What is Covered in this Annuity Review?
In this review of the Atlantic Coast Life Insurance Company’s Safe Haven 5 Compound Interest Annuity, we will discuss the following information:
- Product type
- 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 have been on the proverbial fence about purchasing an annuity because you want to ensure lifetime income, along with various other guarantees that annuities can provide, then the Safe haven Bonus Guarantee annuity from Atlantic Coast Life Insurance could be a viable alternative for you.
That’s because this particular annuity product offers a flexible and guaranteed way for you to have the security and peace of mind that you need to enjoy your retirement. One of the key benefits to this annuity is that it gives you control over the duration of the annuity – in this case, five years. (Atlantic Coast Life also offers a six, seven, ten, and twenty-year option, too).
However, before you go out and make a long-term commitment to this (or for that matter, any) annuity product, it is essential that you know just exactly what you may be getting into with your hard-earned money.
That’s where the Annuity Gator comes in.
Annuity and Retirement Income Planning Information You Can Trust
If this is the first time you’ve landed on our website, then please allow us to personally welcome you here to Annuity Gator. We are a team of highly knowledgeable financial pros who are focused specifically on offering very in-depth and unbiased annuity reviews. We have been at this for quite a number of years now – and much longer than our competitors. Because of that, we have become a recognized go-to source for annuity information.
If you have been in the process of compiling more information on an annuity that you’re considering purchasing, then you have more than likely come across a lot of conflicting information about these products online. This really is not surprising, though, as there is a myriad of details available about these products. There is also a wide range of opinions about them, too.
It’s also possible that you have attended a seminar about annuities recently, where the presenter there discussed the ins and outs of the Atlantic Coast Life Safe Haven 5 annuity or some other similar annuity. It may even have been your attendance at that seminar that has ultimately led you here to our website in search of additional information.
While you’ve been online searching for additional annuity details, you may also have noticed that, while there are a number of very good annuity-related websites out there, some of them will make some pretty darn bold claims about their products, primarily with the goal of “luring” you in and giving them your contact information.
These claims may include some or all of the following:
- Highest annuity payouts
- Lowest fees
- Guaranteed income for life
- Top-Rated Annuity Companies
- Get an Annuity Quote Now!
But, even though these claims may initially sound enticing, it is critical that you verify their validity before you move forward with buying an annuity. In doing so, you may have to read through a plethora of annuity fine print – or you could just read on right now.
If you’re interested in knowing more about the Safe Haven 5 annuity from Atlantic Coast Life Insurance Company, then you are definitely in the right place. In fact, dare we say that this is the only place online where you will be able to get all of the key details on this annuity – both the good and the bad. This, in turn, can assist you with making a much more well-informed decision about whether or not this annuity fits in with your overall financial goals.
Oftentimes, the financial and insurance advisors who offer annuities – and specifically fixed indexed annuities – like to paint a nice, rosy picture for you regarding the opportunity to earn a higher return, while at the same time, keeping your principal safe in case of a market downturn.
But unfortunately, these same advisors may also be conveniently leaving out some of the details that could be considered as drawbacks – which is information that any potential buyer needs to know!
One reason for this knowledge is so that you can anticipate how the annuity may (or may not) perform in certain situations. Another is that, once you have committed to an annuity, it can be extremely difficult – and expensive (due to surrender charges) – to get out of it if you change your mind.
Just to be perfectly clear, we want to state for the record that we do believe that annuities can be a very viable method of saving and producing retirement income – provided that the product is appropriate for the investor.
This annuity review is here to assist you with getting a better understanding of all of the small print so that you are more knowledgeable regarding the Safe Haven 5 annuity and why it might work for you in terms of attaining your retirement savings and income goals.
So, if you’re ready to proceed, let’s dive in!
Atlantic Coast Life Safe Haven 5 Annuity at a Glance
|Product Name||Safe Haven 5|
|Issuer||Atlantic Coast Life Insurance Company|
|Type of Product||Single Premium Deferred Annuity|
|A.M. Best Rating||B+ (Good)|
|Phone Number||(888) 805-8680|
Opening Thoughts on the Safe Haven 5 Bonus Guarantee 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 annuities – and annuity-like guarantees – has expanded quite a bit, primarily with retirees and pre-retirees who are tired of battling the volatility of the stock market.
However, while annuities can and do offer some nice features if something ever sounds like it’s too good to be true, it oftentimes is. With that in mind, it is essential 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, click here to obtain our free annuity report.
How Atlantic Coast Life Describes the Safe Haven 5 Bonus Guarantee Annuity
Atlantic Coast Life Insurance Company describes the Safe Haven annuity as a product that gives you control over the guarantee period of the annuity.
There are also some additional, optional features that can allow you to basically customize the plan. In other words, here, you can add features that you want or need, without having to pay for features that you won’t use. And because of this “building block” of sorts, you can enjoy a higher rate of interest on your money.
The Safe Haven 5 is a single premium deferred annuity that earns a fixed rate of return, and – as with other annuity products – allows you to grow your money on a tax-deferred basis. This means that your funds are able to grow and compound over time, without you having to pay taxes on the growth until the time of withdrawal.
