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About Security Benefit
Security Benefit Life Insurance Company is a Kansas-based annuity provider known for fixed indexed annuities with sophisticated crediting strategies and a broad product portfolio spanning accumulation, income, and variable options. With strong financial ratings and deep expertise in custom index methodologies, Security Benefit serves both retail and RIA channels with flexible, principal-protected solutions.
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How we scored them
Income Options78/100
Financial Strength88/100
Fees & Costs80/100
Flexibility84/100
Customer Service82/100
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The tradeoffs
What works
- Exceptionally broad index crediting menu with volatility-controlled options
- RIA-channel no-surrender FIA with built-in return-of-premium protection
- Strong financial ratings and 70+ years of operational stability
- Flexible MYGA options including SOFR-linked floating-rate products
- Deep variable annuity lineup with multiple share classes for different needs
What to watch
- Many products feature market value adjustments that add exit-cost uncertainty
- Steep first-year surrender charges (often 9%) on accumulation FIAs
- Limited income rider availability compared to income-focused competitors
- Some brochure materials lack detailed disclosure of fees and participation rates
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What you could receive
Estimated guaranteed lifetime income based on a single premium payment. Actual rates may vary.
| Investment | Age | Monthly | Annual | Guarantee |
|---|---|---|---|---|
| $100,000 | 60 | $510 | $6,120 | Lifetime |
| $250,000 | 65 | $1,400 | $16,800 | Lifetime |
| $500,000 | 65 | $2,800 | $33,600 | Lifetime |
| $1,000,000 | 70 | $6,200 | $74,400 | Lifetime |
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Fee schedule
| Fee type | Amount | Description |
|---|---|---|
| Annual Contract Fee | $0 | Most base contracts carry no annual maintenance fee |
| Income Rider Fee | 0.50% - 1.00% | Where available, optional income riders cost 0.50% to 1.00% annually on benefit base |
| Surrender Charge | Varies by product | Accumulation FIAs typically start at 9% declining annually; MYGAs have product-specific schedules |
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Early withdrawal penalties
Charges apply to amounts above the annual free withdrawal (typically 10%).
| Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|
| 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0% |
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Best fit for these buyers
Savers prioritizing principal protection with indexed crediting flexibility
Fee-based advisors seeking no-surrender accumulation FIAs for flexible portfolios
Investors wanting deep index-strategy menus beyond standard S&P 500 capped products
Ages 50-75 in accumulation phase with 5-10 year time horizons
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Frequently asked questions
Is Security Benefit a good annuity company?
Security Benefit earns an average rating of 3.7/5 across the 22 products we've reviewed, with an AM Best rating of A- and S&P rating of A. Their financial strength is rated "Excellent" with $50+ Billion in total assets. Security Benefit is particularly strong in overall value.
How much income can I get from a Security Benefit annuity?
Income depends on your investment amount and age. For example, a $500,000 investment at age 65 could generate approximately $33,600 per year in guaranteed lifetime income. A $250,000 investment at the same age could generate about $16,800 per year.
What are the fees for Security Benefit annuities?
Security Benefit charges Annual Contract Fee: $0, Income Rider Fee: 0.50% - 1.00%, Surrender Charge: Varies by product. Notably, there is no annual contract fee on the base contract, which is a competitive advantage.
What is the surrender period for Security Benefit annuities?
Security Benefit annuities typically have a 10-year surrender period. Charges start at 9% in year one and decline to 0% in the final year. Most products allow 10% annual free withdrawals without penalty.