Fixed Annuity Allowing Continuing Contributions
Security Benefit Life Insurance Company has introduced a new fixed annuity built for 403(b) plans. According to a Market Watch press release, “New Fixed Annuity From Security Benefit Life Insurance Company Brings Flexibility to 403(b) Marketplace,” this ‘Total Interest Annuity’ has one really interesting benefit. This fixed annuity is SBL’s first to allow ongoing contributions of up to $16,500 every year. You can also use IRA’s or other rollovers to fund the ‘Total Interest Annuity’.
The competitive guaranteed crediting rate will be reset once a year. SBL hopes that by offering a high initial crediting rate along with a 2% bonus on any contributions during the first year, they will get people to invest early. This includes a bonus for any 401k annuities or other rollovers. They want to show that they are committed to the 403(b) marketplace with this new fixed annuity. SBL is also showing their support for advisors by giving them a product to ease clients’ worry about risk and volatile markets.
Security Benefit has over 200,000 retirement accounts, mostly in the K-12 education sector. They believe that the ‘Total Interest Annuity’ will help retirees looking for safety and competitive crediting rates. The product is meant for conservative investors who are trying to get away from high market risk and/or are very near retirement.