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Independent Review of the Sentinel Security Life Guaranteed Income Annuity

What will be covered in this annuity review?

In this review, we’ll cover the following information on the Sentinel Security Life Guaranteed Income Annuity:
  • Product type
  • FeesIndependent Review of the Sentinel Security Life Personal Choice 5 Annuity
  • 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.

Over the past several years, annuities have become a much more popular component of retirement planning. One reason for this is because, as people are living longer, having a retirement income that lasts much longer is necessary – and unlike any other insurance or financial product in the marketplace, an annuity is the only vehicle that can guarantee you an income for the remainder of your lifetime, regardless of how long that is. Fixed annuities have become particularly favored by those who are at or approaching retirement time, as people are getting much more leery about entrusting their savings to an extremely volatile stock market. So, if you’ve been considering a fixed annuity like the Guaranteed Income Annuity from Sentinel Security Life because you want to ensure that your money is safe and that you’ll have lifetime income that you can count on, this product could be a viable option for you. However, before you go out and purchase it “sight unseen,” it is important that you know just exactly how the product works, and how it may – or may not – work for you and your specific financial related objectives.

Annuity and Retirement Income Planning Information That You Can Trust

If this is the first time that you have visited our website, then please allow us to officially welcome you here to AnnuityGator.com. We are a team of annuity pros who focus on offering very comprehensive – and unbiased – annuity reviews. We have been at this for quite a few years now – longer than our competitors. And, because of the in-depth reviews that we provide, we have become a highly trusted source of annuity information online. Over the past decade or so, however, there have been a number of “copycat” websites that have popped up on the Internet. While some of these can give you information about annuities, what you are likely to find is that they are oftentimes just simply reiterating what our information already shows. If you have been researching annuities on the Internet lately, it is likely that you also have run across conflicting information regarding these financial vehicles. That really is not surprising, though, as there are many, many annuities out there in the marketplace, and just about everyone seems to have a differing opinion about them. In looking at annuities online, it’s also possible that you might have landed on some other annuity marketing websites that focus on luring visitors in for the purpose of obtaining their contact details. These sites will oftentimes do so by making some fairly bold claims about the annuities they offer, such as:
  • High Annuity Income Payouts
  • Guaranteed Income for Life
  • Top-Rated Annuity Carriers
  • Low Fees
Look familiar? But, as great as these claims might initially sound, it is really important that you verify their validity first before you decide to move forward with a long-term financial commitment. Otherwise, it could end up costing you. That being said, if you are looking for more in-depth information about the Sentinel Security Life’s Guaranteed Income Annuity, then you are definitely in the right place. In fact, dare we say that our Annuity Gator site is the only place online where you can get all of the key details about this annuity so that you can make a well-informed buying (or non-buying) decision. It is important to note here, however, that in addition to providing you with all of the nice keen benefits of this product, we are also going to lay out the product’s drawbacks. This is so that you will be in a better position to make a truly well-informed decision as to whether or not this is really the annuity for you. We do want to be clear in that, we believe that annuities are fine products – and they can be quite beneficial to some people – as long as they fit in with your overall financial objectives. This annuity review is here to provide you with what you need to know. So, let’s go ahead and get started!

Sentinel Security Life Guaranteed Income Annuity at a Glance

Product NameGuaranteed Income Annuity
IssuerSentinel Security Life
Type of ProductFixed Annuity
A.M. Best RatingB++
Phone Number(800) 247-1423
Websitewww.sslco.com

