Independent Review of the Knights of Columbus Flexible Premium Annuity

What’s Covered In This Review

In this review we’ll cover the following information on the Knights of Columbus Flexible Premium Annuity:

  • Product TypeReview of the Knights of Columbus Flexible Premium Annuity
  • Fees
  • Current Rates
  • 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’re thinking about the purchase of a financial product that can provide you with security, as well as a steady, ongoing, lifetime stream of retirement income, then it is possible that the Knights of Columbus Flexible Premium Deferred Annuity could be a viable option for you. This particular annuity offers several guarantees which are built directly into the contract.

But, before you go forward and purchase this annuity product – or for that matter, any other type of annuity – it is important to have a deeper understanding of how fixed annuities work, and how one of these financial vehicles may – or may not – work for you and your specific needs, both now and in the future.

Throughout the past decade or so, annuities have risen substantially in popularity. One reason for this is because they can offer a guaranteed income stream during retirement – and because of this and other benefits that they provide, the number of financial advisors who offer annuities has also risen a great deal.

This, however, may not necessarily be a positive thing. One reason for this is because, even though most insurance and financial professionals vie to do what is right for their customers, in some cases, they may highlight the positive features a bit more, and leave out some of the features that may be considered drawbacks. Also, over the past several years, there have been many additions made to the annuity product arena – which can make an already confusing product even more difficult to fully understand without reading over all of the “fine print.”

Because of this, financial and insurance advisors may not always be able to fully answer all of the more in-depth questions that you have – but that is necessary for you to make a well-informed annuity buying decision.

Even for well-educated people, many annuities – and especially those that offer more “bells and whistles” – can be difficult to comprehend, even when reading all the fine print. But, when considering the purchase of any annuity, steps should be taken to ensure that you have a firm grasp on what it is that you are buying – particularly because you could be plunking down a substantial amount of your overall retirement savings.

Plus, annuities should always be considered a long-term product purchase. So, once you have made the commitment and purchased one, it can be somewhat difficult – as well as expensive, due to surrender charges – to get out of the contract if you do happen to change your mind.

Annuity and Retirement Income Planning Advice that Can Be Trusted

If this is the first time that you have visited our website, we would like to personally welcome you here to AnnuityGator.com. We are a team of experienced financial professionals who have dedicated ourselves to offering in-depth and unbiased annuity reviews. We have been doing this for many years on our website, and because of that, we have not only built up a substantial amount of knowledge about annuities, but we have also become a highly trusted source.

If you have been researching annuities via the Internet, then it is likely that you may have come across a lot of conflicting information regarding these vehicles. This is not surprising, as there can be a wide range of details out there.

It is also probable that you have recently attended an annuity seminar. The presenter at that seminar may have offered you lunch or dinner, in return for allowing him or her to discuss with you the Knights of Columbus Flexible Premium Annuity or some other similar products. In fact, obtaining additional information may even be what ultimately led you to our website right now.

Even though there are a number of very good websites that are devoted to marketing their annuities online, some of these tend to lure visitors in by offering claims such as the following:

  • Highest annuity payouts
  • Low fees
  • Guaranteed income for life
  • Top Rated Annuity Companies
  • Get an Annuity Quote Now!

While these claims might sound great, it is important to obtain more proof – just like you would if you were buying any other high-ticket item. In doing so, it may require you to delve into a myriad of small print about the annuity – which can, in turn, confuse the issue even further.

If you are here seeking more information about the Knights of Columbus Flexible Premium Annuity, though, you are certainly in the right place. This site is the only place where you can find all of the in-depth details – which include not just the good, but also the bad, and the ugly. By knowing the whole story about this annuity, though, you will be better able to decide if it is, or is not, the right one for you.

Oftentimes, insurance agents who are in the business of selling fixed annuities will paint for you a nice and rosy picture of how their product can offer you the safety of principal, along with a set return. However, they may also end up leaving out some of the details about these products that would be considered drawbacks.

It is essential that you know everything, though, as an annuity can often times require a large chunk of your retirement savings – and it’s always best to know what you are getting into before it’s too late to get out.

Just to be perfectly clear, here, fixed annuities can offer you a nice array of benefits – provided that they fit into your overall financial picture, and help you to attain the goals you are seeking. So, it is critical that you know exactly what you are getting, along with why you are choosing the annuity over other viable alternatives.

