Our Talcott EverGuard Assurance 10 Annuity Review (Overall)
We like the Talcott EverGuard Assurance 10 when guaranteed lifetime income is the goal. It offers two income options designed for different retirement timelines, guaranteed growth of the income benefit base during their stated periods, and the ability to choose income for one person or a couple. That is the kind of income design we prefer to a rider that relies entirely on future index performance.
This is a fixed indexed annuity with a built-in lifetime income rider. You must choose an income option when you buy it. The rider costs money, the contract restricts access for years, and the income benefit base is not a cash balance. The actual guaranteed paycheck still has to beat the competition.
- Issuer: Talcott Resolution Life and Annuity Insurance Company.
- Primary goal: Guaranteed lifetime income, with fixed and indexed interest options.
- Income choices: Early Path for earlier income or Future Path for a longer deferral.
- Income rider cost: An annual charge of 0.85% of the income benefit base, deducted from contract value.
- Withdrawals: Generally 10% annually after the first contract anniversary; qualifying RMDs can be taken without withdrawal charges or MVA from year one.
- Surrender period: Generally ten years; state variations apply.
- Minimum initial deposit: $25,000.
Talcott EverGuard Assurance 10 Annuity Alternatives
The right annuity is the one that pays the most guaranteed income for your situation while giving you the features you need. Compare the same deposit, income start date, and single or joint coverage. Call (770) 755-1565 or use the tool below for a free comparison.
Our Professional Opinion on the Talcott EverGuard Assurance 10 Annuity
Talcott is a good annuity company by our standards. The issuing insurance company has an AM Best financial strength rating of A− (Excellent), which meets our minimum. Its ability to pay matters because it stands behind the lifetime guarantee.
We like having an Early Path and a Future Path instead of pretending everyone needs income at the same time. More importantly, the benefit base receives scheduled deferral credits under the contract. If you are years away from retirement, that gives you something concrete to compare instead of relying entirely on an index illustration. Compare the actual guaranteed annual income, not the largest benefit base or bonus.
The rider charge is real, but it is deducted from the contract value, not from each guaranteed lifetime payment. As long as you follow the rider rules, eligible lifetime payments can continue after the contract value reaches zero. Excess withdrawals can reduce or even end the guarantee. A lower remaining account value also means less money may be available to your family.
We also like that the Balanced Rate Guarantee model locks its caps and participation rates for the withdrawal charge period. There is a catch: that model uses a specified mix of custom indexes, not the standalone S&P 500 option. If growing your account is the main goal and you do not need lifetime income, paying for a mandatory rider stinks. We would compare an accumulation annuity without that ongoing charge.
What We Like
- Two income paths: Choose the rider designed around when you expect to start income.
- Scheduled income-base growth: Deferral credits are specified under each rider instead of relying solely on index performance.
- Joint lifetime income: The guarantee can be structured around you and your spouse.
- Locked crediting terms in one model: The Balanced Rate Guarantee model locks its caps and participation rates for the withdrawal charge period.
- Income for a qualifying health need: A temporary enhanced income benefit may increase payments if the conditions are met.
- Some liquidity: A 10% free withdrawal allowance applies after the first anniversary, and eligible RMDs have special treatment.
What We Don’t Like
- The rider is mandatory: You cannot simply decline its annual charge if you only want growth.
- The fee is based on the benefit base: As that base grows, the dollar charge deducted from your actual contract value can grow too.
- Ten years of surrender restrictions: Leaving early or taking too much can cost you.
- Big benefit-base numbers can be misleading: That value is not available as a lump sum or payable as the death benefit.
- The locked-rate model uses custom indexes: You cannot assume the standalone S&P 500 cap is locked just because the model has a guarantee.
Early Path vs. Future Path: Which Income Rider Should You Choose?
You select one guaranteed lifetime withdrawal benefit at issue. Early Path is designed for someone who wants income sooner. Its scheduled deferral credits are front-loaded, with a lower credit in later years. Future Path is designed for someone who can wait longer and includes a longer scheduled credit period and an income boost when the applicable deferral requirement is met.
Both include an income benefit base bonus. Future Path also offers a premium bonus feature under its terms. Do not confuse a bonus added to the benefit base with a premium bonus credited to the contract value. They are different benefits, and applicable early-exit recapture can reduce the premium bonus you keep.
You can generally activate income immediately if you are at least 55 at issue; otherwise, the contract specifies when you become eligible after age 55. Compare personalized guaranteed income under both paths at the age you actually plan to start. A bigger roll-up percentage is not the same as the payout you receive.
Income Benefit Base vs. Contract Value
The income benefit base is a number used to calculate lifetime withdrawals. It starts with your premium and any applicable benefit-base bonus, then receives scheduled deferral credits before income begins, subject to the rider’s terms. It cannot be taken as a lump sum and is not paid as the death benefit.
The contract value is the actual annuity value, adjusted for interest, withdrawals, and the rider charge. It determines what remains available under the contract and generally what your beneficiaries receive before annuitization. Your surrender value can be lower if early-exit adjustments apply. These three numbers do different jobs, so ask to see each one.
How Much Does the Income Rider Cost?
