Our Professional Opinion on the SILAC Secure Savings and Secure Savings Elite MYGAs
We do not recommend purchasing a new SILAC Secure Savings or Secure Savings Elite MYGA at this time. SILAC is rated B by AM Best and remains under review with developing implications.
SILAC is not a good annuity company at this time. The company falls below both our normal A- minimum and the B++ level we may occasionally consider for a substantially higher short-term rate.
Secure Savings and Secure Savings Elite are available in 2-, 3-, and 5-year terms. The standard Secure Savings version includes built-in liquidity and a full account-value death benefit. Secure Savings Elite is designed to pay a higher rate by stripping out features and allowing buyers to add selected liquidity riders.
The Elite rate should never be evaluated by itself. Adding interest withdrawals, RMD access, or 5% annual liquidity can reduce the rate. The Elite death benefit is based on cash value rather than full account value, which can reduce what beneficiaries receive during the surrender period.
The standard version is more consumer-friendly, but the company rating remains the problem. Even the 2- and 3-year contracts do not provide enough reason to accept a B-rated insurer when A- or better-rated MYGAs are available.
SILAC’s rating is also being reviewed while the company’s ownership situation changes. We would rather wait for clarity than place new retirement money into the contract today.
The automatic renewal provision is another drawback. If you do nothing during the 30-day maturity window, the contract can renew for the same duration at a new rate and restart the withdrawal-charge period.
Bottom line: the standard and Elite versions have some useful features, but the current company rating makes both a no for new purchases. Use an A- or better-rated MYGA instead.
Compare SILAC with the current fixed annuity rates from financially stronger companies.
What We Like
- 2-, 3-, and 5-Year Terms: The product offers short and intermediate guarantee periods.
- Standard Version Includes Liquidity: Secure Savings provides interest or RMD access in year one and broader access beginning in year two.
- Full Account-Value Death Benefit on the Standard Version: Beneficiaries receive the account value before an income option begins.
- Elite Allows Customization: Buyers who do not need liquidity can pursue the higher base rate, while optional riders can be added when needed.
- 30-Day Maturity Window: The owner can withdraw or reposition the money without normal withdrawal charges or an MVA during the window.
What We Don’t Like
- B AM Best Rating: SILAC falls well below our minimum standard.
- Rating Under Review: The developing review creates additional uncertainty around the company’s future rating.
- Elite Death Benefit Is Cash Value: Beneficiaries may receive less than the full account value during the surrender period.
- Liquidity Riders Reduce the Elite Rate: Compare the actual rate after adding the features you need.
- Automatic Renewal Restarts Charges: Missing the maturity window can begin another surrender period.
- No Term Is Worth the Current Rating Risk: Financially stronger MYGAs are widely available.
SILAC Multi-Year Guaranteed Annuity Overview
- Introduction to SILAC MYGA: SILAC’s Multi-Year Guaranteed Annuities (MYGA), called SILAC’s Secure Savings Elite, are designed to provide a secure and flexible means to grow your savings. These annuities guarantee a fixed compound interest rate over selected periods, ensuring steady growth regardless of stock market fluctuations. Available in 2, 3, or 5-year guarantee periods, the MYGA products cater to various financial goals and timelines.
- Guaranteed Growth: One of the most appealing features of SILAC MYGA is the guaranteed growth. You earn a fixed compound interest rate for the chosen guarantee period, with options for 2, 3, or 5-year terms. This ensures that your investment grows at a predictable rate, providing peace of mind in a volatile market.
- Principal Protection: Your principal is 100% protected with SILAC MYGA. This means your initial investment remains safe from market downturns, a crucial feature for those seeking stability and security in their financial planning.
- Tax Deferral: Interest earned in a SILAC MYGA is tax-deferred until withdrawal, optimizing tax efficiency. This allows your investment to grow without the immediate impact of taxes, enhancing your overall returns over time.
- Liquidity Options: SILAC MYGA provides access to funds after the guarantee period without withdrawal charges or Market Value Adjustments (MVA). Additionally, free withdrawals are available under specific conditions, offering some flexibility despite the fixed terms.
- Income and Wealth Transfer Options: Upon maturity, you can convert your annuity into a guaranteed income stream. SILAC MYGA also provides options for transferring the full account value to beneficiaries upon the annuity holder’s death, ensuring your legacy is preserved.
- Customizable Riders: Optional riders, such as the Secure Savings™ Elite, allow for accumulated interest withdrawal, required minimum distribution, and penalty-free withdrawals. These features make the product adaptable to your unique financial needs.
How the SILAC Secure Savings Elite Works
- MYGA Structure: You choose a fixed guarantee period of 2, 3, or 5 years, and your money earns compound interest at a guaranteed rate for the duration.
- No Market Exposure: Regardless of stock or bond market performance, your rate is locked.
- Principal Protection: As long as you don’t withdraw early, your principal and earned interest are 100% guaranteed.
- Tax-Deferred Growth: Taxes on interest are deferred until funds are withdrawn—ideal for tax-advantaged accumulation.
What’s Unique About This Annuity
- Higher Guaranteed Interest: Compared to the base Secure Savings version, the Elite offers a higher rate—but only if you give up default liquidity options.
- Custom Liquidity Riders: You can buy optional riders (e.g., RMD withdrawals, interest-only access, or 5% penalty-free withdrawals), but these reduce your credited rate.
- Death Benefit = Cash Value Only: Unlike the base version, beneficiaries only receive the cash value (which may be lower than account value if early withdrawals occurred).
Types Of Retirement Accounts Accepted
- Non-Qualified
- IRA
- 401(K)
- IRA Transfer
- IRA Rollover
- SEP IRA
- IRA-Roth
- TSP
- 403(B)
- 1035 Exchange
- Stretch IRA
Target Audience
Best For:
- Savers with short- to mid-term goals (2–5 years)
- Individuals who don’t need emergency access to these funds
- Retirees looking to ladder MYGAs for predictable, tax-deferred growth
- Those who want to preserve principal with zero market exposure
Not For:
- People who may need to access funds early
- Investors seeking growth linked to the market
- Individuals who want income guarantees for life without giving up access to their money
- Those who prefer death benefit guarantees equal to full account value
Final Thoughts
We recommend skipping both SILAC Secure Savings versions and using an A- or better-rated MYGA. Contact The Annuity Expert for free quotes and a no-obligation comparison of current fixed annuity rates, liquidity, death benefits, maturity values, and insurer strength.
Need help comparing SILAC annuities to other options? Book a Call with our agents for a free, no-obligation quote today.
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