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)
About Security Benefit Life Insurance Company
Security Benefit Life Insurance Company has been in business since 1892 – over 130 years. The company is headquartered in Topeka, Kansas and focuses primarily on retirement and annuity products for individual savers.
Security Benefit holds an AM Best rating of A (Excellent), which reflects a strong ability to meet ongoing insurance obligations. When you purchase an annuity, your principal guarantee is only as good as the company behind it – Security Benefit’s long history and strong rating are meaningful factors here.
The company is not publicly traded and is structured as a mutual-type organization with a focus on long-term policyholder relationships rather than quarterly earnings targets.
How the Strategic Growth Annuity Works
Like all fixed index annuities, the Strategic Growth Annuity does not invest your money directly in the stock market. Instead, Security Benefit uses your premium to purchase fixed income instruments and options contracts. At the end of each annual crediting period, your account is credited with interest based on how a chosen index performed – subject to a participation rate, spread, or cap.
The key protection feature: if the index goes down, you receive 0% interest that year. You never lose principal due to market performance. Once interest is credited, it is locked in and cannot be taken away by future market losses.
Three indexed strategies are available on the Strategic Growth Annuity. This illustration was run with Strategy 1 and Strategy 2 in a 50/50 allocation (see the 10-year hypothetical below). Strategy 3 is an alternative allocation option using the BlackRock index:
Strategy 1: Morgan Stanley Global Equity Allocator (50%)
The Morgan Stanley Global Equity Allocator is a proprietary volatility-controlled index launched in 2022. It dynamically allocates across global equities and cash-equivalent instruments to manage volatility.
Current terms for this illustration:
- Crediting method: Annual point-to-point (PTP) with participation rate and spread
- Participation rate: 175%
- Annual reset: Yes
- Premium range: $25,000 – $1,000,000
A 175% participation rate means if the index gains 10%, your account is credited with 17.5% (before any applicable spread). This is one of the more aggressive participation rate structures available in the current FIA market.
Historical backtested performance (on $50,000 allocation):
| Period | Annualized Rate | $50,000 Grew To |
|---|---|---|
| Most Recent 10 Years (2016-2025) | 11.12% | $143,514 |
| Best 10-Year Period (2012-2021) | 12.66% | $164,676 |
| Worst 10-Year Period (2010-2019) | 10.56% | $136,464 |
Strategy 2: S&P 500 Annual Point-to-Point (50%)
The S&P 500 is the most widely recognized equity index in the world, tracking 500 large-cap U.S. companies. This strategy applies a participation rate and spread to annual S&P 500 gains.
Current terms for this illustration:
- Crediting method: Annual point-to-point (PTP) with participation rate and spread
- Participation rate: 80%
- Spread: 3%
- Annual reset: Yes
- Index inception: 1957
With an 80% participation rate and 3% spread, if the S&P 500 gains 20% in a year, your credited interest is: (20% x 80%) – 3% = 13% net. In a flat or down year, you receive 0%.
Historical performance (on $50,000 allocation):
| Period | Annualized Rate | $50,000 Grew To |
|---|---|---|
| Most Recent 10 Years (2016-2025) | 11.04% | $142,516 |
| Best 10-Year Period (2016-2025) | 11.04% | $142,516 |
| Worst 10-Year Period (2007-2016) | 6.40% | $92,942 |
The worst period for the S&P 500 strategy (2007-2016) included the 2008 financial crisis, where FIA floors held account values flat rather than declining. In a direct S&P 500 investment, that same client would have seen a 37% loss in 2008 alone.
Strategy 3: BlackRock Adaptive U.S. Equity 5% (Alternative 50% Option)
The BlackRock Adaptive U.S. Equity 5% is a volatility-controlled index that dynamically adjusts its exposure to U.S. equities with the goal of maintaining a 5% annualized volatility target. When market volatility rises, the index reduces equity exposure and shifts toward lower-risk instruments. This design produces smoother, more consistent annual returns – but typically delivers lower highs than unconstrained equity indexes.
This index launched on 03/13/2023, which means all historical performance data prior to that date is backtested, not live.
