What will be discussed in this annuity review?In this review of the Security Benefit Life Total Interest Annuity, we will be going over the following information:
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.Over the past several years, annuities have become a much more popular component of retirement planning – in particular, fixed and fixed indexed products, due to their principal protection. On top of that, as people are living longer these days, having a retirement income that lasts much longer is necessary – and unlike any other insurance or financial product in the market place, an annuity is the only vehicle that can guarantee you an income for the remainder of your lifetime, regardless of how long that is. Annuities aren’t just some new-fangled financial vehicle, either. In fact, these cool financial vehicles have actually been in existence ever since the Roman empire, although some believe that they were initially created in Egypt, somewhere between the year 1100 BC and 1700 BC. When the Great Depression hit the U.S. in the 1930s, annuities gained popularity as a safe place from volatile markets. They again became a go-to product during the Great Recession in 2008 and 2009, and during the COVID 19 outbreak in 2020 – primarily fixed and fixed indexed annuities – because they don’t lose value, even in a downward spiraling market. Fixed annuities have become particularly favored by those who are at or approaching retirement time, as people are getting much more leery about entrusting their savings to an extremely volatile stock market. So, if you’ve been considering a fixed annuity like the Security Benefit Life Total Interest annuity because you want to ensure that your money is safe, and that you’ll have lifetime income that you can count on, this product could be a viable option for you. But, before you go and plunk down a large chunk of your savings into this (or any) annuity, it is highly recommended that you first obtain an understanding about what a fixed annuity will and won’t do for you. That’s where the Annuity Gator comes in!
Annuity and Retirement Income Planning Information That You Can TrustIf this is the first time that you have visited our website, then please allow us to officially welcome you here to AnnuityGator.com. We are a team of annuity pros who focus on offering very comprehensive – and unbiased – annuity reviews. We have been doing this for quite a few years now – longer than our competitors. And, because of the in-depth reviews that we provide, we have become a highly trusted source of annuity information online. There are hundreds of annuities – fixed, indexed, and variable – that can be found in our Annuity Review database, which is accessible from our website. Over the past decade or so, however, there have been a number of “copycat” websites that have popped up on the Internet. While some of these can give you information about annuities, what you are likely to find is that they are oftentimes just simply reiterating what our information already shows. If you have been researching annuities on the Internet lately, it is likely that you also have run across some conflicting information regarding these financial vehicles. That really is not surprising, though, as there are many, many annuities out there in the marketplace, and just about everyone seems to have a differing opinion about them. It could also be that you’ve recently attended an annuity seminar. Here, the presenter may have given you more in-depth details about the Total Interest annuity from Security Benefit Life, or some other similar product. In fact, it may even have been your attendance at this seminar that led you here to our site in search of additional information. In looking at annuities online, it is also possible that you landed on some other annuity marketing websites that focus on luring visitors in for the purpose of obtaining their contact details. These sites will oftentimes do so by making some fairly bold claims about the annuities they offer, such as:
- High Annuity Income Payouts
- Guaranteed Income for Life
- Top-Rated Annuity Carriers
- Low Fees
The Security Benefit Life Total Interest Annuity at a Glance
|Product Name||Total Interest Annuity|
|Issuer||Security Benefit Life Insurance Company|
|Type of Product||Fixed Annuity|
|A.M. Best Rating||A- (Excellent)|
|Phone Number||(800) 888-2461|
Opening Thoughts on the Security Benefit Life Total Interest AnnuityFor more than fifty years, Security Benefit Life Insurance Company has focused its expertise solely on the retirement industry. (Although the company actually traces its beginnings all the way back to the year 1892). Through a combination of product innovation, exceptional investment management, and a unique distribution strategy, this company has become a recognized leader in multiple retirement markets, including:
- Overall fixed annuity sales
- Bank marketed fixed annuity sales
- The K-12 education market
- Overall fixed index annuity sales
- A- from A.M. Best
- A- from Standard & Poor’s
- A- from Fitch Ratings
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. Security Benefit 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 Security Benefit Life Insurance Company Describes the Total Interest AnnuityAccording to Security Benefit’s website, the Total Interest Annuity can help you build your savings so that your retirement plans won’t be undone by a volatile market. It also allows you to avoid the potential pitfalls of the market by placing a portion of your retirement savings into an annuity that is separate from the traditional retirement assets that fluctuate as the financial markets shift. In addition to the guaranteed principal, this annuity also offers two riders:
- Surrender Charge Waiver for Early Retirement – this rider is only available for 401b and Roth 403b contracts. But, if you meet the following qualifications, you can take withdrawals from the contract without incurring a surrender charge:
o Minimum of 5 years in the contract
o At least 55 years old
o Separated from service at or after age 55
- Return of Purchase Payments Guarantee – this rider guarantees that the cash surrender value of the contract will never go below the purchase payments that are made (minus any withdrawals, premium tax that is due, and rider charges that are deducted). You may also be allowed to withdraw in full all of your annuity purchase payments.
