Our Eagle Guarantee Focus Annuity Review (Overall)
We like the Eagle Guarantee Focus when its guaranteed rate is competitive. It is a straightforward fixed annuity from an A-rated insurance company that lets you lock in an interest rate for three, five, or seven years.
We like the 10% annual free-withdrawal feature after the first year, the death benefit, and the health-related withdrawal options. But this is still an annuity you should compare before buying. A good insurance company does not automatically mean you are getting the best rate.
The biggest drawback is that your money is not fully accessible during the selected term. Withdrawals above the available free amount can trigger surrender charges and a market value adjustment. If you might need most of your deposit before the guarantee period ends, this is probably not the right place for that money.
- Product type: Single-premium fixed annuity, also called a multi-year guaranteed annuity or MYGA.
- Insurance company: Eagle Life Insurance Company.
- Guarantee periods: Three, five, or seven years, subject to availability.
- Minimum deposit: $10,000 for qualified and non-qualified contracts.
- Free withdrawals: Up to 10% of the contract value annually, beginning in the second contract year, subject to contract rules.
- Market value adjustment: May apply to withdrawals above the free amount during the surrender-charge period.
- Death benefit: Generally the greater of the contract value or minimum guaranteed surrender value, without surrender charges.
- Health benefits: An included rider may provide additional access for a qualifying terminal illness or nursing care. The rider is not available in California.
Eagle Guarantee Focus Annuity Alternatives
Before buying Eagle Guarantee Focus, compare its rate with other MYGAs from insurance companies rated A- or better. The right annuity should provide a competitive guaranteed rate for the term you want, with withdrawal and death-benefit provisions that fit your needs. Call us at (770) 755-1565 or use the tool below for a free comparison.
Our Professional Opinion on the Eagle Guarantee Focus Annuity
Eagle Life is a good annuity company with an A (Excellent) financial strength rating from AM Best. That is above our A- minimum and gives us more confidence in the company backing the guarantee.
We recommend comparing Eagle Guarantee Focus when you want a guaranteed fixed rate and can leave your money in the annuity for the selected term. The product is easy to understand: choose a three-, five-, or seven-year period, make your deposit, and earn the guaranteed interest rate for that period.
We also like that Eagle offers a seven-year option. When longer-term rates are attractive, locking in a competitive rate for seven years can be a good choice for someone who does not need the money. You avoid having to find a new rate after only a few years if interest rates fall.
That said, we would not buy Eagle Guarantee Focus without comparing its rate to other A- or better-rated insurers. If another financially strong company offers a higher guaranteed rate for the same term and has the features you need, there is no reason to accept less interest simply because Eagle Life is a good company.
The withdrawal provisions are reasonable, but they are not unlimited. You can generally withdraw up to 10% of the contract value annually without a surrender charge beginning in the second contract year. If you need more, surrender charges and a market value adjustment may reduce what you receive.
We like the included health-related waiver and the death benefit, but neither should be confused with separate insurance coverage. The health rider may give you access to your own annuity money if you meet its requirements. It does not create a separate pool of money to pay for care.
Our bottom line: Eagle Guarantee Focus is a good, straightforward MYGA from a good company. Whether it is the best choice depends primarily on its current rate, the term you select, and how it compares with other insurers available in your state.
What We Like
- A-rated insurance company: Eagle Life’s AM Best rating exceeds our A- minimum.
- Guaranteed interest: Your rate is fixed for the initial period you select.
- Three term choices: You can compare three-, five-, and seven-year options rather than being limited to one contract length.
- Annual access: Beginning in the second contract year, you can generally withdraw up to 10% of the contract value annually without a surrender charge.
- Death benefit: Your beneficiaries generally receive the greater of the contract value or minimum guaranteed surrender value without surrender charges.
- Health-related access: An included rider may provide additional access for qualifying terminal illness or nursing care, subject to its requirements and state availability.
