Foundations Annuity

At a glance

Product name: Foundations Annuity
Product type
Fixed Index Annuity
Minimum purchase
$25,000
Account type(s):
403(b)
IRA
Non-qualified
Roth 403(b)
Roth IRA
SEP IRA
Cost
N/A
Surrender charges
5-year; 7-year
Strategy
7 Index Accounts + Fixed Account
Not available in New York.
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How can Foundations Annuity, a fixed index annuity, help your clients weather today's market conditions?

Key features
  • 1% Bonus on first-year Purchase Payments
  • Participation in a portion of positive Index-linked gains
  • Protection from all market loss
  • Preservation of Principal
  • 10% Free Withdrawals1

Accumulation potential paired with protection against all market loss is a safe and smart strategy for your risk-averse clients nearing or already in retirement. With Foundations, your clients can choose from any combination of a Fixed Account or seven index crediting strategies to help build a portion of their retirement savings, without risk:

Guaranteed Minimum Interest Rate

1. Fixed Account

S&P 500® Index Accounts; caps apply

2. Annual Average Index Account

3. Annual Point to Point Index Account

4. Monthly Sum Index Account

S&P 500® Low Volatility Daily Risk Control 5% Index Accounts; Uncapped, annual spreads apply

5. Annual Point to Point Index Account

6. 2-year Point to Point Index Account

S&P 500® Factor Rotator Daily RC2 7% Index Accounts; Uncapped, participation rates and annual spreads apply

7. Annual Point to Point Index Account

8. 2-year Point to Point Index Account

Market Performance Icon

HOW FOUNDATIONS ADDRESSES VOLATILITY

Having the option to choose crediting strategies benchmarked against a Low Vol Index can be helpful, especially in periods of market turbulence. With the S&P 500® Low Vol Index Accounts, both uncapped strategies, your clients could participate in more of the index's gains than in capped accounts (annual spreads do apply). We have resources that explain how the Index is constructed, as well as hypothetical performance data for you to review.

Learn more about Low Vol Index Accounts
Portfolio

HOW FOUNDATIONS ADDRESSES BOTH VOLATILITY AND DIVERSIFICATION

Having the option to choose crediting strategies benchmarked against an index comprised of multiple factor indices, including Low Volatility, can be helpful in time of both economic recovery and volatility. With the S&P 500® Factor Rotator Daily RC2 7% Index Accounts, both uncapped strategies, your clients could participate in more of the index's gains than in capped accounts (participation rate applies - current spread is 0%). We have resources that explain how the Index is constructed, as well as hypothetical performance data for you to review.

Find out about Factor Rotator 7% Index Accounts

Briefcase Icon

SELLING FOUNDATIONS

The first steps in selling Foundations:

  1. Check with your Broker-Dealer to see if Foundations is approved
  2. Get Appointed with Security Benefit
  3. Complete Product Training

FIAs don’t have to be complicated, and with Foundations, we’ve created content to help make it easier to educate your clients on how the product works. From client-friendly presentations to sales ideas and direct mail pieces to help you generate interest, use the resources linked below to start conversations with your clients.

Selling Foundations
Watch Video

PRODUCT VIDEOS

These client-friendly explainer videos show and tell the advantages of Foundations and how interest credits are calculated in each of the Index strategies.

Foundations Overview

 

See how the Foundations Annuity works to preserve your principal while allowing for accumulation.

SHARE WITH CLIENTS

 

S&P 500® Low Volatility Daily Risk Control 5% Index Account

 

Find out how interest is credited using this uncapped strategy designed to manage market volatility (an annual spread applies).

SHARE WITH CLIENTS 

S&P 500®Factor Rotator Daily RC2 7% Index Account

 

Find out how interest is credited in this uncapped strategy designed to select the performing of five factor indices in a single Index - including a low volatility factor.

SHARE WITH CLIENTS 

 

S&P 500® Annual Point to Point Index Account

 

Learn how we credit interest based on the percentage change in the index from one contract anniversary to the next.

SHARE WITH CLIENTS 

S&P 500® Monthly Sum Index Account

 

Find out how interest is calculated based on the sum of the monthly changes from the S&P 500® index value from the previous year (a cap applies to each positive monthly change, but not to negative changes).

