Independent Review of the Security Benefit Life Secure Income Annuity
What’s Covered in this Review?
In this review I’ll be covering the following information on the Secure Income Annuity from Security Benefit Life Insurance Company:
- Product type
- Current rates
- Realistic long term investment expectations
- How it is best used
- How it is most poorly used
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Considering an annuity – or any type of financial product or service – that can offer you principal protection, along with a lifetime income in retirement, is a big decision. But, if you’ve been reading up on Security Benefit Life Insurance Company’s Secure Income Annuity, it could mean that it offers what you need in your overall financial plan.
Yet, prior to diving right in and purchasing this, or any other, annuity, it can be beneficial if you know all of the facts – particularly those that have to do with how the product works, and how it may, or may not, work for you in attaining your retirement goals.
Over the past decade or so, with a large number of Baby Boomers that are planning for and reaching retirement, annuities have become quite popular. One reason is due to the guaranteed stream of lifetime income that they can provide.
Because of the appeal of annuity products to a large segment of the population, there are more financial advisors who are offering them to their clients. However, this may not necessarily be a good thing – primarily because, even if a financial advisor is working to do the best thing for their client, they may not always be giving you the entire picture about annuities.
Also, due in large part to the growing popularity of annuities, the list of different annuity product offerings that are now available in the marketplace, has increased significantly – and with this, new riders are also available that can help people to essentially more closely customize their annuity to their specific needs. Unfortunately, some of these “hybrid” products have made annuities even more complex than they already were – even for well-educated individuals.
With that in mind, it is essential that you fully understand what it is that you are purchasing, as obtaining an annuity could require that you use a large percentage of your overall retirement savings. And, if you find out that an annuity isn’t the right fit for you after you have purchased one, it will likely be too late to get out without having to pay substantial fees.
Annuity and Retirement Income Planning Information that You Can Trust
If you’ve never been to our website, we would like to personally welcome you here to AnnuityGator.com. We are a team of experienced financial professionals who are focused on offering you comprehensive and nonbiased annuity reviews. We’ve been doing this for many years, and for far longer than any of our competitors. Because of that, we have become a well-known and trusted source of annuity information.
If you have been seeking more information about annuities online, then it is likely that you have run across a wide range of details about these products – some of which may be very conflicting. This is not surprising, as there is a long list of annuity offerings out there, and each one of them may offer different features and benefits. They also typically comprise a lot of fine print in their contracts.
It may be that you have also attended a seminar recently where a financial salesperson offered you lunch or dinner in return for letting them present you with annuity information. In fact, you may even be searching for additional information on annuities because you attended that seminar.
Although there are a number of very good websites on the Internet that are focused on marketing their annuities, some of these may try to lure you in and give them your contact information by making promises like:
- Guaranteed lifetime income
- Lowest fees
- Top-Rated Annuity Companies
- Highest Income Payouts
- Fast, Easy Annuity Quotes
But, while these claims may sound great initially, the truth is that they may not all be true. So, it is absolutely essential that you verify these claims before moving forward with the purchase of an annuity – just like you would likely do before you commit to any high-dollar product or service.
If you are interested in learning more about the Secure Income Annuity from Security Benefit Life Insurance Company, then you have certainly come to the right place. We dare say that the website you are on at this moment is the only place where you can truly get all of the key details – including both the advantages and the drawbacks. Knowing all of these facts is important, though, as it can help you with determining whether or not this is the right annuity for you.
Oftentimes, insurance salespeople who offer fixed annuities will paint a nice, rosy picture of how these products can offer you safety. But, they may end up leaving out other details that may be considered drawbacks to owning this type of annuity product. So, prior to moving a sizeable sum of your retirement savings over to a product like this, you need to know the whole story. And, that’s what you’ll get here.
Just to be clear, though, fixed annuities can offer many advantages – provided that they are a good fit for your overall financial objectives. Given that, it is essential to know just exactly what you are getting with a particular annuity, as well as why you may choose one specific product over a plethora of other possible options.
This annuity review is here to provide you with a more in-depth understanding of all of the details on Security Benefit Life Insurance Company’s Secure Income Annuity so that you have the knowledge that you need regarding whether or not it will be the right alternative for you.
So, if you are ready to get started, let’s go ahead and dive in!
Security Benefit Life Secure Income Annuity
|Product Name||Life Secure Income Annuity|
|Issuer||Security Benefit Life Insurance Company|
|Type of Product||Fixed Index Annuity|
|Standard & Poor's Rating||A- (Strong)|
|Phone Number||(800) 888-2461|
Opening Thoughts on the Security Benefit Life Secure Income Annuity
Security Benefit has more than 125 years in the insurance marketplace. The company is considered to be a leader in the U.S. retirement market, and it offers a large and customized array of savings product solutions for both the individual and the business niches.
As of year-end 2015, Security Benefit Life had nearly $28 billion in total admitted assets – and due to its strong financial foundation, the company has received high marks from the insurer rating agencies. These include an A- from Standard & Poor’s and a B++ from A.M. Best.
Due in large part to the increased volatility of the stock market over the past decade or so, the demand for fixed indexed annuities – which are always backed by insurance companies – has been steadily increasing. This is due mainly to the fact that these types of annuities provide you with the opportunity to obtain a higher return than fixed annuities or other fixed products, while at the same time, providing you with the safety of principal when the market is down.
