What will we cover in this annuity review?
In this review of the Protective ProSaver Secure ll Fixed Annuity we will be going over the following details:
- Annuity type
- How the annuity works
- Benefits and drawbacks
- Who may or may not be a good fit for this annuity
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
Purchasing an annuity can be a major financial decision. These financial vehicles – provided that they are purchased properly – can play a big part in helping you to ensure that you’ll have a guaranteed income for the remainder of your lifetime, regardless of how long you may need it.
Depending on the annuity, you may also be able to attain some nice tax advantages, such as tax-deferred growth, which can allow your funds in the account to grow and compound exponentially over time.
A fixed annuity like the Protective ProSaver Secure ll can also offer you principal protection – in any type of market environment. This can be particularly beneficial in times like the 2008 economic recession, and the more recent 2020 COVID-19 pandemic, where the stock market took a tumble.
But even though annuities can certainly offer many benefits, there can also be some potential drawbacks to consider with regard to the products themselves, as well as the way in which they are sold by insurance and financial professionals.
On top of that, annuities are pretty confusing products, so unless you read the “fine print” very carefully and/or discuss your objectives with an annuity specialist, an annuity may not necessarily perform the way that you anticipated it to.
This is where the Annuity Gator can help!
Annuity and Retirement Income Planning Information That You Can Trust
If this is the first time that you have been to our website, please allow us to personally welcome you here. At Annuity Gator, we are a team of financial experts who are focused on providing very comprehensive and unbiased annuity reviews. We have been at this for quite a while not – far longer than our “copycat” competitors – and we have therefore become known as a highly trusted source of annuity information.
If you have spent any amount of time at all on the Internet looking for information about annuities, then you have likely run across a number of conflicting opinions about these products. This, however, is not all that surprising, as there are many, many products available in the marketplace, and various different thoughts about them.
While you have been researching annuities on various online sources, you may have noticed that there are a fair number of websites that tout just how great their annuities are by making some pretty bold claims about them, such as:
- Lowest fees.
- Highest income payouts.
- Guaranteed lifetime income.
- Top-rated companies.
Does this look at all familiar?
But, as enticing as these clams might sound, it makes it even more important for you to verify that they are actually true before you commit to placing a large chunk of your retirement savings into such a product.
If you have landed here at AnnuityGator.com in search of more details about the Protective Life ProSaver Secure fixed annuity, then you are definitely in the right place. In fact, we dare say that this website is the only place where you will be able to find all of the key facts – which include the good and the not-so-good. This, however, is the only way to make a truly well-informed decision about this (or any other) financial vehicle.
In order to be completely clear here, we want to convey that we feel annuities are able to provide investors with some very good benefits. But this is really only the case if the product fits in with your particular financial goals.
The review that you are in the process of reading right now was created with the intent of assisting you with better understanding all of the “fine print” that is associated with the ProSaver Secure ll annuity from Protective Life.
So, if you are ready to get started, let’s dive in!
The Protective ProSaver Secure ll 1-Year Annuity at a Glance
|Product Name||ProSaver Secure ll 1-Year Annuity|
|Issuer||Protective Life Insurance Company|
|Type of Product||Fixed Annuity|
|A.M. Best Rating||A+|
|Phone Number||(800) 456-6330|
Opening Thoughts on the Protective Life ProSaver Secure ll Fixed Annuity
Protective Insurance Company has been in the business of offering financial enhancement and protection for more than 110 years. The company was founded in 1907, and since that time, it has grown and expanded – adding a wide range of products and services.
At year-end 2019, Protective life had in excess of $900 billion of insurance in force, consisting of roughly 8.6 million policies. With more than $66 billion of invested assets, Protective is considered to be strong and stable financially, and in a good position to make good on its policy holders’ claims.
The company is highly rated by the insurer rating agencies, including a(n):
- A+ from A.M. Best.
- A+ from Fitch.
- AA- from Standard & Poor’s.
- A1 from Moody’s.
The need for fixed annuities – which are always backed by life insurance carriers – has been growing fairly steadily throughout the past few years, particularly as more of today’s workers are retiring without having the stability of a traditional “defined benefit” pension for future retirement income. But, by choosing the lifetime income stream on 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 annuity. This is because these financial vehicles can provide you with a set return and safety of your principal (regardless of what happens in the stock market), as well as with a lifetime income that you can count on.
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. Protective 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 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, and how to determine which one – if any – may be the best for you, click here to obtain our free annuity report.
How Protective Describes the ProSaver Secure ll Fixed Annuity
Protective Life Insurance Company describes their fixed annuities as offering guaranteed growth via a specific rate of interest (at least for a set period of time), as well as low risk, and lifetime income.
The ProSaver Secure ll annuity allows you to “design your retirement income” that you need, given its choice of income payment options.
This annuity actually offers four different interest rate guarantee periods. These include a one-year, two-year, four-year, or even a six-year time frame. But because interest rates have been hovering at historically low levels for quite some time now, “locking in” may not be a smart financial strategy at this time.
As with other annuities, the ProSaver Secure ll also provides tax-deferred growth, with no tax due on the gain until the time of withdrawal. So essentially, you are gaining interest on your principal, as well as interest on your interest, and interest on the funds that would otherwise been lost to taxation.
