Security Benefit Enhances its Strategic Growth Series of Annuities with Next Generation Capabilities
TOPEKA, Kan.--(BUSINESS WIRE)--Jan 10, 2023--
Security Benefit Life Insurance Company (Security Benefit) today announced key enhancements to its Strategic Growth Series of Annuities, including the addition of a Rate Buy Up option across the series that allows retirement savers to enhance their potential contract accumulation, the launch of the Strategic Growth 7 product with a 7-year surrender charge schedule, and index accounts based on two new indices to further diversify the available crediting strategies.
“We continue to develop next generation products and enhancements to help financial professionals meet client retirement goals,” said Roger Offermann, Chief Actuary and Chief Product Officer at Security Benefit. “The Rate Buy-Up Feature is an important option that, for a charge, allows contract owners the potential to enhance their interest credits through higher cap rates, participation rates, and/or lower spreads. The addition of Strategic Growth 7, a new product to the series, provides financial professionals with an additional choice with a shorter 7-year surrender charge period as compared to other products in the series.”
The index additions are designed to help address challenges posed by changing economic conditions. “Adding these two new indices and crediting strategies to the product series expands choice for potential accumulation benchmarked against an even broader range of asset classes,” added Offermann. The new indices include:
The UBS Multi-Asset Inflation Aware Indexaims to provide global exposure to equities, bonds, and commodities based on a risk-based allocation approach that is informed by market sentiment regarding the changing U.S. inflationary environment. Each asset class features its own investment mechanism—equities use an intraday rebalancing methodology, bonds leverage a dynamic weighting mechanism to adapt to changing rates, and a diversified commodity strategy is used as an uncorrelated source of potential return. The Index targets a volatility of 5% aimed at smoothing returns over time and is rebalanced daily. Asset class allocations are guided bya risk budgeting approach with target risk budgets based on current inflation estimates updated monthly.
The Morgan Stanley Global Equity Allocator Indexprovides exposure to global equities employing a momentum-based allocation strategy. The Index targets 10% realized volatility, and adjusts exposure to US Equities intraday, while adjusting all other allocations by the end of the day. A momentum signal is calculated for each equity component based on the risk-controlled underlying index prices and is used as an indicator of the corresponding equity futures performance. If the Index’s U.S. equity holdings experience significant changes in volatility intraday, the Index can rebalance to bring volatility back to target. A dynamic fee mechanism built within the Index allows for a larger allocation to non-cash assets and greater participation in upside performance in a cost-controlled manner.
Each product in the Strategic Growth Series will offer an Annual and 2-year Point to Point Index Account benchmarked against each of these new indices, with each index account also offering the new Rate Buy Up Feature.
FIAs are a flexible vehicle that offer contract-holders the ability to de-risk their portfolios by safely accumulating and growing retirement assets without the risk of market losses. This makes FIAs appealing fixed income alternatives for many retirement portfolios as they guarantee principal and are free from bond market risk, interest rate risk, and sequence of returns risk.
Offered through Security Benefit’s exclusive distribution group of select IMOs, financial professionals can visit www.sbelitepartners.com to learn more about the Strategic Growth Series of Annuities and how they can be used to help their clients protect and accumulate retirement assets.
About Security Benefit
Security Benefit Corporation (“Security Benefit”), through its subsidiary Security Benefit Life Insurance Company (SBL), a Kansas-based insurance company that has been in business for more than 130 years, is a leader in the U.S. retirement market. Security Benefit together with its affiliates offers products in a full range of retirement markets and wealth segments for employers and individuals and held $45.9 billion in assets under management as of June 30, 2022. Security Benefit, an Eldridge business, continues its mission of helping Americans To and Through Retirement ®. Learn more at www.securitybenefit.com and follow us on LinkedIn, Facebook or Twitter.
Security Benefit Corporation and its affiliates are not fiduciaries. This information is general in nature and intended for use with the general public. For additional information, including any specific advice or recommendations, please visit with your financial professional.
The Security Benefit Strategic Growth Series Annuities, modified single premium, deferred fixed index annuity contracts, are issued by Security Benefit Life Insurance Company (SBL). In most states, the Strategic Growth Series Annuities are issued on form 5600 (9-19). In Alaska, Connecticut, Idaho, Indiana, Maryland, Massachusetts, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Utah, Virginia, and Washington the Strategic Growth Series Annuities form is ICC19 5600 (9-19).
Guarantees provided by annuities are subject to the financial strength of the issuing insurance company. Annuities are not FDIC or NCUA/NCUSIF insured; are not obligations or deposits of, and are not guaranteed or underwritten by any bank, savings and loan or credit union or its affiliates; are unrelated to and not a condition of the provision or term of any banking service or activity.
Fixed index annuities are not stock market investments and do not directly participate in any equity, bond, other security, or commodities investments. Indices do not include dividends paid on the underlying stocks and therefore do not reflect the total return of the underlying stocks. Neither an index nor any fixed index annuity is comparable to a direct investment in the equity, bond, other security, or commodities markets.
