Our Professional Opinion on the Reliance Standard Apollo Annuity
We would generally choose a multiyear guaranteed annuity over Apollo for fixed-rate savings. Apollo can change its interest rate after the first year, but you can face surrender charges for seven years. We do not like giving an insurance company six years to change your rate while you are still paying to leave.
Reliance Standard Life Insurance Company is a great insurance company. Its A++ (Superior) rating from AM Best is the highest available and exceeds our A− minimum. Its financial strength is a reason to trust the guarantees, but the contract still has to earn our recommendation.
Apollo’s carryforward withdrawal feature is useful, and the choice of an MVA or non-MVA version gives you flexibility. But neither feature makes a temporary first-year interest bonus worth accepting a weak renewal rate. The bonus is an extra interest rate for one year, not a lump-sum bonus added to your deposit.
We would start with seven-year fixed annuities that guarantee their rate for the same length as the commitment. Compare the fixed annuity rates, deposit, withdrawals, and surrender rules from A− or better-rated companies before buying.
What We Like
- First-year access: An eligible withdrawal is available in the first contract year.
- Carryforward allowance: Unused qualifying allowances can accumulate, giving you more potential access later.
- Non-MVA choice: Apollo-SP avoids a market value adjustment; Apollo-MVA offers a different tradeoff.
- Top-rated company: Reliance Standard has an A++ AM Best financial-strength rating.
What We Don’t Like
- One-year rate, seven-year commitment: Your renewal interest can change while surrender charges still apply.
- A misleading-looking bonus: The first-year interest bonus is not an upfront account bonus.
- A harsh withdrawal rule: Going over the permitted amount can cause charges on the entire year’s withdrawal.
- Earlier withdrawals can be charged later: A full surrender within 12 months may trigger charges on prior free withdrawals, subject to state exceptions.
- The income bonus requires a commitment: The 4% annuitization bonus is not cash you can take out.
Reliance Standard Apollo Annuity Overview
Apollo-SP and Apollo-MVA are single-premium fixed annuities with a seven-year surrender period. The minimum deposit is $5,000. The first-year rate includes an interest enhancement; after that, Reliance Standard declares a new rate each year, subject to the contract’s minimum guarantee.
Key Features
- Interest: First-year guaranteed rate with a temporary interest bonus; rate is declared annually afterward.
- Withdrawal allowance: Generally 10% of the deposit in year one and 10% of annuity value in later years, subject to the contract rules.
- Carryforward: Qualifying unused allowances from year two can accumulate up to 30% of the original deposit.
- Early-exit charges: Seven years of surrender charges; Apollo-MVA can also apply an MVA.
- Health waiver: Qualifying confinement can allow additional access for eligible annuitants.
- Death benefit: The annuity value is generally payable to beneficiaries before annuitization.
Apollo-SP vs. Apollo-MVA
Apollo-SP has no market value adjustment. Apollo-MVA can increase or decrease an applicable early withdrawal or surrender through an MVA. Both versions can charge you for early access.
We would start with Apollo-SP if its offer is competitive. An MVA version should compensate you for the extra uncertainty; do not assume an initially higher rate is worth it when that rate can change after year one.
The First-Year Interest Bonus
Apollo adds the bonus to its first-year interest rate. It does not credit a separate bonus to your account when you make the deposit. After the first year, the renewal rate may be higher or lower, subject to the guaranteed minimum.
The distinction matters. An advertisement can make the first year look terrific while telling you little about the remaining six years. Ask what you are guaranteed after the first year, then compare that with a MYGA that locks its interest rate.
Withdrawals and the Carryforward Allowance
You can generally make a penalty-free withdrawal of up to 10% of your original deposit in year one and 10% of annuity value in later years. You may make one penalty-free request per contract year; the request can arrange scheduled payments under the contract rules.
If you skip a qualifying withdrawal in year two or later, unused allowances may carry forward up to 30% of the original deposit. Taking a penalty-free withdrawal resets the cumulative amount. The carryforward feature is not available on Washington policies.
The fine print is important: withdrawals above the standard 10% allowance can trigger surrender charges on the entire amount withdrawn during that contract year. The cumulative allowance can affect the amount available, so confirm your permitted amount and charges before withdrawing. Apollo-MVA can also apply an MVA. Do not assume a charge applies only to the excess.
A full surrender within 12 months of a previously penalty-free withdrawal can also result in charges on that withdrawal. State exceptions apply. This rule stinks if you take a withdrawal and then decide to move the rest of your money.
If you plan to live on the interest: Compare the payment with an annuity that offers a guaranteed lifetime withdrawal benefit. Use the same deposit, income start date, and single or joint coverage. Interest withdrawals do not guarantee a paycheck for life.
If you want withdrawals without lifetime income: Compare an annuity with a real upfront bonus added to the account. A larger balance might earn more interest dollars and leave more after identical withdrawals, even with a lower rate. Compare the same withdrawal dates, fees, surrender values, and bonus rules.
If your health is poor or you expect a shorter retirement: Compare what your beneficiaries would actually receive from an annuity whose bonus fully vests and is payable on a qualifying death. This annuity pays its applicable death benefit; it does not pay future unearned interest in advance.
Surrender Charges
Apollo’s surrender charges generally last seven years. The standard schedule is below; your state or issue age can change it.
| Contract year | Surrender charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
| 4 | 6% |
| 5 | 5% |
| 6 | 4% |
| 7 | 2% |
| 8+ | 0% |
Do not put money here if you might need most of it back during that period. An early surrender can return less than your deposit.
Nursing Home and Hospital Access
A qualifying confinement waiver can allow an eligible annuitant to withdraw up to 25% of annuity value each year during qualifying confinement. The annuitant generally must be age 74 or younger at issue, and the confinement must last 90 consecutive days, including at least one day after the first contract year. State and other contract conditions apply.
This gives you access to your own money. It is not a replacement for long-term care insurance or an emergency fund.
The 4% Annuitization Bonus
Apollo can add 4% of annuity value to the amount used to calculate qualifying annuity payments if payments start after the fifth contract year and continue for at least 10 years. Apollo-SP’s annuitization bonus is not available in Washington.
This is not an upfront bonus you can cash out. Annuitizing generally means giving up control of the account in exchange for a payment stream. Compare the actual income and beneficiary protections with other income options before choosing it.
Death Benefit and Spousal Continuation
Before annuitization, the death benefit is generally the annuity value. Withdrawals reduce what remains for your family. If your spouse is the beneficiary, ask whether the contract allows spousal continuation and what conditions apply before assuming the annuity can continue.
Our Final Verdict on Reliance Standard Apollo
We would normally choose a MYGA that locks its rate over Apollo’s one-year rate guarantee. The carryforward allowance could make Apollo useful if access is your priority, but the seven-year surrender period and potentially changing interest rate are a poor combination for someone seeking predictable growth.
Contact The Annuity Expert for free annuity quotes. We will compare the rates, withdrawal rules, and alternatives for your retirement goals.
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