Our Professional Opinion on the Eagle Select Focus Series
The Eagle Select Focus Series is a good accumulation fixed indexed annuity when its traditional S&P 500 terms are competitive, but we generally prefer Focus 5 over Focus 7. Both contracts offer principal protection, flexible premiums, a true S&P 500 index, several engineered indexes, and optional fee-based participation-rate enhancements. The main difference is that Focus 7 keeps the money subject to surrender charges for two additional years.
Eagle Life is a good annuity company. Eagle Life meets our A- or better financial-strength standard, although it is not among the highest-rated insurers in the market. The company’s financial strength is acceptable; the more important question is whether the contract’s crediting terms justify the commitment.
Focus 5 is the better starting point for most accumulation buyers. When we compared the traditional S&P 500 strategies, the five- and seven-year contracts offered very similar terms. Focus 7 had modestly stronger terms in a few places, but not enough to assume that two additional surrender years automatically create a better result.
We like that the Focus Series offers a true S&P 500 strategy with annual and multi-year crediting choices. We also like the S&P 500 cap-for-term option because the selected cap can be locked for the applicable surrender period. The tradeoff is that the locked cap may begin well below the renewable annual cap, so the certainty can come at the cost of lower upside.
We do not like paying for the Performance Rate Rider. The rider charges a fee for higher participation rates. The fee is locked for the surrender period, but the enhanced crediting terms available in future years can still change. The contract includes a limited true-up if total rider charges exceed total credited interest at the end of the surrender period, but that does not reimburse lost opportunity, restore liquidity, or guarantee that the fee-based strategies will outperform the no-fee choices.
The index menu is also heavier than necessary. Alongside the true S&P 500, the contract includes several volatility-controlled and excess-return indexes. Those indexes can display high participation rates, but the headline participation rate does not tell you what the index will actually earn. We prefer transparent traditional indexes and contractual locks over complicated illustrations based on engineered indexes.
Bottom line: Eagle Select Focus 5 is a good, middle-of-the-road accumulation FIA with a competitive traditional-index option, useful health waivers, and reasonable annual liquidity after the first year. Focus 7 only makes sense when its guaranteed or locked terms are meaningfully better and the owner can comfortably accept the longer surrender schedule.
What We Like
- True S&P 500 strategies: The product includes a transparent traditional index rather than forcing every allocation into an engineered index.
- S&P 500 cap-for-term option: The contract can lock the selected cap for the applicable surrender period, reducing renewal-rate risk on that allocation.
- Five- and seven-year choices: Buyers can select a shorter or longer surrender period based on their actual retirement timeline.
- Low minimum premium: The contract can generally be opened with a smaller deposit than many accumulation FIAs.
- No premium bands: Smaller contracts are not automatically assigned a separate lower rate band.
- Flexible premiums: Additional money may be added after issue, subject to the contract’s current allocation and crediting rules.
- Multiple crediting methods: Cap, participation-rate, and performance-trigger choices allow different ways to calculate index interest.
- Annual liquidity after year one: The owner can generally withdraw up to the available annual limit without surrender charges or a Market Value Adjustment.
- Enhanced Benefit Rider: Eligible owners age 75 or younger receive nursing-care and terminal-illness access without an additional rider fee, subject to state availability.
- Contract-based death benefit: The surviving joint owner or named beneficiaries receive the applicable death benefit without normal surrender charges.
What We Don’t Like
- Focus 7 does not automatically provide enough extra value: Its traditional-index terms can be very close to Focus 5 despite the longer surrender period.
- Most crediting terms can change: Unless a term is specifically locked, future caps, participation rates, trigger rates, and fixed rates remain under the insurer’s control.
- The Performance Rate Rider costs extra: The fee applies even when the enhanced strategy earns little or no interest.
- The PRR fee is locked, but the opportunity is not: Future enhanced participation rates can change while the rider cost remains part of the contract.
- Heavy use of engineered indexes: Most of the menu consists of volatility-controlled, excess-return, or multi-asset indexes that are harder to evaluate than the S&P 500.
- Multi-year strategies delay interest: A two- or five-year term can require waiting years before the index result is finalized.
- No normal first-year free withdrawal: Ordinary penalty-free access begins after the first contract year.
- Market Value Adjustment: Excess withdrawals can be increased or reduced by changes in market interest rates.
- No contractual return of premium: An early full surrender can return less than the original premium.
- The health waiver is not available everywhere: The Enhanced Benefit Rider is unavailable in California and may vary in other states.
What Is the Eagle Select Focus Series?
