Security Benefit Choice Annuity offered by Security Benefit

Introduction
Type of Product Fixed Annuity
Product NameSecurity Benefit Choice Annuity
Offered bySecurity Benefit
Company Info

Security Benefit is a Kansa... read more

Contact Information
Company OfferingSecurity Benefit
Company TypeInsurance Company
Phone Number800-888-2461
Websitewww.securitybenefit.com
Talk to a Financial Advisor
Contact Information Connect with a Financial Advisor
Reviews and Ratings
Average Review

4/5 from 1 Reviews


Product Ratings and Reviews

Rating:
4
Average: 4 (1 vote)

Looking at a fixed annuity like the Choice product from Security Benefit may seem like an exercise in absurdity given the rates offered for locking-up cash for periods of 5-7 years.

2 percent over 7 years and 1.4 percent over 5 is somewhat eye-opening.

That is until these rates are put into perspective.

On a net basis, money market funds provide no yield whatsoever.

Bank savings account might provide 30-40 basis points if the deposit levels are substantial.

Given this yield landscape, 2 percent starts to look much more interesting.  After all, 2 percent is 4-5 times what you would receive from a very high balance savings account.

Also, the savings account income would be taxed at your normal rate, so say goodbye to about half of that income.

So it all depends on putting these rates in context and looking at them on a comparative or relative basis rather than an absolute basis.

For those who say you would not have any access to funds with a fixed annuity, take a closer look at the actual contract as there is plenty of access to funds without incurring penalties. 

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