In addition, no matter what happens in the stock market – or even in the economy overall – your principal will remain safe, and your interest rate locked in for a period of five full years. As an added incentive, the Save Haven Bonus Guarantee offers an interest bonus in year one. This can help to increase the value of your account early on – which can, in turn, increase the total amount of interest that you earn on your annuity.
Then, at the end of the initial guarantee period, you have the option of either withdrawing your funds (with no surrender charge) or alternatively, you can renew your contract into a new guarantee period. You also have the option of converting your annuity into a stream of retirement income payments that are guaranteed for up to twenty years.
The Safe Haven 5 annuity also has a death benefit whereby if the annuity passes away before receiving all of his or her income, a named beneficiary will receive the remaining amount. Likewise, there is an optional enhanced death benefit feature.
For more in-depth details regarding the Atlantic Coast Life Insurance Company Safe Haven 5 annuity, you can check out the product brochure HERE.
How an Insurance or Financial Professional Might Pitch this Annuity
It is possible that your current advisor has already talked with you about the Atlantic Coast Safe Haven 5 annuity. Because this annuity can offer you a number of guarantees – including a five-year rate – this may be something that he or she will key in on.
Similarly, regardless of what happens in the stock market, or even in the economy overall, knowing that your money is safe can also be an enticing benefit. There is also flexibility in terms of who this annuity can be purchased by – with contribution limits starting at $5,000 and going up to $1 million.
The death benefit can add an additional safety net of sorts in that if the annuity passes away, a named beneficiary can receive at least the amount of unused income from this annuity (and possibly even more, depending on which death benefit is selected.)
What About the Fees on the Atlantic Coast Safe Haven 5 Annuity?
There are actually several versions of the Safe Haven annuity – so, depending on which one you choose, the surrender charge amount and duration can differ. These coincide with the length of the initial interest rate guarantee. Given that, the surrender charge schedule on the 5-year version is as follows:
|Guarantee Period||Year 1||Year 2||Year 3||Year 4||Year 5|
|Surrender Charge %||9||8||7||6||5|
On top of that, if you make such a withdrawal, and you are under the age of 59 1/2, then you could also find yourself paying an additional penalty of 10% to the IRS as an “early withdrawal” fee.
So, you really need to consider this (or any) annuity as a long-term financial endeavor and know that the money you put into it could be locked up for quite some time before you can use it.
The Annuity Gator’s End Take on the Atlantic Coast Life Safe Haven 5 Annuity
Where this annuity works best:
Just like all products, there can be some pros and cons, meaning that the item or service may work well for some, and not-so-well for others. If you’re still considering the Safe Haven 5 annuity from Atlantic Coast Life Insurance Company, then it could work well for you if you are seeking the following benefits:
- Guaranteed growth (at least for the first five years)
- Protection of principal
- Lifetime income in retirement
Where it works the worst:
On the other hand, this particular annuity may not be right for you if:
- You want the opportunity to earn an even higher rate of return in order to keep better pace with future inflation
- You want to access more than just 10% of the contract’s value during the surrender period
- You do not plan to use the lifetime income feature
When you’re considering how to best position your savings for the future, there are a number of criteria that you should ideally take into account. For instance, with annuities, you’ll need to make sure that the product allows you the opportunity to earn a nice return (at least enough to meet or beat inflation), while also keeping your money safe.
In addition to that, if you’re seeking a future income stream – including one that you cannot outlive, regardless of how long that may be – then you also need to know how the annuity will pay out when you need to convert the funds into ongoing income.
So, if you are still considering a purchase of the Atlantic Coast Life Insurance Company’s Safe Haven 5 annuity, you can be assured that your money will be safe, no matter what goes on with the stock market. You can also count on an ongoing income stream down the road, alleviating the worry about running out of money before “running out of time”.
However, while this product can certainly provide you with some nice benefits, the reality is that this particular product could still fall somewhat short – and quite honestly, there may very well be a better alternative out there for you. This is even truer if you are looking for a way to keep your money safe, while still having the opportunity to earn a higher rate of return.
The only way to truly get an idea of how this annuity may perform – based on your specific situation – is to have it tested. We can do this for you by running the numbers through our annuity calculator, and we can then provide you with a spreadsheet of the results. In order to receive this information, just simply contact us through our secure online form here and let us know.
Have Any Additional Questions? Are There Any Other Annuities You’d Like to Have Reviewed?
While we know that this annuity review was a bit on the long side, we feel that providing “too much” information than not enough. That being said, we appreciate you sticking with us here to the end.
We also realize that, because everyone’s situation is different, there may have been some questions that went unanswered in this review. If this is the case and you still have any additional questions or concerns, please feel free to reach out to us here.
In addition, if you found this annuity review to be helpful, then please forward it on to anyone else that you think may benefit from it, as there is a lot of misconception out there about annuities and how they work.
Is there any other annuity you would like to see reviewed?
If so, we will get right on it!
There is a myriad of annuities that are available in the market place today. So, if you don’t currently see an annuity in our online database in AnnuityGator.com that you are considering, then just let us know the name of that annuity (or the names, if there is more than just one), and our team of annuity pros will get to work on it ASAP.
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 the Atlantic Coast Life Safe Anchor Market Guarantee Fixed Annuity
- Independent Review of Atlantic Coast Life Insurance Company.