The Eagle Select Focus Series consists of two accumulation-focused fixed indexed annuities issued by Eagle Life Insurance Company:
- Eagle Select Focus 5: A five-year surrender-charge version.
- Eagle Select Focus 7: A seven-year surrender-charge version.
Both contracts protect the annuity value from direct stock-market losses while allowing interest to be calculated from a fixed-rate strategy or one or more index-linked strategies. You are not directly invested in the S&P 500, Nasdaq-100, an exchange-traded fund, or any proprietary index.
If an index declines, the index-linked strategy generally receives no interest for that term rather than a market loss. Withdrawals, surrender charges, a negative MVA, and rider fees can still reduce the amount available from the contract.
Focus 5 Versus Focus 7
| Feature | Eagle Select Focus 5 | Eagle Select Focus 7 |
|---|---|---|
| Primary purpose | Protected accumulation with a shorter commitment | Protected accumulation with a longer commitment |
| Surrender period | Five years | Seven years |
| Minimum premium | Generally $5,000 | Generally $5,000 |
| Premium bands | No standard premium bands | No standard premium bands |
| Flexible premiums | Available | Available |
| Traditional index | S&P 500 | S&P 500 |
| Engineered indexes | BlackRock, Invesco, Nasdaq-linked, and S&P volatility-control choices | BlackRock, Invesco, Nasdaq-linked, and S&P volatility-control choices |
| Performance Rate Rider | Optional on eligible strategies for a fee | Optional on eligible strategies for a fee |
| Normal free withdrawal | Up to 10% annually after year one | Up to 10% annually after year one |
| MVA | Applies to applicable excess withdrawals during the surrender period | Applies to applicable excess withdrawals during the surrender period |
| Our preference | Better starting point for most accumulation buyers | Consider only when the additional term creates a meaningful contractual advantage |
A longer surrender period can support stronger initial crediting terms, but it also gives the insurer two additional years of control over renewable rates. The correct comparison is not simply “which version shows the higher initial cap?” Compare the locked terms, contractual minimums, surrender value, liquidity, and projected net value.
How the Fixed and Index Strategies Work
The contract can divide money among a one-year fixed strategy and multiple index-linked strategies. Each allocation has its own term and formula.
Fixed-Rate Strategy
The fixed strategy earns a declared interest rate for one contract year. That rate can change at the next anniversary. It is not the same as a MYGA that guarantees a fixed rate for the full surrender period.
Cap Strategy
A cap strategy credits the positive index change up to a maximum. If the index gains more than the cap, the additional gain is not credited.
Participation-Rate Strategy
A participation-rate strategy multiplies the index gain by the contract’s participation rate. A participation rate above 100% does not guarantee a strong return when the underlying index is volatility controlled, excess return, or otherwise engineered.
Performance Trigger
A performance-trigger strategy credits a stated amount when the index is flat or positive at the end of the term. A negative result generally earns zero interest.
Traditional and Engineered Index Choices
The Focus Series includes one traditional broad-market index and several engineered choices.
| Index | Type | What the Reader Should Know |
|---|---|---|
| S&P 500 | Traditional U.S. large-cap index | The most transparent option in the contract; dividends are generally excluded from the annuity calculation. |
| BlackRock Adaptive U.S. Equity Index | Volatility-controlled engineered index | Can shift among equity, Treasury, and cash components and may use leverage within its methodology. |
| Invesco Dynamic Growth Index | Multi-asset target-volatility index | Uses dynamic equity-factor and Treasury-futures allocations. |
| Invesco QQQ 15 Index | Nasdaq-linked target-volatility index | Uses the Invesco QQQ ETF as a centerpiece but can reduce equity exposure as volatility changes. |
| S&P 500 Advantage 15% VT TCA Index | Intraday volatility-control index | Adjusts exposure using an intraday risk-control process and includes a transaction-cost adjustment. |
| S&P 500 Dividend Aristocrats Daily Risk Control Index | Dividend-stock volatility-control excess-return index | Tracks a rules-based subset of companies while controlling volatility and measuring excess return. |
We generally start with the true S&P 500. An engineered index should earn a place in the allocation only after its live history, methodology, embedded deductions, and renewal terms are understood.
How We Evaluate the Crediting Terms
The current crediting terms will change over time, so listing them in an evergreen review would quickly become misleading. The correct process is to examine the live rate sheet when the contract is purchased.
At the time of our review, the plain S&P 500 annual strategy was one of the stronger parts of both Focus contracts. The traditional-index terms were broadly competitive, but Focus 7 did not provide a consistently dramatic advantage over Focus 5.
That makes the decision straightforward:
- Choose Focus 5 when the shorter surrender schedule provides similar traditional-index terms.
