Introduction
Fixed Index Annuities are contracts between the annuitant and an insurance company in which the insurance company promises to credit interest based on the performance of a certain stock market index. Fixed Index Annuities have an inbuilt capital protection feature, so your principal will remain safe even if the index goes down.
Annuities are complex products, and many advisors try to missell them without properly understanding the buyer’s needs. Thus, you must educate yourself on these products and not solely depend upon the annuity agent’s high-pressure sales pitch.
This article provides an in-depth review of the Brighthouse SecureKey Fixed Indexed Annuity. The SecureKey FIA is a deferred, fixed-indexed annuity that may be a suitable option for individuals seeking tax-deferred growth and downside protection, with a primary focus on accumulation and lifetime income withdrawals. This feature offers a guaranteed income for life through regular withdrawals from the contract, providing predictable and reliable income that continues even if the contract value is depleted to $0. After conducting extensive research and due diligence, I have provided a comprehensive and unbiased analysis of this plan.
The review of the Brighthouse SecureKey Fixed Indexed Annuity will be broken into multiple subcategories:
Product Description
Rates and Costs Associated with the Brighthouse SecureKey Fixed Indexed Annuity
Riders
What Makes This Product Stand Out?
What I Don’t Like
Company Details
Conclusion
Product Description - SecureKey Fixed Indexed Annuity
The Brighthouse SecureKey is a Fixed Indexed Annuity (FIA) plan that offers the annuitant (annuity investor) an opportunity to earn a market index-linked return without having to incur the risk of market downside. This is a suitable plan for people who are looking for a fixed-indexed annuity that offers tax-deferred growth and downside protection with a core focus on accumulation and lifetime income withdrawals.
Let’s have a look at the high-level fine print of the Brighthouse SecureKey Fixed Indexed Annuity, and then we will discuss each point in detail.
| Product Name | Brighthouse SecureKey |
|---|---|
Issuing Company | Brighthouse Financial |
AM Best Rating | A (3rd of 13 ratings) |
Withdrawal Charge Period(s) | 5,7, and 10 Years |
Maximum Issue Age | 85 Years |
Minimum Initial Purchase Amount | 25,000 |
Surrender Charge Schedule | Varies as per the withdrawal-charge period |
Crediting Period and Strategies | Annual point-to-point with cap rate, annual point-to-point with participation rate, 1-year Step rate, and 1-year fixed with interest rate guaranteed |
Plan Types | IRA, Roth IRA, Nonqualified Account, SEP IRA, SIMPLE IRA, 401(a), etc. |
Indexes | S&P 500 Index, Russell 2000 Index, MSCI EAFE Index, and S&P 500 Low Volatility Daily Risk Control 5% Index |
Free Withdrawals | 10% of the annuity’s Accumulated Value per year |
Death Benefit | Upon the annuitant’s death, the beneficiary will get the greater of The contract value without any charges and the Guaranteed Minimum Surrender Value (GMSV) |
Free Benefits | Nursing Home and Terminal Illness Waivers |
Guaranteed Minimum Surrender Value | Equal to 87.5% of the purchase payment accumulated at the GMSV interest rate (3% at the time of updating this article), compounded daily, less any withdrawals (net of withdrawal charges and Market Value Adjustment) and partial death benefit paid |
Riders | Paid Guaranteed Lifetime Withdrawal Benefit (GLWB) rider - ReadyPay |
RMD Friendly | Yes |
The Brighthouse SecureKey Fixed Indexed Annuity is almost identical for all policy tenures, except for the crediting rates and surrender charge schedule. For ease of discussion and better clarity, we will discuss the Brighthouse SecureKey 10 Fixed Indexed Annuity (unless mentioned otherwise) for the rest of the article.
How does the Brighthouse SecureKey Fixed Indexed Annuity policy work?
Any annuitant, up to a maximum age of 85 at the time of policy issuance, can purchase the Brighthouse SecureKey Fixed Indexed Annuity with a minimum initial investment of $25,000. In return, they will earn market index returns, calculated using a specific formula that will be discussed later, and credited according to the chosen crediting period. In addition to the regular crediting period, earnings credits may also be triggered by certain events, such as free withdrawals, a long-term care event, a terminal illness or injury, or when a death benefit becomes payable. Beyond this contract growth mechanism, the annuity also includes a Guaranteed Lifetime Withdrawal Benefit (GLWB), which will be explored in detail later in this review.
