What will we be covering in this review of The Standard Advantage Growth Annuity 5?In this review of the The Standard Advantage Growth Annuity 5, 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.
If you’re thinking about buying an annuity because you want to make sure that you have reliable income in retirement, while at the same time keeping your money safe from market downturns, then a fixed annuity like The Standard’s annuity, Advantage Growth 5, could be a good option for you. That is because a fixed annuity can offer you protection of your principal, even in the event of a market downturn. These types of annuities can also offer you a lifetime income option so that you can rid yourself of the worry that you’ll run out of income in retirement. But, before you run out and commit to this annuity – or for that matter, to any annuity – it is highly recommended that you first have a good understanding of how the annuity works, and how it may (or how it may not) work for you and your specific objectives. Over the past several years, the fixed annuity, in particular, has become extremely popular – especially with investors who are inching their way towards retirement. However, due in large part to the increased number of new annuity products that are being pushed out into the marketplace by insurance companies – each of these trying to outdo the other – it is even more essential that you read over all of the fine print before you commit what could be a large percentage of your savings to this annuity. Otherwise, it could cost you a substantial amount to get out of it down the road.
Annuity and Retirement Income Planning Information You Can TrustIf this is your first visit to our website, we would like to officially welcome you to Annuity Gator. We are a team of annuity and retirement income specialists who have a primary focus on offering comprehensive – yet non-biased – annuity reviews online. We have been doing this for quite some time now – far longer than our competitors – even though many of them would like to have you think otherwise. Due to our experience and longevity in this arena, we have become very good at what we do, and we’ve actually come to be known as a trusted source of annuity information. If you’ve been reviewing annuities online, it is possible that you have come across some highly conflicting information about these particular products. This, however, isn’t really all that uncommon, as there are many different annuities, and there many different thoughts about them. It could also be that you have recently attended an annuity seminar where, in return for a free dinner or lunch, the presenter had your attention while he or she described how The Standard Advantage Growth Annuity 5 (or some other similar annuity) operates. In fact, it may even have been your attendance at that seminar that has ultimately led you here to our website right now in search of additional details about this product. When doing your annuity research, though, you may have run across some of the other websites out there that discuss annuities – but that are much more interested in obtaining your contact information rather than educating you about these products. In order to obtain your name and other contact information, they will oftentimes attempt to “lure” you in by making some outrageous claims about the annuities that they offer, such as:
- High income payouts
- Guaranteed lifetime income
- Top-rated carriers
- Lowest fees
The Standard Advantage Growth Annuity 5 at a Glance
|Product Name||Advantage Growth Annuity 5|
|Issuer||The Standard Insurance Company|
|Type of Product||Fixed Annuity|
|A.M. Best Rating||A (Excellent)|
|Phone Number||(800) 247-6888|
Opening Thoughts on The Standard Advantage Growth Annuity 5With more than a century in the insurance and financial services business, The Standard offers products that can help clients with growing and enhancing their wealth. The company began with a focus on those who worked in the logging and timber industry, where a serious injury or death could quickly wreck a family’s finances, and in turn, their future. The company offers a long list of insurance and financial products, including life insurance, disability insurance, dental and vision insurance, AD&D, critical illness, hospital indemnity, financial plan consulting, fiduciary support, and individual annuities. The Standard has a long track record of financial strength and stability. As of December 31, 2019, The Standard held nearly $34 billion in assets. The company is one of only eight life/health insurers to consistently receive an A rating or higher for more than 90 years. If you own a fixed rate annuity, the volatility of the stock market isn’t going to affect the amount of future income that you’ll receive from that product. So, for those who are seeking both safety and guarantees, this could very well be a good option. On the other side of the coin, it’s important that you not make a quick decision, only to find out later on that there are features about this annuity that make it a bad fit for your overall financial plan.
Before we get into the gritty details, here is some legal disclosures…This is an independent product review, not a recommendation to buy or sell an annuity. The Standard Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review of The Standard’s Advantage Growth annuity 5 is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance 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 circumstances. All names, marks, and materials that were used for this review are the property of their respective owners. For more information on how to compare annuities in order to determine which one may be right for you, click here to obtain our free annuity report.
