Our Professional Opinion on the Protective Secure Saver Fixed Annuity
Secure Saver gets two important things right: you can access a portion of your money in the first year, and Protective does not automatically lock you into another multi-year surrender period when the initial term ends. Those features make it worth comparing when its guaranteed rate is competitive.
We would choose between the five- and seven-year terms based on when you need the money and the rate you can actually lock in. A longer guarantee can be valuable; a longer commitment is not automatically better. If you might need more than the annual allowance early, the surrender charge and market value adjustment make this the wrong place for that money.
Protective Life is a great insurance company. Protective Life Insurance Company has an A+ (Superior) AM Best financial-strength rating, above our A− minimum.
Compare Secure Saver with other fixed annuity rates from insurers rated A− or better. Match the guarantee period, deposit, access, and MVA. Do not choose a lower rate merely because the renewal feature is convenient.
What We Like
- First-year access: A free-withdrawal allowance begins in the first contract year.
- No new lockup at renewal: After the initial period, the rate renews annually without a new surrender-charge period.
- Choice of guarantees: You can select a five- or seven-year initial interest guarantee.
- Additional deposits: You can add money during the first year under the contract rules.
- Waivers: Qualifying health events or unemployment can provide additional access.
What We Don’t Like
- Early surrender is expensive: The standard schedule starts at 9% on the amount above the allowance.
- The MVA adds uncertainty: The adjustment can increase or decrease the amount deducted on an excess withdrawal.
- Unused allowance does not accumulate: You cannot save last year’s free amount for a future large withdrawal.
- Renewal interest is not locked forever: The rate after the initial term can change.
- Interest withdrawals are not lifetime income: A guaranteed rate for a set term does not guarantee a paycheck for life.
Protective Secure Saver Overview
Secure Saver is a limited flexible-premium fixed annuity. You choose a five- or seven-year initial rate guarantee and surrender-charge period. Interest terms for additional eligible deposits may differ from the original deposit, so check the rate before adding money.
Key Features
- Issuer: Protective Life Insurance Company; the product is not offered in New York.
- Initial deposit: $10,000 minimum; additional deposits may be accepted in the first contract year under the rules.
- Initial guarantee: Five or seven years.
- Free withdrawals: Generally up to 10% of the initial purchase payment in year one, then based on prior-anniversary contract value.
- Early-exit costs: A declining surrender schedule and limited MVA apply to qualifying excess withdrawals.
- After the initial term: The interest rate renews annually without a new withdrawal-charge period.
- Additional access: Qualifying nursing-facility, terminal illness, and unemployment waivers.
Withdrawals and Liquidity
You can generally take up to 10% of the initial purchase payment during the first year without a surrender charge. In later years, the free-withdrawal allowance is generally based on the contract value at the previous anniversary. State and contract rules affect the calculation. Any unused allowance expires at the end of the year.
For example, if the applicable value is $100,000, a 10% allowance would generally permit $10,000 without the insurer’s withdrawal charge. Taking more during the charge period can trigger costs on the excess. Even free withdrawals leave less money earning interest.
If you plan to live on the interest: Compare the withdrawals with a guaranteed lifetime withdrawal benefit using the same deposit, income start date, and covered lives. Interest from a series of rate guarantees is not guaranteed income for life.
If you want withdrawals but not lifetime income: Compare an annuity with a real upfront account bonus. A larger starting balance might support the same withdrawals and leave more to compound even at a lower interest rate. Compare the same withdrawals and dates, including fees and bonus recapture.
If your health is poor or you expect a shorter retirement: Compare the beneficiary payout from an annuity with a bonus that fully vests and is payable on a qualifying death. Secure Saver pays its applicable death benefit; future unearned interest is not paid in advance.
Surrender Charges and the Market Value Adjustment
The surrender charge applies to the portion above the available allowance during the initial term. The standard schedules are below; state and contract variations apply.
| Contract year | Five-year term | Seven-year term |
|---|---|---|
| 1 | 9% | 9% |
| 2 | 8% | 8% |
| 3 | 7% | 7% |
| 4 | 6% | 6% |
| 5 | 5% | 5% |
| 6 | 0% | 4% |
| 7 | 0% | 3% |
| 8 and later | 0% | 0% |
A 9% charge is a terrible surprise if you need to get the money back immediately. Choose a term you can keep and maintain a separate emergency reserve.
A limited market value adjustment can also increase or decrease the amount deducted to satisfy an excess withdrawal. It is limited to excess earned interest and does not affect the minimum surrender value under the contract; the surrender charge is separate. Both end after the initial surrender period.
What Happens After Five or Seven Years?
You can withdraw the account without withdrawal charges, select an available annuity payout, or leave the contract in place. If you stay, Protective declares a rate guaranteed one year at a time. The contract remains free of withdrawal charges after the original period.
We like avoiding an automatic second lockup. Still, check the actual renewal rate against other offers. Convenience is not a reason to leave a large balance earning an uncompetitive rate.
Health and Unemployment Waivers
After the first anniversary, waivers may permit additional access without withdrawal charges for qualifying nursing-facility confinement or terminal illness involving you or your spouse. A separate unemployment waiver may also provide additional access. Nursing care generally requires at least 30 consecutive days in a qualified facility. The unemployment waiver has employment and 60-day unemployment requirements. Availability and conditions vary by state.
A waiver is useful if you qualify, but it is access to your own account—not long-term care insurance or a replacement for emergency savings.
Death Benefit and Spousal Continuation
Before annuity payments begin, beneficiaries generally receive the remaining contract value. Withdrawals reduce the money left to your family, and future unearned interest is not added in advance.
An eligible spouse who is the sole primary beneficiary may be able to elect spousal continuation instead of taking the death benefit. Confirm the beneficiary designation and contract rules before choosing.
The Annuity Income Bonus
After the tenth anniversary, an annuity income bonus may apply if you choose a qualifying payout option lasting at least ten years. This bonus applies to the amount used to calculate annuity payments. It is not an upfront account bonus you can withdraw.
Converting the account through annuitization generally gives up control of the balance. We would compare the actual payment, beneficiary protection, and access with a lifetime withdrawal benefit before making that decision.
Our Final Verdict on Protective Secure Saver
Secure Saver deserves consideration when its five- or seven-year rate is competitive. First-year access and no new multiyear surrender period are real advantages. The 9% starting charge and MVA make it a poor choice for money you might need in full early. Match the term to your plans and compare the rate before committing.
Contact The Annuity Expert for free quotes. We can compare Secure Saver with other fixed annuities for your deposit, term, and withdrawal needs.
Book A Free Consultation
Get help from a licensed financial professional. This service is free of charge.
Let Us Answer Your Questions
Not quite ready for a meeting, but you have a question that needs answering? We’re happy to help. Leave an inquiry below, and one of our staff will respond via email.