What Is the Security Benefit Strategic Growth Annuity?
The Security Benefit Strategic Growth Annuity is a fixed index annuity (FIA) issued by Security Benefit Life Insurance Company. It links interest credits to external market indexes – without putting your principal at risk – and is built for retirement savers who want more growth potential than a CD or MYGA but cannot afford to lose money in a market downturn.
Based on the most recent 10-year backtested period (2016-2025), the blended 50/50 allocation in this illustration produced an average annualized return of approximately 11.07%, turning a $100,000 premium into $286,030 in accumulation value by year 10.
- Product type: Fixed index annuity (FIA)
- Issuer: Security Benefit Life Insurance Company
- Minimum premium: $25,000
- Surrender period: 10 years
- Available in most states (not available in GU, NY, PR, VI)
Security Benefit Strategic Growth at a Glance
| Feature | Details |
|---|---|
| Purpose | Safe accumulation (no income rider) |
| Carrier | Security Benefit Life Insurance Company, founded 1892 (AM Best A-) |
| Surrender schedule | 10 years: 12%, 12%, 11%, 11%, 10%, 9%, 8%, 7%, 6%, 4% (lower in many states) |
| Market value adjustment | Yes in most states (how an MVA works) |
| Free withdrawal | 10% of prior-anniversary value a year, starting in year 2 |
| Death benefit | Greater of account value or guaranteed minimum cash surrender value |
| Rate Buy-Up | Optional monthly charge for higher rates; refunded if it costs more than it earns over the term |
| Illustration basis | April 26, 2026; male 60; Arizona; $100,000 IRA; 50% Morgan Stanley GEA, 50% S&P 500 |
What Does the Security Benefit Strategic Growth Pay?
| Strategy (1-year point-to-point) | Crediting | Most recent 10 years |
|---|---|---|
| Morgan Stanley Global Equity Allocator | 175% participation | 11.12% |
| S&P 500 | 80% participation, 3% spread | 11.04% |
| BlackRock Adaptive U.S. Equity 5% | Participation | 8.42% |
- Above-market participation: 175% on the Morgan Stanley index, but it launched in 2022.
- S&P 500 with real history: its worst decade (2007 to 2016) still credited 6.40% a year.
- Calmer alternative: the BlackRock index targets 5% volatility and lags in strong bull markets.
- Benchmark it: compare these with current fixed index annuity rates from other carriers.
Hypothetical Historical Rate of Return
The illustration split $100,000 evenly between the Morgan Stanley and S&P 500 strategies, replaying 2016 to 2025.
| Year | Credited rate | Account value | Cash surrender value |
|---|---|---|---|
| 1 | 4.90% | $104,901 | $92,313 |
| 5 | 13.34% | $180,547 | $164,081 |
| 7 (2022) | 0.00% | $208,922 | $193,880 |
| 10 | 5.36% | $286,030 | $275,678 |
- Backtest caveat: the Morgan Stanley index has live data only since 2022; earlier years are simulated.
- Floor at work: two years credited 0%, including 2022 when the S&P 500 fell 18.1%.
- Our planning range: plan on 4% to 7% a year; 11% repeats a strong decade.
- MYGA benchmark: At today's top 10-year rate of 6.30% (compound), $100,000 grows to about $184,218 over 10 years, a gain of $84,218. See current MYGA rates.
Hypothetical vs. guaranteed
Use our fixed annuity calculator to compare this hypothetical value to the guaranteed growth you would earn in a fixed annuity.
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Security Benefit Strategic Growth Strengths and Red Flags
What it does well
- 175% participation: well above the norm on the Morgan Stanley index.
- Buy-up refund: if the Rate Buy-Up costs more than it earns, you get the difference back.
- Full death benefit: heirs receive the account value, not the lower surrender value.
Red flags
- 12% early charges: years 1 and 2 are among the steepest in the industry.
- Young headline index: Morgan Stanley Global Equity Allocator launched in 2022.
- A- carrier: a notch below the A+ and A++ carriers we place.
- Buy-up refund strings: excess withdrawals cancel the refund protection.
Final verdict: the Security Benefit Strategic Growth is built for safe accumulation over a full 10 years. It earns our 4.0 rating for savers who won’t touch the money early. For lifetime income, the Athene Agility 10 fits better than the Security Benefit Strategic Growth.
Compare live rates on 137 fixed index annuities or visit our annuity review database.
This review is for educational purposes only and is not a recommendation or an offer to sell any annuity. Product features, index options, and rates can and do vary by state, and this product is not available for sale in every state. Always request a carrier illustration and work with a licensed annuity agent before you buy.
Frequently Asked Questions
What is the minimum premium for the Security Benefit Strategic Growth Annuity?
The minimum initial premium is $25,000. Subsequent premiums of at least $1,000 are accepted prior to the first contract anniversary. Premiums anticipated to exceed $1,000,000 require prior company approval.
What is the surrender charge period for the Security Benefit Strategic Growth Annuity?
The surrender period is 10 years. Surrender charges start at 12% in years 1 and 2 and decline to 4% in year 10. In most states, a market value adjustment (MVA) also applies to excess withdrawals during the surrender period. Free withdrawals of 10% per year are available without surrender charges starting in contract year 2.
How does the Morgan Stanley Global Equity Allocator index work in this annuity?
The Morgan Stanley Global Equity Allocator is a proprietary index that dynamically shifts between global equities and cash to manage volatility. In this annuity, a 175% participation rate is applied to the index's annual point-to-point return. If the index gains 10% in a year, your account is credited with 17.5%. If the index is flat or negative, you receive 0%. The index launched in October 2022, so performance prior to that date is based on backtested data.
Is the Security Benefit Strategic Growth Annuity available in all states?
No. The product is not available in Guam, New York, Puerto Rico, or the U.S. Virgin Islands. Surrender charge schedules also vary by state - California, Florida, and several other states have different surrender charge structures than the standard schedule shown in the main illustration.
What happens to my account value if I die during the surrender period?
If you (the owner) or a joint owner who is your spouse dies during the surrender period, your beneficiaries receive the greater of the Guaranteed Minimum Cash Surrender Value or the full Account Value - less any applicable premium tax. The death benefit equals the account value in this scenario, not the reduced cash surrender value. If a joint owner who is not the annuitant's spouse dies, the death benefit is limited to the cash surrender value.