The annual rider charge is 0.85% of the income benefit base, deducted from contract value. The rate does not change for the life of the contract. Because the calculation uses the benefit base rather than the contract value, the charge can represent a higher percentage of your actual account as the two values move apart.
For example, if your benefit base is $200,000 when the charge is calculated, 0.85% is $1,700 for that year. That amount comes from your contract value. The fee does not reduce the specified lifetime income payment dollar for dollar, but it can reduce the money remaining for withdrawals or beneficiaries. Excess withdrawals can change the guarantee.
How the Index Options and Locked-Rate Model Work
You can select a fixed interest option or one-year indexed strategies, including a standalone S&P 500 option with a cap. The index options do not directly invest your money in the stock market. Index declines do not directly subtract market losses, but the interest credit can be zero, and rider fees or withdrawals can reduce contract value.
Talcott also offers two model portfolios with set allocations and annual rebalancing. The Balanced Rate Guarantee model locks its caps and participation rates for the withdrawal charge period. It allocates among three custom indexes, including a volatility-controlled S&P-based index; it does not include the standalone S&P 500 option. The Equity Focused model includes the standalone S&P 500 along with other indexes. Check how long its caps and participation rates are guaranteed; the full-period lock applies to the Balanced Rate Guarantee model.
We like a locked cap or participation rate because the insurer cannot simply reduce that specified term at the next reset while you are still committed. But the index matters too. Compare the index, the locked terms, and the actual guaranteed income. Do not assume a custom index will behave like the S&P 500.
Withdrawals, Surrender Charges, and the MVA
After the first contract anniversary, you can generally withdraw up to 10% of the contract value measured at the beginning of the most recent contract year without withdrawal charges. A withdrawal above the permitted amount during the surrender period can trigger a surrender charge and a market value adjustment (MVA). The MVA can increase or decrease what you receive. California has different provisions.
The standard surrender charge period runs ten years. A premium bonus, if included, can also be subject to recapture when you surrender or take a chargeable withdrawal during that period. Do not put emergency money here and assume the bonus or full account value is yours to walk away with immediately.
Watch the income rider too: Withdrawals before income begins, or above the permitted lifetime payment after it begins, can proportionally reduce the benefit base and future payments. An excess withdrawal that reduces contract value to zero can stop the lifetime benefit.
Required Minimum Distributions and Health Benefits
Eligible required minimum distributions can be taken without surrender charges or MVA beginning in the first contract year. In later years, they count toward the free withdrawal allowance. After lifetime income begins, RMDs are not considered excess withdrawals for the rider. Confirm the rules for your contract before taking money.
Separate nursing home or hospital confinement and terminal illness waivers can provide access without surrender charges or MVA when their conditions are met. These waivers are not available in California. After the first contract year, a qualifying inability to perform two of six activities of daily living can also trigger enhanced income after a 90-day elimination period.
The enhanced income is temporary: it can last up to five years or until the contract value is depleted, whichever occurs first. The benefit is generally 200% of the lifetime payment for single-life coverage or 150% for joint coverage. It is not available in California. Do not mistake it for standalone long-term care insurance.
What Happens When You Die?
Before annuitization, the death benefit is generally the greater of the contract value or the minimum value required by state law, without a surrender charge or MVA. The income benefit base is not added to that payout. If withdrawals and rider fees have reduced the contract value, less may be left for your beneficiaries.
If your spouse is your beneficiary, ask about spousal continuation and confirm the options in your contract. A joint lifetime income election and a spouse continuing an inherited annuity are different decisions.
How EverGuard Assurance 10 Compares With Other Annuities
- Other income FIAs: Compare the guaranteed payment at your intended start date, rider charge, survivor coverage, and access. This is where Assurance 10 needs to prove itself.
- MYGAs: A MYGA guarantees an interest rate for a set period but taking its interest does not provide a guaranteed lifetime paycheck. Compare current fixed annuity rates if predictable growth is your goal.
- Accumulation FIAs: If you do not need lifetime income, compare a no-rider-charge product with competitive crediting terms, access, and an upfront account-value bonus where appropriate.
- RILAs: We think accepting market losses while giving up some upside is a lousy trade for savings you want protected. Assurance 10 avoids direct index losses, though its rider charge and early-exit terms still matter.
- Variable annuities: Investment accounts can lose value and have their own fees. This contract uses fixed and index-linked crediting instead of putting your account directly into funds.
Who Should Consider It?
Consider Assurance 10 if you want guaranteed lifetime income, value a scheduled income-base roll-up, and can accept the surrender period and rider charge. Compare the Early Path and Future Path against other insurers using the same income start date and coverage. For a personalized comparison, ask us for an income heat map based on your age, state, and start date.
We would look elsewhere if you do not need lifetime income, expect to take large withdrawals, or want unrestricted access to your deposit. The mandatory rider charge is hard to justify when your main goal is simply to grow money for a few years.
Our Final Verdict
EverGuard Assurance 10 is worth comparing for guaranteed retirement income. We like the choice of income paths and scheduled income-base growth, but the actual guaranteed payout needs to hold up against other financially strong insurers. Check the fees, early-exit rules, and the benefits your family could receive before making a commitment.
Contact The Annuity Expert for a free comparison and quote. We can compare your guaranteed income and help you choose between single and joint coverage. Call (770) 755-1565 or complete the form below.
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