Our Professional Opinion on the Securian SecureOption Focus and SecureOption Choice Annuities
We recommend the Securian SecureOption series when its guaranteed rate is competitive, but the Focus and Choice versions solve different liquidity problems. SecureOption Focus is the better starting point when avoiding a Market Value Adjustment and protecting the original purchase payment matter most. SecureOption Choice is the better fit when you want the surrender period to match the selected 3-, 5-, 7-, or 9-year rate guarantee.
Securian is an excellent annuity company. Minnesota Life Insurance Company is rated A+ by AM Best and comfortably exceeds our minimum financial-strength standard.
The most important problem with SecureOption Focus is the mismatch between some rate guarantees and the seven-year surrender schedule. Focus offers 1-, 3-, 5-, and 7-year initial guarantee periods, but the withdrawal-charge period lasts seven years. If you select the 1-, 3-, or 5-year rate guarantee, the original rate can expire while surrender charges remain in effect.
For that reason, we generally prefer the 7-year guarantee on Focus. In today’s high-interest-rate environment, locking a competitive rate for the same length as the surrender period is cleaner than accepting renewal-rate uncertainty while the money is still subject to charges.
Focus has several valuable features. It does not use a Market Value Adjustment, offers annual access to a portion of the account beginning in the first contract year, and guarantees that the surrender value will not be less than the purchase payments reduced by prior withdrawals. Those provisions make Focus more forgiving if the owner needs to exit early.
SecureOption Choice offers 3-, 5-, 7-, and 9-year guarantees with surrender schedules that match the selected term. That is a cleaner rate-lock structure. The tradeoff is that Choice uses an MVA, normal percentage-based liquidity does not begin until after the first contract anniversary, and the contract does not provide the same full return-of-purchase-payment guarantee as Focus.
Choice does include favorable RMD access, health-related waivers, and a death benefit equal to the greater applicable contract value or guaranteed minimum surrender value. Its MVA is also contractually limited, which is better than an unlimited negative adjustment. It is still an additional early-exit risk that Focus avoids.
The health-related waivers can improve access to the existing annuity value after a qualifying hospital, medical-care, or terminal-condition event. They are not a substitute for long-term care insurance.
Bottom line: both SecureOption versions are good fixed annuities from an excellent company. We prefer Focus when no MVA, first-year liquidity, and return-of-purchase-payment protection matter, but we would normally use its full 7-year rate guarantee. We prefer Choice when the selected 3-, 5-, 7-, or 9-year rate lock needs to align with the surrender period and the buyer accepts the MVA.
Compare both SecureOption versions with the current fixed annuity rates before selecting a term.
What We Like
- A+ AM Best Rating: Minnesota Life is one of the stronger annuity insurers in the market.
- Two Different Liquidity Designs: Focus prioritizes no MVA and principal protection, while Choice provides term-matched guarantees.
- Focus Has No MVA: Early withdrawals are not further increased or reduced because market interest rates changed.
- Focus Includes Return-of-Purchase-Payment Protection: The surrender value is protected against falling below the original purchase payments reduced by prior withdrawals.
- Focus Provides First-Year Access: A percentage of the account is available beginning in the first contract year.
- Choice Matches the Rate Lock and Surrender Period: The 3-, 5-, 7-, and 9-year guarantees use corresponding surrender schedules.
- Choice Provides RMD and Health-Related Access: Eligible RMDs and qualifying health events can receive favorable treatment.
- Beneficiary Protection: Both designs provide contract-based death-benefit protection before annuitization.
What We Don’t Like
- Focus Has a Seven-Year Surrender Schedule: The 1-, 3-, and 5-year rate guarantees can expire before the withdrawal charges end.
- Choice Uses an MVA: An early withdrawal or surrender can be adjusted when market interest rates change.
- Choice Has No Normal First-Year Percentage Withdrawal: Standard account-value access begins after the first anniversary, although RMD provisions may apply.
- Choice Does Not Provide Focus-Level Return-of-Premium Protection: Its guaranteed minimum surrender value can be less than the original purchase payment.
- Rate Bands Matter: Smaller deposits may receive a lower guaranteed rate than larger contracts.
- The Rate Still Has to Be Competitive: Excellent insurer strength and good contract provisions do not justify accepting a materially lower guaranteed return.
Compare SecureOption Choice vs. Focus MYGAs
Minnesota Life, a subsidiary of Securian Financial, offers two fixed deferred annuities under the SecureOption® brand: SecureOption Choice and SecureOption Focus. Both are multi-year guaranteed annuities (MYGAs) designed for savers looking for safety, predictable growth, and penalty-free liquidity options. Each caters to different investor goals: Choice offers higher rates with an MVA, while Focus prioritizes flexibility and principal protection without an MVA.