The Brighthouse SecureKey Fixed Indexed Annuity allows the annuitant to choose multiple crediting strategies from four available indexes—S&P 500 Index, Russell 2000 Index, MSCI EAFE Index, and S&P 500 Low Volatility Daily Risk Control 5% Index, to determine their earnings crediting formula. All four indices provide three strategies each. Additionally, the plan features a fixed-rate guaranteed interest strategy, bringing the total number of strategy options to 13. Below, we will briefly discuss each available index.
S&P 500® Index: This widely recognized index comprises 500 leading U.S. companies across diverse industries, serving as a barometer for the overall U.S. equity market. Within the Edge Elite annuity, the S&P 500® Index offers four crediting strategies, allowing annuitants to benefit from the growth potential of the U.S. stock market while safeguarding against downside risk.
MSCI EAFE Index: MSCI EAFE is a widely recognized international equities index consisting of large companies across developed countries in Europe, Australasia, and the Far East, excluding the U.S. and Canada. MSCI EAFE includes equities across a range of industries and regions, providing broad opportunities for growth. Again, It is important to note that the Nationwide Peak plan has caps in place for the MSCI EAFE index, meaning that you will be credited only a small part of the MSCI EAFE return to your annuity.
Russell 2000 Index: The Russell 2000 Index is one of the world’s most popular indices, tracking 2,000 smaller companies included in the Russell 3000 Index. As of the end of 2024, it has a total market capitalization of $3.5 trillion. The Russell 2000 has a well-established history of growth, impact, and performance. Created in January 1984, it serves as a comprehensive and unbiased barometer for small-cap companies, with an annual reconstitution process that ensures larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.
S&P 500 Low Volatility Daily Risk Control 5% Index: The S&P 500 Low Volatility Daily Risk Control 5% Index combines a portfolio of the 100 least volatile stocks from the S&P 500 with a cash component to maintain a steady risk profile. It aims to keep annualized volatility close to 5% by adjusting the allocation between equities and cash on a daily basis. When market volatility increases, the index shifts more into cash, and when volatility declines, it increases equity exposure. This strategy results in smoother performance, with lower drawdowns and quicker recovery times compared to the broader S&P 500. The cash portion of the index earns interest, which helps further stabilize returns. While the index effectively limits downside risk, it also tends to cap upside potential, particularly during strong bull markets. Overall, it is designed to offer conservative equity exposure with a strong focus on risk control, making it suitable for investors who prioritize capital preservation and steady growth.
It is very important to note that, like other Fixed Indexed Annuities, the Brighthouse SecureKey Fixed Indexed Annuity comes with cap rates, participation rates, etc., for these indexes, meaning that you will be credited only a part of the index return to your annuity. These rates change frequently; I will discuss more on these rates more shortly.
Note: In addition to allocating funds in the following indexes, the annuitant also has the option to allocate funds at a fixed interest rate, which may change periodically. At the time of writing, the 1st-year fixed interest rate for the 10-year withdrawal charge period was 4.25%. Notably, this annuity offers one of the highest rates available among indexed annuities. However, these rates change frequently, so it is essential to check with your trusted financial advisor for the latest rates.
Rates and Costs Associated with the Brighthouse SecureKey Fixed Indexed Annuity
The earnings crediting formula
The earnings crediting formula is the most important part of this annuity discussion. It is important to know that we don’t simply get the index return credited to our annuity. There are a few limitations (in the form of participation rates and caps) that the company has in place that affect our earnings. These rates tend to change over time, and the updated rates can always be checked on the company’s website.
Let’s have a look at the Brighthouse SecureKey Fixed Indexed Annuity rate sheet (as of July 2025) to understand how the earnings are determined.
The first thing to note is that the annuity offers the option to choose from four indexes, each with a cap rate, participation rate, and step rate strategy. Besides these index-based strategies, the company also offers a fixed-rate strategy. In total, this provides the flexibility to allocate the contract across 13 strategies, including 12 index-based options and 1 fixed-rate option. Additionally, you will notice that there are two funding bands: less than $100,000 and $100,000 or more. A higher purchase payment places you in the higher band, which qualifies for better interest rates. Below, we discuss the types of crediting strategies offered by the company:
Cap Rate: This refers to the maximum limit on the interest that can be credited to your annuity. For example, if an index returns 12% but the contract’s cap rate is 6%, the annuitant will receive an interest credit of only 6%. No matter how much the index exceeds the cap rate, the maximum interest that can be credited to the contract will always be limited to the cap rate.