Opening Thoughts on the Sentinel Security Life Guaranteed Income Annuity

Sentinel Life was initially established in 1948 when a group of Utah funeral directors saw families in need of insurance coverage that was designed to help with paying for final expenses. So, Sentinel Mutual Insurance Company was begun. Throughout the years, a number of additional coverage products were added. Today, the company offers a strong senior market portfolio, which focuses on final expense life insurance coverage and health insurance, as well as fixed annuities. With consistent and solid growth, Sentinel remains well-positioned to continue creating and rolling out new and innovative product solutions. As of year-end 2017, total assets were in excess of $800 million, with a gross annual premium for the year exceeding $350 million. With so much volatility and unpredictability in the stock market over the past several years, the demand for fixed annuities has grown quite a bit, particularly as a way for retirees (and those who are preparing for retirement in the near future) to keep assets safe, and to ensure that they have a stable and reliable income going forward. Unfortunately, though, due to the historically low-interest-rate environment that we’ve been stuck in for nearly a decade now, the return that has been offered by fixed annuities has been very low. In fact, in many instances, the returns that are obtained on fixed annuities have not even been enough to outpace the inflation rate over time. Because of these low rates, your future purchasing power could be affected – especially if you plan to use the income from a fixed annuity as a primary source of your retirement income down the road.

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. Sentinel Security Life 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 Sentinel Security Life Describes the Guaranteed Income Annuity

According to Sentinel Security Life’s website, the Guaranteed Income Annuity can help to protect your future from risk, while at the same time growing your retirement savings. This innovative annuity is essentially designed to guarantee savings that will last for your entire lifetime, as well as provide a bright future and financial legacy to your beneficiaries. There are also three riders that can be added to this annuity. Each of these addresses a different goal, which makes the annuity even more versatile and customized. These riders include the:
  • Guaranteed Lifetime Withdrawal Benefit Rider – If your main goal is to ensure that you have a dependable income source for your retirement, then this rider may be a viable option for you. That’s because the Guaranteed Lifetime Withdrawal Benefit, or GLWB, rider will provide you with a guaranteed amount of income for your life so that you can have a continual steady stream of money always coming in. This rider can help to provide more financial confidence that you will have enough retirement income for your lifetime.
  • Legacy Benefit Rider – If you are looking to leave an additional amount of money to your loved ones, then this rider can be a good option. With the Legacy Benefit Rider, you place a focus on making sure that those you love are taken care of financially. Each year, on your annuity’s contract anniversary, the Legacy Benefit Base will increase by the interest rates that are applied to your annuity’s accumulation value, plus a guaranteed 4% stacked on top! Your death benefit has the potential to grow to 300% of the number of your purchase payments.
  • Accumulation Benefit Rider – With the Accumulation Benefit Rider, the goal is consistent growth. So, if you are aiming to provide your money with the opportunity to grow with minimum risk, this can help. Here, your benefit base interest rate is 200% of interest applied to the accumulation value for the first roll-up period of ten years. This rider is free of charge.
Overall, the interest rate for this annuity is based on the LIBOR (London Interbank Offered Rate). This is a benchmark rate that is used throughout the world and by many of the world’s leading banks to know how much they should charge one another for loans. Thanks to LIBOR, Sentinel Security Life is able to offer its clients the potential to earn a rewarding return in a rising interest rate environment. That’s because typically, as general interest rates increase, so does LIBOR. The Guaranteed Income Annuity could also provide you with a premium bonus of up to ten percent, depending on which version of this annuity you choose to go with. There are a few other bells and whistles available on this annuity. These include a terminal illness and nursing home waiver, as well as a required minimum distribution waiver. You can read more about these in the product brochure HERE. Also, for a more in-depth breakdown regarding how each of the riders works, as well as for details on the current interest rates, just go HERE.

How an Insurance or Financial Advisor Might Pitch this Annuity to Customers

If you’re like most people, you probably love guarantees – especially as it pertains to your money. So, if you’ve been approached by an insurance or financial advisor about the Sentinel Security Life Guaranteed Income Annuity, then it is likely that they zeroed in on the principal protection on this product, along with the optional riders that can better customize this product to your needs. On top of that, with this annuity, you can also count on a lifetime stream of income for the remainder of your life, if you choose the lifetime income option. This can help to alleviate the worry about running out of income in your later years…which is becoming a growing concern as more people are living longer life spans today. But, while these guarantees may help you to sleep a bit better at night, the reality is that such benefits can oftentimes come at a cost – this being the low rate that is offered, and in turn, the inability to beat, or even meet, future inflation. This could equate to a step backward in future lifestyle, as it could hinder your ability to keep up with the rising cost of the goods and services you need in retirement. In addition, two of the three available optional riders will cost you an additional amount of premium. So, with that in mind, you really need to determine whether or not you are willing to take the “tradeoff” here – in other words, giving up the opportunity for more growth in return for keeping your principal safe.

