Our Professional Opinion on the Symetra Advantage Income Annuity
Symetra Advantage Income is better than a bare-bones immediate annuity because it offers multiple beneficiary options, optional payment increases, and limited access to future payments. But we would not use it as our first choice for most people who want lifetime income. Once you exchange your deposit for payments, you give up control of the money. The Advance Access feature helps in some states, but it does not turn this into an account you can withdraw from whenever you want.
Symetra Life Insurance Company is a good insurance company. Its A (Excellent) AM Best rating is above our A− minimum. In New York, the issuing company is First Symetra National Life Insurance Company of New York, which also has an A rating. A good insurer matters, but it does not make every income quote a good deal.
For most lifetime income plans, compare Advantage Income with an annuity offering a guaranteed lifetime withdrawal benefit (GLWB). A GLWB may preserve access to a remaining contract value and a possible death benefit while guaranteeing lifetime withdrawals under its rules. It will not necessarily pay more. Compare actual guaranteed income, rider fees, access, and the amount your family could receive using the same deposit, ages, income start date, and people covered.
We would consider Advantage Income for a specific purpose: a period-certain bridge before Social Security begins, a carefully structured Medicaid plan, or an early-retirement income strategy. It needs to offer a competitive quote for that exact job.
What We Like
- More than one way to protect family: Period-certain and refund options can provide payments after death.
- Optional rising payments: You can choose an annual increase when you purchase the contract.
- Limited access: Advance Access may provide a lump sum after three years in eligible states.
- Good insurance companies: Symetra Life and its New York issuer each hold an A rating from AM Best.
What We Don’t Like
- You give up control: The deposit becomes a payment stream rather than an account you can freely access.
- Life-only payments can stop early: Your beneficiary receives nothing after death unless you choose an available guarantee or refund.
- Advance Access has limits: You must wait three years, and the feature is not available in every state.
- Rising payments cost you upfront: Selecting increases can reduce your initial payment compared with a level-payment quote.
Symetra Advantage Income Annuity Overview
Advantage Income is a single-premium immediate annuity. You make one deposit and choose a payment schedule at purchase. Payments must begin within 13 months and may be monthly, quarterly, semiannual, or annual. The schedule is locked in at purchase.
- Minimum deposit: $10,000.
- Maximum purchase age: 90.
- Income choices: A fixed period, life, life with a period certain, and life with a cash or installment refund.
- Covered lives: Single annuitant or joint and survivor options.
- Optional payment increases: An elected annual increase from 0.1% to 6.5%.
- Advance Access: A limited acceleration of future payments, where available, beginning after 36 months.
- Issuing company: Symetra Life Insurance Company; First Symetra National Life Insurance Company of New York issues the New York contract.
The promised payments depend on the insurer’s claims-paying ability. Your payout depends on the amount deposited, the selected start date, payment frequency, payout option, and applicable annuitant details. A payment includes a return of your deposit; it is not simply interest on the money.
Payout Choices and What Happens When You Die
The payout choice changes both your income and what, if anything, your family receives. Think about your spouse and beneficiaries before selecting the largest initial payment.
- Period certain: Payments continue for the fixed period chosen, with a five-year minimum. If you die before that period ends, the remaining guaranteed payments go to your beneficiary. This option does not promise income for your entire life.
- Single life only: Payments continue for the annuitant’s life and stop at death. No remaining payments go to a beneficiary. A joint life-only option can continue for the surviving covered person. This can pay more initially, but dying early can leave your family with nothing from the contract.
- Life with period certain: Payments continue for life, with a minimum guaranteed period. If the applicable annuitant dies during that period, remaining guaranteed payments go to the beneficiary.
- Life with cash refund: If applicable income payments total less than the purchase payment at death, the unrecovered amount is paid to the beneficiary as a lump sum.
- Life with installment refund: If the purchase payment has not been fully returned, the unrecovered amount is paid in installments instead of one lump sum.
A joint-and-survivor option can continue income for a second covered person. Confirm the survivor percentage and exactly when payments end. Covering a spouse is an income election, not the same as leaving a beneficiary a cash balance. Choosing a refund option or a guaranteed period generally reduces the initial payment compared with otherwise similar life-only income.
Can Payments Increase Over Time?
At purchase, you can elect a fixed annual payment increase between 0.1% and 6.5%. We like having the option: a level paycheck buys less if prices rise over a long retirement. The tradeoff is a lower initial payment than an otherwise comparable level-income quote.
The increase is the percentage you choose, not a promise to match actual inflation. Compare the starting payment and later payments with a level quote before deciding whether the smaller initial check is worth it.
Advance Access: Limited Cash from Future Payments
In states where Advance Access is available, you can request a lump sum after 36 months. The amount can be up to 30% of the present value of future guaranteed and life-contingent payments, subject to a $5,000 minimum. Requests can be made as frequently as every 36 months. This is not 30% of your original deposit or an unrestricted cash value.
Taking money early changes the future payments you are converting. Before using it, ask Symetra for the precise effect on your payment schedule, any remaining guaranteed benefits, and the lump-sum calculation. Advance Access is not available in Oregon, Washington, or New York. If you may need substantial cash sooner, keep that money outside this contract.
Can Your Beneficiary Take a Lump Sum?
You may elect the Commutation to Beneficiary option at purchase for eligible period-certain or installment-refund payments. It lets a beneficiary convert remaining guaranteed payments to a lump sum rather than continue receiving periodic payments. Ask how the lump sum is calculated before assuming it equals the undiscounted total of all future payments.
The option is not available with life-only or cash-refund payouts. It is not available in Oregon; Maryland requires it with the standalone period-certain option. The choice needs to be made at purchase, so address it when you select your payout.
Who Should and Should Not Consider It?
A fixed period of at least five years can work as a Social Security bridge when you need income for a specific number of years. Advantage Income may also be worth a quote for early retirement or carefully structured Medicaid planning. Medicaid rules, beneficiary requirements, and state law matter; an elder-law attorney should review the specific contract and plan.
We would look elsewhere if you expect to need your full deposit back, want to change the payment schedule later, or have not decided how to protect a spouse. A GLWB may offer a better balance of income and access, although it has its own costs and withdrawal rules. Compare the actual quotes before deciding.
What We Recommend
Advantage Income has useful choices for an immediate annuity, especially a five-year-or-longer period certain and limited Advance Access where available. We would use it only when the guaranteed payout is competitive and the fixed payment plan solves a specific problem. For a lifetime paycheck with remaining account access, compare an income-rider annuity first.
Contact The Annuity Expert for free quotes and help comparing Symetra with other income annuities and GLWB options. We can help you choose the payout and beneficiary protection that match your plan.
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