SHARE WITH CLIENTS

 

S&P 500® Annual Average Index Account

 

This video shows how interest is calculated based on the average of the monthly ending values of the S&P 500® Index Value and is compared to the Index Value on the previous contract anniversary.

SHARE WITH CLIENTS

 

1After the first contract anniversary and during the surrender charge period, clients can withdraw up to 10% of Account Value, free of surrender charges or market value adjustments.

 

Find Your Sales Team

For more information (including financial professional fact sheets and resources), contact your dedicated Sales Team.

We’re here to help your clients To and Through Retirement®.

We’re sorry, it appears we are having technical difficulties.
Please call 800.747.5164, Option 3 to speak to a member of our Sales Team.

Client Proposals
Rates
Effective Date: 04/24/2023 Empty th for screen readers Empty th for screen readers
Index Accounts with Caps1 5-yr Cap 7-yr Cap
S&P 500® Annual Point to Point Index Account 10.00% 10.50%
S&P 500® Monthly Sum Index Account 3.00% 3.15%
S&P 500® Annual Average Index Account 9.50% 10.00%
Index Accounts with Spreads 5-yr Spread 7-yr Spread
S&P 500® Low Volatility Daily Risk Control 5% Index Account (1-Year) 1.75% 1.50%
S&P 500® Low Volatility Daily Risk Control 5% Index Account (2-Year) 1.00% 0.50%
Index Accounts with Participation Rates2 5-yr Par Rate 7-yr Par Rate
S&P 500® Factor Rotator Daily RC2 7% Index Account (1-Year) 125% 125%
S&P 500® Factor Rotator Daily RC2 7% Index Account (2-Year) 160% 160%
S&P Multi-Asset Risk Control (MARC) 5% Index Account (1-Year) 175% 185%
S&P Multi-Asset Risk Control (MARC) 5% Index Account (2-Year) 210% 210%
Morningstar Wide Moat Focus Barclays VC 7% Index Account (1-Year) 130% 135%
Morningstar Wide Moat Focus Barclays VC 7% Index Account (2-Year) 175% 185%
Fixed Account 5-yr Rate 7-yr Rate
Fixed Account Current Credited Interest Rate 4.75% 4.75%
Guaranteed Minimum Interest Rate 2.55% 2.55%
Application

FINANCIAL PROFESSIONAL USE ONLY — NOT FOR USE WITH CONSUMERS

The Security Benefit Foundations Annuity (form 5800 (11-10) and ICC10 5800 (11-10)), a fixed index flexible premium deferred annuity is issued by Security Benefit Life Insurance Company. Product features, limitations and availability may vary by state. In Idaho, Foundations is issued on form ICC10 5800 (11-10).

Bonus annuities may include changes to the elements used to determine the index interest credits or changes to the interest rate that are not included in similar annuities without a bonus. These changes may include lower current interest rates, higher surrender charges, longer surrender charge periods, lower participation rates or caps, higher spreads, or other changes. The amount of charges or reduction in interest credits may exceed the amount of the bonus.

Guarantees provided by annuities are subject to the financial strength of the issuing insurance company. Annuities are not FDIC or NCUA/NCUSIF insured; are not obligations or deposits of and are not guaranteed or underwritten by any bank, savings and loan, or credit union or its affiliates; and are unrelated to and not a condition of the provision or term of any banking service or activity.

Fixed index annuities are not stock market investments and do not directly participate in any equity, bond, other security, or commodities investments. Indices do not include dividends paid on the underlying stocks and therefore do not reflect the total return of the underlying stocks. Neither an index nor any fixed index annuity is comparable to a direct investment in the equity, bond, other security, or commodities markets.

The “S&P 500 Index,” “S&P 500 Low Volatility Daily Risk Control 5% Index,” “S&P Multi-Asset Risk Control (MARC) 5% Index,” and “S&P 500 Factor Rotator Daily RC2 7% Index” are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by Security Benefit Life Insurance Company (SBL). S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”), and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by SBL. The Foundations Annuity is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of purchasing the Foundations Annuity nor do they have any liability for any errors, omissions, or interruptions of the above named indices.

SB-10002-04 | Rev 2021/10/13