Current terms for this illustration:
- Crediting method: Annual point-to-point (PTP) with participation rate
- Allocation: 50% (alternative option – replaces one of the above strategies)
- Annual reset: Yes
- Inception date: 03/13/2023 (pre-2023 data is backtested)
Historical performance (on $50,000 allocation):
| Period | Annualized Credited Rate | $50,000 Grew To |
|---|---|---|
| Most Recent 10 Years (2016-2025) | 8.42% | $98,270 |
| Best 10-Year Period (2012-2021) | 10.79% | $122,043 |
| Worst 10-Year Period (2015-2024) | 8.40% | $97,692 |
Most recent 10-year credited interest by year (2016-2025):
| Year | Credited Rate | Accumulation Value |
|---|---|---|
| 2016 | 8.94% | $53,751 |
| 2017 | 22.23% | $64,820 |
| 2018 | 0.00% | $63,982 |
| 2019 | 18.91% | $75,013 |
| 2020 | 9.85% | $81,347 |
| 2021 | 11.94% | $89,900 |
| 2022 | 0.00% | $88,762 |
| 2023 | 6.81% | $93,526 |
| 2024 | 7.68% | $99,353 |
| 2025 | 0.24% | $98,270 |
How BlackRock compares to the other two strategies in the most recent 10-year period:
| Strategy | Most Recent 10-Year Annualized Rate |
|---|---|
| MS Global Equity Allocator (175% par rate) | 11.12% |
| S&P 500 (80% par, 3% spread) | 11.04% |
| BlackRock Adaptive U.S. Equity 5% | 8.42% |
The BlackRock strategy produced lower returns in the most recent 10-year period (2016-2025), which was dominated by strong equity bull market runs in 2017, 2019, 2020, 2021, 2023, and 2024. A volatility-controlled index like this one deliberately dials back equity exposure during high-volatility periods – which costs upside in calm, rising markets. The tradeoff is a more consistent year-to-year return pattern with less variability between good years and flat years.
Over the best 10-year period (2012-2021), the BlackRock strategy delivered 10.79% annualized – closer to the other two strategies – because that period included more volatility that the index was designed to navigate.
Buyers allocating to this strategy should expect lower average returns than the MS Global or S&P 500 strategies in strong bull markets, but potentially more resilience in choppy, sideways market conditions.
Hypothetical 10-Year Illustration: $100,000, Age 60
This section shows how the blended 50/50 portfolio would have performed using actual index returns from the most recent 10-year period (2016-2025), applied to current participation rates and spreads. This is a hypothetical illustration – it is not a guarantee of future results.
Client assumptions: Age 60, Male, $100,000 premium, Traditional IRA, no withdrawals taken, Arizona issue state.
| Year | Age | Credited Rate | Accumulation Value | Cash Surrender Value | Death Benefit |
|---|---|---|---|---|---|
| 1 | 60-61 | 4.90% | $104,901 | $92,313 | $104,901 |
| 2 | 61-62 | 22.16% | $128,113 | $113,999 | $128,113 |
| 3 | 62-63 | 0.00% | $128,113 | $115,430 | $128,113 |
| 4 | 63-64 | 23.83% | $158,925 | $142,853 | $158,925 |
| 5 | 64-65 | 13.34% | $180,547 | $164,081 | $180,547 |
| 6 | 65-66 | 16.08% | $208,922 | $191,744 | $208,922 |
| 7 | 66-67 | 0.00% | $208,922 | $193,880 | $208,922 |
| 8 | 67-68 | 18.82% | $248,594 | $232,655 | $248,594 |
| 9 | 68-69 | 10.18% | $272,243 | $257,400 | $272,243 |
| 10 | 69-70 | 5.36% | $286,030 | $275,678 | $286,030 |
10-year result: $100,000 grew to $286,030 in accumulation value – an annualized return of approximately 11.07%.
Key observations from the illustration:
- Years 3 and 7 received 0% interest credit – the floor held the account value flat rather than declining
- Year 7 (2022) was the year the S&P 500 fell 18.1%. A direct stock market investment would have lost roughly $37,000 on a $200,000 account at that point. This annuity held flat.
- Cash surrender value reflects the surrender charge schedule and market value adjustment (MVA). By year 10, the CSV closely approaches the accumulation value as surrender charges phase out.
