What is Covered in this Annuity Review?In this review of the One America Freedom Builder 9 Fixed Indexed 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’ve been seriously thinking about purchasing an annuity because you want to assure yourself of long-lasting retirement income in the future, then the One America Freedom Builder 9 fixed indexed annuity could be a good financial vehicle for you. This annuity offers you the 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. Yet, before you dive in and sign on the dotted line to purchase this “best of all worlds” product, it is a good idea to initially get a thorough understanding of how this annuity works, and whether it does or does not fit in with the other short- and long-term financial goals that you have. Over the past several years, annuities have become increasingly popular as a way of providing a guaranteed lifetime income stream in retirement. Because of this, the number of financial and insurance advisors who provide these products has also expanded exponentially. But this may not actually be a good thing. This is because, while most financial professionals will want 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 we can help.
Annuity and Retirement Income Planning Information You Can TrustIf this is your very first visit to our website, please allow us to officially welcome you here. At AnnuityGator.com, 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 One America Freedom Builder 9 fixed indexed annuity or some other, similar product. In fact, it may be your attendance at this seminar that ultimately has led you here to our website in search of more information on annuities. While there are numerous websites on the Internet that focus 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!
One America Freedom Builder 9 Fixed Indexed Annuity at a Glance
|Product Name||Freedom Builder 9|
|Type of Product||Fixed Indexed Annuity|
|Phone Number||(800) 537-6442|
Opening Thoughts on the One America Freedom Builder 9 Fixed Indexed Annuity ProductFor over 140 years, OneAmerica has been focusing on helping its clients to grow and protect their wealth. The company offers a wide array of products and services, including:
- Retirement savings
- Individual life insurance
- Asset-based long-term care
- Employee benefits
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. One America 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 One America Describes the Freedom Builder 9 Fixed Indexed AnnuityOne America describes the Freedom Builder 9 fixed indexed annuity as a product that “offers you an opportunity for a little more growth potential than is typically offered in many of today’s fixed annuity products while providing downside protection against market losses.” The Freedom Builder fixed indexed annuity is actually issued by the American United Life Insurance Company, or AUL, which is a OneAmerica company. This annuity offers an enhanced lifetime income rider that is included with each contract, at no additional charge. With this rider, a client can choose to use all or a portion of the account to create a lifetime income stream at any time. Any portion of the account not converted can still grow in value based on interest credits – should the S&P 500 Index increase – and any growth is tax-deferred until it is withdrawn or converted into an income stream.
How an Insurance or Financial Advisor Might “Pitch” this AnnuityBeing that the Freedom Builder 9 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. That is because, even if the underlying index (or indexes) that the annuity is tracking has a negative performance, that account will simply be credited with a 0% for that period. So, no gain – but also no loss. Plus, as with other annuities, the Freedom Builder 9 offers the option of lifetime income – regardless of how long you need it. So, this can alleviate the worry of running out of an income stream in retirement. 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 nine 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
The Annuity Gator’s End Take on the OneAmerica Freedom Builder 9 Fixed Index AnnuityWhere it works best: This annuity will typically work the best for those who are seeking:
- Safety of principal
- The opportunity for additional, index-linked growth
- Guaranteed lifetime income in retirement
- 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 several years of owning this annuity
- For people who are not looking for guaranteed lifetime income