How an Insurance or Financial Salesperson May “Pitch” this AnnuityIf you have been approached by a financial or insurance sales agent who is offering you the Total Interest annuity from Security Benefit Life, then it is possible that they may have focused on certain features that it provides, such as protection of principal, and a set amount of income in the future that can last for the remainder of your life – regardless of how long that time may be. However, as an educated consumer, it is also likely that you are aware that financial and insurance companies do their best to ensure that the products they offer sound very enticing. For example, by reading over the product features stated above, you may have initially thought that this annuity could be the ideal option for your savings. But don’t get too excited quite yet, because if you are offered this (or any other) annuity by a commissioned sales rep, then he or she will probably explain it to you highlighting all of the positive traits. In this case, for instance, when you take a closer look at the Total Interest annuity, while it certainly has some nice features, once you have read over all of the “fine print,” you are apt to realize that it may not be all that ideal for you and your specific financial goals. First, safety can oftentimes come at a “cost.” And with fixed-rate annuities, the guaranteed interest rate is often so low that it won’t even keep pace with future inflation, much less beat it. Plus, if you need your money out of the contract before a certain period of time – i.e., the surrender period – has elapsed, it could cost you!
Charges and Fees on the Total Interest Annuity from Security Benefit LifeNothing in life is free – and that can sometimes go double for annuities! While fixed and fixed indexed annuities aren’t typically riddled with the many fees of variable annuities, it doesn’t necessarily mean that you’re in the clear for incurring various charges. In this case, for example, even though you won’t be hit with an up-front sales charge, there can be a surrender charge levied if you take out more than 10% of the contract’s value in any of the first several years of owning the annuity. For instance, in most states, you’ll have five full years of surrender charges, which begin at a pretty hefty 8.5% in the first year. They then gradually reduce until they eventually reach 0% at the end of Year 6.
Security Benefit Life Total Interest Fixed Annuity Surrender Charge Schedule
|Contract Year||Less than 1 year||1 to 2 years||2 to 3 years||3 to 4 years||4 to 5 years||5 to 6 years||More than 6 years|
|Surrender Charge %||8.5||8||7||6||5||4||0|
The Annuity Gator’s End Take on the Total Interest Annuity from Security Benefit LifeWhere it works best: This annuity will tend to work best for those who are seeking:
- Safety of principal in any market environment
- Guaranteed rate of return
- Ongoing lifetime income
- If you want access to most or all of your money during the surrender period
- If you are looking for a high rate of return
- If you do not intend to use the lifetime income feature
In SummaryThere are a lot of important factors that should be considered when determining whether or not a particular annuity may be right for you. However, whichever annuity you decide upon, know that it should be deemed as a long-term financial endeavor. Because of this, it is essential that you are comfortable in knowing how the annuity can get you closer to your retirement goals. When you are considering the purchase of a fixed annuity, it can offer you a set rate of return, along with safety of principal. It can also allow you an ongoing, guaranteed stream of income – regardless of how long you may live. In the case of the Total Interest fixed annuity from Security Benefit Life Insurance Company, there are certainly some positive features about it. But this annuity may also fall somewhat short – and quite honestly, there may be some better options that are available to you, particularly if you are looking for lifetime retirement income, along with the opportunity for more growth. If you still have any questions about whether or not this – or any – annuity is the right annuity for you, or even if you just need some additional help in annuity lingo and definitions, then please feel free to reach out to us via our secure contact form here.
Have Questions on the Security Benefit Life Total Interest Annuity? Did You Happen to See Any Mistakes?Thank you for bearing with us on this review. If you did find it to be helpful, then please feel free to spread the word and share it with others as they, too, might also find the information to be useful. On a final note, as humans sometimes do, we all make mistakes. So, if you happened to notice any while going through this review, please let us know, and we will be happy to make the necessary revisions. Is there any other Annuity (or Annuities) You Would Like to See Reviewed? No problem. Our team of highly trained annuity geeks can get on it! Click here in order to get started and we will do our best to get the review online as soon as possible. Best, The Annuity Gator P.S. If you would like to read more of our Security Benefit Life annuity reviews here are some links to check out:
- Independent Review of the Security Benefit Secure Income Fixed Indexed Annuity.
- Independent Review of the Security Benefit Foundations Fixed Index Annuity.
- Independent Review of the Security Benefit Rate Track 5-Year MYGA Fixed Annuity.
- Independent Review of the Security Benefit Life Secure Income Annuity.
- Independent Review of the Security Benefit Rate Track 7-Year MYGA Fixed Annuity.
- Independent Review of the Security Benefit Total Value Annuity.
- Independent Review of the Security Benefit Life ClearLine Annuity.
- Independent Review of the Security Benefit Life Strategic Growth Annuity.