SecureFore II 7-Year review

Yes, for the right buyer. If you have money you genuinely will not need for seven years and want a guaranteed return with tax-deferred growth, this is a reasonable product. The rate is competitive within the 6-7 year MYGA peer group, the carrier is financially sound, and the structure is transparent. It becomes less appealing the shorter your actual time horizon — the combination of surrender charges and MVA can make early exits costly in a rising-rate environment.

The case for SecureFore II 7-Year is straightforward: guaranteed rate, guaranteed for the full term, tax-deferred compounding, and a death benefit that passes the full contract value to heirs without incurring surrender charges. A buyer who has $100,000 or more in conservative savings earning less than 5% and does not plan to touch it for seven years gets a meaningful yield advantage over short-term CDs without taking on market risk. The chronic and critical illness rider adds a real liquidity escape hatch if health circumstances change — that is not a trivial benefit on a seven-year contract.

I think this product is best for a pre-retiree or retiree in the 50-70 age range who has a defined bucket of conservative savings — qualified or non-qualified — they are comfortable setting aside. The $10,000 minimum makes it accessible, and the tiered rate rewards buyers with $100,000 or more. It is less suitable for someone who might need access to principal beyond 10% per year, someone shopping for lifetime income guarantees, or someone considering it as a short-term CD replacement. Seven years is a real commitment.

A MYGA is essentially a single-premium fixed annuity with a multi-year guaranteed rate instead of a one-year renewable rate. You deposit a lump sum, the carrier credits interest at the guaranteed rate each year, and the entire growth is tax-deferred until you take distributions. There are no moving parts — no indices, no caps, no participation rates. The rate is set at issue and does not change during the surrender period. What makes a MYGA different from a CD is the tax deferral, the annuity wrapper's access to insurance benefits like the illness rider and death benefit, and the surrender structure in place of FDIC deposit insurance. Neither is inherently better; they serve similar purposes with different mechanics and regulatory regimes.

The product credits interest at a fixed declared rate guaranteed for the full seven-year surrender period. As of the brochure date, the rate is 5.00% annually for deposits under $100,000 and 5.20% for deposits of $100,000 or more. Interest compounds annually inside the contract. You are not reallocating, selecting strategies, or monitoring index performance — the crediting is automatic. At the end of the seven-year period, the surrender charges drop to zero and you can take the full contract value, roll it into another annuity, or annuitize.

The tiered rate structure is worth noting. The 20-basis-point premium for larger deposits is modest but real. On a $200,000 contract held to maturity, the difference between 5.00% and 5.20% compounds meaningfully over seven years. It is not dramatic, but it is a reason to consider consolidating deposits if you're close to the $100,000 threshold.

The Chronic and Critical Illness Rider is the most meaningful secondary feature here. On a seven-year contract, the possibility that your financial circumstances change due to health is real. This rider allows penalty-free access to contract value if you are diagnosed with a chronic or critical illness, which can meaningfully change the liquidity calculus. It does not eliminate the MVA or surrender charges in all circumstances, but it provides a material release valve that a plain CD does not. A terminal illness waiver likely also applies — this is a standard provision on products from this carrier family. The combination makes the seven-year commitment somewhat less binding than the schedule alone suggests.

The standard free withdrawal is 10% of beginning-of-year contract value per year — in year one it is 10% of the original deposit. This is a workable provision for retirees taking income or managing RMDs, and required minimum distributions from qualified accounts are accommodated without incurring surrender charges.

Beyond the free amount, withdrawals during the surrender period are subject to a schedule that starts at 8% in years one and two, then steps down through 7%, 6%, 5%, 4%, and 3%, before reaching zero after year seven. An MVA — Market Value Adjustment — also applies on amounts subject to surrender charges. The MVA adjusts the surrender value based on the change in interest rates since issue: if rates have risen, the MVA reduces your net proceeds further; if rates have fallen, it can work in your favor. This means the real cost of an early exit is not just the stated charge — it is the charge plus or minus the MVA, which is unpredictable. Buyers who may need the money before year seven should treat the surrender schedule as a floor cost, not a ceiling.

There is no base contract fee. There is no income rider fee. The illness rider appears to be included without an explicit annual charge, though buyers should confirm the current rider terms at application. In terms of explicit fees, SecureFore II 7-Year is a clean product.

The real costs are structural. Locking in a rate for seven years means you forgo the benefit of rising rates during that window — what earns 5.20% today may lag a rising-rate environment in years three through seven. The MVA quantifies that risk at exit. And unlike a bank CD, annuity withdrawals are subject to ordinary income tax plus a potential 10% federal penalty if taken before age 59½. The tax deferral is valuable for accumulation, but it is not free — you pay taxes on all gains when you eventually withdraw, rather than annually.

Legal Entity: Forethought Life Insurance Company

Parent: Global Atlantic Financial Group

A.M. Best Rating: A