Independent Review of the Guardian Secure Future Income Deferred Income Annuity
What Will Be Covered in this Review?
In this review, we will be discussing the following information regarding the Guardian Secure Future Income Deferred Income Annuity (DIA):
- 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.
If you’ve been considering the purchase of an annuity because you want to ensure that you won’t run out of income in the future – especially if you live a nice, long life – then the Guardian Secure Future deferred fixed annuity could be a great way to accomplish that.
A deferred income annuity (DIA), which is sometimes also referred to as a longevity annuity, is a type of annuity where you deposit a lump sum with an insurance company in exchange for guaranteed lifetime income that begins at a future date. In some cases, the start of this income stream could be up to 40 years in the future.
Because of that, DIAs can sometimes be used as a pension of sorts for those who don’t have a defined benefit plan through an employer, or those who may lose other pension income due to the loss of a spouse.
Deferred income annuities work similarly to immediate annuities – other than the fact that the income payments don’t start right away, but later on down the road. Because of this, the amount of income that you receive with a DIA could be substantially larger than that of a regular fixed annuity.
However, before you go out an purchase the Guardian Secure Future – or any deferred income annuity, for that matter – it is important that you first have a thorough understanding of the benefits that it may provide, as well as any possible drawbacks, as these annuities can be very difficult to get out of once you get in.
Over the past decade or so, fixed annuities have become much more popular with people who are retired, as well as those who are approaching that time in their lives, as they can help to alleviate the concern about running out of money in retirement.
But, because of this increase in demand, many insurance carriers have been introducing new products – and unfortunately, this can make a product that is already somewhat confusing even more so. This is actually true for well-informed consumers, as well as many insurance and financial advisors!
With that in mind, unless the advisor that you work with has a primary focus on selling annuity products, you really should do some additional research on these products, as they will oftentimes require that you deposit a large chunk of your savings into them.
That’s where the Annuity Gator can come in!
Annuity and Retirement Income Planning Information That You Can Actually Trust
If this is your first visit to our website, then please allow us to personally welcome you here to Annuity Gator. We are a team of experienced annuity professionals who focus on offering comprehensive and unbiased annuity reviews online.
We’ve been at this for quite some time now – and far longer than our competitors. Because of this, we have come to be known as a highly trusted source of annuity information. Over the past several years or so, though, many “copycat” websites have started to spring up, mimicking what we do. While that can be somewhat confusing for consumers, we take it as “imitation being the highest form of flattery.”
As you’ve spent time on the Internet researching annuity information, you may very well have come across some highly conflicting details about these products. But this really isn’t all that surprising. There are lots and lots of different annuities out there today, and just about anyone and everyone has thoughts about whether they are good, bad, or otherwise. The reality is, though, none of that matters – as long as you know whether or not a particular annuity is or isn’t right for YOU.
If you want to know more about the Guardian Secure Future Income Deferred Income Annuity, then you are certainly in the right place. In fact, dare we say that our website is the only place that you’ll be able to secure all of the details you need, which includes the good, the bad, and yes even the ugly. This, however, is the only way to make a good, solid decision about whether or not to purchase it.
In order to be perfectly clear here, we want to state for the record that we at Annuity Gator feel that annuities can be good products for some people – as long as they fit in with your overall financial needs and goals.
So, if you’re ready to start the review, let’s get started!
The Guardian Secure Future Income Deferred Income Annuity at a Glance
|Product Name||Secure Future Income|
|Issuer||Guardian Life Insurance Company|
|Type of Product||Deferred Income Annuity|
|S&P Rating||AA+ (Very Strong)|
|Phone Number||(888) 482-7342|
Opening Thoughts on the Guardian Life Secure Future Income Deferred Income Annuity
Guardian Life has been in the insurance and financial protection arena for more than 150 years. As a mutual company, Guardian is owned by its policyholders, who share in the company’s financial results via annual dividends.
As of year-end 2016, Guardian held in excess of $66 billion in assets under management and had $600 billion of life insurance in force. During that year, the company paid out nearly $5.9 billion in benefits to its policyholders, while holding roughly $7.4 billion in capital, and taking in nearly $12 billion in premiums and deposits. So, suffice it to say that Guardian is strong and stable financially.
The rating agencies are responsible for gauging the financial strength of companies so that investors, policyholders, and partners can work with the facts. Guardian has received high ratings from the four primary rating companies, including:
- A++ from A.M. Best Company
- AA+ from Fitch
- Aa2 from Moody’s Investor Service
- AA+ from Standard & Poor’s
The company has also received a Comdex Ranking of 98 out of 100.
With a deferred income annuity, the ups and down of the stock market will not affect the amount of future income you will receive. When you initially purchase a DIA, you decide when you wish to start receiving your income, and the insurance company will then guarantee you a set income that will start at your chosen date in the future.
Many deferred income annuities will allow you to make subsequent contributions into the contract. However, the way that these are factored into your future income can vary from one DIA to another. It can also be dependent on the frequency of such subsequent contributions into the annuity.