How The Standard Advantage Growth Annuity 5 Is DescribedThe Standard Advantage Growth Annuity 5 is described as a fixed annuity that offers a one-year fixed rate and has a five-year surrender charge period. While no longer available for sale, it is possible that there are investors who already own this annuity and who may be thinking about making a change to a different annuity that meets their needs better. As with any deferred annuity, the funds that are in the account are allowed to grow without taxation until the time of withdrawal. This can allow the contract value to increase exponentially over time. According to The Standard, fixed annuities guarantee to pay a specified interest rate that is based on the current rate environment. The initial rate is guaranteed for one or more years, and the subsequent renewal rates are guaranteed to remain above a set minimum, or floor, rate. Because they provide several guarantees, fixed annuities are considered to be conservative financial products. Unfortunately, though, due in large part to the historically low-interest-rate environment, the rate you can receive on a fixed annuity is not likely to meet, much less beat, inflation. With that in mind, if you presently own The Standard’s Advantage Growth fixed annuity, it may be worthwhile to compare this product to others that could better suit your short- and long-term financial needs.
How an Insurance or Financial Advisor May Have “Pitched” The Standard Advantage Growth Annuity 5Given that life is filled with so many uncertainties, when you have the opportunity to receive a guarantee, it can be a nice benefit – particularly when it has to do with your financial options. With that in mind, when it comes to The Standard Advantage Growth Annuity 5, it is likely that an insurance or financial advisor keyed in on the set rate of interest that you could attain, as well as the safety of your principal. Likewise, knowing that you will have income to last throughout the remainder of your lifetime – no matter how many years that may be – can also be comforting. So, insurance and financial advisors likely touted the guaranteed lifetime income that this annuity can provide you with. However, whenever any type of guarantee is presented to you – particularly when it involves your money – when you look a little more closely, you may find that there are certain “tradeoffs” that you need to accept in order to attain those benefits. This can be the case with The Standard Advantage Growth Annuity 5 product.
What About the Fees on The Standard Advantage Growth Annuity 5?Although there are no annual contract fees associated with The Standard’s annuity, don’t let that lull you into thinking that there are no fees whatsoever, because that is not necessarily the case. For instance, if you withdraw 10% or more of your contact’s value during the 5-year surrender period, you will be hit with a withdrawal penalty. In addition, if you take such a withdrawal before you have turned age 59 1/2, then you can also incur an additional 10% “early withdrawal” penalty from the IRS.
The Annuity Gator’s End Take on The Standard Insurance Company’s Advantage Growth Annuity 5Where The Standard Advantage Growth Annuity 5 may work the best: The Standard’s annuity 5, while not for everyone, could be a good option if you are seeking:
- A guaranteed rate of growth
- Safety of principal, regardless of what happens in the market
- A lifetime income that you can count on
- Want the potential for higher growth
- Need to access your money during the annuity’s five-year surrender period
- Do not plan to use the lifetime income feature
In SummaryThere is a long list of important factors that should be considered when you are thinking about the purchase of an annuity. These should include, but are certainly not limited to, how the annuity produces its return, how safe your money will be while inside of the contract, how and when (and for how long) the income will pay out, and whether or not there are any other features that will be beneficial to you now and / or in the future. If you’ve purchased a fixed annuity such as The Standard’s Advantage Growth Annuity 5 product, then you can be assured that your money is safe, and that you will also be able to count on a steady stream of income for the rest of your life – regardless of how long that may be. However, there may also be some additional items that you have not considered – and the only way to really know if a particular annuity is going to be right in the short- or long-term time horizon is for you is to have it tested. We can provide this annuity comparison testing for you – even if you already own a particular annuity – and we can offer you a free, no-obligation, spreadsheet with the results. So, if this is something that is of interest to you, then all you need to do is simply reach out to us here via our secure online contact form.
Still Have Questions Regarding The Standard Advantage Growth Annuity 5? Did You Notice Any Mistakes in this Annuity Review?We know that this annuity review went a bit on the lengthy side, and for that, we do appreciate you sticking with us through it thus far. That being said, though, we feel like it is much more beneficial to provide readers with “too much” information than with not enough. So, if you found that The Standard Advantage Growth annuity 5 review was beneficial to you, then please feel free to forward it on and to share the review with anyone else that you think could also benefit from it. Also, we realize that details about annuities – and other financial products, too – can and do change somewhat quickly. With that in mind, if you happened to notice anything in this review that needs to be corrected and/or updated, please let us know that as well and we will get on the revisions right away. Are there any other annuities that you would like to see information about? No problem! If you would like to see reviews on any other annuity (or annuities), our team of annuity “geeks” will get on the ball and get them on our website. Just simply click here to let us know which product (or products) you are interested in seeing. And, be sure to check back soon. Best, The Annuity Gator P.S. If you would like to read more of our Standard Advantage annuity reviews here are some links to check out:
- Independent Review of the Advantage Growth Annuity from The Standard Insurance Company
- Independent Review of the Standard Focus Growth Fixed Deferred Annuity
- Independent Review of The Standard Focused Growth Annuity