- Consider Focus 7 only when its locked or current terms are meaningfully better and the money can remain untouched.
- Do not choose either product because an engineered index displays a very high participation rate.
- Recheck every cap, participation rate, trigger rate, fixed rate, and contractual minimum before signing.
See the current Eagle Life annuity rate comparison before relying on an older illustration.
The S&P 500 Cap-for-Term Option
The cap-for-term strategy is the most interesting accumulation feature in the Focus Series. It can lock the S&P 500 annual point-to-point cap for the applicable contract term.
That removes one of the biggest problems with FIAs: the insurer lowering the cap while surrender charges remain. However, the locked cap may begin lower than the renewable cap. You are trading current upside for contractual certainty.
Compare the guaranteed cap with other products designed to reduce renewal-rate risk. In particular, compare the Oceanview CapLock FIA and the Sagicor Sage Accumulator, which are built around locking traditional-index terms.
The Performance Rate Rider
The Performance Rate Rider allows the owner to pay an annual strategy fee for higher participation rates on eligible strategies. The rider generally must be elected at issue, and the fee is locked for the surrender period.
We do not like this structure. The consumer commits to the fee, but the enhanced participation rates available at renewal can change. A higher participation rate also does not guarantee a better result when the underlying engineered index produces little growth.
The contract includes a limited true-up at the end of the surrender period when total rider charges exceed total interest credited from the affected strategies. That protects against one narrow outcome. It does not:
- Guarantee that the fee-based strategy beats the no-fee strategy.
- Compensate for lost compound growth.
- Reimburse surrender charges or a negative MVA.
- Guarantee attractive future participation rates.
- Make the Income Account or contract value more liquid.
Compare the net illustrated and guaranteed values with and without the rider. If the advisor cannot demonstrate a compelling net advantage after the fee, skip it.
Flexible Premiums
The Focus Series allows additional deposits after issue. That can help consolidate retirement assets into one contract, but each new premium should be reviewed before it is added.
Additional money may receive the crediting terms available when it is deposited rather than the original terms. Ask how new premiums are allocated, whether they enter a holding account, when they begin an index term, and how withdrawals are applied among premium vintages.
Qualified money should also fit the household’s broader IRA and rollover strategy. An IRA already has tax deferral, so the annuity must earn its place through principal protection, growth potential, liquidity, and beneficiary provisions.
Liquidity and Surrender Charges
Normal penalty-free withdrawals begin after the first contract year. The owner can generally withdraw up to 10% of the contract value annually without surrender charges or an MVA.
| Contract Year | Focus 5 Standard Schedule | Focus 7 Standard Schedule |
|---|---|---|
| 1 | 8% | 8% |
| 2 | 8% | 8% |
| 3 | 7% | 7% |
| 4 | 6% | 6% |
| 5 | 5% | 5% |
| 6 | 0% | 4% |
| 7 | — | 3% |
| 8 | — | 0% |
California and other state schedules can differ. Withdrawals above the annual free amount can also reduce unfinished index credits. Someone who expects regular or irregular access should compare annuities with stronger liquidity.
Market Value Adjustment and Minimum Surrender Value
The MVA applies to applicable excess withdrawals and full surrenders during the surrender period. It can be positive or negative based on changes in a corporate-bond index used by the contract.
- When market rates rise, the MVA will generally reduce the amount received.
- When market rates fall, the MVA may increase the amount received.
The MVA does not apply to normal free withdrawals, death benefits, the minimum guaranteed surrender value, or distributions after the surrender period ends.
The minimum guaranteed surrender value provides a contractual floor based on a percentage of premium, reduced by withdrawals and accumulated at the contract minimum rate. That floor can still be less than the original premium, which is why the product should not be described as having a return-of-premium guarantee.
Nursing-Care and Terminal-Illness Benefits
The Enhanced Benefit Rider is automatically included without a separate fee for eligible owners age 75 or younger, subject to state availability.
After the first contract year, a qualifying nursing-care confinement or terminal-illness diagnosis may permit an additional withdrawal of up to the full contract value without normal surrender charges. Medical documentation and timing requirements apply.
These provisions provide access to your existing annuity value. They do not create an additional pool of money for care and are not a substitute for long-term care insurance.
Death Benefit and Money Left to Family
The death benefit is generally the greater of the applicable contract value or the minimum guaranteed surrender value. It is paid to the surviving joint owner or, when no joint owner survives, to the named beneficiaries without normal surrender charges.
The death benefit is not an enhanced legacy benefit. Buyers whose main objective is maximizing what children or other beneficiaries receive should compare annuities with enhanced death benefits.
