Security Benefit Strategic Growth Annuity Review

The quest for finding the best annuity can be overwhelming. There are numerous options available, and none of them are created equal. One of the most popular annuity options is the Security Benefit Strategic Growth Annuity, issued by the Security Benefit Life Insurance Company (SBL). But does this fixed annuity deserve its high reputation? You’ll find the answer in the following annuity review.

About Security Benefit Life Insurance Company

The Security Benefit Strategic Growth Annuity is a deferred fixed annuity offered by the Security Benefit Life Insurance Company, one of the largest and most renowned annuity providers in the US, providing individuals with top-tier savings products since the end of the 19th century, establishing itself as the US retirement industry leader. So yes, if you’re wondering whether SBL is a reputable company, the short answer is yes.

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 Annuity Highlights

10-Year Fixed Index Deferred Annuity
SBL’s Strategic Growth Annuity has a 10-year term with a Guaranteed Minimum Interest Rate (GMIR) set at the contract issue for its duration.
Free Withdrawal
Starting from the second year of the contract, 10% of the Account Value from the previous Contract Anniversary can be withdrawn each year without incurring a Surrender Charge or a Market Value Adjustment (MVA). Unused Free Withdrawal amounts from one year cannot be rolled over into the next year.
Rate Buy-Up Feature
The Rate Buy Up Feature, available for each index crediting option, allows contract owners to potentially receive higher interest credits through improved financial terms, such as higher caps, participation rates, or lower spreads, in exchange for a monthly charge. If the total costs from using this feature exceed the accrued index interest credits by the end of the surrender charge period, the difference will be refunded to the contract's Fixed Account. However, this refund does not apply if withdrawals exceed the annual free withdrawal limit.
Terminal Illness Waiver
SBL will waive the Surrender Charge and Market Value Adjustment (MVA) for full or partial withdrawals if the owner is diagnosed with a terminal illness after the contract is issued.

Security Benefit Strategic Growth Annuity Overview

🔔 Important Information

Annuity Term

10 Years

Type of Annuity

Fixed Index

Interest

5.00% (fixed)

Premium Type

Single Premium

Maximum Issue Age

80 years

Withdrawal Charge Schedule

12%, 12%, 11%, 11%, 10%, 9%, 8%, 7%, 6%, 4%, 0%

Minimum Premium

$25,000

Maximum Premium

$1,000,000

RMD

Yes

Market Value Adjustment

Yes

SBL Strategic Growth 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.

Fees and Charges

SBL doesn’t charge any additional fees for this annuity unless you choose an income rider.

Index Options

This annuity provides a choice of several index options to align with your financial goals, and these include:

1-Year Morningstar Wide Moat Focus Barclay's VC 7%
1-Year UBS Market Pioneers
2-Year Morningstar Wide Moat Focus Barclay's VC 7%
2-Year S&P 500 Low Volatility Daily Risk Control 5%
2-Year UBS Market Pioneers

Crediting Methods

Crediting methods are mathematical formulas that calculate the amount of indexed interest an annuity earns based on changes in the index during the 'crediting period.’ When it comes to Security Benefit Strategic Growth Annuity, you can choose from the following crediting strategies:

Annuity Surrender Charge Schedule

It’s a standard among annuity providers to charge penalties on early withdrawals from annuity contracts. These penalties are known as annuity surrender charges, which are a percentage of the withdrawal amount that decreases gradually to zero by the end of the term. The story is no different for the SBL Strategic Growth Annuity.

Security Benefit Strategic Growth Annuity Key Features

The Strategic Growth Annuity from Securit Benefit Life Insurance offers several interesting features, including a Market-Value Adjustment (MVA), Rate Lock, and Rate Buy-Up feature.

Market-Value Adjustment (MVA)

Market Value Adjustment (MVA) is applied to any withdrawals that exceed the Free Withdrawal amount, to full surrenders, or to the death benefit paid upon the death of a Joint Owner who is not the spouse of the Annuitant.
MVA doesn’t apply to contracts issued in California.
MVA only applies to annuity beneficiaries who want to withdraw their funds early - if you wait for your contract’s maturity date, the company won’t charge MVA fees.

Rate Lock

SBL will lock the most favorable caps, spreads, and rates for the Interest Crediting options, choosing between those available at the time the application is received or when the contract is issued.
The rate lock is conditional on the paperwork being in order and submitted within a 60-day window.

Rate Buy-Up Feature

This feature can enhance the contract value allocated to each Index Account, potentially resulting in a higher interest credit rate through increased caps, participation rates, or reduced spreads.
At the end of the surrender charge period, if the total costs from opting for this feature exceed the accumulated index interest credits (including those from non-buy-up options), the surplus will be refunded to the contract’s Fixed Account.
This refund does not apply if there is an excess withdrawal from the contract (defined as a withdrawal that surpasses the annual free withdrawal limit).

Pros and Cons

Key Takeaways

Overall, if you are looking for a powerful way to grow your assets, while also having protection from the dangers of the stock market, Security Benefit’s Strategic Growth Annuity may be worth the look.

Very high participation rates on a great-performing index give you the chance to grow your money for a happy retirement. However, if you are looking for the best way to guarantee sources of income for life or some extra security when it comes to long-term care, there may be better options for you.

About the Product

Product Name

Security Benefit Strategic Growth Annuity

Product Type

Fixed Index Annuity

Launch Date

2019

Product Information

SBL Strategic Growth Annuity is a deferred fixed annuity. Such products blend the characteristics of both indexed and fixed annuities by offering the advantages of indexed annuity returns at a fixed interest rate.
Fixed index annuities ensure a guaranteed amount of income payments. With the potential for growth linked to market performance and a guaranteed income in retirement, fixed-indexed annuities are particularly well-suited for conservative investors looking for stable returns.

Product Brochure

Account Types

IRA, Non-qualified, Roth IRA, SEP IRA

Not Available In

ID, NY, PR, VI

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 Products

Allianz 222

Allianz 222 offers a unique blend of security and growth potential. This annuity features a built-in Protected Income Value benefit that increases your retirement income possibilities every year you defer withdrawals.

Allianz Core Income 7

With a 7-year term and a $10,000 minimum deposit, Allianz's Core Income 7 comes with an income rider that boosts your accumulated value during the savings phase.

Allianz Accumulation

The Accumulation annuity from Allianz gives annuity holders the opportunity to invest using 17 different market indices for potential growth over time.

Allianz Essential Income 7

With a $10,000 minimum deposit, Allianz's Essential 7 annuity allows your retirement income to grow each year. There are no surrender fees once the 7-year term is up.

Allianz Benefit Control

With Allianz Benefit Control, you have more control over how you invest your annuity funds and can earn a bonus on premiums deposited in the initial 18-month period.

Allianz 360

A standard fixed index annuity that increases your income each year you wait to start collecting payments.

Annuity Association is the leader in providing Independent Annuity recommendations for protected income, safe growth and other benefits in retirement.

Serving All 50 States

info@annuityassociation.com

855-866-3659

Annuity Association

759 SW Federal Hwy Ste 200H

Stuart, FL 34994

Useful Links

About Annuity Associacion