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Independent Review of the Protective Life Fixed Deferred Annuity

What Will Be Covered in this Annuity Review

In this annuity review, we will be going over the following information about the Protective Life Fixed Deferred Annuity:
  • Product typeIndependent Review of the Protective Life’s Indexed Annuity ll
  • 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 have been thinking about purchasing an annuity so that you can get the tax-deferred benefits of having your money grow free of current taxation, and you would also like to assure yourself that you will have an ongoing income in retirement, then the Protective Life Fixed Deferred Annuity could be a good option for you. One reason for this is because your principal will be safe – regardless of what happens in the market – while your funds grow and compound exponentially over time. Then, once you convert the annuity over into an income stream, you can be sure that money will flow in as anticipated. But, before you go out and make a long-term financial commitment for this – or any – annuity, it is really important that you know just exactly how this annuity may – or may not- work for you and your specific financial needs and goals. This is because, even though annuities can and do offer some nice benefits, the reality is that these can also be highly confusing financial vehicles. And, if you jump into an annuity too quickly without knowing what to expect, you may be very disappointed. You will also find that once you’re in an annuity, these products can be quite difficult – and expensive – to get out of. With that in mind, you need to learn as much as you possibly can about these products. That’s where the Annuity Gator comes in!

Annuity and Retirement Income Planning Information That You Can Trust

Independent Review of the Protective Life Fixed Deferred Annuity If this is the first time that you have been to our website, please allow us to personally welcome you here. At Annuity Gator, we are a team of financial experts who are focused on providing very comprehensive and unbiased annuity reviews. We have been at this for quite a while not – far longer than our “copycat” competitors – and we have therefore become known as a highly trusted source of annuity information. If you have spent any amount of time at all on the Internet looking for information about annuities, then you have likely run across a number of conflicting opinions about these products. This, however, is not all that surprising, as there are many, many products available in the marketplace, and various different thoughts about them. While you have been researching annuities on various online sources, you may have noticed that there are a fair amount of sites that tout just how great their annuities are by making some pretty bold claims about them, such as:
  • Lowest Fees
  • Highest income payouts
  • Guaranteed lifetime income
  • Top-rated companies
Does this look at all familiar? But, as enticing as these claims might sound, it makes it even more important for you to verify that they are actually true before you commit to placing a large chunk of your retirement savings into such a product. If you have landed here at in search of more details about the Protective Life Fixed Deferred Annuity, you are definitely in the right place. In fact, we dare say that this website is the only place where you will be able to find all of the key facts – which include the good and the not-so-good. This, however, is the only way to make a truly well-informed decision about this (or any other) financial vehicle. In order to be completely clear here, we want to convey that we feel annuities are able to provide investors with some very good benefits. But, this is really only the case if the product fits in with your particular financial goals. The review that you are in the process of reading right now was created with the intent of assisting you with better understanding all of the “fine print” that is associated with the Fixed Deferred Annuity from Protective Life. So, if you are ready to get started, let’s proceed!

Protective Life Fixed Deferred Annuity at a Glance

Product NameFixed Deferred Annuity
IssuerProtective Life Insurance Company
Type of ProductFixed Deferred Annuity
S&P RatingAA-
Phone Number(800) 833-8991

Opening Thoughts on the Protective Life Fixed Deferred Annuity

Protective Insurance Company has been in the business of offering financial enhancement and protection for more than 110 years. The company was founded in 1907, and since that time, it has grown and expanded – adding a wide range of products and services. The company has in excess of $427 billion of life insurance coverage in force. Headquartered in Birmingham, Alabama, Protective Life offers many different annuity options. Today, the company is a wholly owned subsidiary of The Dai-ichi Life Insurance Company, Ltd. Protective Life and Annuity Insurance Company has earned high ratings from the insurer rating agencies. These include:
  • A+ from A.M. Best
  • AA- from Standard & Poor’s
  • A+ from Fitch Ratings
Due in large part to the volatility of the stock market, and coupled with the fact that people are living longer these days – and in turn, need their retirement income to last longer – fixed deferred annuities have become much more popular. These financial products are able to keep your principal safe and also provide a set amount of growth – in any market or economic environment. And, if you choose the lifetime income option, you can also count on an income in the future that will last as long as you need it to. But, while this might at first glance appear to be the best of all worlds, we all know that if something sounds too good to be true, it typically is! Therefore, it is essential that you go over the “fine print” before you move forward with the purchase.

