What will we be covering in this review of the United Heritage Secure Value Annuity?In this review of the United Heritage Secure Value MYGA annuity, we will be going over the following important details:
- Type of annuity
- Realistic performance expectations
- Where the annuity is best used
- How the annuity 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.
Committing to any financial product can be a big decision – particularly if it will impact your future retirement income, and ultimately, your life. As an example, an annuity can provide you with a nice, steady stream of guaranteed income that you can count on for a set period of time – or even for the remainder of your lifetime, no matter how long that may be. On the other hand, though, if you end up choosing an annuity – or for that matter, any financial related product – that really doesn’t fit your particular needs, then it could have a negative impact. In the case of an annuity, you may need to contribute a fairly large chunk of your savings in order to generate a viable income stream. But because most annuities have surrender penalties for withdrawing your funds – some for more than ten years – it can cost you dearly if you purchase an annuity and then soon afterward determine that a different product would be better. Annuities can be somewhat confusing to understand – even for well-educated consumers (as well as for some financial and insurance advisors). As “new and improved” annuities hit the marketplace, there can be a plethora of “small print” that comes along with these vehicles, sort of like an owner’s manual. But have you (or anyone you know, for that matter) ever really sat down and read an owner’s manual word for word? The answer is likely no. The “small print” that is associated with almost any product or service can oftentimes seem a bit daunting. Therefore, most people will simply move forward with their purchase and hope that everything turns out ok. But, if you’ve ever suffered through a stock market crash, you are likely well aware that “hope is not a strategy!” This is where the Annuity Gator can help.
Annuity and Retirement Income Planning Information That You Can Actually TrustIf this is the first time you have visited our website, then please allow us to welcome you to Annuity Gator. We make up a team of annuity and retirement income specialists who focus on educating people on how annuities work, as well as whether or not a particular annuity is right for you and your specific needs. We’ve been doing this for quite some time now – far longer than our competitors. Because of this, we have come to be known as a highly trusted source of annuity information. Over the past several years or so, though, many “copycat” websites have started to spring up, mimicking what we do. While that can be somewhat confusing for consumers, we take it as “imitation being the highest form of flattery.” If you have spent any amount of time on the world wide web looking for information about annuities – including the United Heritage Secure Value MYGA annuity – you may have run across some highly conflicting information regarding these financial vehicles. This isn’t too surprising, though, because there are many “flavors” of annuities out there today in the marketplace – and just about everyone has some sort of opinion about them. Some people love them, some people hate them. And some just don’t really care. But the reality is there are situations where annuities work, and situations where annuities don’t work. That’s the premise of our annuity reviews – to make sure that you have enough information to make a well-informed annuity purchasing decision. With that in mind, if you are looking for all of the in-depth details about the Secure Value annuity from United Heritage Life Insurance Company, then you are definitely in the right place. That’s because we don’t hold back any of the information about how this annuity works, and what you can expect if you make a purchase. So, if you’re ready to begin, let’s go ahead and dive in!
The Secure Value MYGA Annuity from United Heritage Life Insurance Company at a Glance
|Product Name||Secure Value|
|Issuer||United Heritage Life Insurance Compan|
|Type of Product||Multi-Year Guarantee Annuity (MYGA)|
|A.M. Best Rating||B++ Good|
|Phone Number||(208) 493-6100|
Opening Thoughts on the United Heritage MYGA AnnuityUnited Heritage offers a wide range of financial products, including life insurance, annuities, and group life and disability income insurance. The company offers its products in 49 states, as well as the District of Columbia. This company actually traces its roots back to the year 1896, when the Farmers Fire Relief Association of Sublimity began operations. Throughout the years, the company grew and expanded, and also increased its product lines to include property and casualty coverage. Today, United Heritage Mutual Holding Company owns an intermediary holding company, United Heritage Financial Group (UHFG), which in turn, owns the stock of three separate companies, including:
- United Heritage Life Insurance Company
- United Heritage Property and Casualty Company
- Sublimity Insurance Company
Before we get into the 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. United Heritage Life Insurance Company 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. Before purchasing any type of insurance and/or investment 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 situation. All of the names, marks, and materials that were used for this annuity review are the property of their respective owners. For more information on how to compare annuities in order to determine which one may be the best for you and your financial circumstances, click here to obtain our free annuity report.
How United Heritage Life Describes the Secure Value MYGA Annuity ProductAccording to the United Heritage Life Insurance Company’s website, the Secure Value annuity offers an attractive interest rate that is guaranteed for a pre-determined period of time. In this case, for instance, the company offers the Secure Value 5 annuity and the Secure Value 7 annuity, with rates that are locked in for five and seven years, respectively. After the guarantee period has ended, the effective interest rate going forward will never go below the minimum floor that is specified in the annuity contract. There are some other features that come along with this annuity, too, such as a(n):
- Death Benefit
- Penalty Waivers
How an Insurance or Financial Advisor Might “Pitch” the Secure Value AnnuityIf you are approaching retirement, you may be torn between going with financial vehicles that have more risk in order to increase your opportunity for growth, or instead going with something “safe” so that you don’t lose any of your hard-earned retirement funds. For instance, rather than trying to turn $1 million into $2 million, your focus may instead be on keeping $1 million from becoming $500,000. That exactly what a multi-year guarantee fixed annuity can do for you. Because many pre-retirees today are concerned about not losing what they’ve already saved, having certain guarantees can be comforting – so if you have been presented the Secure Value Multi-Year Guarantee Annuity by an insurance or financial advisor, it is likely that they keyed in on the safety features of this product, along with the ability to earn tax-deferred growth. So, in many ways, this annuity can allow you to potentially increase the returns on your “safe money” – especially because there are no losses incurred if the stock market takes a tumble. But there are still some tradeoffs that you need to be mindful of. For example, even though you can earn more than the guaranteed rate on this annuity, the reality is that you still may not be able to beat, or even meet, the rate of inflation. As of late 2020, the rate on the Secure Value annuity is 2.75%. So, if inflation is 3% (which is where it has been averaging over the past 20 years or so), your safe money would already be behind…and that is before taxes. In addition to a possible surrender fee – and taxes on the gain in the account – you could also incur an additional 10% “early withdrawal” penalty from the IRS if you make a withdrawal prior to turning age 59 ½. So, it is really important to consider this a long-term financial commitment.
The Secure Value Annuity FeesYour overall return on the Secure Value Annuity from United Heritage could be lessened even more by charges and fees. In this case, while you won’t have to pay an up-front agent or broker commission, you could lose a significant amount if you take a withdrawal of more than 10% of the contract’s value during the surrender period. The length of the surrender charge period on the Secure Value MYGA annuity will correspond with the interest rate guarantee period – so, on the 5-year rate guarantee, the surrender period would be in force for 5 years. Likewise, the same holds true on the 7-year product.
The Annuity Gator’s End Take on the United Heritage Secure Value Multi-Year Guarantee AnnuityWhere this MYGA annuity works best: Just like all product or service offerings, there will usually be some pros and some cons with annuities, meaning that the item or service may work well for some, and not so well for others. So, if you are still considering the purchase of the Secure Value MYGA annuity from United Heritage Life Insurance Company, then it could work well for you if you are seeking the following benefits:
- Guaranteed growth (for a period of 5 or 7 years, depending on which rate guaranteed period option you choose)
- Protection of principal – no matter what occurs in the stock market
- Lifetime income in retirement
- You want the opportunity to earn a higher rate of return in order to keep better pace with future inflation
- You want to access more than just a small percentage of the contract’s value during the surrender period
- You do not plan to use the guaranteed lifetime income feature