How These Annuities Work
You fund the annuity with a lump-sum premium. Your money earns a fixed interest rate for a guaranteed period (1–9 years, depending on the product), and you may take limited withdrawals without penalty. After the initial term, rates reset annually, and you can continue earning tax-deferred interest or begin taking income. Both versions are deferred annuities, meaning income payments are not immediate but can be turned on later, either through withdrawals or annuitization.
Available Product Versions
| Feature | SecureOption® Choice | SecureOption® Focus |
|---|---|---|
| MVA Applies? | Yes (except in CA and FL for income) | No |
| Guarantee Periods | 3, 5, 7, or 9 years | 1, 3, 5, or 7 years |
| Minimum Premium | $25,000 | $10,000 |
| Max Issue Age | 90 | 88 |
| Maximum Premium | $2 million without approval | $2 million |
| ROP or Minimum Surrender Value | Yes (GMSV: 87.5% of premium at 1–3%) | Yes (Purchase Payment less withdrawals) |
| Death Benefit | Greater of GMSV or account value | Account value |
Pros of SecureOption Choice
- Higher Rates for Higher Premiums: Tiered rate bands reward larger deposits.
- Longer Terms Available: Up to a 9-year term for those who want longer rate locks.
- Market Value Adjustment (MVA): Can improve payouts if rates fall (though negative if rates rise).
- Guaranteed Minimum Surrender Value: Protects against low growth in volatile rate environments.
- Terminal Illness and Nursing Home Waivers: Access to full value in a health crisis.
Pros of SecureOption Focus
- No MVA Risk: Simple structure with no rate-based withdrawal adjustments.
- Return of Purchase Payment Guarantee: Guarantees your principal regardless of interest earned.
- Lower Minimum: Starts at $10,000, suitable for smaller investors or conservative savers.
- Short-Term Option: Offers a 1-year rate lock, which is rare for fixed annuities.
Cons of Both Products
- No Income Riders (GLWB): Neither product includes a Guaranteed Lifetime Withdrawal Benefit. For lifetime income, you must annuitize or use another product.
- No Enhanced Death Benefit: Beneficiaries receive the account value, which may be lower than premiums paid if interest rates fall or early withdrawals occur.
- Surrender Charges Are High in Early Years: Charges as high as 9% in year one for Choice and 7% for Focus.
- Annuitization Required for Income: Unlike GLWB-based annuities, turning on income irrevocably converts your account.
Who Should Consider These Annuities
- Conservative Investors Seeking Safety: You want a guaranteed rate, no market risk, and no volatility.
- Laddering Strategy Users: With 1–9 year options, these can be part of a MYGA ladder.
- IRA and RMD Planning: Especially with SecureOption Choice, you can manage income with RMD waivers.
Who Should Avoid These Annuities
- Income Seekers: There are no lifetime income riders; annuitization is required for guaranteed income.
- Early Access Needs: High surrender charges and MVA (in Choice) make these poor choices if you might need large withdrawals.
- Younger Investors: Withdrawals before age 59½ are subject to IRS penalties.
Funding Options
You can use the following to fund either product:
- Nonqualified funds (after-tax savings)
- Traditional IRA, Roth IRA, SEP IRA
- 401(k), 403(b) rollover
- Inherited IRA, subject to distribution rules
Other Insurance Products That May Be Needed
- Long-Term Care Insurance: These annuities offer basic waivers but not true LTC coverage. Consider a standalone LTC annuity or hybrid policy.
- Permanent Life Insurance: If you want to protect heirs while using annuity funds for income or accumulation, life insurance can replace the death benefit.
- Income-Producing Annuity: If you’re looking for retirement income, consider pairing a SecureOption product with a fixed indexed annuity with a GLWB to lock in lifetime income.
What Happens After The Guarantee Period Ends?
At the end of the guarantee period:
- Your annuity renews with a 1-year declared rate (no longer locked in for multiple years).
- You can withdraw the full value without penalties.
- You may 1035 exchange the funds to another annuity for better terms.
- You can choose to annuitize the contract (though this is irrevocable and not recommended unless income is required and no better option is available).
Bottom Line
The SecureOption Choice is best for clients who want longer rate locks and are comfortable with MVAs. The SecureOption Focus is better for conservative clients who want simplicity, shorter terms, or principal guarantees with no MVA risk. Neither annuity is ideal for lifetime income planning. If that’s your goal, explore fixed indexed annuities with guaranteed income riders.
Want to Compare Rates or Add Lifetime Income?
Contact The Annuity Expert for free quotes, expert reviews, and personalized annuity recommendations. We’ll help you decide which MYGA fits your financial goals and whether an income rider or hybrid solution would better serve your retirement plan.
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