SecureKey (Raymond James) 7-Year review

Yes, within its channel. For Raymond James clients who are comparing advisor-distributed FIAs, this is a solid offering. It is less compelling when compared against the broader market of open-architecture FIAs, where comparable or better terms may be available with different distribution structures. Whether it is the right product depends heavily on what else your advisor is offering and whether the 7-year horizon matches your actual plan.

The rational case is threefold. First, you want principal protection with some participation in index performance — the standard FIA value proposition. Second, you want to leave the income door open: ReadyPay lets you add a guaranteed-withdrawal benefit with a 7% roll-up, so if your retirement income plan evolves, the annuity can evolve with it. Third, you want a fixed account option as a simple alternative when index strategies feel uncertain — the current fixed rate is approximately 4.00% guaranteed for the 7-year period, which is competitive with many alternatives for the right buyer.

I think this product is best suited for someone between 55 and 70 who is working with a Raymond James advisor, has at least $25,000 in stable retirement dollars they do not plan to touch for seven years, and wants the optionality of future guaranteed income without locking into an income rider they may not need yet. It is less suited for someone who wants to comparison-shop across carriers, who may need the money before the 7-year window closes, or who has already decided they need guaranteed lifetime income from day one (in which case an income-focused FIA or SPIA might be more efficient).

You are buying an insurance contract that links interest crediting to index performance while keeping your principal protected from market losses. The actual index performance does not flow directly to your account — instead, crediting is determined by caps, participation rates, step rates, or performance triggers depending on which strategy you choose. The indexes serve as reference points for how much interest gets added to your account at the end of each crediting term. That is different from owning stocks or index funds. The upside is capped or limited by the crediting method; the downside floor is zero, meaning a down market year does not reduce your account value from index losses. What you are really trading is unlimited market upside for guaranteed principal protection and structural certainty.

SecureKey 7-Year gives you 12 indexed account options tied to four different indexes: the S&P 500, the Russell 2000, the MSCI EAFE, and the S&P 500 Low Volatility Price Return Daily Risk Control 5% Index. Crediting methods include cap rate, step rate, participation rate, participation rate with a spread, and performance-triggered. That is a reasonably deep menu for a 7-year advisor-channel product.

All strategies use 1-year crediting terms. At the end of each year, interest is calculated based on how the selected index performed against the method you chose. If the index is flat or negative, you earn zero for that term — but your account value stays the same. If the index performs positively, you earn interest up to your cap, at your participation rate, or at the trigger rate, depending on the strategy. Cap rates as of the brochure date ranged from approximately 9.25% to 10.50% depending on the index and strategy — these figures are subject to change at renewal. There is also a fixed account option currently paying approximately 4.00% for the 7-year contract period.

The ReadyPay GLWB rider is the secondary feature, and it matters because it makes this accumulation contract convertible into an income contract later. If you add the rider at issue, your benefit base grows at 7% simple for up to 10 years before you begin withdrawals, or resets to your account value if that is higher (annual step-up applies). Once you start income, withdrawal rates run from 5.75% to 7.00% for a single life and 5.25% to 6.50% for joint coverage, depending on your age when you first take income.

The cost is 1.00% annually, with a maximum of 2.00% if the carrier ever adjusts it. That fee runs against your account value whether or not you ever turn on income. If you decide in year five that you do not need guaranteed income after all, you will have paid five years of rider cost for nothing. That is the honest tradeoff. For someone who genuinely intends to use the income feature, the 7% roll-up and the step-up provision are meaningful.

The free-withdrawal provision gives you 10% of your purchase payment in year one and 10% of your account value in subsequent years, as long as the remaining account value stays above $2,000. RMDs attributable to this contract are not subject to surrender charges, which makes the product usable inside an IRA without penalty for routine distributions.

Beyond the free amount, you are subject to the surrender schedule: 9%, 8%, 7%, 6%, 5%, 4%, 3%, then 0% in year eight. A market value adjustment also applies to withdrawals subject to surrender charges, which means the actual penalty you pay can be higher or lower than the stated percentage depending on interest rate movements — typically higher if rates have risen since you bought. That is an important caveat in a rising-rate environment. Two waivers soften the edges: surrender charges are waived for nursing home confinement of 90 or more consecutive days and for terminal illness with a 12-month-or-less prognosis, both subject to the owner being age 80 or younger at issue.

The base contract carries no stated fee, which is straightforward. The only explicit cost is the ReadyPay rider at 1.00% annually if you elect it — and only if you elect it. The structural tradeoffs are more nuanced. Cap rates and participation rates can be adjusted at renewal, which means the terms that look attractive at issue may compress in future contract years. You have no control over that; the carrier sets renewal rates subject only to minimums stated in the contract.

The MVA adds a layer of interest-rate risk on top of surrender charges. If rates are significantly higher when you need to access money early, the total exit cost can be meaningfully larger than the stated surrender percentage alone. That is worth understanding before you commit.

Legal Entity: Brighthouse Life Insurance Company

AM Best Rating: A