What Will We Cover in this Annuity Review?In this annuity review, we will be going over the details regarding the Security Benefit Secure Income fixed indexed annuity, such as:
- 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 tossing around the idea of purchasing an annuity because you are seeking additional tax-deferred growth, protection of principal (in any market environment), and a lifetime income stream, then the Secure Income fixed indexed annuity from Security Benefit could be a good option for you. But, prior to making a long-term commitment to this – or to any – financial vehicle, there are some things that you should know that could have a big impact on whether or not it is the right choice. Over the past several years, fixed indexed annuities have become quite popular – particularly with those who are seeking higher returns than what a regular fixed annuity can give, yet also want the principal protection of their hard-earned savings. Fixed indexed annuities can provide all of this – as well as a lifetime income in retirement. However, because these types of annuities have become so in dement, many insurance carriers have expanded their product lines and have added all kinds of “bells and whistles” to them. And, while this can be beneficial, it can also make an already confusing product even more so – and, many of these product add-ons will cost you an additional amount of premium, in turn, negatively impacting the ultimate benefit that you end up with. Although this may not necessarily be bad in all cases, it is important that you at least know how the product works and what it will cost – and then determine whether or not you want to move forward with it.
Annuity and Retirement Income Planning Information You Can TrustIf you have never been to our website before, please allow us to officially welcome you here to AnnuityGator.com. We are a team of annuity experts who have a primary focus on providing highly comprehensive, and unbiased, annuity reviews online. We have been doing this for quite a long time now – far longer than our competitors have – and because of that, we have come to be known as a highly trusted source of annuity information. We’ve also had some “copycats” try to duplicate our offerings. The way we see this, though, is that imitation is surely the highest form of flattery. If you have been in the process of seeking an annuity, it is likely that when doing any research online about them, you have come across some highly conflicting details. This really is not all that surprising, though, as there are a lot of annuities available in the market today, and there are many opinions, both positive and negative, about them. You may also have attended an annuity seminar or workshop where the presenter offered you a free dinner or lunch, as well as information regarding the Security Benefit Secure Income fixed indexed annuity or some other similar financial product. Attending that seminar may even have been the ultimate catalyst that brought you here to our site in search of additional annuity information. While there are many other good websites out there online that are focused on annuities, you may have found in your quest for information that some of these websites will try luring you in by making some fairly bold claims, like having the lowest fees and offering the highest annuity income payouts. Sound familiar? But, even though these claims might sound really enticing, the reality is that prior to you making a commitment on an annuity, it is important for you to find out whether or not these claims are really true, just as you would do prior to purchasing any other high-dollar item. This is where the Annuity Gator comes in! If you are in the market to learn more about the Security Benefit Secure Income fixed indexed annuity, then you are certainly in the right place. In fact, we dare say that our website is the only place on the Internet where you can find all of the in-depth details about this annuity – which includes the good, and the bad. That’s because we feel that knowing the whole story about an annuity is the only way for consumers to make a truly well-informed decision about whether or not it is the right product for them. Oftentimes, when a financial or insurance advisor is presenting a fixed indexed annuity to his or her clients, they will provide a nice rosy picture of how the annuity can offer the best of all world, meaning that the product has the ability to offer a nice return, along with safety of principal – as well as income for life. But in doing so, the advisor may neglect to provide details about areas that could be considered drawbacks. With that in mind, if you are seriously thinking about purchasing the Security Benefit Secure Income annuity, you should know just exactly what you are getting into. One of the top reasons for this is because getting out of an annuity can be somewhat difficult – as well as very expensive, due to the surrender charges that are incurred. Just to be completely clear here, we do want to state that we feel annuities can be a good financial vehicle for many investors – as long as it fits in well with both their short- and long-term financial goals. So, if you’re ready to begin this review, let’s go ahead and dive in! [desktoponly]
