhanced death benefit works – you can view the product brochure HERE.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
Because the Safe Anchor Market Guarantee product 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, the five-year rate guarantee could be appealing to some potential annuity purchasers, as knowing they are locked in – no matter what occurs in the market – can be comforting.
But, before you move forward and add this financial vehicle to your overall financial plan, there are a few items that you really should consider. For example, first, the return that you earn on your account could be “capped” at a certain amount – even if the underlying index has a stellar performance in a given year. In this case, if the cap is 5%, and the underlying index returns 10% in a given year, your return would only be 5%, as the cap can essentially limit your growth.
In addition, as with most other annuities, if you wish to withdraw more than just 10% of the contract value within the first several years of purchasing it, you will be hit with a surrender charge. In this case, the surrender charges go on for 10 years.
(If you are under the age of 59 1/2 and you withdraw such funds, you can also incur an additional 10% IRS “early withdrawal” penalty.) With all of that in mind, be sure that you understand that an annuity is a long-term.
What About the Fees on this Annuity?
Over the years, annuities have received a bad rap, of sorts, when it comes to the fees they charge. The Safe Anchor Guarantee annuity from Atlantic Coast Life is no different. Here, for instance, you will find that there is an added charge for various features, like the optional enhanced death benefit option.
In addition, if you need or want to take out more than 10% of the annuity’s contract value within the first several years, you will incur a surrender charge – and these can be fairly steed, particularly in the first few years.
In this case, the surrender period is five years – which correlates with the five-year rate guarantee period – and the charge percentages are as follows:
| S&P 500 Performance | Assumed Rate Cap | Your Index Interest | Contract Value |
|---|---|---|---|
| 21% | 7% | 7% | $107,000 |
| 5% | 7% | 5% | $112,350 |
| -14% | 7% | 0% | $112,350 |
| 4% | 7% | 4% | $116,844 |
| 13% | 7% | 7% | $125,023 |
The Annuity Gator’s End Take on the Atlantic Coast Life Safe Anchor Guarantee Fixed Index Annuity
Where it works best:
This annuity will typically work the best for those who are seeking:
- Safety of principal
- A locked-in rate for the first five years
- The opportunity for additional, index-linked growth
- Guaranteed lifetime income in retirement
Where it works worst:
- For people who need access to all of their money (or at least more than 10% of the contract value) right away – or even during the first five years of owning this annuity
- For people who are not looking for guaranteed lifetime income
In order to really know how to compare the best annuity for you and your specific needs, to download our free report on annuities.
In Summary
There is a number of different factors that should ideally be considered if you are trying to determine which – if any – annuity is right for you. In all cases, an annuity should be considered a long-term financial vehicle, and the money that is used for purchasing this product should not be an amount that you may need for another issue soon after making your annuity purchase.
When thinking about the purchase of a fixed indexed annuity, though, you can be secure in knowing that your money is safe from market ups and downs and that you can have an ongoing lifetime income in retirement.
With regard to the Safe Anchor Guarantee fixed index annuity, there is no doubt some very nice features. But, quite frankly, this annuity could also fall somewhat short. With that in mind, there may be some better alternatives out there for you.
If you would like to see how this annuity stacks up to other annuities in the market place, we would be happy to run a complimentary, no obligation comparison for you using our annuity software.
Do You Have Any Additional Questions on the Safe Anchor Guarantee Annuity from Atlantic Coast Life? Did You Happen to Notice Any Mistakes in this Annuity Review?
We know that this annuity review went a bit on the longish side. So, we thank you for sticking with us here to the end. The truth is, though, it can be well worth it to have a better understanding of any product that may require you to deposit a sizeable chunk of your retirement savings.
So, if you found that this annuity review was beneficial to you, 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 also 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.
Any other annuities that you would like to learn more about?
If so, just give us a shout and let us know. Our team of annuity “geeks” will hop on the case and get the details out there as soon as possible!
Best,
The Annuity Gator
P.S If you would like to read more of our Atlantic Coast Life annuity reviews here are some links to check out:
- Independent Review of the Atlantic Coast Life Retirement Plus Multiplier Annuity
- Independent Review of Atlantic Coast Life Insurance Company.
- Independent Review of the Atlantic Coast Life Safe Haven 5 Annuity.
