RateTrack 7-Year review

It depends on what you are trying to accomplish. For accumulation-focused savers who want a no-fee fixed annuity with some exposure to short-term rate movements, this is a reasonable structure. The SOFR linkage is not for everyone — if you want a fully predictable return from day one, a plain MYGA is a cleaner choice. But if you are comfortable with some annual variability in the credited rate and want the potential to benefit from a higher-rate environment, RateTrack has a real use case.

The rational case for RateTrack is rate optionality inside a principal-protected wrapper. A buyer who expects short-term rates to remain elevated — or who simply wants a fixed annuity that is not entirely locked into today's rate — gets something here that most fixed annuities do not offer. Layered on top of that is the clean fee structure, the low minimum, and the broad issue-age range. The 7-year commitment is a real ask, but the free-withdrawal provision and hardship waivers provide some flexibility within it.

I think RateTrack 7-Year is best for a retirement saver in their 50s or 60s who has a defined portion of assets they want protected and growing for seven or more years, is not counting on income from this contract, and is willing to accept some annual rate variability in exchange for potential upside from short-term rates. It fits qualified money (IRA rollover) and non-qualified savings alike. It is less appealing for someone who wants a guaranteed fixed rate for the full term, needs income payments, or may need access to principal within the surrender period.

You are buying a principal-protected insurance contract that credits interest through a hybrid mechanism: a base rate locked at issue plus an annually resetting component tied to the 3-Month CME Term SOFR Reference Rate, both governed by a cap also set at issue. You are not buying stock market participation, and you are not buying a MYGA where the full rate is guaranteed upfront. The floating portion means each contract anniversary your credited rate for the coming year adjusts with SOFR, up to the cap. That makes this more dynamic than a standard fixed annuity but less exposed than any equity-linked product.

The RateTrack mechanic works as follows. At issue, Security Benefit sets two things: a base rate that applies for the full guarantee period, and a cap on the total credited rate. Each contract year, the floating component — the 3-Month CME Term SOFR Reference Rate — is observed and added to the base rate. If the sum exceeds the cap, the credited rate is the cap. If SOFR falls, you still earn at least the base rate. After the guarantee period ends, the rate is redetermined annually but is guaranteed to be no less than the contractual guaranteed minimum interest rate (GMIR).

In practice, this means your return in any given year depends on where short-term rates land. In a rising or elevated SOFR environment, a RateTrack buyer can credit more than the base rate alone would generate. In a falling-rate environment, the base rate acts as a floor within the guarantee period. The specific values — current base rate, cap, and GMIR — were not published in the available brochure materials. If you are shopping this product, asking the agent for a current illustration showing the base rate and cap is essential.

The absence of an MVA (market value adjustment) is a meaningful secondary feature. Many 7-year fixed annuities include an MVA clause that adjusts your surrender value up or down based on interest-rate movements at the time of withdrawal. RateTrack has no MVA. That means if you take an excess withdrawal during the surrender period, you face only the declared surrender charge — not an additional rate-driven adjustment that could compound your cost in a rising-rate environment. For a product with a SOFR-linked crediting design, where rate movements are already embedded in the crediting mechanic, the absence of an MVA on the surrender side is a notable structural feature.

The surrender schedule runs seven years, opening at 9% in year one and stepping down by one percentage point each year to 3% in year seven, then zero after the guarantee period ends. The 9% first-year charge is on the higher end for a 7-year product — many peers start at 7% or 8%. That distinction matters most for buyers who need to access principal early; for those who treat this as a true 7-year commitment, it is largely academic.

Free withdrawals are 10% of initial premium in year one, then 10% of the prior contract anniversary account value in each subsequent year. Note that year-one access is based on the original premium, not the then-current account value — a distinction that is slightly less favorable if the contract has grown. A nursing home waiver and a terminal illness waiver become available after the third contract year (or the first year in Pennsylvania and Texas, or from the start in Connecticut); these are not available in California, Massachusetts, or New Jersey for the terminal illness waiver. There is no RMD treatment specified in the available materials — buyers using this inside an IRA should confirm how required distributions are handled before purchase.

There are no base contract fees and no rider fees on RateTrack 7-Year. The fee-free structure is a genuine strength compared to income-rider FIAs where a 0.75%–1.25% annual fee can meaningfully erode accumulation over time.

The tradeoffs are structural rather than fee-based. The floating-rate component introduces variability — your total credited rate will differ from year to year within the cap. The cap itself, set at issue, limits how much you can benefit from a SOFR spike. The specific cap value was not disclosed in the available brochure materials. The MGSV (minimum guaranteed surrender value) was also not specified in available materials, which is an unusual gap for a fixed annuity; a buyer should confirm the minimum surrender floor with the issuing company before committing.

Legal Entity: Security Benefit Life Insurance Company

Security Benefit is a Topeka, Kansas-based insurer with roots dating to 1892. A financial strength rating was not available in the source materials for this review — buyers should request current ratings from AM Best, S&P, or Moody's before purchase.