What will be covered in this annuity review of the Heritage Flexible Premium Deferred Annuity from United Heritage Life Insurance Company?
In this review, we will be going over the following factors that pertain to the Heritage annuity from United Heritage Life:
- Annuity type
- Charges and Fees
- Current Rates
- Realistic short- and long-term expectations
- Where the annuity may be best used
- Where the annuity is most poorly used
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If you’ve been worried about having enough income to last you through retirement, then it is possible that you’ve looked into purchasing an annuity. Not only can these financial vehicles provide you with an ongoing cash flow in the future, but depending on the type of annuity you choose, you can also attain tax-deferred growth in your account during the “accumulation period”.
But before you make a commitment to any annuity, it’s important that you have a good understanding of what the product will and won’t do for you. Annuities can be complicated – especially some of the product versions that have a lot of “moving parts.”
In addition, once you have committed to an annuity, it can typically be difficult to get your money back – at least without paying a hefty surrender charge (and possibly even an additional IRS early withdrawal penalty – if you determine later on that it really isn’t the right financial tool for you.
That’s where the Annuity Gator comes in.
Our goal is to educate consumers about the different types of annuity products, and where they may (or may not) fit into your short- and/or long-term financial objectives. Our annuity review database includes in-depth reviews on hundreds of different annuities from a long list of insurance carriers.
Annuity and Retirement Income Planning Information That You Can Actually Trust
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If you have spent any amount of time on the world wide web looking for information about annuities – including the United Heritage 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 flexible premium deferred 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 Heritage Annuity at a Glance
|Issuer||United Heritage Life Insurance Company|
|Type of Product||Flexible Premium Deferred Annuity|
|A.M. Best Rating||B++ Good|
|Phone Number||(208) 493-6100|
Opening Thoughts on the United Heritage 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 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. Fixed annuities offer safety – and a deferred annuity can keep your funds growing tax-deferred for a long period of time. This means that there is no tax due on the gain until the time of withdrawal.
If a fixed annuity is converted over to an income stream, you can count on a set amount of incoming cash flow for a specific time period – or even for the remainder of your lifetime. So, this can eliminate at least some of the worry about running out of income while you still need it.
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 Describes the Heritage Flexible Premium Deferred Annuity
On the United Heritage Life Insurance Company’s website, the Heritage annuity is described as a flexible premium deferred annuity that is designed to allow your assets to grow safely at a competitive rate.
This annuity allows you to build up your funds for retirement, as well as to defer taxes, and to transfer wealth. You can contribute funds over time (as versus only contributing one single lump sum). So, if you receive a bonus, windfall, or another sum of money in the future, this can be added to the Heritage annuity and can grow tax-deferred.
When the time comes to convert the annuity over into an income stream, there are multiple payout options available, which can allow you to choose how and when to take income, based on your specific needs.
How a Financial Broker Might “Pitch” the Heritage Annuity
It is likely that an insurance or a financial advisor would focus on the guarantees that this annuity can offer. In addition, the money that you put into this product – along with all of the growth – will be safe from a volatile market, regardless of what occurs. So, if you have a low tolerance for risk, then this could be a way for you to obtain at least some growth without losing sleep when the stock market is going south!
On the income side of the equation, a fixed annuity can also provide you (as well as another individual, such as a spouse or partner) the guarantee of lifetime income – regardless of how long you may live. This, in turn, can help to alleviate the concern about running out of money at a time when you need it the most.
But even with these nice guarantees, there are some things that you still need to look out for if you are considering the purchase of this annuity. For example, the low-interest-rate environment of late means that if you rely solely on this type of product for your portfolio growth, you will likely have a very difficult time with meeting – much less beating – inflation. This can then equate to you having to cut back on the purchases of items and services that you need in the future, as your income will not be able to keep pace with their rising costs.
What are the Fees on this Annuity?
Although you won’t be required to pay an up-front agent or broker commission on the Heritage annuity, you could be hit with other types of fees. For instance, if you cancel this annuity contract – or even if you withdraw more than 10% of the contract value in any given year during the surrender period – you will be hit with a withdrawal penalty.
In addition, if you make withdrawals prior to turning age 59 ½, you could also incur an additional 10% “early withdrawal” penalty from the IRS. With that in mind, be sure that you only contribute money that you won’t have to use in the future for financial emergencies. Otherwise, it could end up costing you!
The Annuity Gator’s End Take on the United Heritage Life Insurance Company’s Heritage Annuity
Where this annuity may work the best:
Although there are no annuities that will be right for everyone across the board, this product could be a good fit for you if you are looking for the following features:
- Safety of principal
- A fixed, set rate of growth as well as a guaranteed minimum interest rate
- A guaranteed stream of lifetime income in the future
Where this annuity might not work well:
Alternatively, this annuity might not be right for you if you are looking for the following:
- The opportunity for a higher rate of return
- Access to your money (more than 10% of the contract’s value) during the surrender period
It may also not be worth taking the risk of such a low rate of return if you do not plan to use the lifetime income features on this annuity.
There are a number of different factors for you to consider when you are thinking about the purchase of an annuity – starting with the realization that the contract is a long-term financial commitment, and that your money could essentially be “locked up” for quite a few years (unless you want to risk paying a surrender charge).
As with any other insurance or financial product that you’re considering, it is also extremely beneficial to have a good understanding of what an annuity will – and will not – do for you, so that there are no unpleasant surprises down the road.
Given all of that, there can be some very nice features that come along with purchasing the Heritage flexible premium deferred annuity from United Heritage Life, such as safety of principal and a steady rate of growth. That being said, though, this particular annuity could also still fall somewhat short – and quite frankly, there may very well be a better alternative out there for you.
If you’re still leaning towards the Heritage annuity, it can be helpful to first “test” it to see how it may perform given your particular circumstances. We can perform this testing for you. Just simply let us know if you are interested.
Also, in order to really know how to best compare the annuity options that could be right for you, just click here so that you are able to download our free annuity report.
Do You Have Any Additional Questions Regarding the Heritage Annuity? Did You Happen to Notice Any Mistakes in this Annuity Review?
While we understand that this review was a bit long, our feeling is that we would much rather provide you with “too much” detail than not enough. That’s because knowing all that there is to know is really the only way to make a well-informed purchasing decision.
So, if you did find this annuity review to be beneficial, please feel free to forward it on and share it with anyone else who you feel would also find it advantageous. Conversely, if this review caused you to be more confused about this (or any) annuity, please let us know that, as well.
Are there any other annuities you’d like to have us review on our website?
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There are many annuities that are available in the market today – so if there is one (or more) that you did not find in our annuity review database, and you want to know more about it, then just simply let us know and our team of annuity “geeks” will get right on it.
The Annuity Gator
P.S. If you would like to read more of our United Heritage Life Insurance Company annuity reviews here are some links to check out.
- Independent Review of the United Heritage Secure Value MYGA Annuity
- Independent Review of the United Heritage Eagle 8 Annuity