What’s Covered In This Review
In this review, we’ll cover the following information on the Annuity Investors Life Great Flex Fixed Annuity:
- Product Type
- Current Rates
- Realistic long term return expectations
- How it is used
- How it 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.
For anyone who has been in the process of shopping for annuities because they can provide a guaranteed stream of income in retirement, the Annuity Investors Life Great Flex 6 fixed annuity could be a viable choice for you – especially if you are also looking for certain guarantees. That is because this annuity can allow you to sleep at night while keeping your hard-earned principal safe, and it can also allow you the peace of mind in knowing that you won’t run out of income in retirement.
But, before you run out and purchase this annuity, it is highly recommended that you first have a good, thorough understanding of exactly how it works – and how it may, or may not, fit in with your particular financial goals.
Over the past decade or so, annuities have become much more popular with investors who are seeking a set, ongoing income stream. In particular, fixed annuities will typically also provide a lifetime income option for as long as you live, regardless of how long that may be.
Due to annuities’ increase in popularity, many insurance carriers have come up with “new and improved” annuity products, which can often time offer numerous bells and whistles. A large number of financial professionals have also added these products to their “inventory” – but that is not necessarily a positive thing.
One reason for this is because, even though most insurance and financial advisors want to do what is best for their clients, they may not always fully understand how the products work, in turn, potentially placing their clients into a vehicle that does not perform the way it was intended to.
With that in mind, having a firm grasp on both the benefits and the potential drawbacks about annuities can help you in moving forward with an annuity purchase that better fits your specific needs.
Annuity and Retirement Income Planning Information that You Can Trust
If this happens to be your first visit here to our website, we would personally like to welcome you to AnnuityGator.com. We are a team of experienced financial professionals who are dedicated to offering in-depth, and unbiased, annuity reviews. We’ve been doing this for many years – much longer than our competitors – so we have become a trusted source of annuity information.
Due in large part to our success, there are a fair number of copycat websites that have popped up over the years. And, if you take a close look at these sites, you may find that they are just simply citing basic annuity information in return for your name and email address.
If you’ve spent any amount of time on the Internet looking for annuity information, you may have run across some highly conflicting details about these products. This is because not only are there a lot of annuities available but also because there are just as many different opinions about them.
While many of the annuity marketing sites out there are informative, there are some that will try to lure visitors in by making some pretty darn bold claims like:
- Highest Income Payouts
- Lowest Annuity Fees
- Fast Annuity Quotes
- Top Rated Annuity Companies
Does this by chance look familiar?
But even if these claims sound enticing, the reality is that, before you move forward with purchasing an annuity, it is important that you find out whether or not these claims are actually true. In order to do so, however, it could require that you wade through an intricate maze of annuity “fine print.”
You may also have recently attended a seminar about annuities where the presenter, in return for a free lunch or dinner, spent some time with you going over the various details about fixed annuities. Going to that seminar may even have been the catalyst that ultimately led you here to our website.
That is a good thing, as we have become a highly trusted source of annuity information over the years. One key reason for that is because we don’t just paint a rosy picture of how annuities work, but also provide you with factors that may be considered a potential drawback. This is really the only way for you to weigh out the pros and cons, and to make the best possible decision as to what is best for you.
So, if you’re ready to get started with the Annuity Investors Life Great Flex 6 fixed annuity, let’s go ahead and dive in!
Annuity Investors Life Great Flex 6 Fixed Annuity at a Glance
|Product Name||Great Flex 6|
|Issuer||Annuity Investors Life / Great American Financial Resources|
|Type of Product||Fixed Annuity|
|A.M. Best Rating||A|
|Phone Number||(800) 854-3649|
Opening Thoughts on the Annuity Investors Life Great Flex 6 Fixed Annuity
Great American Insurance Group has been committed to helping both individual investors and businesses with securing a healthy financial future. The company offers a long list of innovative insurance solutions, and it actually specializes in serving niche market places that it knows well.
The company provides a range of different annuity products, with the goal of helping its clients to enjoy retirement. Great American has several subsidiaries, one of which is Annuity Investors Life Insurance Company. Here, investors can find fixed, indexed, and variable annuities that are primarily designed for the employees of school districts, as well as not for profit entities.
Throughout the past decade or so, and specifically since the market and economic downturn of 2008, fixed annuities have become very attractive to those who are seeking to avoid market volatility, and in turn, a way to protect their principal.
Yet, while being able to sleep more soundly at night can certainly be advantageous, you may also find that the returns that are offered on fixed annuities are very low – so low in fact, that you may not be able to beat, or even to meet future inflation.
So, while it is important to protect your hard earned savings, be sure that you know what the “tradeoff” may be for doing so because once you have committed yourself to an annuity, it can be somewhat difficult – and expensive – to get out of it.
Before getting into the nitty 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. Annuity Investors 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. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For additional information on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How Great American Describes the Great Flex 6 Fixed Annuity
Great American Financial Resources describes the GreatFlex 6 annuity as being “a flexible premium annuity offering additional interest for 12 months for all purchase payments, with a six-year rolling early withdrawal charge that ends after ten years. This annuity helps you contribute to your retirement on a regular basis.”