Tax Treatment
Interest in a nonqualified FIA grows tax-deferred. When money is withdrawn, gain is generally taxed as ordinary income. Withdrawals before age 59½ may be subject to an additional federal tax penalty unless an exception applies.
An FIA inside an IRA does not create additional tax deferral. The decision should be based on the insurance guarantees and contract features rather than a claim of extra tax savings.
Who Should Consider the Eagle Select Focus Series?
- A conservative saver seeking principal protection and index-linked accumulation.
- Someone who prefers a true S&P 500 strategy over relying entirely on engineered indexes.
- A buyer who can leave the money in Focus 5 for at least five years.
- Someone who finds the locked S&P 500 cap competitive with other cap-lock FIAs.
- A business, charity, trust, or other eligible entity seeking protected accumulation.
- A buyer who values nursing-care and terminal-illness access.
Who Should Avoid It?
- Someone who needs normal access during the first year.
- A buyer choosing Focus 7 solely because the initial terms look slightly higher.
- Someone who wants every cap or participation rate locked for the full surrender period.
- A consumer attracted primarily by very high participation rates on engineered indexes.
- Someone uncomfortable paying a rider fee while future enhanced terms remain renewable.
- A buyer who may need more than the annual penalty-free amount.
- Someone whose primary goal is guaranteed lifetime income rather than accumulation.
Other Insurance Coverage to Consider
- Long-term care insurance: Provides an additional care benefit rather than merely waiving surrender charges on the annuity’s existing value.
- Life insurance: May provide a more efficient income-tax-free legacy when family protection is the primary objective.
- Guaranteed lifetime-income annuity: Better suited to a retiree whose main problem is creating a contractual paycheck rather than accumulating assets.
Alternatives to Compare
A cap-lock FIA: Compare products that lock an S&P 500, Nasdaq-100, or Russell 2000 cap or participation rate for the surrender period.
A no-fee accumulation FIA: Avoid paying a performance rider when competitive traditional-index terms are available without the fee.
A MYGA: Use a MYGA when the priority is a guaranteed fixed return rather than uncertain index-linked interest.
A shorter FIA: Focus 5 itself may be preferable to Focus 7 when the index terms are close.
Review our current fixed indexed annuity choices before selecting the Focus Series.
Our Final Recommendation
We recommend starting with Eagle Select Focus 5. It provides the same basic index menu, health benefits, annual liquidity, and principal protection as Focus 7 without adding two more surrender years. We would move to Focus 7 only when a locked or guaranteed term is meaningfully stronger, and the longer commitment clearly improves the expected result.
We also recommend using the true S&P 500 before relying heavily on engineered indexes and skipping the Performance Rate Rider unless a net-value comparison justifies the fee under conservative assumptions.
Contact The Annuity Expert for free quotes and a no-obligation comparison of Eagle Select Focus 5 and Focus 7 with cap-lock FIAs, no-fee accumulation annuities, and MYGAs from A- or better-rated insurers. We will compare the traditional-index terms, contractual locks, renewal minimums, surrender period, MVA, liquidity, health waivers, death benefit, and insurer strength before you buy coverage.
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Frequently Asked Questions
Is Focus 5 or Focus 7 better?
Focus 5 is generally the better starting point because it provides a shorter surrender period and can offer very similar traditional S&P 500 terms. Focus 7 should provide a meaningful contractual advantage before you accept two additional surrender years.
Does the Focus Series include the real S&P 500?
Yes. The contract includes a true S&P 500 strategy in addition to several engineered and volatility-controlled indexes. The annuity does not directly invest in the S&P 500, and dividends are generally excluded from the interest calculation.
Can Eagle Life lower the cap or participation rate?
Most crediting terms can change at renewal, subject to contractual minimums. The S&P 500 cap-for-term option is different because its selected cap is locked for the applicable contract term.
Is the Performance Rate Rider worth the fee?
Usually not without a detailed comparison. The rider increases participation rates on eligible strategies, but the index may underperform and future enhanced terms can change. Compare the projected net value with and without the rider.
Can I withdraw money during the surrender period?
After the first contract year, the owner can generally withdraw up to 10% of the contract value annually without normal surrender charges or an MVA. Excess withdrawals can trigger both and may reduce unfinished index credits.
Can I add money after purchase?
Yes. The Focus Series accepts flexible premiums. New money may receive the crediting terms available when deposited, so review how additional premiums are allocated before adding them.
What do beneficiaries receive?
The death benefit is generally paid to the surviving joint owner or named beneficiaries without normal surrender charges. It is based on the contract’s death-benefit formula rather than an enhanced legacy multiplier.