- Simple design: You do not have to understand stock market indexes, caps, or participation rates to know the initial guaranteed interest rate.
What We Don’t Like
- Limited first-year access: The ordinary 10% free-withdrawal feature begins in the second contract year. Certain required minimum distributions and rider benefits have their own rules.
- Early withdrawal charges: Taking more than the available free amount during the surrender-charge period can reduce what you receive.
- Market value adjustment: A chargeable withdrawal can also be adjusted based on changes in interest rates. The adjustment may increase or decrease what you receive.
- No automatic lifetime paycheck: The guaranteed interest rate does not guarantee that ordinary withdrawals will last for life.
- Rate can change after the guarantee: The initial rate does not last forever. Review the available options when the guarantee period ends.
- Health rider restrictions: You must meet the rider’s requirements to qualify, and the rider is not available in California.
How Eagle Guarantee Focus Earns Interest
You make one deposit and select an available three-, five-, or seven-year guarantee period. Eagle Life sets your interest rate when the contract is issued, and that rate is guaranteed for the selected period.
Interest credited to the annuity compounds while it remains in the contract. The annuity is not directly invested in the stock market, so its fixed interest rate does not depend on whether an index rises or falls.
Compare Eagle’s offer with current fixed annuity rates for the same term. Look at the insurance company, available withdrawals, and what happens when the initial guarantee ends. The highest rate is useful only if the contract also fits your needs.
Withdrawals and Surrender Charges
Beginning in the second contract year, Eagle Guarantee Focus generally allows you to withdraw up to 10% of the contract value each year without a surrender charge, subject to the contract’s rules. That can be useful if you want access to some of your money without surrendering the annuity.
Withdrawals above the free amount during the surrender-charge period can be subject to a surrender charge. A market value adjustment may also apply. Together, those provisions can reduce the amount you receive, including potentially reducing your original deposit if you take a large withdrawal early.
Do not buy the seven-year version if you expect to need most of your money in three years. Choose the term around your plans, not just the rate. Keep emergency savings and any money needed for near-term expenses somewhere accessible.
Eligible required minimum distributions may be available in the first contract year once a new calendar year is reached. Confirm the amount and conditions with Eagle before relying on that provision.
How the Market Value Adjustment Works
A market value adjustment, or MVA, is an additional calculation that can apply when you surrender the contract or withdraw more than the free amount during the surrender-charge period.
Depending on how interest rates have changed and the contract’s formula, the MVA can increase or decrease the amount you receive. A 10% free-withdrawal provision does not mean you can take out the entire balance without an adjustment. Ask Eagle for the current surrender value before making a large withdrawal.
What Happens When the Guarantee Period Ends?
Your initial guaranteed rate applies for the three-, five-, or seven-year period you choose. When that period ends, your next rate and available options depend on your contract and the rates offered at that time.
Eagle’s brochure for the three- and five-year versions describes a 30-day period after the guarantee ends when owners can choose among options such as withdrawing the money, selecting another guarantee period, or continuing without surrender charges. The brochure says that, if no choice is made, the contract continues without surrender charges at an interest rate that may change.
We like a renewal process that does not automatically lock your money into another surrender period. However, confirm the exact default, notice period, and available choices for your specific version and state before buying. If you elect a new guarantee period, ask whether a new surrender-charge schedule and MVA will apply.
Put the end date on your calendar. Before accepting a new rate, compare other annuities and decide whether your plans have changed.
Terminal Illness and Nursing Care Benefits
The included Enhanced Benefit Rider may allow additional withdrawals or surrender if you meet its requirements for a qualifying terminal illness or nursing care. Waiting periods, documentation, and other conditions apply. The rider is not available in California.
We like having a way to access money if a serious health problem changes your plans. But remember what the rider does: it may let you withdraw your own annuity money under the contract’s rules. It is not a substitute for long-term care insurance that may provide separate benefits to help pay for care.
What Happens When You Die?
