Our Professional Opinion on the RetireMax Secure Annuity
RetireMax Secure is a good MYGA to consider when you want predictable growth for three or five years and its guaranteed rate is competitive with other financially strong insurers. We like the choice of MVA and non-MVA versions and the ability to finish the initial term without automatically entering another multiyear surrender commitment.
Life Insurance Company of the Southwest is a great annuity company. Its AM Best rating is A+ (Superior), above our A- minimum for recommending an insurer.
The biggest drawback is first-year liquidity. There is no ordinary free-withdrawal allowance during that first year, so this is a bad place for money you may need soon. The MVA version also introduces a possible adjustment to an early withdrawal. Those restrictions should be weighed against the interest offer before choosing the contract.
After the initial guarantee, interest is declared annually. We like the freedom to reassess the policy at that point, but the original rate does not continue indefinitely. Choose the term around when you expect to use the money.
Compare RetireMax Secure with other fixed annuity rates from insurers rated A− or higher by AM Best. Match the guarantee period, withdrawal features, and MVA treatment before deciding which offer is best.
What We Like
- A defined interest guarantee: The 3- or 5-year term makes the initial savings result easier to plan around.
- MVA and non-MVA choices: You can evaluate the tradeoff between the offered interest and an additional early-exit adjustment.
- No automatic new multiyear lockup: After the initial guarantee, interest is declared annually rather than automatically starting another equivalent surrender term.
- No ongoing administrative or income-rider fee in the base savings design: The main cost concerns are access restrictions and early withdrawals.
- Some access after year one: An annual withdrawal allowance and qualifying health waivers can help when used within their rules.
What We Don’t Like
- No lifetime-withdrawal guarantee from interest withdrawals: A series of fixed-rate periods is not a guaranteed paycheck for life.
- First-year liquidity is limited: This is a bad place for money you expect to spend soon.
- The MVA can reduce an early payout: A higher offered interest rate can come with more uncertainty about an early exit.
- Renewal interest is not locked for life: The annual rate after the original guarantee can be less attractive.
- Spending all the interest reduces the compounding benefit: Leaving the nominal principal intact does not protect its purchasing power indefinitely.
Product Overview
RetireMax Secure is a single-premium, multi-year guaranteed fixed annuity issued by Life Insurance Company of the Southwest, a National Life Group company. You make one deposit and choose a three- or five-year rate guarantee. Your money earns the fixed rate stated in your contract during that period; interest is not tied to stock-market performance.
The series includes MVA and non-MVA versions. The MVA version can offer a higher rate, while the non-MVA version avoids an additional adjustment if you withdraw too much or surrender early. Both versions have surrender charges, and neither has an ordinary penalty-free withdrawal allowance in the first year. RetireMax Secure is not available in New York.
The annuity accepts a single premium, including eligible transfers or rollovers. Depending on the account and contract, funding can include nonqualified money, an IRA, Roth IRA, SIMPLE IRA, 403(b), or 457(b).
Key Features
| Feature | RetireMax Secure |
|---|---|
| Issuer | Life Insurance Company of the Southwest |
| Product type | Single-premium MYGA |
| Rate guarantees | Three or five years |
| Minimum deposit | $25,000 |
| Premium bands | Below $100,000 and $100,000 or more |
| Maximum issue age | 90; premium limits vary by age |
| MVA choices | MVA and non-MVA versions, subject to availability |
| Annual free withdrawals | Up to 10% of accumulation value after the first policy year |
| Health waivers | Qualifying nursing care, terminal illness and chronic illness, subject to contract and state availability |
| Death benefit | Applicable accumulation value before annuitization, without surrender charges or MVA |
| Base contract fee | No stated ongoing administrative fee |
| After the initial term | Interest declared annually under current product materials; no automatic new multiyear surrender period |
Three-Year Versus Five-Year Guarantee
RetireMax Secure 3 locks its initial interest rate for three years, while RetireMax Secure 5 locks it for five. The right choice depends on when you need the money and how competitive each rate is. The three-year version gets you to the end of the surrender period sooner; the five-year version protects a competitive rate for two additional years.
We would not automatically pick the shorter term. A strong five-year guarantee can be a smart way to avoid reinvesting sooner at a lower rate, provided you have enough cash elsewhere. But if the extra rate is small or you expect a major expense in the next few years, the shorter commitment can be the better fit. Compare current three-year and five-year annuity rates before deciding.
Liquidity and Penalty-Free Withdrawals
The first-year liquidity stinks. RetireMax Secure has no ordinary free-withdrawal allowance during the first policy year. If you need an immediate income stream or expect to use the deposit for an expense during that year, this is the wrong place for that money.
