Gainbridge, a comparatively new participant within the annuity market, presents completely different annuity merchandise designed to cater to completely different wants. Gainbridge goals to make these advanced monetary merchandise extra accessible to on a regular basis traders whereas taking a digital-first strategy on a small slate of choices.
If you happen to’re on the lookout for a wider vary of annuity choices, check out the most effective annuity corporations that provide excessive buyer satisfaction and credit score rankings plus an array of merchandise.
This assessment dives into Gainbridge, its professionals and cons, the annuities it presents and whether or not Gainbridge is the correct alternative for you.
Gainbridge professionals and cons
Execs
- Digital-first strategy: Gainbridge presents a handy and environment friendly buying course of.
- Selection inside merchandise: Gainbridge caters to completely different investor wants and threat tolerances.
- Sturdy monetary backing: Being a part of Group1001 supplies a stage of economic stability.
- Aggressive charges: Gainbridge typically presents aggressive rates of interest on its annuities.
Cons
- Restricted product vary: In comparison with some established annuity suppliers, Gainbridge’s product lineup is comparatively small.
- Lack of conventional agent assist: Whereas the digital strategy is environment friendly for a lot of, some desire face-to-face interplay with an agent.
- New firm: Gainbridge has a shorter observe report in comparison with some rivals, which is likely to be a priority for some traders.
What annuities does Gainbridge provide?
Gainbridge presents two main kinds of annuities: multi-year assured annuities (MYGAs) and single premium speedy annuities (SPIAs). MYGAs present a assured rate of interest over a selected time period, with taxes deferred till withdrawals start. Single premium annuities contain a lump sum funding in change for mounted month-to-month funds, providing assured earnings in retirement.
Gainbridge additionally presents two different annuity merchandise tailor-made to particular person monetary targets and desires, combining components of those core annuity sorts.
SteadyPace
SteadyPace is a single premium deferred annuity designed for folks in search of assured earnings and principal safety. You make a one-time funding, and your cash grows tax-deferred till you start withdrawing earnings at a future date. This product presents a aggressive rate of interest.
As a set multi-year assured annuity (MYGA), it presents a set rate of interest for a specified interval, defending your preliminary funding. Whereas SteadyPace supplies stability, it doesn’t provide further elective advantages or riders.
FastBreak
FastBreak is one other single premium deferred annuity, that means you make investments a lump sum upfront and obtain funds at a future date. It ensures your preliminary funding and earns curiosity at a set price for a selected time period.
In contrast to most annuities, FastBreak doesn’t provide tax deferral on the curiosity earned: You’ll owe taxes on the curiosity yearly, even earlier than receiving funds.
Whereas each FastBreak and SteadyPace are multi-year assured annuities designed for long-term financial savings, they cater to completely different investor wants. FastBreak is appropriate for many who may want entry to their cash earlier than age 59½ because it avoids the ten p.c IRS early withdrawal penalty. SteadyPace is healthier for these saving for retirement who plan to depart the cash invested till not less than age 59½.
Each merchandise enable a ten p.c annual withdrawal with out penalty. If it’s good to withdraw extra or give up the contract early, you’ll face withdrawal expenses and a market worth adjustment.
ParityFlex
ParityFlex is a single premium deferred annuity that provides a singular mixture of security and potential development. As a MYGA, it supplies a assured price of return for a selected time period, resembling 5 or 10 years.
In contrast to conventional MYGAs, ParityFlex presents a level of flexibility by way of its potential to take part in potential market positive factors. Whereas it doesn’t present the identical stage of market publicity as a variable annuity, ParityFlex means that you can choose from numerous index participation charges and cap ranges.
ParityFlex additionally features a built-in assured lifetime withdrawal profit (GLWB) at no further price.
OneUp
In contrast to conventional mounted annuities that present a assured rate of interest, OneUp presents a set curiosity technique with a minimal assured price. It additionally permits your cash to take part in potential market positive factors by way of its listed methods. This implies your earnings can probably exceed what a standard mounted annuity may provide, however with out the direct funding dangers related to the inventory market.
It’s necessary to know that whereas OneUp supplies safety towards principal loss, it doesn’t assure particular funding returns. Market efficiency will affect earnings from the listed methods. This product is appropriate for traders in search of a steadiness of security and development potential, nevertheless it’s not designed for individuals who need complete safety of their principal.
What’s Gainbridge?
Based in 2018, Gainbridge is a digital-first annuity firm targeted on simplifying the buying course of for patrons. By streamlining operations on-line, Gainbridge goals to supply decrease prices and quicker transaction instances.
A subsidiary of Group 1001, a monetary companies group with about $62.6 billion in belongings beneath administration as of December 31, 2023, Gainbridge has a powerful monetary standing, providing a level of safety to traders.
Headquartered in Indianapolis, Gainbridge annuity merchandise are issued by Gainbridge Life Insurance coverage Firm.
Is Gainbridge protected?
A significant component when contemplating an annuity is the monetary stability of the issuing firm. Gainbridge is a part of Group1001, which incorporates the manufacturers of Delaware Life, Clear Spring Life and RVI Group, amongst others.
Gainbridge has a powerful A- score from AM Finest as of Could 2023. It is a constructive signal of the corporate’s potential to satisfy its obligations to policyholders.
Nonetheless, it’s advisable to conduct your personal due diligence or seek the advice of with a monetary advisor to totally perceive the dangers concerned with buying an annuity.
The protection of your funding additionally is determined by the particular annuity product you select. Some annuities, like mounted annuities, provide extra safety of your principal than others, resembling variable annuities. Be sure you perceive the options and ensures of every product earlier than signing a contract.
Backside line
Gainbridge presents a compelling proposition for folks in search of a simple method to buy annuities. Its digital platform and aggressive charges are engaging options. Nonetheless, the restricted product vary and lack of conventional agent assist is likely to be drawbacks for some.
