Security Benefit Strategic Growth Plus Annuity Review

Security Benefit Strategic Growth Plus Annuity has been around for a while and has a reputation for being a secure investment for retirees. The annuity has a 10-year term, so you should only commit if you can financially support yourself in the meantime. So, does the Security Benefit Strategic Growth Plus annuity live up to expectations and have the potential? Find out all about this product in our review.

About Security Benefit Life Insurance Company

The Security Benefit Strategic Growth Plus Annuity is a deferred 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.

SBL Financial Rating

Rating Company

Rating

DBRS Morningstar

A (Good)

S & P

A- (Strong)

A.M. Best Rating

A- (Excellent)

FitchRatings

A- (Strong)

Security Benefit Strategic Growth Plus Annuity Highlights

10-Year Fixed Index Deferred Annuity

SBL’s Strategic Growth Plus Annuity is a standard deferred fixed index annuity with a 10-year term and a Guaranteed Minimum Interest Rate (GMIR).
Free Withdrawal

The Security Benefit Strategic Growth Plus annuity offers 10% free withdrawals that are available from the second year without charges every year. Annually, you can take only that amount, and you cannot carry over the unused withdrawals for the next year.
Rate Buy-Up Feature

The Security Benefit Strategic Growth Plus annuity offers a rate buy-up feature. Annuity holders can receive a higher interest rate for a monthly fee. Any excess charges are credited to the Fixed Account at the end of the surrender charge period. One thing you should keep in mind if you agree to the rate buy-up feature is that no refund will be available in case of excess withdrawals.
Crises Waivers

The Security Benefit Strategic Growth Plus annuity has two riders under which annuity holders can withdraw money without incurring surrender charges: nursing home and terminal illness waivers.

Security Benefit Strategic Growth Plus Annuity Overview

🔔 Important Information

Annuity Term

10 Years

Type of Annuity

Fixed Index

Interest

3.5% (fixed)

Premium Type

Single Premium

Maximum Issue Age

85 years

Withdrawal Charge Schedule

12%, 12%, 11%, 11%, 10%, 9%, 8%, 7%, 6%, 4%

Minimum Premium

Maximum Premium

$1,000,000

Types of Funds

Non-Qualified, IRA, SEP IRA, IRA-Roth, Inherited IRA, NQ Stretch, and TSP

Market Value Adjustment

Yes

SBL Strategic Growth Plus Annuity 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.

Allianz Retirement Foundation Historical Rate of Return

Fees and Charges

Strategic Growth Plus annuity doesn’t have any charges or fees unless you decide to withdraw money early on, in which case there will be surrender charges.

Index Options

SBL Strategic Growth Plus annuity program offers multiple allocation accounts with attractive rates. To be precise, there are 32 index crediting options. Each of them is derived from 8 underlying indices and provides great opportunities to retirees.

1-Year Fixed Account
2-Year Morningstar Wide Moat Focus Barclays VC 7% ER PTP Participation Rate with Spread
1-Year S&P 500 Factor Rotator DRC2 7% ER PTP Participation Rate with Spread

2-Year S&P MARC 5% PTP Participation Rate with Spread
1-Year S&P MARC 5% PTP Participation Rate with Spread
2-Year Morgan Stanley Global Equity Allocator PTP Participation Rate with Spread

1-Year Morgan Stanley Global Equity Allocator PTP Participation Rate with Spread

2-Year S&P 500 LV DRC 5% TR PTP Participation Rate with Spread
1-Year Morningstar Wide Moat Focus Barclays VC 7% ER PTP Participation Rate with Spread
2-Year UBS Market Pioneers PTP Participation Rate with Spread

2-Year UBS Multi Asset Inflation Aware PTP Participation Rate with Spread
1-Year UBS Multi Asset Inflation Aware PTP Participation Rate with Spread

2-Year S&P 500 Factor Rotator DRC2 7% ER PTP Participation Rate with Spread
1-Year S&P 500 PTP Cap
1-Year S&P 500 PTP Participation Rate

2-Year UBS Market Pioneers PTP Participation Rate with Spread

1-Year S&P 500 PTP Participation Rate with Spread
2-Year Morningstar Wide Moat Focus Barclays VC 7% ER PTP Participation Rate with Spread
2-Year S&P 500 LV DRC 5% TR PTP Participation Rate with Spread
1-Year S&P 500 PTP Participation Rate
1-Year S&P 500 PTP Cap

Crediting Methods

Crediting methods use mathematical formulas to determine the indexed interest an annuity earns based on index changes over the 'crediting period.' For the Security Benefit Strategic Growth 7 Annuity, the available crediting strategies are:

Annual with cap
Annual point-to-point with cap
Annual with a participation rate
Annual point-to-point with a participation rate

Annual with a participation rate and spread

Annual point-to-point with a participation rate and spread

Annuity Surrender Charge Schedule

Similar to other annuities, the Security Benefit Strategic Growth Plus does have surrender charges for early withdrawals. The annuity product is planned for 10 years, meaning at the end of the term, you can access your funds fully without restrictions. Gradually, if you decide to withdraw from the program, the charge will be reduced every year until it reaches 0%.

SBL Strategic Growth Plus Annuity 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)

Market Value Adjustment adjusts the annuity’s value based on the market. For example, if the rates fall, the value can rise. Commonly, the MVA is applied to withdrawals or surrenders made before the end of the contract’s term.

Rate Buy-Up Feature

The Rate Buy-Up option has the potential to enhance the contract value allocated to each Index Account. As a result, this feature can potentially increase the interest credit rate by improving caps and participation rates or reducing spreads.
If the total costs of this feature exceed the accumulated index interest credits by the end of the surrender charge period, the excess will be refunded to the contract’s Fixed Account.

Pros and Cons

No extra charges
32 index crediting options available
A bonus on all purchases
RMD-friendly
Rate Buy-Up feature available
Nursing and terminal illness waivers available
Guaranteed Minimum Interest Rate for the Fixed Account

High minimum investment ($25,000)
10-year surrender charge
Possible market value adjustments on withdrawals

Key Takeaways

The Security Benefit Strategic Growth Plus Annuity is a compelling option for those seeking to maximize their retirement savings with minimal risk. With its array of benefits and unique features, such as the Rate Buy-Up and numerous index crediting options, this annuity offers valuable growth opportunities.
If you aren’t sure whether this annuity is the right investment for you, take our Annuity Quiz, or feel free to consult with our expert advisors for personalized guidance.

About the Product

Product Name

Security Benefit Strategic Growth 7 Annuity

Product Type

Fixed Index Annuity

Launch Date

2023

Product Information

The Strategic Growth Plus Annuity from Security Life Benefit Insurance Company offers a unique blend of guarantees, bonuses, and 32 index crediting options. The annuity product is designed for people who want to grow their retirement savings without too much risk.

Product Brochure

Account Types

IRA, Non-qualified, Roth IRA, SEP IRA

Not Available In

N/A

Annuity Expert

Jeremiah Konger

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