What is Covered in this Annuity Review?
In this review of the One America Freedom Builder 9 Fixed Indexed Annuity, we will discuss the following information:
- 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 seriously thinking about purchasing an annuity because you want to assure yourself of long-lasting retirement income in the future, then the One America Freedom Builder 9 fixed indexed annuity could be a good financial vehicle for you. This annuity offers you the index-linked opportunity for growth – which could, in essence, be higher than that of a regular fixed annuity – yet without danger to your principal (regardless of what occurs in the market), unlike a variable annuity.
Yet, before you dive in and sign on the dotted line to purchase this “best of all worlds” product, it is a good idea to initially get a thorough understanding of how this annuity works, and whether it does or does not fit in with the other short- and long-term financial goals that you have.
Over the past several years, annuities have become increasingly popular as a way of providing a guaranteed lifetime income stream in retirement. Because of this, the number of financial and insurance advisors who provide these products has also expanded exponentially. But this may not actually be a good thing. This is because, while most financial professionals will want to do what is right for their clients, they may not necessarily be offering you the very best information regarding a fixed indexed annuity that you’re considering purchasing.
Also, due in large part to annuities’ growing popularity, insurance companies have been expanding their product lines to include “hybrid” and other types of products that can come with a lot of bells and whistles. This can make these already complex products even more confusing – even for well-educated individuals.
With all of the “small print” that can be associated with annuities, it is essential that you know exactly what you are getting into because in many cases, the purchase of an annuity may require you to deposit a large chunk of your retirement savings. And, if you do find out too late that the annuity you purchase is not the right one for you, then it could be quite costly for you to get out of it.
This is where we can help.
Annuity and Retirement Income Planning Information You Can Trust
If this is your very first visit to our website, please allow us to officially welcome you here. At AnnuityGator.com, we are a team of annuity professionals who are focused on providing you with the most comprehensive – and non-biased – annuity reviews. We have been doing this for quite some time now – and much longer than any of our competitors. Because of this, we have become a highly trusted source of annuity information.
If you have been searching for more information about annuities online, then it is very likely that you have run across a lot of conflicting details about these products. This is not at all surprising, as there is a great deal of confusion about annuities and how they work.
It may also be that you have attended a seminar about annuities where, in return for a “free” lunch or dinner, the presenter provided you with details about the One America Freedom Builder 9 fixed indexed annuity or some other, similar product. In fact, it may be your attendance at this seminar that ultimately has led you here to our website in search of more information on annuities.
While there are numerous websites on the Internet that focus on marketing their annuities, some of these may try to “lure” you into providing them with your contact information by making bold claims such as:
- Highest annuity payouts
- Low Fees
- Guaranteed income for life
- Top-Rated Annuity Companies
- Get an Annuity Quote Now!
Although these claims about fixed indexed annuities may sound good, it is important that you find out just how many of them are true before you move forward with the purchase of an annuity. In order to do that, though, it could mean that you have to read through a myriad of fine print – which in turn, could make annuities even more confusing.
If you have come here to AnnuityGator.com in search of more details regarding the One America Freedom Builder 9 annuity, then you are certainly in the right place. In fact, we dare say that this is the only website where you can obtain all of the nitty gritty details, which includes not only the good but also the bad and the ugly. This, however, is the only way to make a true determination of whether or not the Freedom Builder 9 is the right annuity for you.
In order to be perfectly clear, here, we want to state that we believe that annuities can be beneficial for many investors – provided that they fit in with their short- and long-term financial objectives.
That being said, this annuity review is here to help you with getting a more in-depth understanding of the One America Freedom Builder 9 fixed indexed annuity. So, if you’re ready to get started, let’s dive in!
One America Freedom Builder 9 Fixed Indexed Annuity at a Glance
|Product Name||Freedom Builder 9|
|Type of Product||Fixed Indexed Annuity|
|Phone Number||(800) 537-6442|
Opening Thoughts on the One America Freedom Builder 9 Fixed Indexed Annuity Product
For over 140 years, OneAmerica has been focusing on helping its clients to grow and protect their wealth. The company offers a wide array of products and services, including:
- Retirement savings
- Individual life insurance
- Asset-based long-term care
- Employee benefits
OneAmerica is ranked among the top-rated U.S. life insurance groups, and the company has also earned high ratings from the insurer rating agencies, including an A+ from A.M. Best Company, and an AA- from Standard & Poor’s.
Based in large part on the continued volatility of the market over the past several years, the demand for fixed indexed annuities has expanded substantially – particularly as a way for people to obtain higher potential index-linked returns, while at the same time maintaining the safety of principal.
However, even though this might initially sound like the best of both worlds, when something sounds too good to be true, it typically is. So, it is important that you take some precautions before you move forward with the purchase of this, or any, annuity, as you do not want to find out the negatives when it’s too late to get out without a hefty penalty.
