Gainbridge Annuities Review
Gainbridge offers an easy-to-use online platform that simplifies buying annuities. Annuities are insurance products that provide steady and guaranteed savings growth. You can invest in a Gainbridge annuity and pay no fees.
Gainbridge Insurance Agency, LLC is mentioned of our best annuities guide because it provides excellent customer support and an easy, fully digital process. Enter some information about yourself online to learn if a Gainbridge annuity might help you achieve your financial goals, then complete the purchase. The website is populated with everything you need to know about the annuities Gainbridge sells. You can reach a licensed agent by phone or live chat for help.
- Online growth calculator shows expected returns before you invest
- No commission-based salespeople
- Simple application procedure
- Responsive agents via chat and phone
Cons
- Agents not available after 5 p.m. EST, but you can leave a message via chat
Gainbridge Annuity Products
Gainbridge offers two annuities. The Multi-Year Guaranteed Annuity (MYGA) protects your initial investment while accumulating interest over three to 10 years. The Single Premium Immediate Annuity (SPIA) from Gainbridge provides a monthly payout over a specific period. You’ll find links to full product summaries on the Gainbridge website.
Both annuities are single premium products, so you make one payment to fund the account. The Gainbridge MYGA and SPIA each have a 30-day no-penalty cancellation period.
Gainbridge MYGA
The Gainbridge MYGA accumulates tax-deferred interest over an investment period called the guaranteed interest rate period. Invest in this annuity for three to 10 years while your funding deposit amount is protected. At the end of the guaranteed interest rate period, you can:
- Continue your Gainbridge annuity contract by starting a new guaranteed interest rate period based on current competitive interest rates.
- Withdraw the entire account value.
- Annuitize the contract by converting the account value to monthly payments lasting from five to 10 years.
You can withdraw anywhere from $100 to 10% of the MYGA account value with no fees after the contract’s first year.
Gainbridge SPIA
The Gainbridge SPIA converts your initial investment into a monthly fixed cash stream. You can elect to receive income over three to 10 years, and payouts start immediately. Your initial investment amount determines the monthly payout. Gainbridge charges a fee if you need to surrender this annuity before the period specified in your contract.
| Features | MYGA | SPIA |
|---|---|---|
| Annuity type | Deferred annuity. | Immediate annuity. |
| Payment | Lump-sum withdrawal after 3 to 10 years. | Fixed monthly payments over 3 to 10 years. |
| Partial withdrawals | Starting the second year of the contract. | Not allowed. |
| Early withdrawal and surrender fees | 1% to 3% of account value plus market value adjustment. | 4% commutation charge. |
| Death benefit | Account value plus interest to beneficiaries. | Single payment plus interest, less commutation fee. |
| Taxes | Ordinary income tax on interest. 10% federal tax on withdrawals before age 59 ½ with few exceptions. | Interest income taxed and reported via IRS Form 1099-R. |
Gainbridge Annuity Costs
All you pay for a Gainbridge annuity is your initial premium. The company does not have commissions. If you use the account as defined in the annuity contract, you’ll avoid paying additional fees.
If you need to surrender the annuity or take an excessive withdrawal, you could pay a:
- Surrender fee: A 1% to 3% charge for excess withdrawals from a MYGA during the surrender charge period.
- Commutation fee: A 4% charge for terminating annuity payments and withdrawing the remaining value from a SPIA. This fee also applies if you die and your heirs receive a payout from the SPIA.
Consider the Market Value Adjustment Effect
Another potential cost is the Market Value Adjustment (MVA) that activates if you withdraw more than your annuity agreement allows. Gainbridge calculates the MVA based on current market rates and can increase or decrease your distribution amount.
There is no MVA on death benefits. The MVA is also not an issue if you choose to surrender at the end of the guarantee interest rate period.
Is a Gainbridge Annuity Right for You?
Annuities aren’t for everyone, although Gainbridge products work well for many retirement and investment plans. Answer a few short questions on the Gainbridge website to learn if an annuity is right for you. You can then finalize your application in a few minutes.
If you’re still unsure if an annuity is right for you, speak to a financial advisor about your options. An annuity is typically an excellent investment for those who will max out income distributions from other retirement savings accounts.
How to Buy a Gainbridge Annuity
You can purchase a Gainbridge annuity online in a few minutes. You can also speak to a licensed agent via chat or the phone for help, but you probably won’t need to.
- Click on the “See Your Guaranteed Growth” button on the website.
- Enter the amount you plan to invest and the length of time you’ll hold the funds in a Gainbridge MYGA.
Select your state. - View the guaranteed interest rate and the amount of your return.
- Click on “Continue” to create an account.
See the information about immediate annuities on the Gainbridge site to learn how much you can expect monthly from a SPIA.
The website is populated with everything you need to know about the annuities Gainbridge sells. You can use the chat to ask questions after hours, and an agent will answer the next day.
Gainbridge Complaints
We scoured consumer review sites and found no complaints about Gainbridge Insurance Agency. Gainbridge annuities are issued by Guggenheim Life and Annuity Company (d/b/a Guggenheim Life and Annuity Insurance Company in California), which has an A+ rating from the Better Business Bureau.
Gainbridge Annuities Q&A
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Can I buy a Gainbridge Annuity in any state?
State insurance commissioners regulate annuities, and Gainbridge annuity products are not available in all states. Guggenheim Life and Annuity Company issues the annuities Gainbridge offers. The company is licensed in Washinton D.C. and all states except New York.
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Does Gainbridge offer higher rates for larger investments?
The amount you invest in a Gainbridge annuity does not impact your interest rate. Rates are higher for longer investment terms. Contracts reflect current rates on the date you apply for a Gainbridge account.
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Can I buy more than one annuity from Gainbridge?
Yes, you can buy multiple annuities from Gainbridge. After you purchase your first investment, log on and go to your Account Summary. Click on the button for new applications. You can view pending applications in your Account Summary as well.
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What happens if I want to cancel a Gainbridge annuity?
You can cancel your annuity contract with Gainbridge for any reason within 30 days of receipt. You will pay no penalty within this timeframe and receive a refund for your paid premiums, less any withdrawals taken.
If you surrender your annuity after the 30-day grace period, the contract imposes surrender charges between 1% and 4%. There are no penalty fees if you hold the annuity for the entire term.
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Are Gainbridge annuities insured?
Deferred and immediate fixed annuities are insurance products with no FDIC deposit insurance. Gainbridge sells products issued by Guggenheim Life and Annuity, which has a B++ (good) financial strength rating from AM Best.
Conclusion
Gainbridge proves annuities don’t have to be difficult to understand or set up. Those looking to expand their retirement income options are generally the best candidates for these investments. We recommend ensuring you can commit your initial investment to the guaranteed period to avoid losses due to early disbursement. A Gainbridge annuity can provide reliable future income or an immediate cash stream.