Participation Rate: Participation rate describes the annuitant’s participation percentage in a return of an index. For example, suppose the participation rate is 150%, and the index returned 4% over the agreed time. In that case, the annuitant will be eligible for 150% of the return, i.e., 6%.
Step Rate: A flat or positive index return triggers the step rate to be credited to the contract value. If the index return is negative, no interest is credited, but there will be no loss, and the contract value will remain the same. The step rate is set at contract issue and applies for the entire withdrawal charge period. In this case, the step rate for the S&P 500 Index is 5.70%. It means that if the S&P Index doesn’t go negative for a given 1-year period (even if the growth is 0% and not negative), the interest credited will be 5.70% irrespective of the S&P 500's actual return.
Fixed Interest Rate: If you opt for a declared strategy / fixed account rate, you simply earn the fixed rates for a particular period specified by the company before your policy begins. These rates are usually low/at par as compared to other fixed avenues, such as CDs and MYGAs, so you should avoid fixed rates in a general scenario. The 1-year fixed rate on this policy at the time of writing this article was 4.25%, which is higher than what most fixed-indexed annuities offer.
Among these strategies, I prefer the S&P 500 Index with the 1-year point-to-point cap option, the Russell 2000 annual point-to-point with cap rate, and the MSCI EAFE annual point-to-point with cap rate due to the higher cap rates offered by the company. I avoid any S&P 500 strategy with a participation rate because the company provides a low participation rate for the S&P 500 Index. Also, I wouldn't suggest opting for any of the S&P 500 Low Volatility Daily Risk Control 5% Index strategies because, although the volatility control mechanism helps limit short-term market swings, it also significantly reduces the return potential. Since fixed indexed annuities already provide downside protection through their principal guarantee, sacrificing additional upside by choosing a volatility-targeted index offers limited benefit and may ultimately hinder long-term growth
Riders
The primary USP of this annuity is the ReadyPay Guaranteed Lifetime Withdrawal Benefit (GLWB) rider it offers. The ReadyPay rider in the Brighthouse SecureKey Fixed Indexed Annuity provides policyholders with a reliable source of income for life, regardless of market performance or contract value depletion. This rider ensures that annuitants can withdraw a guaranteed amount annually, offering financial security and predictability in retirement.
How Does it Work?
When you opt for the ReadyPay rider, it overlays a dedicated income base on top of the contract’s account value. This income base is different from the account value, and is exclusively used for calculating lifetime income payments. The Income Base starts equal to the initial premium and can never decline due to market loss; instead, it captures growth in two ways:
7 % annual roll‑up for the first ten rider years when no withdrawals are taken, applied on each rider anniversary before fees are deducted.
Automatic step‑ups: on every rider anniversary, if the account value (after charges) exceeds the rolled‑up Income Base, the Base is lifted to that higher level; step‑ups remain available through the anniversary just before the older owner’s 91st birthday.
These credits allow the Income Base to compound separately from the market‑linked account, sharpening the future payout calculation.
Rider Withdrawals
The annuitant can choose to start lifetime payments anytime after attaining a minimum age of 59½. The amount that an annuitant can withdraw each year under the GLWB rider is determined by the following formula:
Income Base × Lifetime Withdrawal Percentage = Annual Lifetime Withdrawal Amount
- The income base represents the current balance used for lifetime‑income calculations and is determined as described earlier.
- Lifetime withdrawal percentage: At the chosen income start date, the annual withdrawal percentage is locked in according to the older covered person’s age and whether income is based on single or joint life. Rates begin at 5.70 % for Single Life and 5.20 % for Joint Life at age 59½, rising gradually to 7.00 % and 6.50 %, respectively, by age 85. Waiting longer therefore boosts the guaranteed payout percentage, and if the annuitant is confined to a nursing home the applicable rate doubles up to a maximum of 10 % in any policy year. Below is the lifetime withdrawal percentage chart for each age:
Even if the account value reaches zero (due to annual payments), the annuitant will continue to receive the guaranteed withdrawal amount for life, given no excess withdrawals take place.
- However, non‑income withdrawals (including free‑withdrawal amounts) before income starts reduce the Income Base proportionately and may reduce it by more than the dollar withdrawn when the Base already exceeds the account value. Careful withdrawal planning is therefore essential to preserve future income.
Rider Costs
ReadyPay carries a 1 % annual charge, calculated against the income base and deducted from the account value, regardless of whether single‑ or joint‑life income is elected. Because the income base is typically higher than the account value (due to roll‑ups and step‑ups), the dollar amount of the fee often works out to more than 1 percent of the actual account value, so keep that effective cost in mind.
