Why it earned this rating
Our assessment
Schwab Genesis is the Schwab-distributed VA for buyers outside the advisory channel. The 0.45% total annual expense is competitive but higher than the advisory version. The unique M&E reduction at $500,000 (0.25%) and $1,000,000 (0.20%) account values rewards larger buyers. There are no surrender charges. Issued by Protective Life with Schwab branding.
The short version
For Schwab clients with $100,000+ to deploy who want a no-surrender variable annuity with broad investment choice, Schwab Genesis is a competent product. The advisory version (0.25% total expense, $5,000 minimum) is more attractive for fee-based advisory clients, but Schwab Genesis works for Schwab clients who do not work through an RIA.
Key facts
**Product Type** Variable Annuity (I-share, no surrender, flexible premium first year)
**Issue Ages** 0–85
**Minimum Premium** $100,000
**Surrender Period** None (0 years)
**Subaccounts** 129 variable plus a 1-year fixed account
**Annual Contract Fee** None
**Total Annual Expense** 0.45% (reduces at $500K and $1M account values)
**Income Rider** SecurePay II (Schwab) optional
**Channel** Schwab Registered Investment Advisor
The full review
Is Schwab Genesis a Good Annuity?
Yes, for the right buyer. It fits Schwab clients with $100,000+ who want a no-surrender variable annuity with broad subaccount choice. It is less appealing for buyers with smaller balances, who get better terms in the advisory version of the product.
Why Someone Would Buy This Annuity
The main reason is the no-surrender structure paired with a competitive 0.45% base expense. The secondary reason is the M&E reduction at higher account values — at $500,000 the M&E drops to 0.25%, and at $1,000,000+ it drops to 0.20%. Larger buyers get materially better terms.
Who This Annuity Is Best For
I think Schwab Genesis fits best for Schwab clients in their 50s through 70s with $100,000+ to deploy who want tax-deferred market exposure with no surrender lockup. It is also a fit for clients using 1035 exchanges from older, higher-cost VAs.
What You're Really Buying Here
You are buying tax-deferred market exposure through an I-share VA structure issued by Protective Life and distributed through Schwab. You are not buying principal protection. The 0.45% total annual expense applies daily, with reductions at $500,000 and $1,000,000 account values.
How the Core Feature Works
Schwab Genesis has no surrender charges. The 0.30% M&E reduces to 0.25% if account value reaches $500,000-$999,999 or 0.20% if account value reaches $1,000,000+, measured at issue or on the most recent quarterly anniversary. The 129 variable subaccounts span institutional and retail share classes (0.03% to 3.29% net fees). Optional SecurePay II (Schwab) provides GLWB income guarantees. Return of Purchase Payments Death Benefit (Schwab) is also available. A 2% annuitization bonus applies for contracts annuitized at least 10 years after the tenth anniversary.
Why the Secondary Feature Matters
The tiered M&E reduction is the meaningful structural differentiator versus the advisory version. While Schwab Genesis Advisory has a flat 0.25% total expense, Schwab Genesis offers larger buyers a path to similar pricing through account value growth.
Liquidity and Surrender Schedule
There are no surrender charges. Buyers can withdraw any portion of account value at any time without insurance-company penalty (tax consequences may still apply). Surrender waivers are listed as N/A.
Fees and Tradeoffs
The 0.45% total annual expense (0.30% M&E + 0.15% admin) is competitive but higher than the advisory version. There is no annual contract fee. Subaccount fees range from 0.03% to 3.29% net. The $100,000 minimum is meaningfully higher than other Protective VAs.
Product snapshot
| Feature | Details |
| --- | --- |
| Product type | Variable annuity (I-share, no surrender) |
| Issue ages | 0-85 |
| Minimum premium | $100,000 |
| Surrender schedule | None |
| Annual contract fee | None |
| Total annual expense | 0.45% (reduces at $500K and $1M) |
| Subaccount fee range | 0.03% to 3.29% |
| Subaccounts | 129 variable plus 1 fixed |
| Current fixed account rate | 1.00% |
| Free withdrawal | All account value available at any time |
| Income rider | Optional SecurePay II (Schwab) |
| Death benefit | Greater of full account value or premiums paid (adjusted) |
| Surrender waivers | N/A |
| MGSV | N/A |
| State availability | Not approved in NY; variations in CT, NH, PA, SD, UT |
| Channel | Schwab RIA |
Carrier snapshot
Issued by Protective Life Insurance Company (A.M. Best A-plus, S&P AA-minus), distributed through Charles Schwab as Schwab Genesis Variable Annuity.
Final take
Schwab Genesis is a competent no-surrender variable annuity for Schwab clients with $100,000+ to deploy. The tiered M&E structure rewards larger account values. The advisory version (Schwab Genesis Advisory) is more attractive for fee-based advisory clients with smaller balances; Schwab Genesis is the better fit for buyers who do not work through an RIA but still want Schwab's distribution.