MORGAN STANLEY GLOBAL EQUITY ALLOCATOR INDEX (THE “INDEX” OR “MSGE INDEX”) IS THE PROPERTY OF MORGAN STANLEY & CO. LLC.
ANY PRODUCT THAT IS LINKED TO THE PERFORMANCE OF THE INDEX IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY MORGAN STANLEY & CO. LLC, OR ANY OF ITS AFFILIATES (COLLECTIVELY, “MORGAN STANLEY”). NEITHER MORGAN STANLEY NOR ANY OTHER PARTY (INCLUDING WITHOUT LIMITATION ANY CALCULATION AGENTS OR DATA PROVIDERS) MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, REGARDING THE ADVISABILITY OF PURCHASING ANY PRODUCT LINKED TO THIS INDEX. IN NO EVENT SHALL MORGAN STANLEY HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES INCLUDING LOST PROFITS, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. THE INDEX IS THE EXCLUSIVE PROPERTY OF MORGAN STANLEY. MORGAN STANLEY AND THE INDEX ARE SERVICE MARKS OF MORGAN STANLEY AND HAVE BEEN LICENSED FOR USE FOR CERTAIN PURPOSES BY SECURITY BENEFIT LIFE INSURANCE (“LICENSEE”). NEITHER MORGAN STANLEY NOR ANY OTHER PARTY HAS OR WILL HAVE ANY OBLIGATION OR LIABILITY TO OWNERS OF THIS PRODUCT IN CONNECTION WITH THE ADMINISTRATION OR MARKETING OF THIS PRODUCT, AND NEITHER MORGAN STANLEY NOR ANY OTHER PARTY GUARANTEES THE ACCURACY AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN.
No purchaser, seller or holder of this product, or any other person or entity, should use or refer to any Morgan Stanley trade name, trademark, or service mark to sponsor, endorse, market, or promote this product, without first contacting Morgan Stanley to determine whether Morgan Stanley’s permission is required. Under no circumstances may any person or entity claim any affiliation with Morgan Stanley without the prior written permission of Morgan Stanley.
The Index includes a variable index deduction mechanism that scales upward based on positive performance of the Index. Such index deduction is applied when calculating the level of the Index and will thus reduce the return of the Index and any product linked to the Index. The Index applies a bespoke volatility control mechanism to identify changing market conditions using intraday data and stabilize the overall level of risk of the Index. The volatility control calculation applied by Morgan Stanley as part of the Index’s methodology may decrease the Index’s performance and thus the return of any product linked to the Index. In addition, because the volatility control calculation is expected to reduce the overall volatility of the Index, it will also reduce the cost of hedging certain products linked to the Index.
Morgan Stanley may transact derivative transactions linked to the Index. Potential purchasers of products linked to this Index should refer to the full offering document for important information concerning such products, including the related risk factors and determine their own appraisal of the risks and suitability of such products.
UBS AG AND ITS AFFILIATES (“UBS”) DO NOT SPONSOR, ENDORSE, SELL, OR PROMOTE THE STRATEGIC GROWTH ANNUITY SERIES (THE “PRODUCT”). A DECISION TO PURCHASE THE PRODUCT SHOULD NOT BE MADE IN RELIANCE ON ANY OF THE STATEMENTS SET FORTH IN THIS DOCUMENT. PROSPECTIVE CUSTOMERS ARE ADVISED TO PURCHASE THE PRODUCT ONLY AFTER CAREFULLY CONSIDERING THE RISKS ASSOCIATED WITH PURCHASING THE PRODUCT, AS DETAILED IN THE PRODUCT STATEMENT OF UNDERSTANDING OR SIMILAR DOCUMENT PREPARED BY OR ON BEHALF OF SECURITY BENEFIT LIFE INSURANCE COMPANY (“LICENSEE”), THE ISSUER OF THE PRODUCT. UBS HAS LICENSED CERTAIN UBS MARKS AND OTHER DATA TO Licensee FOR USE IN CONNECTION WITH THE PRODUCT AND THE BRANDING OF THE PRODUCT, BUT UBS IS NOT INVOLVED IN THE CALCULATION OF THE PRODUCT, THE CONSTRUCTION OF THE PRODUCT’S METHODOLOGY OR THE CREATION OF THE PRODUCT, NOR IS UBS INVOLVED IN THE SALE OR OFFERING OF THE PRODUCT, AND UBS DOES NOT MAKE ANY REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE PRODUCT.
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CONTACT: Media Contacts:
Michael Castino, Director of Public Relations, Security Benefit
email@example.comGrant Waldvogel, Prosek Partners
KEYWORD: UNITED STATES NORTH AMERICA KANSAS
INDUSTRY KEYWORD: OTHER PROFESSIONAL SERVICES PROFESSIONAL SERVICES INSURANCE FINANCE
SOURCE: Security Benefit Corporation
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PUB: 01/10/2023 09:00 AM/DISC: 01/10/2023 09:02 AM