Is the Security Benefit Strategic Growth Annuity the right fit for your retirement plan? This independent review breaks down how it works, strategies, rates, fees, liquidity, surrender schedule, tax considerations, and who it’s best for—so you can make a confident decision.
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What Is the Security Benefit Strategic Growth Annuity?
- Product type: Fixed indexed annuity (FIA)
- Issuer: Security Benefit Life Insurance Company
- Primary goal: Principal protection with market-linked growth potential
- Target use: Retirement accumulation; optional income planning depending on rider availability
- Contract basics:
- Multi-year surrender schedule
- Multiple indexing strategies
- No direct market investment; interest credited based on index performance and strategy caps/pars/spread
How the Strategic Growth Annuity Works
- You allocate premium among available strategies:
- Fixed interest strategy
- Indexed strategies tied to one or more benchmarks (e.g., S&P 500, volatility-controlled, or proprietary indices)
- Crediting methods may include annual point-to-point witha cap, participation rate, or spread
- Interest is credited at the end of each strategy term if index performance is positive after formula adjustments
- Your principal and previously credited interest are protected from market losses (no negative index credits)
- Renewal terms (caps/pars/spreads) are set by the carrier annually and can change
Rates and Crediting Strategies Note: Actual rates change frequently. We’ll populate live figures in your rates module and update dynamically. For now, structure the section like this so we can plug in data:
- Fixed Strategy:
- Current Rate: [Dynamic Field]
- Indexed Strategies:
- Index A (e.g., S&P 500 Annual Point-to-Point)
- Cap: [Dynamic Field]
- Participation Rate: [Dynamic Field, if applicable]
- Spread: [Dynamic Field, if applicable]
- Term Length: Usually 1 year
- Index B (Volatility-Controlled / Proprietary Index)
- Participation Rate: [Dynamic Field]
- Spread: [Dynamic Field]
- Term Length: 1 year (sometimes 2-year options)
- Index A (e.g., S&P 500 Annual Point-to-Point)
- Renewal History Snapshot:
- Last 12–24 months trend on caps/pars/spreads vs. category averages
- Note: Lower volatility indices often support higher participation rates. Internal link: Link “Annuity Rates” to your rates hub and this specific product’s live tiles.
Fees and Surrender Charges
- Mortality & expense charges: Typically, none for base FIA
- Strategy costs: Reflected in caps/pars/spreads (not explicit fees)
- Optional rider charges: If an income rider is available, it may carry an annual fee (e.g., 0.95%–1.25% of benefit base; varies by version)
- Surrender schedule:
- Typical range: 7–10 years (confirm exact schedule for the current product version)
- Surrender charges decline annually; market value adjustment (MVA) may apply
- Free withdrawals:
- Commonly, 10% of account value per year after the first contract year (varies by version)
- Bonus:
- The f version includes a premium bonus, note vesting rules, and any rider linkage
Liquidity and Access to Funds
- Free annual withdrawals: Up to 10% (check contract; some allow RMD-friendly withdrawals even if >10%)
- Required Minimum Distributions: Usually allowed without penalty
- Nursing home/terminal illness waiver: Often included in many FIAs; verify availability and conditions
- Partial surrenders, loans: Loans generally not available; partial surrenders subject to remaining surrender charge schedule
- Death benefit: Typically account value is paid to beneficiaries; passes outside probate in many states; spousal continuation may be available
Tax Treatment
- Tax-deferred growth: Interest credits grow tax-deferred until withdrawn
- Distributions:
- Non-qualified: LIFO taxation; interest out first as ordinary income
- Qualified: Entire distribution taxable as ordinary income
- 10% IRS penalty: Withdrawals before age 59½ may incur an early distribution penalty
- No step-up in basis on annuity gains for non-qualified owners. Internal link: Link to your Annuity Taxation Guide and RMD explainer.
Pros and Cons:
- Principal protection with upside potential
- Diverse index choices to match risk preferences
- Tax-deferred accumulation
- Optional riders can add income or enhanced benefits
- Typically includes RMD-friendly withdrawal features
Cons:
- Returns depend on renewal caps/pars/spreads set by the carrier
- Limited liquidity during the surrender period
- Complexity vs. CDs/MYGA
- Performance can lag equities in long bull markets
- Early withdrawals can trigger surrender charges and MVA
Who Is It Best For?
- Pre-retirees and retirees seeking:
- Principal protection
- Better-than-CD potential over a 5–10 year horizon
- Tax deferral on non-qualified assets
- Investors who value:
- Defined downside (no market loss to principal)
- A set plan and guardrails vs. active trading
- Not ideal for:
- Short time horizons
- Investors who need high liquidity
- Those expecting equity-like returns
How It Compares to Alternatives
- MYGA vs. Strategic Growth:
- MYGA: Guaranteed fixed rate, simpler, great for laddering and predictable outcomes
- Strategic Growth: Potentially higher returns if the index performs, but less certain and more complex
- Competing FIAs:
- Compare by carrier financial strength, index lineup quality, renewal fairness, liquidity terms, rider availability/costs
- Variable Annuities:
- VA: Market risk, higher fee structure, potentially higher long-term returns
- FIA: No market loss to principal, typically lower explicit fees, but capped upside. Internal link: Link to “Best Fixed Indexed Annuities” and “MYGA vs FIA” guides.
