What’s Covered in this Symetra Edge Plus Fixed Indexed Annuity Review?In today’s review, I’ll be covering the following information on the Symetra Edge Plus 7 Fixed Indexed Annuity:
- Product Type
- Current Rates
- Realistic long-term return expectations
- How this annuity is best 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.Have you been considering the purchase of an annuity? If so, then it could be that you are in search of a way to grow your money in a tax-advantaged way – but without losing value during a market downturn, and that you are also seeking guaranteed income in the future. If that is the case, then the Symetra Edge Plus 7 fixed indexed annuity could be a good choice for you. But, before you go out and make a long-term commitment to this – or to any other – financial product, it is important to be sure that you have a good understanding of how it works, and how it may, or may not, work for you and your specific financial goals. Throughout the past decade or so, annuities have become much more popular with those who are saving for retirement, as well as those who are entering into this stage in their lives. One of the key reasons for this is because annuities can provide a stream of guaranteed income, regardless of how long you may need it. Also, because the stock market has been particularly volatile since the 2008 recession, a fixed indexed annuity, in particular, can help with growing your nest egg, while at the same time keeping it safe. Due in large part to this growth in annuities’ popularity, there are many insurance and financial advisors who are offering these products. This, however, is not necessarily such a good thing, because even though most financial professionals will work to do what’s right for their clients, not everyone understands the intricacies of annuities – and because of that, investors don’t always end up getting what they thought they had purchased. As a result, it is essential that you know exactly what it is that you’re getting into with your retirement money, as locking yourself into the wrong annuity could end up being a time-consuming and costly endeavor if you decide you want out.
Annuity and Retirement Income Planning Information You Can TrustIf this is the first time you have visited our website, then please allow us to officially welcome you here to AnnuityGator.com. We make up a team of experienced financial experts who are focused on providing unbiased and comprehensive annuity reviews. We have been doing this for a number of years now, and much longer than our competitors. So, we have become a trusted source of annuity information. If you’ve been looking for more details about annuities online, it is likely that you’ve noticed that there is a great deal of conflicting information out there about these financial vehicles. This isn’t really surprising, though, because there is also a long list of products that are available – with just as many differing opinions. It may be that you have also recently gone to an annuity seminar where the presenter provided you with a free dinner or lunch, while he or she discussed the Symetra Edge Plus 7 or some other similar annuity product. In fact, your attendance at this seminar may even be what has ultimately led you here to our site in search of additional information. Although there are many websites on the Internet that market their annuities for sale, a fairly large percentage of these will try luring you in by making some pretty bold claims, such as:
- High-income payments
- Lowest annuity fees
- Guaranteed lifetime income
- 7 – 8% Rate of Return
Symetra Edge Plus 7 Fixed Indexed Annuity at a Glance
|Product Name||Symetra Edge Plus 7|
|Type of Product||Fixed Indexed Annuity|
|Phone Number||(800) 796-3872|
Opening Thoughts on the Symetra Edge Plus 7 Fixed Indexed AnnuitySymetra has been in the insurance business for 60 years. The company has a focus on offering retirement, employee benefit, and insurance products that help their customers attain security and confidence. Symetra is also considered to be a pioneer in medical stop loss insurance, as well as a leader in fixed deferred annuity sales – particularly through the bank channel. In fact, the company was the country’s #2 seller of fixed indexed annuities through banks in 2016, and the #4 seller of all fixed annuities in the wirehouse channel during that same year. Over time, Symetra has grown to more than 2 million customers via a nationwide network of financial institutions, broker-dealers, independent agents, advisors, and employee benefits consultants. Symetra’s strength is backed by more than $40 billion in total assets. Today, Symetra is owned by its parent company, Sumitomo Life – a mutual insurance company with more than 100 years of history, and one of the largest life insurance companies in Japan. When combined, Symetra and Sumitomo have total assets in excess of $300 billion. Symetra Life Insurance Company has earned high ratings from all of the primary insurer rating agencies. These include a(n):
- A from A.M. Best Company
- A from Standard & Poor’s
- A2 from Moody’s
- A from Fitch
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. Symetra 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 Symetra Describes the Edge Plus 7 AnnuitySymetra describes its Edge Plus 7 fixed indexed annuity as a product that offers multiple account options and diversification, and one that also provides no downside market risk. This annuity has six different indexed account options, along with a fixed account – which in turn, offer seven different investment “mixes” to choose from, and a plethora of ways to configure your investments, based on your specific goals. Depending on which underlying indexes you choose from, you may or may not be subject to a cap – although, in the case of no cap, you would incur a margin that is subtracted from the performance of the index at the end of the interest term. The annuity also comes with some additional bells and whistles, like an enhanced death benefit rider, which could allow for a named beneficiary (or beneficiaries) to receive a potentially larger amount of benefit from the annuity than they may otherwise receive.
