Total Interest Annuity review

It depends. For someone who wants a plain guaranteed-rate annuity with no index exposure and a low entry point, this is a reasonable product. For someone who wants a shorter commitment, guaranteed lifetime income, or the ability to access funds freely in early years, it is not the right fit. The 10-year surrender period is long for a fixed annuity — buyers should be confident they will not need the money during that window, because early surrender penalties start at 8.5%.

The rational case for this product is simplicity and predictability. You know the rate for the first year. You know the floor rate for the life of the contract (2.65% guaranteed minimum). The 2% first-year bonus adds a meaningful lift during the initial accumulation period. For a buyer who finds indexed products confusing or who wants to set-and-forget retirement savings, a fixed annuity is a reasonable choice. The $2,500 minimum also makes this accessible to buyers who cannot meet the higher entry thresholds that many competitors require.

I think this product is best for a conservative saver — likely in their 50s or early 60s — who has a specific pool of money they will not need for at least 10 years and wants it to compound at a guaranteed rate without any market risk. It works in qualified accounts (IRA, Roth IRA, SEP-IRA, 403(b)) as well as non-qualified. It is less appealing for someone who wants index-linked upside, needs flexible access to funds, expects to need income distributions soon, or is comparing this against shorter-duration MYGAs with competitive rates.

You are buying a contractual guarantee from Security Benefit Life Insurance Company that your money will earn at least 2.65% annually (the guaranteed minimum interest rate), and likely more based on the current declared rate. There is no index participation, no volatility, and no market risk to the account value. The tradeoff is that you are tying up that money for a decade, and while the 10% free-withdrawal provision provides some access after year one, pulling out more than that triggers charges. This is an insurance contract — the growth guarantee is backed by the financial strength of the issuing company, rated A- by A.M. Best.

The crediting structure has three distinct phases. For the first 12 months, contributions earn the initial declared rate plus a 2% bonus rate layered on top. After month 12, the contract transitions to a renewal rate set quarterly for the 12-24 month window, and then to a second renewal tier for month 25 and beyond. The guaranteed minimum interest rate — 2.65%, fixed at contract issue — provides a floor for all three phases.

The practical implication is that the first year is the most predictable. The bonus boosts early accumulation, but buyers should understand that the renewal rates past year one are not locked — they will reflect Security Benefit's declared rates at those future renewal points. If you are comparing this against a true multi-year guaranteed annuity (MYGA) where the same rate holds for the entire surrender period, this structure carries more renewal-rate uncertainty.

The 2% first-year interest bonus is the product's most distinctive feature outside the base rate. It applies to new contributions in the first 12 months, effectively giving buyers a head start on accumulation. Unlike some premium bonus products where the bonus is on the account value at issue but subject to a vesting schedule, this is structured as an enhanced interest rate — so it compounds into the account value without a separate recapture provision in standard terms.

The optional Return of Purchase Payments Guarantee Rider (available for non-403(b) accounts) adds a second layer of value for buyers who want a backstop: for a 0.10% reduction in crediting rate, the rider guarantees that the owner can recover at least their original premiums even if market conditions or early surrender would otherwise produce a lower outcome.

This is a 10-year product and should be treated as such. Free withdrawals of 10% of contract value are available annually after the first contract year — not during year one. Any withdrawal beyond that 10% allowance is subject to surrender charges starting at 8.5% in year one and stepping down to 0% after year 10.

There is no market value adjustment (MVA) on this product, which is a meaningful distinction: your surrender penalty is the stated charge and nothing more, without the additional variability that comes with interest-rate-sensitive MVA calculations.

Note that surrender charge schedules differ in some states — Indiana, Maryland, Mississippi, and Washington use a 9-year schedule rather than the standard 10-year. The product is not available in New York or Oregon. For 403(b) contracts, there is an optional Surrender Charge Waiver for Early Retirement Rider that costs 0.25% in crediting rate but removes the surrender charge exposure in qualifying early retirement scenarios.

The base contract has no stated annual fee. The two optional riders carry crediting-rate reductions rather than explicit charges: the Surrender Charge Waiver for Early Retirement (403(b) only) costs 0.25% of crediting rate, and the Return of Purchase Payments Guarantee Rider costs 0.10%. These are modest and context-specific — neither is required.

The real tradeoff here is not a dollar fee — it is the renewal-rate structure. After the first year, you are exposed to Security Benefit's declared renewal rates, which may be higher or lower depending on the rate environment at each reset. A true MYGA would lock the rate for the full surrender period; this product does not. For buyers comparing this against a MYGA with a guaranteed multi-year rate, that distinction matters.

Legal Entity: Security Benefit Life Insurance Company

Parent: Eldridge Industries

A.M. Best Rating: A-