Security Benefit Foundations Annuity 5 year and 7 year
Security Benefit, owned by Guggenheim Partners, is an insurance company that made a lot of waves in 2012. They’ve released two new indexed annuity products under the name Security Benefit Foundation. This particular product series concentrates on lower surrender schedules with return of premium as well as still offering a GLWB (Guaranteed Life Withdrawal Benefit).
Here are the Highlights:
• A Guaranteed Lifetime Withdrawal Benefit (GLWB) Rider. The Rider is available only with the 7-year
product. The Rider provides 8.5% simple interest rate for up to 15 years or age 85. The payout percentages are very strong on the back side and go up every year by 10bps (for example income at age 60 would be 5% and at age 61 would be 5.1%). The cost of the rider is 90bps.
• A Guaranteed Return of Premium. Available only with the 5 year product.
• A Guaranteed Minimum Interest Rate (GMIR) on money allocated to the fixed account – currently at 1%
• Four interest-crediting options.
• A bonus of 1% is available at contract issue on all Purchase Payments received by SBL in the first
• 10% annual free withdrawals after the first Contract Year.
• Nursing Home Waiver (availability and features vary by state).
• Terminal Illness Waiver (availability and features vary by state).
Although a decent product, there is nothing that I would consider amazing or incredible that is not available somewhere else. Honestly, I am a little disappointed that the you cannot have both the income rider and ROP on the same product. I think that is a strange decision. That being said, with SBL’s new-found success in the industry, I think they will do well with this product, especially with the registered reps and Broker Dealers in the FIA space.