Before annuity payments begin, Eagle states that the death benefit is generally the greater of the contract value or the minimum guaranteed surrender value. The benefit is paid without surrender charges, subject to the contract’s ownership and beneficiary provisions.
Your contract value reflects your deposit and credited interest, reduced by any withdrawals. If you want to leave substantially more money to your family than the annuity’s remaining value, compare a product designed for that goal, including life insurance if you qualify.
If your spouse is your beneficiary, ask whether spousal continuation is available and how the rate, withdrawal rules, and contract term would work. Confirm the options in your actual contract.
Can Eagle Guarantee Focus Provide Lifetime Income?
Eagle Guarantee Focus is primarily designed to grow savings at a guaranteed fixed rate. You may be able to convert the contract into a stream of income payments through annuitization, subject to the available contract options.
Taking the interest or withdrawing 10% each year is not the same as having guaranteed lifetime income. The initial interest rate can change after the guarantee period, and repeated withdrawals can reduce or exhaust the account.
If you need income you cannot outlive, compare the actual payment from an annuity with a guaranteed lifetime withdrawal benefit. That type of benefit can provide lifetime withdrawals under its rules without requiring you to use the traditional annuitization option.
Contact us for a custom income heat map based on your age, state, deposit, and income start date. We can compare the guaranteed income available from multiple insurance companies.
How Eagle Guarantee Focus Compares With Other Annuities
- Other MYGAs: Compare the guaranteed rate for the same term, the insurance company’s rating, free withdrawals, death benefits, and renewal provisions. If another A- or better-rated insurer offers a higher rate and meets your needs, it may be the better choice.
- Fixed indexed annuities: A fixed indexed annuity offers interest linked to an index under its crediting rules, but the interest earned is uncertain. Eagle Guarantee Focus gives you a known rate for the initial guarantee period.
- Lifetime income annuities: An annuity with a guaranteed lifetime withdrawal benefit may be a better fit if your priority is income you cannot outlive. Ordinary withdrawals from a MYGA do not provide that guarantee.
- RILAs: A registered index-linked annuity can expose you to market losses while limiting some upside. We generally prefer a product with a 0% floor when protecting retirement savings from market losses is the goal.
- Variable annuities: Investment options in a variable annuity can lose value and may carry ongoing expenses. Eagle Guarantee Focus offers a fixed rate instead of direct market exposure, although early-exit charges can still reduce your proceeds.
Who Should Consider Eagle Guarantee Focus?
Eagle Guarantee Focus is worth comparing if you want a fixed interest rate, are comfortable committing money for three, five, or seven years, and want an insurer rated above our A- minimum. It may also appeal to someone who values access to a portion of the account each year after the first contract year.
It makes the most sense when Eagle’s rate is competitive with other A- or better-rated companies offering the same term. Compare the full contract before deciding.
Who Should Look Elsewhere?
Look elsewhere if you may need most of your money before the surrender-charge period ends. Even with the annual free-withdrawal feature, a large early withdrawal can trigger charges and an MVA.
Also compare other products if your primary goal is guaranteed lifetime income, market-linked growth, or a larger benefit for your family. Eagle Guarantee Focus can do a good job providing a fixed rate, but it is not designed to solve every retirement need.
Our Final Verdict
Eagle Guarantee Focus is a good MYGA from a good insurance company. We like the choice of three-, five-, and seven-year guarantees, the annual free withdrawals after year one, and the death benefit. The health-related rider can also be useful if you qualify.
We would buy it only if the rate is competitive. Compare Eagle Life with other A- or better-rated insurers for the same guarantee period. If you do not need the money for several years, a competitive longer-term rate may be worth locking in.
Contact The Annuity Expert for a free comparison and quote. We can help you compare guaranteed rates, insurance companies, withdrawal rules, and term lengths so you can choose the annuity that fits your retirement plans. Call (770) 755-1565 or complete the form below.
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