Why it earned this rating
Our assessment
RateTrack 5-Year earns a solid rating because the SOFR-linked floating component gives buyers genuine upside when short-term rates are elevated — something most MYGAs do not offer. It is held back from a stronger rating by steep first-year surrender charges, limited state availability (CT, PA, TX only), and the reality that effective yield depends on how SOFR behaves over the contract period.
The short version
This is a 5-year fixed annuity with a built-in floating element: your credited rate each year is the insurer's fixed base rate plus that year's 3-Month CME Term SOFR Reference Rate, all subject to a 6% annual cap. The guaranteed minimum base rate is 1.10%, so you are never entirely at the mercy of the market — but your actual yield can rise meaningfully if short rates stay high. For buyers who think short-term rates will remain elevated for most of the contract and want principal protection, RateTrack offers something a standard MYGA does not.
Key facts
The full review
Is Security Benefit RateTrack 5-Year a Good Annuity?
It depends on the rate environment. In a period of elevated short-term rates, the SOFR-linked component adds real yield potential above a basic locked-rate MYGA. In a falling-rate environment, the floating element adds less and you are effectively earning close to the 1.10% guaranteed base. For a buyer in one of the three approved states who wants CD-like simplicity but would benefit if rates stay high, it is a reasonable product. For a buyer who simply wants the highest guaranteed fixed rate available today, a traditional MYGA will likely be more predictable.
Why Someone Would Buy This Annuity
The rational case for RateTrack is the floating-rate mechanic. Buyers who want a principal-protected annuity for 5 years but are reluctant to lock into a fixed rate in an uncertain rate environment get a structure that allows the yield to adjust upward as SOFR moves. The $10,000 minimum is accessible. The free-withdrawal provision is standard. And there are no rider fees or ongoing costs eating into returns.
Who This Annuity Is Best For
I think RateTrack 5-Year is best for a buyer in CT, PA, or TX who is in or near retirement, holding short-duration fixed assets, and who prefers the idea of some rate sensitivity in their annuity without taking market risk. Qualified money (IRA) works fine here. Non-qualified money is also eligible, though the stretch annuity option on incoming non-qualified or inherited IRA transfers adds flexibility for estate planning situations. It is not a good fit for someone outside those three states, or someone who needs more than the free-withdrawal amount during the surrender period.
What You're Really Buying Here
You are buying a guaranteed-floor annuity with a floating layer on top. The insurer locks in a base rate for the full 5 years — currently 1.10%. Each contract year, they also credit you the 3-Month CME Term SOFR Reference Rate for that year, up to the 6% total annual cap. So if SOFR is running at 4.5% for a given year, your total credited rate for that year is 1.10% plus 4.50%, or 5.60% — capped at 6% if the total exceeds that. This is not an indexed annuity with complex crediting formulas. It is closer to a variable-rate MYGA with a floor.
How the Core Feature Works
Every contract year, Security Benefit credits the sum of two components: (1) the Guarantee Period Base Rate, which is fixed at 1.10% for the entire 5-year term, and (2) the 3-Month CME Term SOFR Reference Rate, which resets annually based on the prevailing SOFR level. The total credited rate for any given year cannot exceed 6.00%.
In a high-rate environment, this structure allows buyers to earn meaningfully more than the base — potentially close to the 6% cap. In a low-rate environment, or if SOFR turns negative, the total credited rate compresses toward the base guarantee or lower. The spec notes that a negative SOFR reading would technically be deducted from the credited rate, which could reduce the actual credit below the 1.10% base. That scenario is unlikely but worth understanding before purchase. Confidence on the negative-SOFR deduction mechanics is medium per the extraction materials — verify the exact contract language if this is a concern.
Why the Secondary Feature Matters
The secondary feature worth noting is the nursing home and terminal illness waiver suite. After the third contract year (or the first year in Pennsylvania and Texas, and beginning the first year in Connecticut), surrender charges are waived if the annuitant enters a nursing home or is diagnosed with a terminal illness. For a 5-year product, those waivers meaningfully reduce the liquidity risk for someone who might need access due to a health event. The availability varies by state, so buyers should confirm the exact terms for their state before purchase.
Liquidity and Surrender Schedule
The surrender schedule here is steep by MYGA standards — 9% in year one, stepping down to 5% in year five. For a 5-year product, most competitors use schedules that start lower or step down more gradually. Buyers should treat this as a 5-year commitment with limited flexibility above the free-withdrawal amount.
The free-withdrawal provision is standard: 10% of premiums paid in year one, then 10% of the previous anniversary account value from year two onward. A minimum balance of $2,000 (qualified) or $5,000 (non-qualified) must remain in the contract. There is no MVA, which means the charge is a flat percentage rather than a market-adjusted penalty.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
| 4 | 6% |
| 5 | 5% |
| 6 | 0% |
Fees and Tradeoffs
There are no ongoing contract fees and no rider fees, because no riders are available. The only explicit cost is the surrender charge schedule if you withdraw more than the free amount during the 5-year period.
The structural tradeoffs are worth naming plainly. The floating component introduces yield uncertainty — you do not know what your all-in credited rate will be in years two through five. The 6% annual cap limits upside even if rates spike. The 1.10% guaranteed base is the floor, and in a low-rate environment the total yield may be modest. And the product is currently available only in Connecticut, Pennsylvania, and Texas, which significantly limits the addressable market.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 5 years |
| Issue Ages | 0-90 |
| Minimum Premium | $10,000 |
| Indices | 3-Month CME Term SOFR Reference Rate |
| Crediting Methods | Fixed base rate plus floating rate |
| Free Withdrawal | Year 1: 10% of premiums paid; Years 2+: 10% of previous anniversary account value. Must leave $2,000 (qualified) or $5,000 (non-qualified) in account. |
| MGSV | Varies 1-3% guaranteed annual return |
| Death Benefit | 100% of Account Value, less any applicable premium tax |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Approved in CT, PA, TX. Not approved in NY. |
Carrier snapshot
Legal Entity: Security Benefit Life Insurance Company
Parent: Eldridge Industries
A.M. Best Rating: A-
Final take
RateTrack 5-Year is a reasonable product for a specific buyer in a specific rate environment. If you are in Connecticut, Pennsylvania, or Texas, have a 5-year time horizon for a portion of your fixed assets, and think short-term rates will stay elevated, this structure gives you more rate exposure than a typical locked-rate MYGA. The guaranteed floor, no fees, and standard free-withdrawal terms make it a clean product to evaluate.
The case against it is equally clear. The surrender charges are steep, the floating mechanic makes total return unpredictable, the 6% cap limits the upside even in a strong rate environment, and geographic availability is limited to three states. If you want certainty — a single locked rate for five years — a traditional MYGA will serve that goal more cleanly. RateTrack makes the most sense for buyers who understand the mechanics and specifically want the floating-rate exposure.