Security Benefit Foundations Annuity 7 Review
The Security Benefit Foundations Annuity 7 has released a new brochure with updated information, so you might interested in whether their offer is worth exploring.
The Foundations Annuity 7 is a 7-year term fixed index annuity that was created to help you grow your savings without stock market exposure.
There is also a possibility to earn interest credits linked to the increase of a market index, while retaining the shield from losing money due to market losses.
Is the Foundations Annuity 7 worth investing in? Read this review to find out!
About Security Benefit Life Insurance Company
The Security Benefit Foundations Annuity 7 is a fixed index annuity offered by Security Life Benefit Insurance Company (SBL), a reputable annuity provider in the U.S. SBL was founded in 1892 and has been providing people with various retirement plans and mutual funds ever since. The insurance company is a trusted and reputable annuity provider with a suite of solutions to help Americans ensure a comfortable retirement.
Corebridge Financial Rating
Rating Company
Rating
DBRS Morningstar
A (Good)
S & P
A- (Strong)
A.M. Best Rating
A- (Excellent)
FitchRatings
A- (Strong)
Security Benefit Foundations Annuity 7 Highlights
-
7-Year Fixed Index Annuity
The Security Benefit Foundations Annuity 7 is a 7-year term annuity. -
1% Bonus
Foundations Annuity offers a first-year bonus on all Purchase Payments, instantly boosting your Account Value for immediate benefits. -
No Risk to Your Account Value
In case of market downturns, your Account Value remains secure. You benefit from guaranteed principal and minimum interest rates that are set to protect against losses (excluding withdrawals and fees). -
10% Free Withdrawal
After the first year of your annuity, you will be entitled to a 10% free withdrawal of your Account Value. This means you will withdraw your money without incurring surrender charges or market value adjustments. -
Crises Waivers
The Security Benefit Foundations Annuity 7 holders can receive their funds without facing surrender charges through two riders: nursing home and terminal illness waivers. -
Death Benefit
The Foundations Annuity 7 offers a death benefit that allows the beneficiary to receive 100% of the Account Value, minus either any premium tax or the higher cash surrender value.
Security Benefit Foundations Annuity 7 Overview
🔔 Important Information
Annuity Term
7 years
Type of Annuity
Fixed Index
Interest
5% (fixed)
Premium Type
Single Premium
Maximum Issue Age
85 years
Withdrawal Charge Schedule
9%, 8%, 7%, 6%, 5%, 4%, 3%
Minimum Premium
$25,000
Maximum Premium
$1,000,000
Market Value Adjustment
Yes
Types of Funds
403(b), IRA, Non-qualified, Roth 403(b), Roth IRA, SEP IRA
SBL Foundations Annuity 7 Historical Rate of Return
The hypothetical historical performance provided herein showcases the annualized return of allocation strategies, representing the investment's annual growth rate considering compounding effects. Similar analyses can be found for each account in official fixed index annuity illustrations provided by insurance carriers.
What's not reflected:
The annualized return does not encompass rider charges, strategy fees, or applicable premium bonuses.
Notes on rates:
The information presented assumes the annuities' current caps, spreads, participation rates, and other related rates, without guarantee.
No guarantees:
These actual elements are subject to change over time, resulting in potentially higher or lower outcomes. Additionally, no single index consistently outperforms in every scenario. It is advisable to consult with a properly licensed and educated annuity professional before making any decisions.
Fees and Charges
Foundations Annuity 7 imposes no charges or fees unless early withdrawal is chosen, resulting in surrender charges.
Index Options
The Security Benefit Foundations Annuity 7 has 11 index accounts and 1 fixed account:
- 1-Year Fixed Account
- 1-Year S&P 500 PTP Cap
- 1-Year S&P 500 PTP Monthly Sum Cap
- 1-Year S&P 500 PTP Monthly Average Cap
- 1-Year S&P 500 LV DRC 5% TR PTP Spread
- 2-Year S&P 500 LV DRC 5% TR PTP Spread
- 1-Year S&P 500 Factor Rotator Daily RC2 7% PTP Participation Rate with Spread
- 2-Year S&P 500 Factor Rotator Daily RC2 7% PTP Participation Rate with Spread
- 2-Year Morningstar Wide Moat Focus Barclays VC 7% ER PTP Participation Rate with Spread
- 1-Year Morningstar Wide Moat Focus Barclays VC 7% ER PTP Participation Rate with Spread
- 2-Year S&P MARC 5% ER PTP Participation Rate with Spread
- 1-Year S&P MARC 5% ER PTP Participation Rate with Spread
Crediting Methods
The SBL Foundations Annuity 7 offers diverse crediting options that provide plenty of growth opportunities, consistent and low-risk.