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. Guardian 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 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 The Guardian Describes the Secure Future Income Deferred Income Annuity
The Guardian describes the Secure Future Income Deferred Income Annuity (DIA) as a flexible premium deferred income annuity product that offers a future guaranteed lifetime income stream. This annuity may be funded with either qualified or non-qualified money.
You also have a wide range of options for your income start date. Here, you can begin in as soon as 24 months, or alternatively, you could wait up to 40 years (in this case, the income start date may be deferred until either the earlier of 40 years of the date of issue or until any annuitant reaches age 85 – whichever occurs first).
There are some other features on the Secure Future Income DIA that may be attractive, depending on your overall financial goals. For example, during the deferral period, all of the annuity options except for the Single and Joint Life Only, include a return of the premium payment(s) if the owner (or the annuitant, if the owner is an entity such as a trust) dies.
Also, once the annuity payments have started, owners who have elected the Life with Guarantee Period, or the Life with Cash Refund contracts with a monthly payout frequency and at least six months remaining in the guarantee or cash refund period, may elect to accelerate up to five regularly scheduled annuity payments to be paid in a lump sum, along with the regularly scheduled payment.
An added benefit is also the cost of living adjustment. This optional feature will automatically increase the annuity payments by a specified percentage rate on each contract anniversary after your income start date. (This benefit must be opted for at the time of issue).
For all of the in-depth details about the Guardian Secure Future Income DIA, you can take a look at the product spec sheet HERE.
How a Financial or Insurance Advisor Might Pitch this Annuity to Clients
Knowing that income will be available far into the future, it is probable that if you’ve been offered the Guardian Secure Future Income Deferred Income Annuity by an insurance or financial advisor, they keyed in on the fact that you won’t run out of income – regardless of how long you may live.
Also, deferred income annuities will oftentimes offer substantially higher income payouts than immediate annuities. This is because your age when you start such payouts is typically older than it would be if you take income from a regular deferred and/or immediate annuity. Therefore, this too is a feature that an advisor might focus on when discussing this – or any – DIA annuity with you.
But before you get out your pen and sign on the dotted line to commit to this deferred income annuity, there are some things that you need to know that may or may not make the “tradeoffs” you’ll have to make worthwhile.
For instance, when you purchase a DIA, you will typically forfeit your principal in exchange for a guarantee of future income payments. Therefore, unlike many regular deferred annuities that automatically offer a death benefit if the annuitant passes away, deferred income annuities may differ. For example, in order to pass on your DIA investment to heirs in the event of your passing, it may be necessary to obtain an optional rider which may either return your initial premium or provide the beneficiary with an income stream for a guaranteed period of time.
Also, if you do choose the optional cost of living adjustment at the time of annuity contract issue, it is important to know that once this feature is elected, it may not be changed or canceled.
It is also important to note that deferred income annuities are not liquid financial vehicles. When you invest in this type of an annuity, you will usually completely forfeit the initial premium.
There is also the possibility that you may or may not even live long enough to collect on the income that this annuity can provide. Unfortunately, not all retirees will enjoy the years that they hope for during their golden years. So, with that in mind, it is important to factor in whether or not you really want to take this kind of a chance with your savings.
The Annuity Gator’s End Take on the Guardian Secure Future Income Deferred Income Annuity
Where it works the best:
This annuity could be a good option for those who:
- Anticipate a long life
- Will need retirement income in the extended future
- Are seeking a guaranteed income
Where it works the worst:
This annuity may not be a good option for those who:
- Have a shorter life expectancy
- Need to keep their money liquid
- Do not plan to use the lifetime income feature
Because they typically offer a higher income payout than immediate annuities, and they also provide a guaranteed stream of lifetime income, DIAs can be attractive to many investors. But, just as with any other financial vehicle that you’re considering, the appropriateness of any DIA can vary from one person to another, depending upon their specific needs.
If you are considering the purchase of the Guardian Secure Income Deferred Income Annuity, then you can be assured that you can count on a certain amount of income for the remainder of your lifetime and that the income will last for as long as you will need it.
But, even with all of the nice income-related guarantees that the Secure Future Income DIA provides, it could quite frankly still fall somewhat short. And, because of that, there could very well be a better alternative out there for you.
In any case, the only way to truly know how this annuity may perform, based upon your particular situation and needs, is to have it tested. We can do that for you by running the numbers through our annuity calculator, and can then provide you with a spreadsheet showing the results.
In order to receive this information, just simply contact us via our secure online contact form here.
Have Any Additional Questions? Did You Happen to Notice Any Mistakes in this Annuity Review?
While we do realize that this annuity review was a tad bit long, our feeling is that more information is much better than less – particularly when you are considering a product that could take a large percentage of your retirement savings.
We do thank you for sticking with us through here to the end. And, if you did find this annuity review to be helpful, then please feel free to forward it on to anyone else that you think may benefit from it. Alternatively, if this review led you to have even more questions, then please let us know that, too.
Any other annuities you’re curious about?
There are many annuities available out there on the market today. So, if there is an annuity that is not currently available for review in our annuity review database, then please let us know the name (or names, if there is more than one) of the annuities that you would like us to review. Once we have this information, our team of annuity experts will get on the case!
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