Before we get into the gritty details, here are some legal disclosures…
This is an independent product review, not a recommendation to buy or sell an annuity. One America has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance 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 circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.
For more information on how to compare annuities in order to determine which one may be right for you, click here to obtain our free annuity report.
How One America Describes the Freedom Builder 9 Fixed Indexed Annuity
One America describes the Freedom Builder 9 fixed indexed annuity as a product that “offers you an opportunity for a little more growth potential than is typically offered in many of today’s fixed annuity products while providing downside protection against market losses.”
The Freedom Builder fixed indexed annuity is actually issued by the American United Life Insurance Company, or AUL, which is a OneAmerica company. This annuity offers an enhanced lifetime income rider that is included with each contract, at no additional charge. With this rider, a client can choose to use all or a portion of the account to create a lifetime income stream at any time.
Any portion of the account not converted can still grow in value based on interest credits – should the S&P 500 Index increase – and any growth is tax-deferred until it is withdrawn or converted into an income stream.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
Being that the Freedom Builder 9 is a fixed indexed annuity, it is probable that an insurance or financial advisor would key in on several benefits – starting with the opportunity to earn index-linked growth on your money. This could provide you with a higher return than if you were in a regular fixed annuity – yet without the worry about the loss of principal if the market index performs negatively at any given time. That is because, even if the underlying index (or indexes) that the annuity is tracking has a negative performance, that account will simply be credited with a 0% for that period. So, no gain – but also no loss.
Plus, as with other annuities, the Freedom Builder 9 offers the option of lifetime income – regardless of how long you need it. So, this can alleviate the worry of running out of an income stream in retirement.
But, before you move forward and add this financial vehicle to your overall financial plan, there are a few items that you really should consider. For example first, the return that you earn on your account could be “capped” at a certain amount – even if the underlying index has a stellar performance in a given year. In this case, if the cap is 5%, and the underlying index returns 10% in a given year, your return would only be 5%, as the cap can essentially limit your growth.
In addition, as with most other annuities, if you wish to withdraw more than just 10% of the contract value within the first several years of purchasing it, you will be hit with a surrender charge. In this case, the surrender charges go on for nine years.
(If you are under the age of 59 1/2 and you withdraw such funds, you can also incur an additional 10% IRS “early withdrawal” penalty.) With all of that in mind, be sure that you understand that an annuity is a long-term
The Annuity Gator’s End Take on the OneAmerica Freedom Builder 9 Fixed Index Annuity
Where it works best:
This annuity will typically work the best for those who are seeking:
- Safety of principal
- The opportunity for additional, index-linked growth
- Guaranteed lifetime income in retirement
Where it works worst:
- For people who need access to all of their money (or at least more than 10% of the contract value) right away – or even during the first several years of owning this annuity
- For people who are not looking for guaranteed lifetime income
In order to really know how to compare the best annuity for you and your specific needs, click here to download our free report on annuities.
We can also walk you through the OneAmerica fixed index annuity calculator. By plugging in figures that best represent your specific scenario, we’ll run the numbers for you and provide you with a free, no obligation spreadsheet with the results.
There are a wide array of criteria that need to be considered if you are trying to determine which – if any – annuity is right for you. In all cases, an annuity should be considered a long-term financial vehicle, and the money that is used for purchasing this product should not be an amount that you may need for another issue soon after making your annuity purchase.
When thinking about the purchase of a fixed indexed annuity, though, you can be secure in knowing that your money is safe from market ups and downs and that you can have an ongoing lifetime income in retirement.
With regard to the OneAmerica Freedom Builder 9 fixed index annuity, there is no doubt some very nice features. But, quite frankly, this annuity could also fall somewhat short. With that in mind, there may be some better alternatives out there for you.
If you do have any questions regarding how this annuity may fit in with your specific savings and future income goals, then please feel free to reach out to us here through our secure contact form.
Do You Have Any Other Questions Regarding the Freedom Builder 9 from OneAmerica? Did You Notice Any Mistakes on this Review?
We realize that this annuity review of the Freedom Builder 9 fixed indexed annuity from OneAmerica may have been a tad bit longer than usual. But, we would much rather that you have “too much” information on this product than to not have enough. So, if you found this annuity review to be beneficial, please feel free to pass it on and to share it with other people who could also find value in it. (And, if you found it to be confusing, please also let us know that, too.)
In addition, we are aware that information regarding annuities can, and often does, change. So, if you happened to notice anything in this review that should be updated or revised, let us know and we will be happy to make the necessary edits.
Any other annuities that you would like to learn more about?
If so, just give us a shout and let us know. Our team of annuity “geeks” will hop on the case and get the details out there as soon as possible!
The Annuity Gator