- Fixed Account
- S&P 500® Index (Price Return)
- S&P 500® Factor Rotator Daily RC2 7% Index (Excess Return)
- S&P 500® Low Volatility Daily Risk Control 5% Index (Total Return)
- S&P Multi-Asset Risk Control (MARC) 5% Index (Excess Return)
- Morningstar Wide Moat Focus Barclays VC 7% Index (Excess Return)
Security Benefit Foundations Annuity 7 Surrender Schedule
Like other annuities, Foundations Annuity 7 from Security Benefit has surrender charges for early withdrawals. Since it is a 7-year term annuity, you will receive full access to your funds at the term's end. With each year, withdrawal charges diminish until they are completely waived.
SBL Foundations Annuity 7 Key Features
The Strategic Growth Plus Annuity from Security Benefit offers features you may find promising in growing your retirement savings:
Market-Value Adjustment (MVA)
- If the annuity holder surrenders the contract when the surrender charges are still active and the amount exceeds the free withdrawal limit, an MVA is triggered.
Tax-Deferred Growth
- The SBL Foundations Annuity 7 holders can enjoy a tax-deferred accumulation of funds. The interest credited to your Account Value is also untaxed until the moment you start withdrawals.
- With tax-deferred growth, an annuity holder can also benefit from compounded growth, meaning the Account Value can grow larger compared to a taxable account.
Pros and Cons
- No extra charges
- 12 index crediting options available
- A 1% bonus on all purchases
- RMD-friendly
- Nursing and terminal illness waivers available
- High minimum investment ($25,000)
- 7-year surrender charge
- Possible market value adjustments on withdrawals
Key Takeaways
The Security Benefit Foundations Annuity 7 is an excellent option for future retirees looking for a secure retirement fund. The annuity is tax-deferred and guarantees minimum interest rates that shield your Account Value from losses.
The Foundations Annuity 7 offers 10% free withdrawals and helpful riders like a death benefit and a terminal illness waiver, making the annuity a reliable and efficient way of securing a comfortable financial future.
Not sure if this annuity is the right choice for you? Take our Annuity Quiz to find out what better suits your financial needs!
Company information
Company Name
Security Benefit Life Insurance
Website
Phone Number
800-888-2461
A.M. Best Rating
A- (excellent)
S&P’s Best Rating
A- (strong)
About the Product
Product Name
Security Benefit Foundations Annuity 7
Product Type
Fixed Indexed Annuity
Launch Date
2024
Product Information
Security Benefit Foundations Annuity 7 offers a secure and tax-efficient way to grow retirement savings. It has features like tax-deferred accumulation and potential for interest credits linked to market performance. The annuity also provides a reliable source of income for the future with a 7-year term. Additionally, it offers flexibility with free withdrawal options after the first year of annuity and protection against market downturns.
Account Types
403(b), IRA, Non-qualified, Roth 403(b), Roth IRA, SEP IRA
Not Available In
New York
Annuity Expert
Jeremiah Konger
PS - Here's 3 ways we can help you learn more about annuities.
1. Watch Videos on How to Identify The Highest Paying Protected Income & Growth Annuities.
2. Watch Videos That Reveal What to Look For When Buying A Protected Growth Annuity.
3. Click Here To Access Our Annuity Review Vault To Compare The Pro's and Con's of Dozens of Annuities.
Other Security Benefit Company Annuity Product
Security Benefit Strategic Growth Annuity
A standard deferred fixed index annuity with a 10-year surrender charge period.
Security Benefit Foundations Annuity 5
A fixed annuity from Security Benefit with a guaranteed interest rate for 5 years.
Security Benefit Strategic Growth 7
A standard single premium, fixed index annuity with a 7-year surrender charge period.
Security Benefit ClearLine Annuity
A deferred fixed annuity that offers a death benefit and the potential for tax-deferred growth.
Security Benefit Strategic Growth Plus Annuity
A fixed index annuity that provides a guaranteed interest rate for 10 years.
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