How Insurance or Financial Advisors Might “Pitch” This AnnuityThe continued volatility of the stock market has led many to consider placing retirement savings into a fixed indexed annuity. Because fixed indexed annuities can offer the opportunity for a higher return than a regular fixed annuity – while also offering safety of principal – many insurance and financial advisors will pitch these products as offering the best of both worlds. The ability to receive an ongoing income stream in retirement can essentially make these types of annuities the “triple crown.” But if you are being offered the Symetra Edge Plus 7 fixed indexed annuity from a commissioned insurance or financial agent, you may want to get some more in-depth details regarding just exactly how the product will determine your return. As an example, the JPMorgan ETF Efficiente 5 Index, which is one of the options in this annuity, is offered “with a point-to-point interest crediting, with interest subject to either a cap or a margin.” What exactly does this mean – and what does it mean for the annuity’s return. With a cap, it means that, even if the underlying index has an absolutely stellar return in a given year, the return that is credited to the annuity would be “capped” at a set rate. As an example, if there is a cap of 5%, but the underlying index returned 10% in a given year, the annuity would only receive the 5%. If you were to choose the margin instead, the margin would be subtracted from the performance of the underlying index at the end of the interest term in order to determine the amount of interest that would be credited. The bottom line is that, even though the annuity could perform better than some lower-interest financial options, you aren’t likely to set the world on fire with the growth in the account. You also need to be careful when investing in any indexed annuity product, as in many cases, the index’s return will not include the payment or the reinvestment of dividends in the calculation of its performance. With that in mind, even though some indexed annuities in some cases may be able to provide a higher return than other “safe” alternatives like CDs or money market accounts, it is more likely – especially in our current low interest rate environment today – that even the money that is in an indexed annuity will provide a return that’s closer to 2 or 3%.
What About the Fees on the Symetra Edge Plus 7 Fixed Indexed Annuity?It can be on the difficult side to find an insurance or financial product today that does not charge at least some amount of fee in order to put your money to work. The Symetra Edge Plus 7 from Symetra Life Insurance Company is no different. Here, if you opt for the enhanced death benefit rider, you will be charged a fee of 0.90% of the enhanced death benefit amount each year. There is also a surrender fee charged if you withdraw more than 10% of the contract value within the first five or seven years of owning the annuity, depending on which product option you go with. And, while the percentage of the surrender charge grades down, it starts in Year 1 at a relatively high 9%.
Symetra Edge Plus 7 Fixed Indexed Annuity 5-Year Surrender Charge Schedule
Symetra Edge Plus 7 Fixed Indexed Annuity 7-Year Surrender Charge Schedule
The Annuity Gator’s End Take on the Symetra Edge Plus 7 Fixed Indexed AnnuityWhere it works best: The Symetra Edge Plus 7 fixed indexed annuity could be a viable choice for you if you are seeking the following:
- Protection of your principal
- Potential for higher growth
- A lifetime stream of guaranteed income
- Want access to more than 10% of your contract value within the first several years (depending on the length of the surrender charge)
- Do not plan to use the guaranteed lifetime income feature
I’ve heard and read some unfavorable things about Symetra products. This is not worth it in my opinion; there are a lot of better options out there.
Hi Janice – Thank you for your comment. True that the Symetra annuities may not be a good fit for everyone. With so many different objectives, and other short- and long-term financial goals, it is important to narrow down each individual investor’s goals. We would be happy to run some hypothetical scenarios for you, based on your situation, to see which – if any – annuity product could work for you. Please feel free to reach out to us directly at (888) 440-2468, or through out secure contact form at http://www.annuitygator.com/contact/. Best! The Annuity Gator