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Independent Review of the Investors Heritage Builder Annuity

What will be covered in this annuity review?

In this review, we will be discussing the following details about the Investors Heritage Builder Annuity:

  • Product typeInvestors Heritage logo
  • Charges and fees
  • Current rates
  • Realistic long-term expectations
  • How 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.

Purchasing any type of financial vehicle can be a major decision. This is especially the case, though, with annuities. One reason for this is because an annuity can offer you a lifetime stream of income in retirement.

But if you end up choosing an annuity that really doesn’t fit your particular needs and objectives, it could actually have a negative impact on your retirement lifestyle…and the way you live for the remainder of your life.

Annuities can also oftentimes require a large chunk of your retirement savings. And, 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 financial vehicle would be better.

On top of that, annuities have many “moving parts,” so they 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 have recently 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 ever really sat down and read the owner’s manual for any product, word-for-word, before you purchased it?

It’s ok, you’re not alone!

This is where the Annuity Gator comes in!

Annuity and Retirement Income Planning Information That You Can Actually Trust

If this is your first visit to our website, please allow us to personally welcome you here to Annuity Gator. We are a team of experienced annuity professionals who focus on offering comprehensive and unbiased annuity reviews online.

We’ve been at this for quite some time now – and far longer than our competitors. Because of this, we have come to be known as a highly trusted source of annuity information on the Internet.

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 a compliment because, after all, “imitation is the highest form of flattery.”

As you’ve spent time online researching annuity information, you may very well have come across some highly conflicting details about these products. But this really isn’t all that surprising – at least not to us.

There are lots and lots of different annuities out there today, and just about anyone and everyone has thoughts about whether they are good, bad, or otherwise. The reality is, though, none of that really matters – as long as you know whether or not a particular annuity is or isn’t right for YOU.

If you want to know more about the Investors Heritage Builder annuity, then you are certainly in the right place. In fact, dare we say that our website is the only place that you’ll be able to secure all of the details you need, which includes the good, the bad, and yes even the ugly about the Builder Annuity from Investors Heritage. This, however, is the only way to make a good, solid decision about whether or not to purchase it.

In order to be perfectly clear here, we want to say that we at Annuity Gator feel that annuities can certainly be good products for some people – but only as long as they fit in with your overall financial needs and goals.

So, if you’re ready to start the review, let’s get started!


Investors Heritage Builder Annuity at a Glance

Product NameBuilder
IssuerInvestors Heritage
Type of ProductMulti-Year Guarantee Annuity (MYGA)
A.M. Best RatingB+ (Good)
Phone Number(800) 422-2011

Opening Thoughts on the Investors Heritage Builder Annuity

Investors Heritage Life Insurance Company offers its policyholders a wide range of insurance solutions that are backed by a track record of exceptional service. Founded in 1960, and headquartered in Frankfort, Kentucky, the company has a rich and growing tradition of providing tools to help people with building and managing their legacies.

The company recently entered into the annuity market, as one of the biggest concerns on the minds of retirees is running out of money in retirement. Customers may now choose a 3, 5, or 7-year tax-deferred guaranteed return annuity from Investors Heritage.

In mid-2019, Investors Heritage was ranked by S&P Global as the fastest growing U.S. life insurer with a Life and Annuity focus for 2018 (based on total-filed life, annuity, and accident and health direct premiums. This ranking follows a strong 2018, which was inclusive of adding the Heritage Builder Annuity.

The need for fixed/MYGA annuities – which are always backed by life insurance carriers – has been steadily growing over the past few years as more and more of today’s workers are retiring without having the stability of a traditional “defined benefit” pension for future income. By choosing the lifetime income stream on such an annuity, you can essentially “replace” a defined benefit pension plan.

If you have a “defined contribution” retirement plan, such as a 401(K), then upon retirement, you will need to have an idea of what you want to do with the money you’ve saved in it – as well as a way to convert those dollars over into a stable and reliable income stream (ideally that will last for the remainder of your life – regardless of how long that may be).

One possibility would be a fixed or MYGA annuity. This is because these financial vehicles can offer you a set return and safety of your principal (regardless of what happens in the market), along with a lifetime income that you can count on going forward.

But there may be some tradeoffs you will have to make in order to garner the benefits and guarantees from an MYGA annuity. Keep reading and we’ll go over just exactly what is required as far as this give and take.

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. Investors Heritage 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 out 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 Investors Heritage Describes the Builder Annuity

The Heritage Builder annuity is described by Investors Heritage as a way to make your money work smarter with safety and flexibility built in so that you can earn higher interest rates than you could with a CD, yet still keep your money liquid.

