What We Will Cover in this Annuity Review
In this annuity review, we will be covering the following details regarding the Minnesota Life SecureOption Select 9 Annuity:
- Product type
- Current rates
- Realistic long-term return expectations
- How this annuity is best 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 seriously thinking about obtaining an annuity for the purpose of increasing your retirement savings in a safe way, while also providing a guaranteed lifetime income in retirement, then the Minnesota Life SecureOption Select 9 Annuity could be a good alternative for you.
But, prior to charging full steam ahead with purchasing this annuity – or for that matter, any annuity – it can be helpful to have more detailed information about how these products work, and how they may (or may not) work for your specific needs.
Over the past several years, annuities have become more popular, primarily as a means of offering a guaranteed income stream in retirement. Because of this, the number of financial and insurance agents who offer these financial products has also expanded a great deal. This, however, may not necessarily be considered a positive thing.
Even though insurance and financial advisors will typically work hard to do what’s in the best interest of their clients, they may not always be able to provide you with the more specific answers to the questions that you have about annuities – and because of that, you could be making a key decision without all of the intricate details that you should have.
Plus, due in large part to their growth in popularity, the list of annuity offerings that are now available in the marketplace has grown – with some of these alternatives being a tad bit confusing to understand. So, it is important for consumers to take the additional steps that are needed to truly understand what it is you are buying – especially because an annuity purchase could require a fairly large percentage of your overall retirement savings.
On top of that, an annuity is considered to be a long-term financial commitment, so if you decide that you no longer want to own these products, it will usually cost you in terms of penalties and fees.
Annuity and Retirement Income Planning Information That You Can Trust
If you’ve never been to our website before, then please allow us to officially welcome you here. We make up a team of experienced financial professionals who are dedicated to providing you with non-biased and comprehensive annuity reviews. We’ve been offering in-depth annuity reviews for many years on our site, and because of that, we have become a trusted source.
If you have been trying to find information regarding annuities online, it may be that you have run across some conflicting details about these products. This, however, is not entirely surprising, as there are a lot of details, as well as many opinions.
It’s possible that you have also attended an annuity seminar in the recent past where the presenter discussed the Minnesota Life SecureOption Select 9 or some other similar annuity. If this is the case, then you may have ended up here on our website with a mission of finding out more about this annuity before you make a purchase.
While there are certainly a number of good websites out there on the Internet that is devoted to marketing their annuities, the reality is that some of these sites may try to lure visitors in by making claims such as:
- Highest income payouts
- Lowest Fees
- Top-rated annuity carriers
- Guaranteed income for life
- Get your quote now!
Does this look familiar?
Although these claims do sound very enticing – especially if you are planning for a secure retirement – before you move forward with the purchase of an annuity, you should also first ensure that they are true – just like you would if you were in the process of purchasing any other high dollar item or service.
This typically requires that you read the annuity’s small print so that you can truly know how the product works. Unfortunately, this can be about as exciting, and as time-consuming, as getting a root canal!
But there is a better way!
If you really want to find out more about the Minnesota Life SecureOption Select 9 Annuity, you are in the right place now. In fact, we dare say that our website is the only place you can find out all of the nitty-gritty details – including the advantages and the drawbacks – that can help you in ultimately determining whether or not this particular annuity is right for you.
Often, the insurance and financial advisors who offer fixed annuities will provide a nice picture of how their products provide safety – but will often leave out the details on the potential drawbacks that products have. So, before you move a chunk of your hard earned savings into one of these annuities, it is essential that you know the whole story.
Just to be perfectly clear, we want to state for the record that we believe annuities have many advantages – as long as they fit in with an individual’s overall short- and long-term financial objectives.
This annuity review has been created in order to help you with better understanding the Minnesota Life SecureOption Select 9 annuity and to assist you in determining whether or not you should move forward with this product as a component in your retirement savings and income strategy.
So, if you are ready to proceed, let’s dive in!