Security Benefit Secure Income Fixed Indexed Annuity at a Glance
|Product Name||Secure Income|
|Type of Product||Fixed Indexed Annuity|
|Phone Number||(800) 888-2461|
Opening Thoughts on the Security Benefit Secure Income Fixed Indexed AnnuitySecurity Benefit has been in the insurance arena for more than 125 years. Initially founded with just $11 back in 1892, the company has grown and expanded over time and has thrived despite the Great Depression, the Great Recession, and numerous natural disasters. Security Benefit is considered to be a leader in the U.S. retirement market, offering a long list of financial products and services for both individuals and businesses. Today, Security Benefit holds roughly $34 billion in assets under management, with more than 500,000 accounts and contracts on its books. The company offers its life insurance and annuities via a network of 700 broker/dealers and independent marketing organizations. Its products are available in all 50 of the U.S. states. Throughout the past decade or so, the volatility in the market has made investors think twice about putting their hard earned savings into an area that could wipe away years of planning within a very short time if experiencing a correction. Yet at the same time, historically low-interest rates have not provided investors anywhere near the returns they need in order to beat – or even meet – future inflation. This is where the fixed indexed annuity can come in. These financial vehicles allow you the opportunity to attain index-linked returns as well as the safety of principal, regardless of what occurs in the market. Just like other types of annuities, these products also offer tax-deferred earnings within the account – and, there is the option to receive lifetime income in retirement, regardless of how long you may need it. However, even though this “best of all worlds” scenario initially seems very appealing, these benefits can also come at a cost. So, before you move forward with the purchase of the Destination fixed indexed annuity (or for that matter, any annuity), you need to be sure that you check out all of the details as, once you have purchased an annuity, it could be quite an ordeal to get yourself out of it.
Before getting into the nitty-gritty details, here are some necessary legal disclosures…..This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Security Benefit has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners. For additional information on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How Security Benefit Describes the Secure Income Fixed Indexed Annuity ProductSecurity Benefit describes the Secure Income annuity as a flexible premium deferred fixed index annuity that includes a combination of contract guarantees, bonus, flexible interest choices and withdrawal options. With this product, you could qualify for up to an 8% bonus on purchase payments that are made in the first year. The annuity also offers a guaranteed minimum interest rate in the fixed account, along with multiple other interest crediting options. These crediting options are based on the performance of the S&P 500 index. There are some additional features on the Secure Income annuity, including a nursing home waiver, and a terminal illness waiver, whereby you could withdraw funds from the annuity without incurring a surrender charge. There is also a death benefit, so if the annuitant should die before receiving annuity payments, then a named beneficiary (or beneficiaries) will receive 100 percent of the account value (minus any applicable premium tax). If the beneficiary is the annuitant’s spouse, then he or she could alternatively elect to keep the contract in force. With an optional guaranteed lifetime withdrawal benefit (GLWB) rider, there are some added benefits, such as a guaranteed lifetime income, as well as a home healthcare doubler which can increase the funds that are available from the annuity should you require qualifying types of home health care. For more information on the base product, you can take a look at the company brochure HERE, and for additional details on the GLWB rider, you can take a look at the literature – HERE –.