With its 3-, 5-, and 7-year rate guarantee periods, this multi-year guaranteed annuity, or MYGA, allows you to lock in an interest rate for a set period of time – regardless of what happens in the stock market.

This annuity is suitable for both non-qualified and qualified funds – so, if you have money in an IRA or employer-sponsored retirement plan (such as a 401k), you could just roll over some or all of these funds.

Regardless of the guarantee period that you choose on the Builder annuity, there is a minimum contribution amount of $50,000 and a maximum of $1 million. After the first 30 days, you can begin to make withdrawals from the annuity in one, three, six, or even twelve month payment options, and a minimum withdrawal of $100. (Note that there is a surrender period whereby you could be penalized for withdrawing more than 10% of the contract’s value during this period of time).

The Builder annuity from Investors Heritage has some other bells and whistles on it, too, such as a nursing home waiver. With this benefit, you can withdraw up to 50% of your annuity’s account value for expenses that are due to your residing in a nursing home facility.

For more in-depth details about the Builder annuity from Investors Heritage, you can check out the product brochure HERE.

How an Insurance or Financial Advisory Might Present the Builder Annuity to You

If you are approaching retirement, then it is possible that you might be torn between going with financial vehicles that have more risk in order to increase your opportunity for growth, and going with something “safe” and guaranteed, so that you don’t lose any of your hard-earned retirement funds.

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 Builder annuity from Investor Heritage 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 lock in a guaranteed interest rate for a set period of time, no matter what happens in the economy. So, in many ways, this annuity can allow you to generate a stable return on your “safe money.”

But there are some tradeoffs that you need to be mindful of with these types of guarantees. For instance, if rates go up in the future, and your money is locked in for a long period of time, you could be giving up some significant opportunity costs (i.e., the opportunity to earn more with those same dollars). In addition, with a fixed rate of interest, you still may not be able to beat, or even meet, the rate of inflation.

And then there are the potential fees…

Fees on the Builder Annuity from Investors Heritage

Although there are no up-front sales commissions taken out of your Builder annuity contribution, that doesn’t mean that you won’t incur any type of fees at all with this financial vehicle.

In this case, even though you are allowed to take out up to 10% of the contract value penalty-free during the first several years, if you do access more than that, you will be hit with a surrender fee.

[desktoponly]The length of the surrender fee corresponds with the length of the rate guarantee period you choose:

Investors Heritage Builder Annuity Surrender Charge Schedule

Year / Guarantee Period12345678+

On top of that, if you make such a withdrawal, and you are under the age of 59 1/2, then you could also find yourself paying an additional penalty of 10% to the IRS as an “early withdrawal” fee.

So, you really need to consider this (or any) annuity as a long-term financial endeavor and know that the money you put into it could be locked up for quite some time before you can use it.

The Annuity Gator’s End Take on the Investors Heritage Builder MYGA Annuity

Where this annuity works best:

Just like all products, there can be some pros and cons, meaning that the item or service may work well for some, and not-so-well for others. If you’re still considering the Builder annuity from Investors Heritage, then it could work well for you if you are seeking the following benefits:

  • Guaranteed growth (based on the guarantee period you select)
  • Protection of principal
  • Lifetime income in retirement

Where it works the worst:

On the other hand, this particular annuity may not be right for you if:

  • You want the opportunity to earn an even higher rate of return in order to keep better pace with future inflation
  • You want to access more than just 10% of the contract’s value during the surrender period
  • You do not plan to use the lifetime income feature

In Summary

When you’re considering how to best position your savings for the future, there are a number of criteria that you should ideally take into account. For instance, with annuities, you’ll 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 addition, if one of you other goals is to lock in 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 considering a purchase of the Investors Heritage Builder annuity, you can be assured that your money will be safe, no matter what goes on with the stock market, or even in the overall economy. 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 product can certainly provide you with some nice benefits, the reality is that this annuity may very well still fall short – and quite honestly, there may 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.

But the only way to really 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.

Do You Still Have Any Additional Questions? Are There Any Other Annuities You Would Like to Have Reviewed?

While we know that this Investors Heritage Builder annuity review was a bit on the long side, we feel that providing “too much” information is better than not providing enough. That being said, we appreciate you sticking with us here to the end.

We also realize that, because everyone’s situation for their short- and long-term financial goals are 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 via our secure online contact form 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 really is a myriad of annuities that are available in the marketplace today. So, if you don’t currently see an annuity in our online annuity review database in 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.


The Annuity Gator

Independent Review of the Investors Heritage Builder Annuity



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