Minnesota Life SecureOption Select 9 Annuity at a Glance
|Product Name||SecureOption Select 9|
|Type of Product||Immediate Annuity|
|S&P Rating (Minnesota Life / Securian Life)||A+ (Strong)|
|Phone Number||(800) 362-3141|
Opening Thoughts on the Minnesota Life SecureOption Select 9 Annuity
Minnesota Life Insurance Company has a long history of providing financial protection and security to its clients. Initially started back in the year 1880, this company offers its products in 49 of the 50 U.S. states (all except for New York). Its parent company, Securian Financial Group, is also the parent company of Securian Life Insurance Company.
Considered to be strong and stable financially, Minnesota Life and Securian have received high ratings from all of the major insurer rating agencies, including an A+ from A.M. Best, an A+ from Standard & Poor’s, an AA from Fitch Ratings, and an Aa3 from Moody’s Investors Service. Securian has also received a Comdex Ranking of 92 (out of a possible 100). This puts the parent company of Minnesota Life in the top 8% of companies that receive this rating.
Because of the vast amount of volatility that has taken place in the market over the past decade or so, the demand for fixed annuities have grown significantly – primarily as a method for retirees, and those who are saving for retirement, to keep their money safe.
That being said, however, because of the historically low-interest rate environment that we have been living in for nearly the past decade, unfortunately, the “price” of keeping your principal safe has come in the form of very low returns – returns that usually can’t even keep pace with the rate of inflation. This, then, could have an impact on your future purchasing power and, in turn, your overall retirement lifestyle.
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. Minnesota Life 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 Minnesota Life / Securian Describe the SecureOption Select 9 Annuity
Based on the available SecureOption Select annuity sales literature, this product is one that offers individuals more control over their financial futures.
The SecureOption Select annuity provides the following benefits:
- Protection of principal against investment loss
- A guaranteed interest rate period (in this case, for 9 full years)
- A higher rate of interest on contributions of $100,000 or more
- Tax-deferred compounding of funds that are inside of the annuity contract
- Penalty-free access to a portion of the funds in the annuity
- A number of different retirement income options – including one that will provide you with an income stream that lasts for the remainder of your lifetime
This annuity is available to those who are age 90 and younger, with a minimum contribution of just $5,000 up to a maximum of $2 million.
Once the 9-year guaranteed interest rate period has expired, you have a couple of options in terms of what to do with your funds in the annuity. One is that you can either take a lump sum, essentially ending the annuity. (In this case, you could incur taxation on the funds that you receive). You could alternatively annuitize – which means that you turn the money in the annuity contract into an income stream. Here, too, you could run into income tax, at least on the portion of the income that is considered gain.
Yet another option would be to allow the annuity to renew, and to receive an interest rate guarantee for another nine years. (If for some reason the company no longer offers this guarantee period, then the annuity will simply renew into one-year guarantee periods).
In any case, you will have a 30-day window of time to decide what to do. If you do not convey a decision to the insurance company within that time, then the annuity will automatically renew.
How an Insurance or Financial Professional Might “Pitch” This Annuity
There are many benefits that can be obtained through this particular annuity product, including a guaranteed interest rate period, as well as a guaranteed minimum renewal rate. If you have been approached by an insurance or financial professional who is offering you this annuity, then they may have keyed in on certain features that it offers, such as a guaranteed rate, as well as an ongoing stream of income in the future that can last throughout your entire lifetime – regardless of how long that may be.
However, as an educated consumer, it is likely that you have probably also noticed that insurance and financial companies do a great job of making sure that their products sound enticing. For instance, if you go by the features mentioned above, then you may have even decided that this is a great annuity for you.
However, it is also essential that you keep in mind that a commissioned salesperson is likely to point out all of the highlights of this (or any) product they are offering, while not really focusing on the potential drawbacks. Because of that, you will want to take a closer look, especially if the purchase of this annuity will require a large chunk of your hard-earned retirement savings.