Beginning in year two, current product information allows up to 10% of the accumulation value annually as a penalty-free withdrawal without the normal withdrawal charge. This is an access limit, not a 10% interest rate. Partial withdrawals generally have a $500 minimum, and you normally must leave $5,000 in the contract to keep it in force. Check the applicable rules for systematic withdrawals and required minimum distributions before setting up payments.
If you plan to live on the interest, compare a guaranteed lifetime withdrawal benefit (GLWB). A GLWB may provide more income and can guarantee eligible payments for life. Compare the same deposit, start date and single- or joint-life coverage.
If you want withdrawals but do not need lifetime income, compare an upfront premium-bonus annuity. A bonus added to the actual account can leave more money compounding after the same withdrawals, even at a lower credited rate; compare fees, recapture, surrender values and guaranteed versus projected interest.
If you are in poor health or expect a shorter retirement, compare a bonus that fully vests and is payable at death. It may leave your beneficiaries more before a MYGA has time to earn comparable interest. Check the actual death benefit, withdrawal effects and any restrictions.
Surrender Charges
If you surrender the contract or withdraw more than the applicable free amount during the initial period, a withdrawal charge can apply. Current RetireMax Secure materials list the following schedules:
| Policy year | Secure 3 | Secure 5 |
|---|---|---|
| 1 | 7% | 7% |
| 2 | 7% | 7% |
| 3 | 7% | 7% |
| 4 | 0% | 6% |
| 5 | 0% | 5% |
| 6 and later | 0% | 0% |
The three-year schedule is not especially forgiving: the charge remains 7% for all three years. The five-year schedule also starts with three years at 7%. On the MVA versions, a surrender charge is not necessarily the only adjustment to an early payout. Ask for your cash surrender value before taking an excess withdrawal.
MVA Versus Non-MVA
RetireMax Secure offers a choice between a contract with a market value adjustment and one without it. The MVA version generally pays a higher initial rate, but an affected early withdrawal can be adjusted up or down in addition to any surrender charge.
If the applicable reference Treasury rate rises after purchase, the MVA can reduce the early payout; if it falls, the adjustment can increase it. The size also depends on the time left in the guarantee period. The non-MVA version eliminates that adjustment, but not the withdrawal-charge schedule.
We like having both options. Choose the higher MVA rate only when the difference is worthwhile and you have enough money outside the contract to avoid an early surrender. The non-MVA version is easier to live with if early access is a realistic concern, although it does not make the annuity fully liquid. Under current materials, the MVA does not apply to the death benefit or eligible free withdrawals.
Nursing Care, Terminal Illness and Chronic Illness Waivers
RetireMax Secure can waive applicable withdrawal charges and an MVA for certain qualifying health events after the first policy year. Current National Life materials describe terminal illness, nursing care and chronic illness waivers, subject to the issued rider, certification requirements and state availability.
These health waivers are useful because they may give you access to your annuity value without the normal contract charges when you qualify. They do not create a separate benefit pool. If you need insurance to help pay for extended care, compare long-term care insurance separately.
Death Benefit
Before annuitization, the applicable death benefit is the remaining accumulation value. Current materials say the normal withdrawal charge and MVA do not reduce that benefit. Beneficiaries may have a choice between a lump sum and payments over time, subject to the contract and beneficiary rules.
What we like: RetireMax does not require the family to surrender the account and pay an MVA merely because the covered death occurs during the initial term. What it does not do: pay the future interest that would have been earned over the rest of that term. Review your beneficiary designations and payout options when you buy.
What Happens After the Guarantee Period?
At the end of the three- or five-year period, the initial guaranteed rate expires. Current RetireMax Secure materials describe an annually declared rate afterward, subject to the policy’s minimum, without automatically starting a new multiyear surrender period.
We like that flexibility. You can review the renewal rate and decide whether to leave the contract in place, withdraw money, or move eligible funds to another suitable annuity. Compare the renewal rate with current offers before deciding.
Who Should Consider RetireMax Secure?
Best for:
- Savers who want a guaranteed three- or five-year interest rate from an A+ rated insurer.
- Buyers who can leave the deposit alone for the first year and have emergency money elsewhere.
- People who want to compare a higher MVA rate with a non-MVA version.
- Buyers who value the ability to reassess the annuity after its initial rate guarantee ends.
Not recommended for:
- Anyone who needs ordinary penalty-free access during the first year.
- Someone who needs guaranteed lifetime withdrawals; interest from this MYGA does not provide a GLWB.
- A buyer whose current quote is weaker than a comparable offer from another financially strong insurer.
- New York residents, where RetireMax Secure is not available.
Final Verdict
RetireMax Secure is a good MYGA from a strong insurance company when its rate is competitive. We like the choice of three or five years, MVA and non-MVA versions, and the flexibility after the initial term. The first-year withdrawal restriction is the biggest drawback. Choose the contract only if you can live with that restriction and the actual quote beats or matches suitable alternatives.
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