Symetra Launches Two New Registered Index-linked Annuities
BELLEVUE, Wash.—(June 2, 2021)—Symetra Life Insurance Company has introduced two new single-premium registered indexed-linked annuities (RILAs) for clients seeking retirement products that offer growth potential with some downside protection options—Symetra Trek® Plus Index-linked Annuity and Symetra Trek® Frontier Index-linked Annuity. The newest additions to Symetra’s broad product suite join the fast-growing index-linked annuities space, which had Q1 sales of $9.2 billion, an increase of 89 percent over the prior year. The market is expected to grow through 2025, according to the Secure Retirement Institute. 1
Symetra entered the RILA marketplace in March 2019 with Symetra Trek®, which was recognized by Barron’s on their annual ‘Top Annuities’ list in 2019 and again in 2020.2
“Trek Plus and Trek Frontier build on the customer-focused foundation of Symetra Trek, offering strong liquidity features, buffer and floor downside protection options, and five index choices. Trek Plus provides upside potential based on index growth up to a cap or using a participation rate or trigger rate, and three downside protection options, including a new, first-to-market ‘barrier’ feature, while Trek Frontier offers one- and six-year interest term lengths and two downside protection options, including a 20 percent buffer,” said Shaun Opperman, vice president of Retirement Products.
A longtime fixed indexed annuity leader in the bank and broker-dealer spaces, Symetra has focused on growing its distribution relationships to broaden product availability, notably expanding its independent broker-dealer channel presence through a series of strategic partnerships. Last week, Trek Plus and Trek Frontier began a phased rollout to banks, wirehouses and independent broker-dealers.
“Our new RILAs continue Symetra’s commitment to offer registered representatives across our distribution partner platforms transparent, flexible options that are designed to add value and fit the needs of their clients in today’s retirement marketplace,” said Andrew Farrell, senior vice president, Retirement Distribution.
Trek Plus features include:
- Growth potential — Opportunities for clients’ money to grow based on the performance of up to five market indexes; three crediting methods (cap, participation rate, or trigger rate) and three interest term lengths (one, two or six years). Clients have the option to increase growth potential by selecting indexed accounts with an annual charge.
- Downside protection — Three downside protection options — “buffer” and “floor” and a new “barrier” option — provide limited protection from market losses each interest term. The buffer protects against losses of up to 10 percent or 20 percent, while the floor limits losses to 10 percent. The barrier is designed for clients who want limited protection from modest down markets but are willing to forgo protection against larger losses in exchange for more upside potential. The barrier only provides protection if losses are less than the 15 percent barrier. If losses exceed 15 percent, the client assumes the full amount of the loss.
- Access to money — Clients can make free annual withdrawals of up to 15 percent of their contract value or the total interest earned, minus any indexed account charges, for the first six years.
Trek Frontier features include:
- Growth potential — Opportunities for clients’ money to grow based on the performance of up to five market indexes, up to a cap, and two interest term lengths.
- Downside protection — Two downside protection options — “buffer” and “floor” — provide limited protection from market losses each interest term. The buffer protects against losses of up to 10 percent or 20 percent, while the floor limits losses to 10 percent.
- Access to money — Clients can make free annual withdrawals of up to 15 percent of their contract value or the total interest earned, whichever is greater, for the first six years.
- No surprises — There are no annual fees, though surrender charges apply.
Symetra Life Insurance Company is a subsidiary of Symetra Financial Corporation, a diversified financial services company based in Bellevue, Washington. In business since 1957, Symetra provides employee benefits, annuities and life insurance through a national network of benefit consultants, financial institutions, and independent financial professionals and insurance producers. For more information, visit www.symetra.com.
1 LIMRA Secure Retirement Institute, First Quarter 2021 U.S. Individual Annuity Sales Survey (May 11, 2021) https://www.limra.com/en/newsroom/news-releases/2021/secure-retirement-institute-strong-economic-factors-drive-first-quarter-annuity-sales/
2Barron’s, Annuities Can Help Your Portfolio Stay Afloat. Here Are the 100 Best Ones Right Now, July 19, 2020. The Top 100 Annuities—and How to Choose the Best for You, July 19, 2019.
Securities are offered through Symetra Securities, Inc. (SSI). Member FINRA.
Symetra Trek Plus and Symetra Trek Frontier are individual single-premium deferred annuity contracts with index-linked interest options issued by Symetra Life Insurance Company (SLIC). Symetra Trek Plus contract form number is RSC-0559 3/21 in most states. In Idaho, contract form number is RSC-0559/ID 3/21. Symetra Trek Frontier contract form number is RSC-0536 4/18 in most states. In Idaho, contract form number is RSC-0536/ID 4/18. Endorsement form number is RSE-0134 12/20 in most states. Products, features, terms and conditions may vary by state and may not available in all U.S. states or any U.S. territory. SSI and SLIC are affiliates and are both located at 777 108th Avenue NE, Suite 1200, Bellevue, WA 98004-5135. Each company is responsible for its own financial obligations.
Annuity contracts have terms and limitations for keeping them in force. Contact your registered representative for complete details.
Guarantees and benefits are subject to the claims-paying ability of Symetra Life Insurance Company.
Symetra Trek Plus and Symetra Trek Frontier have indexed accounts and a fixed account. Interest credited to the indexed accounts is affected by the value of outside indexes and may be positive, negative, or zero.
The performance of an index does not reflect the payment or reinvestment of dividends. It is not possible to invest in an index.
Withdrawals may be subject to federal income tax, and a 10% IRS early withdrawal federal tax penalty may also apply for amounts taken prior to age 59 1/2. Clients should consult their attorney or tax professional for more information.
SYMETRA LIFE INSURANCE COMPANY (“Symetra”) has filed a registration statement (including a prospectus) with the SEC for Symetra Trek Frontier and for Symetra Trek Plus. For more complete information about Symetra, Symetra Trek Frontier and Symetra Trek Plus, you should read the prospectus and other documents Symetra has filed with the SEC before purchasing. These documents are available for free by visiting EDGAR at www.sec.gov. Alternatively, Symetra or your registered representative will provide the prospectus by request. Contact Symetra toll-free at 1-800-796-3872 ext. 22136.
Symetra Trek Frontier and Symetra Trek Plus are long-term investments designed for retirement purposes. There is a risk of substantial loss of principal. Please refer to the prospectus for more details.
Neither Symetra Life Insurance Company nor its employees provide investment, tax, or legal advice or endorse any particular method of investing. Please consult your attorney or tax professional before making savings and investing decision.
This is not a complete description of Symetra Trek Plus or Symetra Trek Frontier. For a complete description, please ask your registered representative for a copy of the prospectus.
Symetra®, Symetra Trek® Frontier and Symetra Trek® Plus are registered service marks of Symetra Life Insurance Company.
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