Gainbridge, a relatively new player in the annuity market, provides a range of annuity products tailored to different needs. The company’s goal is to simplify these complex financial products for everyday investors by adopting a digital-first approach with a small selection of offerings.
If you’re interested in a wider variety of annuity options, consider exploring top annuity companies known for high customer satisfaction, strong credit ratings, and a diverse product lineup.
This review delves into Gainbridge, highlighting its advantages and disadvantages, the types of annuities it offers, and whether it might be the right choice for you.
Gainbridge Strengths and Weaknesses
Advantages
- Digital-first approach: Gainbridge offers a user-friendly and efficient purchasing process.
- Diverse product range: Gainbridge caters to various investor needs and risk tolerances.
- Robust financial backing: Being a part of Group1001 ensures a level of financial security.
- Competitive rates: Gainbridge frequently provides competitive interest rates on its annuities.
Disadvantages
- Limited product selection: Compared to established providers, Gainbridge offers a relatively small product lineup.
- Lack of traditional agent support: While the digital approach suits many, some prefer in-person interactions with agents.
- New company: Gainbridge has a shorter track record compared to competitors, which may raise concerns for some investors.
What annuities are available through Gainbridge?
Gainbridge offers two main types of annuities: multi-year guaranteed annuities (MYGAs) and single premium immediate annuities (SPIAs). MYGAs offer a guaranteed interest rate over a set term, with tax deferral until withdrawals commence. Single premium annuities involve a lump sum investment in exchange for fixed monthly payments, ensuring guaranteed income during retirement.
Additionally, Gainbridge provides two other annuity products tailored to individual financial objectives, combining elements of the core annuity types.
SteadyPace
SteadyPace is a single premium deferred annuity designed for individuals seeking guaranteed income and principal protection. By making a one-time investment, your funds grow tax-deferred until you choose to withdraw income at a later date. This product offers a competitive interest rate.
As a fixed multi-year guaranteed annuity (MYGA), SteadyPace provides a fixed interest rate for a specified period, safeguarding your initial investment. While offering stability, SteadyPace does not include additional optional benefits or riders.
FastBreak
FastBreak is another single premium deferred annuity where you invest a lump sum upfront and receive payments at a future date. It guarantees your initial investment and accrues interest at a fixed rate for a specific term.
Unlike most annuities, FastBreak does not provide tax deferral on earned interest, requiring you to pay taxes on the interest annually, even before receiving payments.
Despite both FastBreak and SteadyPace being multi-year guaranteed annuities for long-term savings, they cater to different investor needs. FastBreak suits those who may require access to their funds before age 59½ to avoid the IRS early withdrawal penalty. SteadyPace is more suitable for retirement savers planning to keep their funds invested until at least age 59½.
Both products allow a 10 percent annual withdrawal without penalty. If you need to withdraw more or surrender the contract early, you may face withdrawal charges and a market value adjustment.
ParityFlex
ParityFlex is a single premium deferred annuity offering a unique blend of safety and potential growth. As a MYGA, it guarantees a rate of return for a specific term, such as five or 10 years.
Differing from traditional MYGAs, ParityFlex introduces flexibility by allowing participation in potential market gains. While not providing the same market exposure as a variable annuity, ParityFlex enables you to choose from various index participation rates and cap levels.
ParityFlex also includes a built-in guaranteed lifetime withdrawal benefit (GLWB) at no additional cost.
OneUp
Unlike conventional fixed annuities with a guaranteed interest rate, OneUp offers a fixed interest strategy with a minimum guaranteed rate. It also allows your funds to partake in potential market gains through indexed strategies. This setup enables potential earnings surpassing those of a traditional fixed annuity, without direct investment risks associated with the stock market.
It’s crucial to note that while OneUp safeguards against principal loss, it does not guarantee specific investment returns. Earnings from the indexed strategies are influenced by market performance. This product appeals to investors seeking a balance of safety and growth potential, but it may not suit those seeking total principal protection.
Introduction to Gainbridge
Founded in 2018, Gainbridge is a digital-first annuity company focused on simplifying the purchasing process for customers. By leveraging online operations, Gainbridge aims to offer reduced costs and quicker transaction times.
As a subsidiary of Group 1001, a financial services group managing around $62.6 billion in assets as of December 31, 2023, Gainbridge maintains a solid financial position, providing reassurance to investors.
Based in Indianapolis, Gainbridge’s annuity products are issued by Gainbridge Life Insurance Company.
Is Gainbridge a Secure Choice?
An essential consideration when evaluating an annuity is the financial stability of the issuing company. Gainbridge is affiliated with Group1001, encompassing brands like Delaware Life, Clear Spring Life, and RVI Group.
As of May 2023, Gainbridge holds a robust A- rating from AM Best, indicating the company’s capacity to fulfill obligations to policyholders.
However, it is advisable to conduct thorough research or consult with a financial advisor to grasp the risks associated with purchasing an annuity fully.
The safety of your investment also hinges on the specific annuity product you select. Certain annuities, such as fixed annuities, offer more principal protection compared to others like variable annuities. Ensure you comprehend the features and guarantees of each product before finalizing a contract.
Final Thoughts
Gainbridge presents an appealing option for individuals seeking a simple approach to acquiring annuities. The company’s digital platform and competitive rates are attractive features. However, the limited product range and absence of traditional agent support may pose challenges for some individuals.