The annuity review that you are now reading will assist you with getting a better understanding of all the annuity fine print so that you will know whether or not the Knights of Columbus Flexible Premium Annuity will be right for you.

So, if you’re ready to dive in, then let’s go ahead and get started!

Knights of Columbus Flexible Premium Annuity

Product NameFlexible Premium Annuity
IssuerKnights of Columbus
Type of ProductFlexible Premium Deferred Annuity
Standard & Poor's RatingAAA
Phone Number(800) 380-9995
Websitewww.kofc.org/en/insurance/annuities.html

Opening Thoughts on the Knights of Columbus Flexible Premium Annuity

The Knights of Columbus is the largest Catholic life insurance company in North America. The offering of insurance by the Knights of Columbus was initiated by its founder, Venerable Father Michael J. McGivney in 1882, who gathered the men of his parish together in order to solve a recurring issue – that of many young men dying and leaving behind widows and orphans with insufficient financial means.

By people of the parish coming together in order to help each other, a type of “pass the hat” system was formed. Today, the company offers several insurance-related products, including both term and permanent life insurance, long-term care insurance, and annuities. The Knights of Columbus is currently headquartered in New Haven, Connecticut. The Knights of Columbus is considered to have a strong and stable financial foundation. It has been given the rating of AAA by Standard & Poor’s, and an A+ (Superior) by A.M. Best Company.

The demand for fixed annuities has really picked up steam over the past several years, due in large part to many retirees and investors alike seeking refuge from market volatility. But, because of the low-interest rate environment over the past decade or so, the returns that are garnered from fixed annuities will often times not be enough to keep pace with inflation.

This low rate of return could, in turn, negatively impact your annuity’s overall growth, as well as the amount of income that is needed to keep up with inflation and the rising cost of goods and services that you’ll need in retirement.

Before diving 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. The Knights of Columbus 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 deferred 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 the Knights of Columbus Describes Its Flexible Premium Deferred Annuity

The Knights of Columbus offers its insurance and annuity products to its members, as well as members’ spouses, and dependents. These products are sold via a career sales force of approximately 1,300 full-time insurance agents.

On the Knights of Columbus website, the flexible premium annuity is described as one in which “premium payments can be made on a regular or irregular basis.”

Although the company encourages that payments be made using EFT (Electronic Transfer of Funds), the frequency of those payments is ultimately determined by the annuity owner. In addition, the annuity holder also has the option of choosing his or her payment schedule.

How a Financial Advisor May “Pitch” This Annuity

Because the Knights of Columbus offers its insurance products primarily to members, and their spouses and dependents, this annuity “pitch” may differ from some of the others you may have heard of products that are offered to the general public.

In any case, though, when discussing the Knights of Columbus Flexible Premium Annuity, the fixed rate of return would likely be highlighted, as well as the protection of principal that it can offer. In addition, as with most other annuities, the lifetime income feature would be discussed, as this can often alleviate the fear on many people’s minds of running out of income in retirement.

Because insurance and financial companies usually do a fantastic job of making sure that their products sound enticing, you may have even been leaning towards purchasing this annuity based on the factors above. And, while these features can provide you with some nice benefits, it is important that you know “both sides of the story.”

First, in order to obtain this product, it is required that you are a member of the Knights of Columbus (or you are a spouse or dependent). So, depending on your membership status, this could be considered an advantage or a drawback.

Also, as with most other types of fixed annuities in the marketplace today, the rate of return has been extremely low for many years, due primarily to the historically low-interest rate environment of the economy over the past 8 to 10 years. Because of this low return, it could negatively impact the amount of money that you build up inside the annuity account, and in turn, the amount of income that you will have throughout retirement.

So, if you do plan to use the income from this particular annuity as a primary incoming cash flow, you may need to alter the type and/or amount of products and services that you buy in the future.

So, while a guaranteed lifetime income, along with safety of principal, may be important to you, the truth is that these options are easy to find on any fixed annuity in the marketplace – and, if you are able to find these features on an annuity that also provides you with added benefits, then the alternative may be worth taking a closer look.

The bottom line is that, even though the Knights of Columbus Flexible Premium Annuity does offer some highly attractive benefits, once you have put your money into this financial vehicle, it may be too late to change your mind if another, more beneficial, option comes along.

