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 Trust
If 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 Annuity
United 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
The company is considered to be strong and stable financially, and it has a good reputation for paying out its policy holder’s claims. For the full year of 2019, United Heritage Life Insurance Company took in nearly $102 million in insurance and annuity premium for a net income in excess of $5 million.
At year-end, United Heritage Life Insurance held nearly $627 million in assets and nearly $71 million in capital and surplus. With more than 58% of United Heritage’s overall business in life insurance, the company held more than $22 billion in overall insurance value in force.
With so many employers getting rid of their defined benefit pension plans, it has really become the responsibility of individuals to make sure that they convert their savings over into an income stream – and that the income continues to last throughout the remainder of their lifetime.
Over the past several years, due in large part to the continuous ups and downs of the stock market, the demand for fixed annuities has increased substantially. This includes multi-year guarantee annuities or MYGAs.
One key reason for this is because, in addition to keeping principal safe (in any market condition), these financial vehicles can also provide you with a guaranteed rate of growth for a specific period of time, as well as a set amount of income that could last you for the remainder of your lifetime.
Yet, even though this might sound like a win-win-win situation, the reality is that if something sounds like it may be too good to be true, then it typically is – so you should ideally get as much in-depth detail as possible if you are considering committing to it for the long term.
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 Product
According 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
For example, if the annuitant (i.e., the annuity income recipient) dies, a named beneficiary will receive the remaining accumulation value from the annuity in the form of a death benefit. (It is important to note, though, that, unlike the death benefit proceeds that are paid out income tax-free, there could be taxes associated with the death benefit from an annuity).
While you are allowed to access up to 10% of the Secure Value annuity’s contract value each year without penalty, if you take out more than that during the surrender period, you will incur an early withdrawal charge – that is, unless you qualify for a penalty-free withdrawal.
This can be done if you must stay in a hospital or nursing home for more than a stated period of time. (Note that not all of the benefits on the Secure Value annuity are available in all states. So, it is recommended that you talk with an annuity specialist before you commit to purchasing this – or any – annuity).
How an Insurance or Financial Advisor Might “Pitch” the Secure Value Annuity
If 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 Fees
Your 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 Annuity
Where 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
Where the Secure Value annuity might not be a good fit:
On the other hand, this particular annuity may not be the right one for you if:
- 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
When you’re thinking about how to best position your savings for the future, there are a number of different criteria that you should ideally consider. For instance, with annuities, you will definitely need to make sure that the product allows you the opportunity to earn a nice return (at least enough to meet or beat inflation), while also keeping your money safe in any type of market environment.
In addition to that, if you’re seeking a future income stream – including one that you cannot outlive, regardless of how long that may be – then you also need to know how the annuity will pay out when you need to convert the funds into ongoing income.
So, if you are still leaning towards the United Heritage Secure Value MYGA annuity, you can be assured that your money will be safe, no matter what goes on with the stock market. You can also count on an ongoing income stream down the road, alleviating the worry about running out of money before “running out of time.”
However, while this annuity can certainly provide you with some nice benefits, the reality is that it could still fall somewhat short – and quite honestly, there may very well be a better alternative out there for you. This is even more true if you are looking for a way to keep your money safe, while still having the opportunity to earn a higher rate of return.
The only way to truly get an idea of how this annuity may perform – based on your specific situation – is to have it tested. We can do this for you by running the numbers through our annuity calculator, and we can then provide you with a spreadsheet of the results. In order to receive this information, just simply contact us through our secure online form here and let us know.
Have Any Additional Questions About the Secure Value MYGA Annuity? Are There Any Other Annuities You’d Like to Have Reviewed?
While we know that this annuity review was a bit on the long side, we feel that providing “too much” information is far better than not enough. That being said, we appreciate you sticking with us here to the end of this annuity review for the Secure Value annuity.
We also realize that, because everyone’s situation is different, there may have been some questions that went unanswered in this review. If this is the case and you still have any additional questions or concerns, please feel free to reach out to us here.
In addition, if you found this annuity review to be helpful, then please forward it on to anyone else that you think may benefit from it, as there is a lot of misconception out there about annuities and how they work.
Is there any other annuity you would like to see reviewed?
If so, we will get right on it!
There is literally a myriad of annuities available in the marketplace today. So, if you don’t currently see an annuity in our online database in AnnuityGator.com that you are considering, then just let us know the name of that annuity (or the names, if there is more than just one), and our team of annuity pros will get to work on it ASAP.
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