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. Protective 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 Protective Life Describes the Fixed Deferred Annuity

According to Protective Life, there are numerous benefits to owning a fixed annuity, such as:
  • Low Risk – Fixed annuities offer protection for your principal, and they allow you to earn a set interest rate, based on the options you select.
  • Guaranteed Growth – Fixed annuities pay a specific rate of interest for a selected amount of time – and you don’t have to pay taxes on that interest until you withdraw the money in the future.
  • Lifetime Income – Fixed annuities offer flexible payout options – including a set number of payments, or even guaranteed payments for life.
  • Surrender Charge Waivers – Fixed annuities will oftentimes have options to waive surrender charges for terminal illness, unemployment, and/or admission to a nursing home.
  • Multiple Payment Options – You can purchase a fixed annuity with multiple payments over time, or in one lump sum, based on your particular needs.
  • Guaranteed Death Benefit – An annuity may also pay money directly to your beneficiaries when you pass away, which can help them to avoid a lengthy probate process.
With the Fixed Deferred Annuity, you can earn a guaranteed rate of interest for a set period of time – and your principal is also guaranteed to be safe.

How an Insurance or Financial Professional Might Pitch this Product

If an insurance or financial advisor is offering you the Fixed Deferred Annuity from Protective, then it is possible that he or she focused in on the fact that your principal will remain safe, and that you can obtain a set interest rate – and in turn, steady growth – going forward. In addition, because the receipt of ongoing income can be a big concern for retirees (as well as for those who are preparing for retirement in the future), the advisor likely also provided you with information on how you can continue to earn income for life if you purchase this annuity. However, even though this annuity might initially seem like it provides you with the best of all worlds, there are some other things that you need to consider, as you will have to incur certain “tradeoffs” in order to get these great benefits. For instance, even though you can lock into a set rate of interest for a chosen period of time, because interest rates have been so historically low throughout the past decade or so, it isn’t likely that the rate you get will allow you to meet, much less beat inflation. This, then, could have a major impact on your future purchasing power – and could even cause you to have to cut back on making purchases of the items and services that you need in the future.

What About the Fees on This Annuity?

In addition to the low rate of interest that fixed annuities are offering these days, there are also certain fees that you need to be mindful of with an annuity – and in this case, you will incur a surrender charge if you choose to withdraw 10% or more of the contract’s value during your interest rate guarantee period. Here, as is the case with many annuities that allow you to lock in an interest rate long term, there is a surrender period that correlates to the rate guarantee period. This means that for as long as your rate is guaranteed, you’ll pay a penalty for making such a withdrawal. Plus, if you do make such a withdrawal from your annuity before you have reached the age of 59 1/2, then you could also be hit with an additional 10% “early withdrawal” penalty from the IRS.

The Annuity Gator’s End Take on the Protective Life Fixed Deferred Annuity

Where this annuity works the best:
  • If you want to lock into a set interest rate (for a set period of time)
  • If you want to ensure that your principal is safe
  • If you plan to use the lifetime income feature
Where this annuity works the worst:
  • If you want the opportunity for a higher rate of return
  • If you may need to withdraw funds from the annuity during the surrender period
  • If you do not plan to use the lifetime income feature

In Summary

There can be a long list of factors to consider before you commit to an annuity. In the case of the Protective Life Fixed Deferred Annuity product, these factors include the interest rate you’ll receive, the surrender period, and the opportunity (or lack thereof) to earn a higher rate of return on your money. If you are still leaning towards buying this annuity, though, then you can be sure that your principal will be safe, and that you will be able to count on a guaranteed income stream in the future. (You may also be able to count on that for a loved one, as well, such as your spouse). Yet, even with these nice features on the Fixed Deferred Annuity from Protective Life, this product could still fall somewhat short – and quite frankly, there may very well be a better alternative out there for you. In reality, the only way to truly know if this annuity will perform well for you is to have it tested. We can do this for you and can provide you with the results – at no charge or obligation. If you are interested in taking a look at the potential performance of the Frontiers ll, then please contact us here via our secure online contact form.

Do You Still Have Any Other Questions? Did You Happen to Notice Any Mistakes in This Review?

We know that this annuity review was a tad bit on the long side. But we would much rather provide too much detail than not enough. That way, you can better compare the pros and the cons of an annuity that you may be considering purchasing. However, if you do happen to still have any additional questions about this – or any other – annuity, then please feel free to contact us and one of our annuity experts can walk you through any of the questions or concerns that you have. Any other annuities you would like to see reviewed? Also, if there are any other annuities that you would like more information about, then just simply let us know that, too and our annuity geeks will get on the case and post more reviews asap. Best, The Annuity Gator Independent Review of the Protective Life Fixed Deferred Annuity  

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