With that in mind, if you are still not 100 percent convinced that the Knights of Columbus Flexible Premium Annuity is right for you – and you would also like to get answers to additional questions or concerns that you may have – then please feel free to reach out to us directly throughout secure contact form.

We know just how challenging it can be when you’re trying to decide whether or not a particular annuity may be right for you. But, understanding what you need to look for in these products is extremely important, as an annuity could essentially comprise a significant percentage of your retirement funds. If you want additional assurance that you know what it is you are purchasing, then click here to download our free report on what you need to know before buying an annuity.

What About Fees on the Knights of Columbus Flexible Premium Annuity?

On top of knowing how your money may perform in an annuity, it is also a good idea to understand the fees that you may be charged. This is because an annuity’s additional charges can have an impact on the way that your account will perform, as well as with the amount of money – and income – you will ultimately have down the road.

In many annuities, there will be an up-front commission that is paid to the advisor who sold the product to you. Typically, there will also be an ongoing contract and/or administrative charges. Also, if you wish to withdraw any of your money prior to converting the annuity to an income stream, you could be hit with a surrender penalty if you take out more than your allotted annual amount.

In the case of the Knights of Columbus Flexible Premium Annuity, there may also be surrender charges incurred if you withdraw more than 10 percent of your contract value in any given year, throughout the first seven years of owning the annuity. These charges are outlined as follows:

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The Annuity Gator’s End Take on the Knights of Columbus Flexible Premium Annuity

Where it works best:

This annuity will typically work the best for those who are looking for:

  • Safety of principal
  • Guaranteed lifetime income

Where it works the worst:

This particular annuity may not be an ideal fit for you if you:

  • Want access to most or all of your money within the first 7 years of the annuity contract
  • Are seeking a high rate of return on your money
  • Do not intend to use the lifetime income feature
  • Are not a member (or related to a member) of the Knights of Columbus

In Summary

There are many factors that should ideally be considered when you are determining whether or not an annuity is right for you, and if so, which annuity may be the very best fit. When you are going through the annuity’s features, it is always important to keep in mind that any annuity should be considered as a long-term financial endeavor. So, you need to truly be comfortable with the decision that you make – especially if the annuity may help you with reaching your retirement and/or other financial goals.

If you’re thinking about the purchase of a fixed annuity, this financial vehicle will be able to provide you with a guaranteed lifetime income in retirement, as well as the safety of your principal over the lifetime of the product.

When taking a closer look at the Knights of Columbus Flexible Premium Annuity, there are definitely some nice features. But even so, this annuity may also fall short. And quite honestly, there very well could be some better alternatives that are available to you. This is especially true if your goal is to obtain ongoing lifetime income in retirement, along with the opportunity for growth while you wait.

If you still have any questions or concerns with regard to the Knights of Columbus Flexible Premium Annuity, and whether or not it may be the right annuity for you – or even if you just happen to have a question about annuities in general – then please feel free to contact us via our secure contact form here.

Do You Have Any Additional Questions on the Knights of Columbus Flexible Premium Annuity? Did You Notice Any Mistakes in this Annuity Review?

Realizing that this review was a bit on the lengthy side, thank you for sticking with us. In our minds, though, we would much prefer to offer a little “too much” detail, as versus not enough. This can allow you to have a better understanding of the whole story, and not just a few chapters. So, if you did find that this review was helpful to you, please feel free to pass it on and share it with others.

We are also aware that the information that is available about annuities can – and often does – change. With that in mind, if you did happen to notice any details that may need to be updated or revised, then please let us know and we will make the necessary edits.

If this review ended up causing you to be even more confused about annuities and how they work – or, if by reading over this review, you thought of some additional questions or concerns – please reach out to us directly through our secure contact form here, and will be happy to address your questions.

Are there any other annuities you would like to see additional information about?

If you would like to see more in-depth reviews on any other annuities, we are happy to provide those as well. There are lots of annuities out there in the marketplace, so knowing where you can go to find the answers that you need can be comforting.

Just simply click here in order to let us know the name of the annuity – or annuities – that you are interested in learning more about, and we will get the details posted on our website as soon as possible.

Best,

The Annuity Gator

 Independent Review of Knights of Columbus Flexible Premium Annuity

 

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