Real-World Scenarios Scenario 1: 60-year-old rolling a 401(k) to an IRA
- Goal: Preserve principal, outpace inflation, defer taxes
- Approach: Allocate 60% toa volatility-controlled index with high participation, 40% to an S&P 500 cap strategy; take RMDs after 73
- Why it fits: Growth potential with guardrails; RMD-friendly
Scenario 2: 67-year-old with CDs maturing
- Goal: Better potential than CDs without market drawdowns
- Approach: Split between a fixed strategy for baseline and a participation strategy for upside
- Why it fits: Protects principal while seeking modest excess return
Scenario 3: 55-year-old non-qualified funds, high tax bracket
- Goal: Tax deferral and diversification
- Approach: Use FIA for a portion of the safe bucket to defer taxes and smooth volatility
- Watchout: 59½ rule; plan liquidity accordingly
How to Buy and What to Ask
- Verify:
- Current caps, participation rates, and spreads
- Surrender schedule and MVA language
- Free withdrawal rules and RMD handling
- Any bonuses and vesting
- If an income rider is available, the roll-up rate, income factors, and rider fee
- Suitability checklist:
- Time horizon ≥ surrender period
- Liquidity needs covered elsewhere
- Clear understanding of how credits are calculated CTA:
- Speak with an annuity specialist at My Annuity Store: 855-583-1104
- Get a Personalized Quote
- Plan with Journey Guide
Bottom Line: The Security Benefit Strategic Growth Annuity is a competitive FIA for savers who want principal protection, tax deferral, and market-linked growth without equity downside. It’s best for 7–10 year money, you don’t need to tap beyond free withdrawal features. The real differentiators are the index lineup, renewal rate fairness, and whether an optional income rider is attractive for your plan.
Next Steps
- Call 855-583-1104
- Get a Quote online in minutes
- Plan with Journey Guide to see where an FIA fits in your retirement income plan
Company Information
Security Benefit Life Insurance Company
800-888-2461
Founded in 1892
A.M. Best A-
Fitch A-
Standard & Poor’s A-
Comdex 57
Security Benefit Strategic Growth Annuity Specifics
Free Withdrawals | |
|---|---|
Free Withdrawal | None (1st year) 10% (2nd+ year) |
Free Withdrawal Base | Vested Account Value |
Cumulative Withdrawal | No |
Contract Features | |
|---|---|
Market Value Adjustment | Yes |
Return of Premium | No |
Death Benefit | Greater of Accumulation Value and Surrender Value |
Guaranteed Minimum Cash Surrender Value | |
Initial GMCSV | 87.5% of premium |
GMCSV Annual Interest | 2.8% |
Waivers | |
Nursing Home | If after the contract issue date the owner becomes confined in a hospital or Qualified Nursing Facility for 90 consecutive days, the Owner may withdraw up to the full Account Value without Surrender Charges and MVA. The request for such waiver must be made after the 3rd Contract Anniversary. |
Terminal Illness | SBL will waive the Surrender Charge and MVA on full or partial withdrawals if the Owner is diagnosed with a terminal illness after the contract issue date. The request for such waiver must be made after the 3rd Contract Anniversary. |
Death Benefit If the Owner (or the Annuitant if the Owner is not a natural person) or a Joint Owner who is the spouse of the Annuitant dies, the death benefit is the greater of: (i) the Guaranteed Minimum Cash Surrender Value, or (ii) the Account Value, less any applicable premium tax. If a Joint Owner who is not the spouse of the Annuitant dies, the death benefit is equal to the Cash Surrender Value. Free Withdrawal Beginning in the second contract year, 10% of the prior Contract Anniversary’s Account Value (for each subsequent year) is available without a Surrender Charge, or MVA (if applicable). Free Withdrawal amounts not taken in one contract year may not be carried over to a subsequent year. Market Value Adjustment (MVA) During the Surrender Charge period, an MVA is applied to withdrawals in excess of the Free Withdrawal amount, full surrenders, or the death benefit paid on the death of a Joint Owner who is not the Annuitant’s spouse. | |
Minimum Investment | $25,000 |
Maximum Investment | $1,000,000 Higher Limits may be available with Home Office Approval |
Flexible Premiums | First Year or Less |
Minimum Additional Investment | $1,000 |
Types of Funds |
TSP funds would be accepted as a rollover. |
Age restrictions | |
|---|---|
Owner | 0 – 80 |
Annuitant | 0 – 80 |
Premium notes | |
|---|---|
Premium Notes Minimum Premium: $25,000 Subsequent Premium Minimum of $1,000 allowed prior to the first Contract Anniversary. Additional premiums accepted as both Lump Sum and Periodic payments. Maximum Premium: Anticipated amount of more than $1,000,000 requires prior company approval. | |
Type | Fixed Index |
|---|---|
Purpose | Accumulation |
Term | 10 Years |
Surrender schedule | 12%12%11%11%10%9%8%7%6%4% |
Free withdrawal | 10% |
Flexible premium | First Year or Less |
Market value adjustment | Yes |
Return of premium | No |
The Security Benefit Strategic Growth Annuity, issued by Security Benefit Life Insurance Company (SBL), is a modified single premium, deferred fixed index annuity contract that provides a combination of guarantees, flexible interest choices, and withdrawal options.
This annuity may be well suited for a consumer/individual who has a sum of money the consumer/ individual does not want to place in the market, yet would like the potential for accumulation without risk.
Rate Buy Up Feature – Account Fee
The Rate Buy Up Feature is available on each index crediting option. For a monthly charge, each Index Account using this feature in which the contract value is allocated, may provide the owner a higher interest credit rate through a higher cap, higher participation rate, and/ or lower spread as applicable.
At the end of the surrender charge period, if the total Buy Up Costs are greater than the total index interest credits (including non Buy Up Options), then the excess of the total Buy Up Costs over the total index interest credits will be refunded to the contract’s Fixed Account.
Please note: the refund of Buy Up Charges does not apply if an excess withdrawal is taken from the contract (an excess withdrawal is a withdrawal that exceeds the annual free withdrawal limit). Refer to the Rate Buy Up Feature Brochure for details.
