Our Professional Opinion on the Integrity Life Indextra Annuity
Indextra is one of the more interesting fixed indexed annuities we have reviewed. Its annual S&P 500 Cap Lock can keep the same cap for the entire surrender period, and it offers an optional lifetime income rider with a guaranteed roll-up. We like both features. But we would not buy it without comparing the locked cap and guaranteed income with competing offers: a long commitment or rider fee can make a good-looking feature a lousy deal.
Integrity Life Insurance Company is a great insurance company. Its A+ (Superior) AM Best rating is well above our A− minimum. The strength of the insurer is reassuring, but a strong insurer alone does not make every annuity the best choice.
For lifetime income, compare Indextra’s optional guaranteed lifetime withdrawal benefit with other income riders using the same deposit, ages, state, income start date, and covered lives. Compare guaranteed payments and accessible account value after fees—not just the roll-up percentage.
What We Like
- Locked S&P 500 cap: The Cap Lock option fixes the cap for the selected guarantee period, so you know the rules for annual index crediting.
- A fixed interest option locked for the term: You can choose a multiyear fixed allocation when you buy and know its initial rate for the selected period.
- Guaranteed income growth: The optional rider’s roll-up can increase the income benefit base during qualifying years, even without index growth.
- A minimum account value feature: An account value guarantee provides a potential adjustment after the charge period, subject to deductions and timing.
- Three versions: Five-, seven-, and ten-year options give you choices about how long to commit.
What We Don’t Like
- The locked cap may be lower: That certainty comes at a price when a competing or annually reset strategy offers more upside.
- Rider charges reduce actual savings: The rider charge is based on the income benefit base and deducted from the account value.
- Income is not available immediately for everyone: Rider lifetime withdrawals have an age-based eligibility date.
- Early withdrawals can hurt: Surrender charges and loss of indexed interest can reduce what you receive or leave behind.
- The minimum guarantee is not an early exit value: The account adjustment is assessed later and is reduced for withdrawals and charges.
Indextra Series Overview
Indextra is a single-deposit fixed indexed annuity issued by Integrity Life Insurance Company. You choose a five-, seven-, or ten-year version and can allocate your money among available indexed and fixed interest options. Indextra protects account value from losses caused by a decline in an associated index; withdrawals, charges and an optional rider fee can still reduce your value.
- Minimum deposit: $15,000.
- Issue ages: 0–85; the optional income rider has separate eligibility ages.
- Withdrawal charge period: Generally five, seven, or ten years; California’s ten-year version has a nine-year charge period.
- Interest options: Annual S&P 500 strategies, managed-volatility indexes, and fixed interest choices.
- Income rider: Optional lifetime withdrawals for one covered person or spouses, for an additional charge.
- Free withdrawals: Up to 10% of beginning-of-index-year account value each index year, subject to the contract’s rules.
- Minimum account value: A one-time assessment can increase the account value after the withdrawal charge period.
You can use an eligible IRA to fund an annuity, subject to the account and transfer rules. The correct choice depends on how the contract fits your retirement plan.
S&P 500 Cap Lock and Other Interest Options
Our favorite Indextra feature for growth is the annual S&P 500 Cap Lock. Integrity declares the cap when you buy and locks it for the selected guarantee period. You still have a chance to earn interest each year. If the index falls for a year, that allocation credits 0% for that period rather than losing value from the index decline.
A locked cap is not a guaranteed annual return. If the index rises above the cap, credited interest is limited to the cap; if it falls, you may earn nothing. The S&P 500 calculation does not include dividends. We would compare the actual locked cap with other indexed annuity offers before choosing certainty over a potentially higher initial cap that can reset.
The regular one-year S&P 500 option has a cap that can change each year. The performance-triggered option credits its declared rate when the index finishes the year flat or positive; it credits zero when the index finishes lower. Indextra also offers managed-volatility strategies with one-, two-, or three-year periods, depending on the version. A longer period can mean waiting longer for interest, and a managed index will not necessarily behave like the S&P 500.
Cap Lock is selected at purchase. When the lock period ends, money in it moves to the regular one-year S&P 500 option unless you direct otherwise. The fixed multiyear option is also selected at purchase and moves to the one-year fixed option at the end of its period unless you make another choice. Guarantee and withdrawal-charge periods can differ by state.
Multiyear Fixed Interest vs. a MYGA
Indextra’s multiyear fixed allocation locks its declared rate for the selected guarantee period. This can be useful if you want some predictable interest besides your indexed allocation. It is not a reason to skip comparing a multiyear guaranteed fixed annuity. Compare the actual guaranteed rate, the same term, withdrawal access and whether you want or need the optional rider. The MYGA can be simpler if a fixed return is the only goal.