What About the Fees on the Sentinel Security Life Guaranteed Income Annuity?

Just like with most other annuities, there are some charges and fees that you need to be mindful of here. For starters, both the Guaranteed Lifetime Withdrawal Benefit Rider and the Legacy Benefit Rider can only be added if you pay an additional amount of premium. For instance, if you elect the Guaranteed Lifetime Withdrawal Benefit rider, there is an annual fee on each contract anniversary of 1.25% for years one through five, and a fee of 1.60% for years six through ten, multiplied by the income account value and reduced from your account value. Likewise, if you elect the Legacy Benefit Rider, there is an annual fee on each contract anniversary of 1.25% for years one through five, and a fee of 1.60% for years six through ten multiplied by the Legacy Benefit Base and reduced from your account value. There can also be withdrawal charges incurred. The length of the surrender/withdrawal charge period will depend on which annuity version you go with. For example, the 10-year version has surrender charges as follows:
Policy Year1234567891011+
Surrender Charge %109876543210
With the 14-year version, the surrender charges are:
Policy Year123456789101112131415+
Surrender Charge %14131211109876543210
Plus, if you make withdrawals before you turn age 59 ½, you could also incur an additional 10% “early withdrawal” fee from the IRS. With that in mind, know that the money you contribute to this (or any) annuity is for the long haul.

The Annuity Gator’s End Take on the Sentinel Security Life Guaranteed Income Annuity

Where it works best: This particular annuity will usually work the best for those who are looking for:
  • Guaranteed lifetime income
  • Safety of principal
  • Slow and steady growth over time
Where it works the worst: This annuity may not be an ideal fit if you:
  • Want access to most or all of your funds within the first several years (during the surrender period)
  • Are seeking a high rate of return on your money
  • Do not anticipate using the funds lifetime income needs
In order to know how to really compare the best annuity options for you, click here so that you can download our free annuity report.

In Summary

There is literally a myriad of factors that should be taken into consideration when you are determining which annuity is right for you – of even IF any annuity is right for you. In any case, though, annuities should always be considered as long-term financial endeavors, and because of that, you should feel comfortable that the one you ultimately go with can help you to reach your goals. If you are still leaning towards the purchase of a fixed annuity, you can certainly be assured that your principal will be safe, and in this case, that you will have a certain rate of return to count on, no matter what is happening in the stock market. However, even with these nice benefits, the Sentinel Security Life Guaranteed Income Annuity could still fall somewhat short – and quite frankly, there very well could be a better option out there for you – particularly if you are focused on getting a guaranteed lifetime income in retirement AND the opportunity to earn a higher rate of return. If you still have any questions with regard to whether or not this annuity is right for you – or, even if you just simply need some additional guidance about annuities in general, then please feel free to reach out to us directly via our secure contact form here.

Do You Have Any Additional Questions or Concerns Regarding the Guaranteed Income Annuity from Sentinel Security Life? Did You Happen to Notice Any Mistakes in this Annuity Review?

While this annuity review did admittedly run a bit long, our feeling here is that we would much rather provide you with too many details as versus not nearly enough. Therefore, if you did find this review helpful to you, then please feel free to share it with others that you think might benefit, too. We also understand that annuity product information can change frequently. Therefore, if you happened to notice that any of the information in this annuity review was incorrect, then please let us know and we will do our best to get that updated as soon as possible. Also, if this annuity review made this product even more confusing – and/or if it happened to spark any additional questions or concerns – please let us know that, too and we will work to make the information clearer. Are there any other annuity reviews that you would like to see posted on our website? If so, we’ll get on it! Just simply tell us the name of the annuity (or annuities, if more than one) and our highly trained team of annuity “geeks” will start working on those – so be sure to check back soon for updates, as well as a whole host of new annuity reviews! Best, The Annuity Gator P.S If you would like to read more of our Sentinel Security Life annuity reviews here are some links to check out: Independent Review of the Sentinel Security Life Guaranteed Income Annuity    

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