There are a few other “bells and whistles” that are included with the Protective Life ProSaver Secure ll annuity, such as a death benefit, which can allow your loved ones added financial security if the unexpected occurs.
But even with a nice list of benefits like principal protection and the potential to receive a lifetime income stream, this particular annuity really doesn’t stand out from hundreds of other similar products in the marketplace.
So, is this the right annuity for you?
The truth is that you (as well as your financial advisor) really can’t say whether or not the ProSaver Secure ll annuity – or any annuity, for that matter – is “the one” unless you test it against other possible financial tools that may or may not fit your specific objectives.
For more of the in-depth details, you can take a look at the Protective ProSaver Secure ll annuity product brochure here.
How a Financial Salesperson Might “Pitch” this Protective Life Annuity
If you are approaching retirement, it is possible that you are torn between going with financial vehicles that have more risk in order to increase your opportunity for growth, or instead of going with something “safer” so that you don’t lose any of your hard-earned principal in the event of a market “correction”.
With so many pre-retirees being concerned about not losing what they’ve already saved, having certain guarantees can be comforting – so if you have been presented the Protective Life ProSaver Secure ll annuity by an insurance or financial advisor, it is likely that they zeroed in on the safety features of this product, along with the ability to earn a higher return if or when rates rise in the near future.
So, in many ways, this annuity can allow you to potentially increase the returns on your “safe money.”
Or can it?
Similar to with most other either/or scenarios, the benefits that you get from this annuity will require a “tradeoff” of sorts. For instance, with this particular annuity, your principal will remain safe – even if the stock market tanks. But in return for that safety, the insurance company is giving you very little in terms of reward, or return.
On top of that, given the surrender period, you can be penalized if you opt to cancel the annuity – or even if you withdraw more than 10% of the contract’s value during the surrender charge period – so, you will also incur some potential lost opportunity costs here.
What About Fees on the Protective ProSaver Secure Fixed Annuity?
Even though you won’t run into up-front agent commissions with this annuity, it doesn’t necessarily mean that you’ll get off free of any fees or charges at all. In this case, the ProSaver Secure ll annuity from Protective Life will hit you with a fairly hefty surrender charge if you surrender the contract within the first seven years. In fact, you could even be penalized if you access more than 10% of your money during this time period.
Protective Life ProSaver Secure Annuity Surrender Charge Schedule
|Year||Surrender Charge %|
In addition, you may owe tax on your withdrawal. And, if you access funds from the annuity before you have turned age 59 ½, you could also incur an additional 10% “early withdrawal” penalty from the IRS.
The Annuity Gator’s End Take on the Protective Life ProSaver Secure ll Annuity
Where this annuity works best:
While the Protective Life ProSaver Secure ll annuity may not be right for everyone, it could be a good option for those who are seeking the following:
- Set interest rate for a guaranteed time period (such as one year)
- Protection of principal
- Lifetime income in retirement
Where it works the worst:
This 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 each year during the surrender period
- You do not plan to use the lifetime income feature
If you’ve been thinking about how to best position your savings for the future, there are a number of criteria that you should be considered. For example, with annuities, you need to make sure that the product allows you the opportunity to earn a decent return on your principal (at least enough to meet or beat inflation), while also keeping your money safe in any type of market environment. Similarly, if you are seeking a future retirement income stream, you also need to know how – and how often – the annuity will pay out when you are ready to convert the funds into an ongoing income stream.
With all of that in mind, if you are still considering a purchase of the ProSaver Secure ll One-Year Annuity from Protective Life Insurance Company, you can rest assured that your money will be safe, no matter what goes on with the stock market, or even in the economy overall. You can also count on an ongoing income stream in the future, which can alleviate the concern about running out of money before you essentially “run out of time.”
On the other hand, however, even though this annuity can provide you with a nice array of features, the truth is that it might still fall somewhat short, and quite honestly, there could be a better alternative out there for you. This is particularly the case if you have been looking for a way to keep your principal safe, yet still have the opportunity to earn a higher amount of return.
In any case, the only way to really know how this fixed annuity from Protective (or any other annuity, for that matter) may perform – based on your specific situation – is to have it tested. You should also ideally compare it against other potential options in order to determine which one – if any – is right for you.
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 Have Any Additional Questions Regarding the Protective Life Insurance Company’s ProSaver Secure ll Fixed Annuity? Are There Any Other Annuities You Would Like Us to Review?
While we know that this annuity review was a tad bit on the longish side, we honestly feel that providing “too much” information to our readers is much better than not providing you with enough. That being said, we appreciate you sticking with us through to the end.
We also realize that, because all investors’ situations can be quite 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 regarding the Protective fixed annuity, please feel free to reach out to us here via our secure online contact form.
In addition, if you found this annuity review to be helpful, please forward it to anyone else that you feel might also 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 us review?
If so, we will get our team of annuity “geeks” right on it!
The Annuity Gator
P.S. If you would like to read more of our Protective Life annuity reviews here are some links to check out:
- Independent Review of the Protective Life Fixed Deferred Annuity.
- Independent Review of the Protective Life’s Indexed Annuity II.