SecureDesigns B-Share review

Yes, for the right buyer — but the buyer is narrower than the marketing suggests. This is a good annuity for someone who has already maxed out tax-advantaged retirement accounts, has $100,000+ to deploy, wants ongoing exposure to actively managed subaccounts, and views the 7-year surrender period as compatible with their time horizon. It is a poor fit for someone shopping for guaranteed lifetime income, someone with less than $25,000 to invest where the M&E sits at 0.85%, or someone who wants direct, low-cost market participation without insurance wrapper expenses.

The rational reason to buy a B-share VA like this one is tax deferral on a portfolio you intend to hold and reposition for many years. Subaccount switches inside the contract do not trigger taxable events, which matters if you are an active reallocator using mutual-fund-style investments. The B-share specifically — versus the C-share or L-share — gets you a lower annual M&E in exchange for accepting the surrender period. At $100,000 and above the 0.60% M&E on this contract is reasonable for a B-share, and the fund menu is broader than most of its peers.

I think SecureDesigns B-Share is best for a non-qualified investor in their 40s or 50s with at least $100,000 to commit, a multi-decade investment horizon, and a clear preference for active subaccount management inside a tax-deferred wrapper. It can also work for higher-net-worth investors using qualified rollover money who are comfortable with a 7-year commitment. It is not the right product for someone primarily interested in guaranteed lifetime income, someone who needs liquidity sooner than 7 years, or someone investing less than $25,000 where the all-in cost stack erodes the tax-deferral benefit.

You are not buying market exposure that you could not get elsewhere. The underlying subaccounts in this contract are largely mutual-fund-style portfolios that exist in the broader market. What you are buying is an insurance wrapper around those funds that defers taxes on gains and distributions until withdrawal, plus an optional stepped-up death benefit and a few liquidity waivers. The B-share label specifically signals the cost-and-commitment structure — longer surrender, lower ongoing M&E — versus the higher-M&E, shorter-or-no-surrender alternatives. The right way to think about this product is as a tax-deferred investment account with insurance features bolted on, not as an annuity in the traditional guaranteed-income sense.

The core feature is the subaccount platform combined with the tax-deferred wrapper. There are 85 variable subaccounts spanning equity, fixed income, balanced, sector, alternative, and target-date strategies, plus a single Fixed Account that pays a declared rate (currently disclosed as 3.00% on smaller balances, 3.15% mid-band, and 3.25% on larger balances, though these rates change). You allocate purchase payments across these options at issue and can rebalance later — the brochure allows 14 free transfers per year with a $500 minimum per transfer, and there is no transfer fee.

The B-share share class drives the cost-and-commitment math. The base M&E charge is banded by account value: 0.85% under $25,000, 0.70% from $25,000 to $99,999, and 0.60% at $100,000 and above. Add the 0.15% administration fee and a $30 annual policy fee (waived above $50,000), and a $100,000 contract is running 0.75% in contract-level charges before any underlying subaccount expenses, which themselves range from 0.61% to 2.44%. That total cost stack is the number to evaluate against whatever low-cost alternative you would otherwise own.

The secondary feature worth attention is the optional rider set, which is unusually configurable for a B-share. The Annual Stepped-Up Death Benefit at 0.20% locks in the highest contract-value anniversary before age 81 — useful in volatile years if legacy is part of the plan. The optional 4% Extra Credit Rider adds a 4% bonus on purchase payments in the first year, but costs 0.55% annually for the first seven years and the bonus vests over seven years, so the math only works if you genuinely intend to hold through the surrender period. The Waiver of Withdrawal Charges rider at 0.05% covers terminal illness, nursing home stays, and total permanent disability before age 65, though nursing-home coverage is not available in California or Massachusetts and the terminal illness waiver is excluded in California and New Jersey. There are also two alternate withdrawal-charge structures — a 4-year schedule at 0.60% and a 0-year (no surrender) schedule at 0.70% — which let buyers customize the surrender-cost tradeoff at issue.

The standard B-share schedule is 7%, 7%, 6%, 5%, 4%, 3%, 2%, then 0%. Free withdrawal is 10% of cumulative Purchase Payments in the first contract year, and 10% of Contract Value thereafter — a slightly above-average free-withdrawal structure for a B-share. Withdrawals before age 59.5 may incur the standard 10% IRS penalty tax on top of any contract charges, which is a federal rule rather than a product feature.

RMDs are accommodated — the brochure positions the product as RMD-friendly, meaning required minimum distributions attributable to the contract are generally handled within the free-withdrawal allowance. The Waiver of Withdrawal Charges rider can also unlock the surrender penalty under qualifying terminal illness, nursing-home, or disability conditions (subject to the state exclusions above). Even so, a B-share variable annuity is not a product to fund with money you might need inside the next several years. The 7-year commitment is the entire reason the M&E sits where it does.

The B-share's headline cost is the M&E, which is banded: 0.85% under $25,000, 0.70% from $25,000 to $99,999, and 0.60% at $100,000 and above. Layered on top are a 0.15% administration fee, a $30 annual policy fee (waived above $50,000), and the underlying subaccount expenses, which the brochure discloses as ranging from 0.61% to 2.44%. The 2.44% upper end is unusually high and reflects specialty or alternative funds — for a normal allocation, expect underlying fund costs more in the 0.70% to 1.20% range.

Optional rider fees add up if you stack them. The 4% Extra Credit Rider at 0.55% is the most expensive of the bunch and only earns its keep if you actually hold seven years and use the bonus credit. The Annual Stepped-Up Death Benefit at 0.20% is reasonable for what it provides. The Waiver of Withdrawal Charges rider at 0.05% is cheap enough to be a near-default add for buyers who qualify. The alternate 0-year withdrawal-charge structure at 0.70% on top of the base M&E is one to look at carefully — pricing a no-surrender version 0.70% higher annually means the breakeven against the standard B-share comes very quickly, which usually argues for the standard schedule unless liquidity is critical.

The honest tradeoff: at $100,000 with a normal allocation, an all-in cost north of 1.50% to 2.00% per year (M&E + admin + underlying funds + optional riders) is the bar tax-deferral has to clear versus what you could own in a taxable brokerage account with low-cost ETFs. That math works for some buyers and not for others — it depends on your tax bracket, your time horizon, and how actively you would otherwise trade in a taxable account.

Legal Entity: Security Benefit Life Insurance Company

Parent: Eldridge Industries

A.M. Best Rating: A-

Security Benefit is a Topeka-based life and annuity carrier owned by Eldridge Industries since 2010. The A.M. Best rating shown is based on the brochure-disclosed figure and should be confirmed against the most current rating before purchase, since carrier ratings update periodically.