However, even though this may sound like a great product, sometimes if something sounds too good to be true, it is. With that in mind, it is important that you take some precautions prior to purchasing a fixed indexed annuity so that you don’t find out too late if it isn’t a good fit for you.
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. Security Benefit 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, <contact us> to obtain our free annuity report.
How Security Benefit Describes the Life Secure Income Annuity
On the company’s website, the Security Benefit Secure Income Annuity is defined as a flexible premium deferred fixed indexed annuity that is available to individuals up to age 80. This annuity requires a minimum initial purchase payment of $25,000 with minimum subsequent premium payments of at least $1,000.
This annuity can offer a combination of guarantees, along with flexible interest choices and withdrawal options, and a bonus of up to 8 percent. It also offers a guaranteed minimum interest rate on the fixed account option, as well as a terminal illness waiver and a nursing home waiver.
In addition, if the annuitant should pass away before receiving payments from the annuity, a named beneficiary (or beneficiaries) will receive 100 percent of the account value (minus any premium tax that is due).
As with other annuities, the Secure Income Annuity from Security Benefit Life provides tax-deferred growth of the funds inside the account. This can allow your funds to grow exponentially over time. It also provides the opportunity to receive a lifetime income in retirement.
How Financial Advisors Might “Pitch” this Annuity
If an insurance or financial advisor has approached you about purchasing the Secure Income Annuity from Security Benefit Life, it is likely that he or she focused in on certain features of the annuity that are advantageous. But they may also have left out some of the things about this annuity that could be considered as drawbacks.
Being an educated consumer, you have probably noticed that insurance and financial services firms do a very good job of ensuring that their products sound very attractive. For instance, based on the above description of the Secure Income Annuity from Security Benefit Life Insurance Company, you may have even felt that this is the ideal annuity for you.
But keep in mind that if the person who is talking to you about this annuity is a commissioned sales rep, then they are likely going to explain the annuity to you by highlighting as many of its positive features as possible.
Yet, when you take a closer look at this annuity, you may find that all of the features about it may not work to your advantage. For example, while this annuity offers you the opportunity to participate in the upward movement of the underlying index, it also has a “cap” on those earnings. So, while you will receive a positive return during upward years in the index if the index has a particularly stellar upward period, your return will only reflect a percentage of that.
Also, according to the Security Benefit Life website, “Bonus annuities, such as the Secure Income Annuity, may include changes to the elements used to determine the index interest credits or changes to the interest rate that are not included in similar annuities without a bonus. These changes may include lower current interest rates, lower participation rates or caps, or reduction of interest credits may exceed the amount of the bonus.”
In addition, the Security Benefit Secure Income Annuity credits a bonus on your first-year purchase payments. However, if you take withdrawals that are greater than the free withdrawal amount (which is 10% per year) during the surrender charge period, some or all of the annuity’s bonus portion will be subject to a “bonus recapture.” This will also apply if you convert your annuity over into an income stream during the surrender charge period (which is ten years). This means that, if you want to turn your annuity into an income stream during the first decade of owning it, you will be penalized – and, the earlier you take your funds, the higher the amount of the penalty.
What About the Security Benefit Life Secure Income Annuity’s Fees?
In addition to knowing how your annuity will perform, it is also essential that you have a good understanding of the fees and charges you may be assessed. This is because any type of charge to your account can have a negative impact on how your funds perform, and in turn, on the amount of retirement income that you’ll receive.
As a fixed indexed annuity product, the Secure Income Annuity will likely charge you fees for an up-front agent commission upon the initial sale of the product, as well as ongoing administrative charges.
The Secure Income Annuity has ten years of surrender charges – which is actually a fairly lengthy period as compared to many other annuities that are available in the market. The surrender charges also start out at a pretty high amount. This can truly hinder the amount of money that you would get back if you needed to access most or all of it within the first decade of owning it.
The Annuity Gator’s End Take on the Security Benefit Life Secure Income Annuity
Where it works best:
This particular annuity will usually work the best for those who are looking for:
- The opportunity to obtain a higher rate of growth
- Safety of principal
- Lifetime income
Where it works worst:
Conversely, the Security Benefit Life Secure Income Annuity may not fare so well for those who:
- Want to fully participate in market gains
- Do not intend to use the guaranteed lifetime income feature
There are many factors that need to be considered when you are trying to determine whether or not an annuity will be right for you – or even if any annuity is the best option for your retirement funds.
These are always considered as long-term financial vehicles, so the funds that you deposit into an annuity should not be needed for any other purpose – at least for the first several years of owning the annuity.
If you are considering a fixed indexed annuity, you can be secure in knowing that your principal will be safe from the ups and downs of the stock market, as well as in that you will have a future retirement income that you can count on.
With regard to the Secure Income Annuity from Security Benefit Life Insurance Company, there can definitely be some advantages. But, this annuity may also fall short, and quite frankly, there could very well be some better options that are available to you.
If you still have any unanswered questions or concerns about the Security Benefit Life Secure Income Annuity – or about any annuity – then please feel free to reach out to us via our secure contact form here.
Have Any Questions on the Security Benefit Life Secure Income Annuity? Did You Find Any Mistakes?
We realize that this annuity review of the Secure Income Annuity was fairly lengthy. However, we would much rather provide you with a bit “too much” information about this product than not enough. So, if you did find this review to be helpful, please forward it on and share it with others whom you feel may benefit from it, too.
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