How an Insurance or Financial Advisor Might “Pitch” this AnnuityFixed indexed annuities can offer some very nice advantages – starting with the fact that they allow the opportunity to get a higher return than a regular fixed annuity, and still protect your principal in any type of market environment. As with other annuities, your earnings can compound tax-deferred, so you can continue to build the funds in the account without the need to pay Uncle Sam each year (until the time of withdrawal). These products also allow you to get income for life, so you can alleviate the worry about running out of income in retirement. With that in mind, a financial advisor is likely to focus on this “best of all worlds” scenario when presenting this product to you. However, because there are so many moving parts on fixed indexed annuities, you really need to take a deeper look into how the components of these annuities work because typically, they aren’t always a walk in the park when it comes to generating the returns you are anticipating. For example, many fixed indexed annuities – including this one – come with a cap on the index-related / credited earnings. This means that should the underlying index that is being tracked have an absolutely stellar performance during a given year, your return will be capped, or limited, based on what the insurance company has set the cap rate at. (So much for those regular 7 – 8% annual earnings the other websites told you about!) The product brochure also talks about free withdrawals. But what they really mean is that you can only withdraw up to 10% of your account value each year during the surrender period. With that in mind, you really need to consider this (or any) annuity as a long-term financial endeavor. Likewise, if you had a bonus credited to your first-year purchase payment, and you later take withdrawals that are greater than the free withdrawal amount during the surrender period, then some – or possibly even all – of the bonus may be recaptured by the insurance company. This recapture could also occur if you convert the annuity over into an income stream during the surrender charge period. [desktoponly]
|Bonus Recapture %||100||100||100||100||100||100||80||60||40||20||0|
Fees to Consider on this AnnuityWhen you have a financial product that offers any type of guarantee on it, it’s likely that there will also be tradeoffs to consider somewhere along the line. This definitely holds true with the Security Benefit Secure Income fixed indexed annuity – and several of these tradeoffs come in the form of fees. For instance, if you have decided to go with the optional Guaranteed Lifetime Withdrawal Benefit (GLWB) rider on this annuity, then you’ll be dinged with an annual charge of 0.95% each year on the contract anniversary. You may also have noted in the small print that this charge could go up to 1.50% after the 10th year. There is also the possibility of running into surrender charges if you withdraw some or all of your money from this annuity. The surrender charge period on this annuity runs for 10 full years – and it starts out with a fairly steep 12% in the first year. It then gradually grades down over time. [desktoponly]
Surrender Charge Schedule
|Surrender Charge %||12||11||10||9||8||7||6||5||4||2||0|
The Annuity Gator’s End Take on the Security Benefit Secure Income Fixed Indexed AnnuityWhere it works the best: This annuity could work for you if you are looking for:
- Safety of your principal – regardless of what occurs in the market
- The opportunity for index-linked growth
- Guaranteed lifetime income in retirement
- Want penalty-free access to most or all of your money within the first ten full years of purchasing the annuity
- Do not intend to use the lifetime income feature of the annuity
Purchasng this annuity has been the worst financial decision I have made in recent memory First, the spread has increased as has the lifetime income rider charge. And, as you will find in the small print the lifetime income rider charge is based on the lifetime withdrawal benefit base and not the account value. Put simply the rider charge will go up even if your account value goes down. My annuity is tied to the Morgan Stanley Dynamic Allocation Index that has produced less than one percent return total over four years. So my principle rather than being protected has actually decreased losing the total bonus that I received. Finally the spread is annual (3%+3% =6%) but the crediting is two year point to point. Bottom line is I need seven percent return to break even. Needless to say that has not happened and I’m caught between a rock and a hard place. It is definitely the small print that does you in. I would avoid this annuity if principle protection is what you are interested in.
Thanks for your message Scotez.
Before making any financial decision, we ask that you consult with an expert. Here at Annuity Gator, we can help with that, and look at all the in’s and out’s to help you make the best decision depending on your financial goals.
If you think we can help in any way, please feel free to contact us directly, toll-free, at (888) 440-2468 to chat with one of our annuity specialists or visit http://annuitygator.com/contact/
We look forward to hearing from you.
Do you know the payout factors for payout on the GWLB?
Hi Donna– Thank you for your message.
We would be happy to provide you more details on the Guaranteed Lifetime Withdrawal Benefit rider or other benefits for this – or any other – annuity that you might be considering. In order to best support you, we would need some additional information from you. Rather than sending the info back and forth via email, it would be best to discuss it by phone. Please feel free to contact us directly, toll-free, at (888) 440-2468 to chat with one of our annuity specialists or visit http://annuitygator.com/contact/
We look forward to hearing from you.
Hello, I am 64 and I am looking into Total Value annuity with Security benefit. My goal is to grow and protect my principle and not for income generation. What is your thoughts on this?
Hi Fatima – Thank you for your message.
Our annuity ranking software can help you find the best annuities for your situation and thus help you make the best financial decision that meets your needs.
We would be happy to help you with this process. In order to best support you, we would need some additional information from you. Rather than sending the info back and forth via email, it would be best to discuss it by phone. Please feel free to contact us directly, toll-free, at (888) 440-2468 to chat with one of our annuity specialists or visit http://annuitygator.com/contact/
We look forward to hearing from you.