- Death benefit equals accumulation value in all years of this illustration – meaning heirs receive the full account value, not just the surrender value.
Hypothetical illustration based on the most recent 10-year index period (2016-2025) applied at current participation rates and spreads. Past index performance is not a guarantee of future results. Actual credited interest rates are determined by Security Benefit annually and may be higher or lower than illustrated. Rates are subject to change.
Want to compare current fixed index annuity rates? See our regularly updated fixed index annuity cap and participation rates to benchmark this product against the market.
Surrender Charge Schedule and Liquidity
The Strategic Growth Annuity has a 10-year surrender charge period. Withdrawals in excess of the free withdrawal amount during this period are subject to a surrender charge and, in most states, a market value adjustment (MVA).
Surrender charge schedule (most states):
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Surrender Charge | 12% | 12% | 11% | 11% | 10% | 9% | 8% | 7% | 6% | 4% |
State variations:
- California: 8.1% – 0.9% declining over 10 years, no MVA
- Florida: 10% – 4% declining, no MVA
- Many states (AK, CT, DE, ID, IN, MD, MA, MN, MO, NV, NH, NJ, OH, OK, OR, PA, SC, TX, UT, VA, WA): 9% – 0.9% declining, no MVA
Free withdrawals: Beginning in year 2, you can withdraw up to 10% of the prior anniversary’s account value each year without a surrender charge or MVA. Free withdrawal amounts do not carry over to the next year – use it or lose it.
Required Minimum Distributions (RMDs): RMDs are typically accommodated within the contract structure. If you fund this with IRA money, confirm RMD handling with your agent before purchase.
Death Benefit
If the owner (or annuitant, if owner is not a natural person) dies during the surrender period, the death benefit equals the greater of:
- The Guaranteed Minimum Cash Surrender Value, or
- The Account Value, less any applicable premium tax
In the illustration above, the death benefit in every year equals the accumulation value – meaning your beneficiaries receive the full account value, not the reduced cash surrender value. This is a meaningful protection, especially during the early surrender charge years.
If a joint owner who is not the spouse of the annuitant dies, the death benefit equals the cash surrender value only.
Rate Buy-Up Feature
The Strategic Growth Annuity includes an optional Rate Buy-Up Feature. For a monthly charge, you can access higher participation rates, higher caps, or lower spreads than the standard current rates.
The tradeoff: if your total buy-up costs over the surrender period exceed your total indexed interest credits, Security Benefit refunds the difference back into your fixed account at the end of the surrender charge period. This refund protection does not apply if you take excess withdrawals during the surrender period.
This feature may be worth considering if you have a longer time horizon and want to maximize accumulation potential from the indexed strategies.
Income Rider: Not Available on This Product
The Strategic Growth Annuity is a pure accumulation FIA. There is no optional guaranteed lifetime withdrawal benefit (GLWB) or income rider, and therefore no rider fee. That is by design, and for the right buyer it is a feature rather than a gap: you are not paying the 0.95% to 1.25% a year that income-rider products charge for a guarantee you may never use, so 100% of your premium compounds inside the indexed strategies. If guaranteed lifetime income is your priority, an income-focused FIA such as the Nationwide Peak 10 or the Athene Agility 10 will fit better. If your priority is principal-protected growth that you can later annuitize or draw down on your own schedule, the absence of a rider keeps this contract lean.
What We Like About the Security Benefit Strategic Growth Annuity
- Strong 10-year hypothetical performance: ~11.07% annualized using the most recent index period
- 175% participation rate on the Morgan Stanley Global Equity Allocator is above-average for the FIA market
- 0% floor means you cannot lose principal to index performance
- Death benefit equals account value – not just surrender value – protecting heirs in early years
- Rate Buy-Up refund provision reduces downside risk of paying for the feature
- 10% annual free withdrawal from year 2
- Security Benefit’s 130+ year history and AM Best A rating
What Gives Us Pause
- 10-year surrender period is long – among the longer commitments in the FIA market
- Years 1 and 2 carry 12% surrender charges – among the highest in the industry
- The Morgan Stanley Global Equity Allocator index launched in 2022 and has limited live track record; performance prior to 2022 is backtested
- MVA applies in most states on excess withdrawals, which can amplify losses if you need liquidity in a rising rate environment
- Participation rates and spreads reset annually and can be changed by Security Benefit
- Not available in New York
Who Is the Security Benefit Strategic Growth Annuity Best For?