There are actually a couple of options with the Great Flex 6 annuity. These include the Great Flex 6 403(b), and the Great Flex 6 NQ/IRA.
The Great Flex 6 403(b) offers a 2% additional interest rate for 12 months for all purchase payments – not just during the first year. As of mid-July 2017, the base rate on this annuity is 1.45%.
The Great Flex 6 NQ/IRA is specifically designed for non-qualified or IRA funds. It offers a 2% additional interest rate for 12 months on all purchase, too, not just for the first year. As of mid-July 2017, the base rate on this annuity is also 1.45%.
In a nutshell, the Great Flex 6 fixed annuity can provide you with a future income stream that best fits your particular income needs in retirement. You can also withdraw up to 10 percent of the contract value penalty-free during the annuity’s surrender period.
How a Financial Advisor Might “Pitch” This Annuity
With so many people hoping to keep their nest egg safe, a financial advisor might pitch this annuity by highlighting the principal protection that it offers, along with the set amount of growth during the annuity’s “accumulation” period.
For those who are seeking a steady stream of income, this annuity provides a number of different options, including:
- Income for a fixed period of time
- Life annuity that includes payments for at least a fixed period
- Joint income
- Interest only payments
But, even though this annuity hits home on two key concerns of retirees and those who are preparing for retirement, it honestly doesn’t stand out among hundreds of other fixed annuities that you may have access to.
On top of that, even though a set rate of interest may be appealing, because the return on fixed annuities is so low, you could actually be hindering your future lifestyle, as it is not likely that the income payments on this annuity will keep pace with the rising cost of future goods and services that you’ll need.
So, unless you are truly convinced that this is the very best annuity for you, it may just be that you will be locking up a significant amount of money, but only receiving a rate of return that is in line with a CD or a basic savings account. With that in mind, it is quite possible that there are some better alternatives out there for you – especially if you’re looking for both principal protection and the opportunity to earn a higher return.
Therefore, before you make your ultimate annuity decision, it can be helpful that you first run the numbers, based on your specific financial needs and goals. We can assist you with doing so, by using our fixed annuity calculator. After you have run the corresponding numbers, you can then make a better decision as to whether or not the Great Flex 6 annuity is the one for you.
In addition, we can also assist you with any of the questions that you may have about this annuity (as sometimes the written materials can be a bit dry). We believe that knowing everything possible about an annuity before purchasing it is the only way to truly feel comfortable – and to avoid an expensive mistake if it turns out that the annuity is not right for you.
Are There Any Fees on the Great Flex 6 Fixed Annuity?
Even with a “safe” product like a fixed annuity, you will still typically find that there are fees and charges associated that can end up negatively impacting your overall return. The Annuity Investors Life Great Flex 6 fixed annuity is no different.
In this case, the Great Flex 6 has a six-year rolling withdrawal charge that could end up going on for a total of ten full years. In this case, if you withdraw any more than 10 percent of the annuity’s contract value, you will be hit with a surrender fee – and, if you are under the age of 59 ½ when you make such a withdrawal, you could also incur an additional 10 percent “early withdrawal” penalty from the IRS. This is a long time to have such a large chunk of your retirement savings locked up.
The Annuity Gator’s End Take on the Annuity Investors Life Great Flex 6 Fixed Annuity
Where it works best:
- Safety of principal
- Guaranteed lifetime income in retirement
- Guaranteed rate protection – at least for a short time after purchasing the annuity
Where it works worst:
- If you are seeking a long-term rate guarantee
- If you are looking for a higher return
- If you do not intend on using the lifetime income feature
If order to really get an idea of what the best annuity options are for you, feel free to download our free annuity report here.
If you have been considering the purchase of a fixed annuity but you are still not completely convinced that it is the right thing for you, it is essential that you have a good understanding of where the product may shine, and where it may fall short.
In any case, though, an annuity should always be considered as a long-term financial endeavor – as there are typically surrender charges if you want to get out. In the case of the Annuity Investors Life Great Flex 6 fixed annuity, you would need to hang on to the product, potentially for ten full years, in order to get out without incurring a surrender penalty.
Conversely, if you do feel that a fixed annuity is truly the right way for you to go, you will be able to attain protection of your principal, as well as a minimum amount of guaranteed return each year.
So, if you do have any questions about whether or not the Great Flex 6 fixed annuity would fit into your financial plan – or, even if you just have a general question about annuities and how they work – please feel free to contact us. Our annuity geek team will be happy to help.
Need Additional Info? Did You See Any Mistakes?
We realize that this annuity review was a tad bit on the long side – and for that, we thank you for sticking with us. But we would much rather provide too much detail on an annuity than not enough. So, if you felt that this annuity review was helpful, then please feel free to forward it on to anyone else that you think may benefit from it, too.
Also, as humans will often do, we also understand that information about annuities can change quickly. Therefore, if you happened to notice any details in this review that were out of date or that need correction, please let us know that as well, and we will get it fixed quickly.
Any other annuities that you would like to know about?
If you do, then please let us know that, too and we will get our team of annuity “geeks” on the case. Our experts here at AnnuityGator.com can also provide you with more in-depth information on this, or any other, annuity product. So, please feel free to reach out to us directly.
The Annuity Gator