Guaranteed Minimum Account Value
Indextra has a minimum account value feature that deserves attention. At the end of the index year immediately following the withdrawal charge period, Integrity compares your account value with the guaranteed minimum. If the account is lower, Integrity adds the difference to the fixed interest option.
To calculate the guaranteed minimum, Integrity first subtracts withdrawals, withdrawal charges, and rider charges from your initial premium. It then multiplies the remainder by 110% for the five-year version, 114% for seven years, or 120% for ten years. The feature applies once; future rider charges can still reduce the account. These are not annual interest rates, and the minimum is not necessarily what you can take out early.
We like having a floor on the result, but we would calculate the actual guaranteed value with the chosen rider and planned withdrawals. A headline percentage without those deductions tells only part of the story.
Optional Lifetime Income Rider
The optional rider can provide lifetime withdrawals for one covered person or for spouses, even if the account value is depleted, provided the rider remains in force and withdrawals stay within its rules. Eligible covered people must be ages 45–80 at issue. Lifetime withdrawals generally become available in the index year after the covered person reaches 60; for spouses, the younger person’s age controls. Someone already age 60 or older can be eligible after the initial sweep date.
The rider has an annual charge of 0.95% of the income benefit base, with a contractual maximum of 1.50%. The charge comes out of the actual account value. That distinction matters: the benefit base is a number used to calculate income, not a cash balance you can withdraw or leave to beneficiaries.
In each of the first ten index years with no withdrawals, an age-based roll-up amount is added to the roll-up base. The rate used is 9%, 10%, or 11% depending on the covered person’s attained age; for spouses, the younger age applies. The roll-up amount uses premium adjusted for withdrawals and withdrawal charges, so it is not a guaranteed compounded return on the account value. The benefit base is assessed annually against the roll-up base and account value under the rider’s rules.
Your lifetime payout amount is based on the benefit base and the age-based withdrawal percentage when lifetime withdrawals begin. Spousal coverage uses 90% of the corresponding individual payout amount. Compare the actual guaranteed single and joint income quotes before paying for the rider; a large roll-up number alone does not tell you whether the income is competitive.
Withdrawals before eligibility or above the permitted amount can reduce the income guarantee by more than the dollar amount taken and may terminate the rider. The rider cannot be voluntarily terminated until the beginning of the sixth index year; once terminated, it cannot be reinstated. If you need access during the waiting period, that restriction matters.
Withdrawals and Surrender Charges
During the charge period, Indextra allows free withdrawals up to 10% of the beginning-of-index-year account value each index year, with a $250 minimum and no carryover of an unused allowance. Money taken from an indexed allocation before its crediting period ends receives no interest for that period. A withdrawal may also affect the income rider’s roll-up and guarantees.
Withdrawals above the allowance can trigger surrender charges. Outside California, all three schedules start at 9% and decline over the five-, seven-, or ten-year period. California schedules differ: the ten-year version’s charge period ends before the ninth contract anniversary. We would choose the shortest period that offers the features and economics you need instead of locking up money for a long period just to chase a higher initial rate.
Required minimum distributions may be withdrawn without a withdrawal charge under the contract’s rules. Qualifying limited life expectancy or nursing-home, hospital, or licensed facility confinement may also waive charges, with conditions and state restrictions. These provisions can help but are not a substitute for accessible emergency savings or long-term care insurance.
Who Should and Should Not Consider Indextra?
Consider Indextra if you value an annual S&P 500 strategy with a cap locked for the commitment period, or if the rider’s guaranteed lifetime income is competitive for your situation. Its minimum account value feature may be useful if you understand when the assessment occurs and how withdrawals and charges affect it.
Look elsewhere if you need money freely accessible soon, want the highest available upside instead of a locked cap, or only want straightforward fixed interest. If you are buying for income, do not pay for a rider simply because the roll-up percentage looks impressive; compare the actual guaranteed income and remaining account values.
What We Recommend
Indextra has real strengths: a locked annual S&P 500 cap, a minimum account value feature, and a guaranteed roll-up for income. We would consider it when the locked cap or guaranteed lifetime payment holds up against other strong insurers. We would choose a better competing offer if Indextra’s cap, fee, or payout makes the tradeoff unattractive.
Contact The Annuity Expert for free quotes and a personalized comparison. We can help you compare Indextra with fixed and indexed annuities using the same deposit, time horizon, and income goals.
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