This product is a strong fit for a specific type of retirement saver. Consider it if you match this profile:
Best fit:
- Age 55-67, with a minimum 10-year time horizon before needing the funds
- $100,000 or more to allocate (the illustration uses $100,000; minimum is $25,000)
- You want market-linked upside but cannot risk principal loss – you have “safe money” to protect
- You are funding a Traditional IRA rollover (401k to IRA) and want tax-deferred accumulation
- You are comfortable with the 10% annual free withdrawal as your only liquidity for the first 10 years
Not a good fit if:
- You need access to more than 10% of the account in any given year during the first decade
- You are over 70 and starting RMDs – confirm RMD handling before purchase
- You are in New York (not available)
- You want a guaranteed fixed return rather than index-linked variability
Consider a MYGA (multi-year guaranteed annuity) instead if you want a locked-in guaranteed rate for 3-7 years with a shorter commitment. Consider a different FIA if you want a shorter surrender period.
How the Strategic Growth Annuity Compares to Direct Market Investment
The illustration includes a hypothetical comparison against the S&P 500 index using the same 10-year period (2016-2025). Over that specific period, the S&P 500 actually outperformed this annuity – which makes sense, because 2016-2025 was largely a bull market interrupted by a sharp but brief 2022 drawdown.
The value of the annuity’s floor protection is most visible in volatile or bear market periods. In the 2008 financial crisis period (the worst 10-year window for the S&P 500 strategy in this illustration), the annualized credited rate was 6.4% while the S&P 500 lost significant value in 2008 before recovering.
The tradeoff is simple: in strong bull markets, a direct index investment will likely outperform the annuity. In volatile or declining markets, the floor protection preserves principal and eliminates sequence-of-returns risk – which is most damaging in the early years of retirement.
For a complete comparison, read our Fixed Annuity vs. Fixed Index Annuity guide and our breakdown of the real drawbacks of fixed index annuities.
Want to model how a deposit grows year by year? Try our fixed annuity calculator.
Bottom Line Verdict
The Security Benefit Strategic Growth Annuity is one of the more aggressive accumulation FIAs we review, and for a “safe money” buyer who genuinely will not touch the funds for a decade, that aggression is the appeal. The 175% participation rate on the Morgan Stanley Global Equity Allocator is well above the FIA market norm, the 50/50 blend with the S&P 500 strategy produced an ~11.07% hypothetical annualized return ($100,000 to $286,030 over 10 years), and the Rate Buy-Up refund provision is a genuinely buyer-friendly twist, if the buy-up costs more than it earns, you get the difference back. Add a death benefit that pays the full account value and no rider fee dragging on accumulation, and the chassis is strong. The catch is liquidity: the 12% surrender charge in years one and two is among the steepest in the industry, the headline index has live data only back to 2022, and there is no income rider, so this is a growth vehicle, not an income plan. For the right time horizon and risk profile, it earns a recommendation.
Rating: 4 out of 5 stars – An above-market accumulation FIA with a clever rate buy-up refund, held back by a steep 12% early-surrender charge and a short live index history.
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.
Disclosure: This review is prepared by My Annuity Store, Inc. for educational purposes. The hypothetical illustration above is based on actual index performance from 2016-2025, applied at current participation rates and spreads as shown in the Annuities Genius illustration dated 04/26/2026. Past index performance is not a guarantee of future results. Participation rates, spreads, and credited interest are set annually by Security Benefit Life Insurance Company and are subject to change. All guarantees are subject to the claims-paying ability of Security Benefit Life Insurance Company. This is not a solicitation to purchase any specific product. Consult a licensed insurance professional before making any annuity purchase decision. My Annuity Store, Inc. is licensed to sell annuities in multiple states. Kiara Caudill, NPN 19609263.
Sources: Security Benefit Life Insurance Company Strategic Growth Annuity product illustration, Annuities Genius (04/26/2026) | AM Best financial strength ratings | LIMRA U.S. Individual Annuity Sales data