One of the main items to think about is the low-interest rate percentage that you will be locked into – in this case, for nearly a decade. This could make it pretty tough to move money over into something better if rates should start to rise over the near term. Plus, the rates that are offered today on fixed products like fixed annuities are painfully low – and you would be hard pressed to meet, much less beat inflation. This, in turn, could have a negative effect on your future purchasing power, possibly forcing you to cut back on buying goods and services that you need during retirement.
In addition, although protection of principal and lifetime income in retirement may be important to you, the truth is that these features can easily be found on most any annuity product. And, if you are able to find these features, along with the opportunity to attain a higher return on your funds, then it could very well be worthwhile to take a closer look at some other options that may be available to you in the marketplace.
What About Fees on the SecureOption Select 9 Annuity from Minnesota Life?
In addition to knowing how your money may perform in a fixed annuity, it is also a good idea to know about any of the additional charges or fees that you may be subject to, both during the annuity’s “accumulation” phase, and when you’re taking income.
This is because the fees that you are charged on an annuity can really add up. They can also have an impact on the amount of money that you’re able to accumulate over time, as well as the amount of income that you will receive when you convert the annuity over to an income stream.
In the case most multi-year guarantee annuities, for instance, you will not only have your money locked into a lower rate of interest for many years, but you will typically be subject to the same number of years of surrender charges.
The SecureOption Select 9, for example, has nine full years of surrender charges, meaning that if you withdraw more than 10% of the contract’s value during that time, you will be hit with a fee (in addition to any income tax that you are subject to).
Surrender Charge Schedule for the Minnesota Life SecureOption 9 Annuity
The Annuity Gator’s End Take on the Minnesota Life SecureOption Select 9 Annuity
Where it works best:
This particular annuity will usually work the best for those who are looking for:
- Safety of principal
- Guaranteed lifetime income in retirement
- Guaranteed rate protection – in this case, for nine full years (and possibly another nine years upon renewal)
Where it works the worst:
The Minnesota Life SecureOption Select 9 annuity may not be an ideal fit if you:
- Want access to most or all of your funds within the first nine years
- Are seeking a high rate of return on your money
- Do not intend to use the lifetime income feature
In order to truly know how to compare the best annuity options for you, click here so that you can download our free annuity report.
Anytime you are considering an annuity, there can be a long list of criteria that you should be mindful of. This is because you will want to ensure that the annuity fits in with your specific financial needs and goals. In addition, because annuities can oftentimes have several years of surrender charges, these financial vehicles should always be considered as long-term commitments.
If you are leaning towards the purchase of a fixed annuity that also offers a multi-year interest rate guarantee, then you will get some nice, attractive benefits. However, the annuities like the Minnesota Life SecureOption Select 9 annuity can also fall somewhat short – and the reality is that there could very well be some better alternatives out there for you. This is especially true if you are looking for a lifetime stream of income, as well as the opportunity for additional growth potential.
If you still have any additional questions regarding whether this particular annuity is the right one for you, or even if you just simply need some additional assistance in guiding you in the right direction, please feel free to reach out to us directly through our secure contact form here.
Do You Have Any Additional Questions on the Minnesota Life SecureOption Select 9 Annuity? Did You Notice Any Mistakes in this Review?
We realize that this annuity review may have been a tad bit longer. So, thank you for sticking with us through it all. In presenting this annuity review, we would much rather “err” on the side of offering “too much” information, rather than not enough. Therefore, if you felt that this review was helpful, please feel free to forward it and share it with anyone else who you think may benefit from it.
We also understand that like other types of financial information, the details regarding annuities can, and oftentimes does, change. Therefore, if you happened to notice anything in this review that may need to be revised or updated, please let us know and we will be happy to make any of the necessary corrections.
Would you like to have any other annuities reviewed?
If so, we will get on it! Just simply let us know the name or names of the annuities, and our team of annuity “geeks” will put these reviews on our site as soon as possible. (So, be sure to check back soon – and often).
The Annuity Gator