In my view, annuitants who prioritize lifetime income certainty and are comfortable paying for that guarantee will find ReadyPay a competitive GLWB option, but they should weigh the fee drag and the impact of any early, non‑income withdrawals on the income base before electing the rider.
Also, as with most annuities, the Brighthouse SecureKey Fixed Indexed Annuity also has free in-built nursing home and terminal illness waivers.
Nursing Home Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is confined to a Qualified nursing home for at least 90 consecutive days. No withdrawal charge or MVA applies if the owner qualifies for this benefit. Diagnosis must occur after the contract is issued, and written proof with supporting documentation is required from a qualified physician.
Terminal Illness Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is diagnosed with a terminal illness with a prognosis of 12 months or less. No withdrawal charge or MVA applies if the owner qualifies for this benefit. Diagnosis must occur after the contract is issued, and written proof with supporting documentation is required from a qualified physician.
Surrender/Early Withdrawal Charge
Each year, you are allowed a 10% free withdrawal of your contract value without incurring charges, fees, or penalties.
Should your needs change unexpectedly, and you need to take an excess withdrawal (a withdrawal that is above the free withdrawal amount available in a given contract year), you may be entitled to access additional monies, although certain charges and penalties may apply. Any amount withdrawn in excess of the remaining free withdrawal amount is subject to a Surrender Charge. Below is the Surrender Charge schedule for the Brighthouse Fixed Indexed Annuity:
| Contract Year | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11+ |
|---|---|---|---|---|---|---|---|---|---|---|
5-Year Plan | 9% | 8% | 7% | 6% | 5% | 0% | ||||
7-Year Plan | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 0% | ||
10-Year Plan | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 1% |
Market Value Adjustments - In case you need to surrender your policy, a Market Value Adjustment (MVA) will be applied to the portion of the withdrawal or surrender that exceeds the free withdrawal amount during the withdrawal charge period. The surrender charge schedule is different for the different tenures of annuities and also changes for some states.
The surrender charges of the Brighthouse SecureKey Fixed Indexed Annuity is in line with all the other annuity issuers.
Contract/Administrative Charge
The Brighthouse SecureKey Fixed Indexed Annuity levies no annual contract or administrative fees. However, if you opt for the ReadyPay GLWB rider, a 1 % annual charge is levied, which is calculated against the income base and deducted from the account value
What Makes This Product Stand Out?
The Brighthouse SecureKey Fixed Indexed Annuity offers a few features that make a favorable case for this annuity. The ones that I like the most are:
ReadyPay GLWB Rider with Compounding Growth Credits: This optional Guaranteed Lifetime Withdrawal Benefit builds a separate Income Base through a 7% annual roll‑up for up to ten years and automatic step‑ups when market performance is favorable. As a result, the annuitant can get favorable lifetime income payments.
Broad Menu of Market Index Strategies: The annuity provides access to a wide range of equity and volatility‑controlled indices, giving contract owners flexibility to diversify allocations and seek different growth profiles.
Guaranteed Minimum Surrender Value: At least 87.% of the purchase payment grows at a fixed 3.00 % interest rate each year, ensuring a strong safety net regardless of market conditions.
No Annual Contract, Mortality & Expense, or Administrative Fees
Free Confinement and Terminal Illness Waiver Benefit
Multiple Payout Options: Owners can choose a lump‑sum distribution or annuitize under Life Only, Life with Period Certain, Joint‑and‑Survivor Life, and other structures to suit income goals.
What I Don’t Like
There are certain aspects of the product that could offer more value to annuitants. Some of the features that I find less favorable include:
Relatively Lower Participation Rates: Compared to other fixed indexed annuities designed for growth, the participation rates offered by this annuity are lower, which may limit the potential for higher interest credits.
Relatively Higher GLWB Rider Cost: The cost of the Guaranteed Lifetime Withdrawal Benefit (GLWB) rider is relatively higher compared to other similar annuities.
Company Details
You must always keep in mind that, unlike CDs, annuities are not guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other federal insurance agency. An annuity's "guarantee" is only as strong as the insurance company that issues the annuity, so it is always important to assess the issuing company before buying an annuity.
Brighthouse Financial
Brighthouse Financial, established as an independent company following its separation from MetLife in 2017, is headquartered in Charlotte, North Carolina. It has quickly cemented its reputation in the insurance and financial services sector, focusing primarily on life insurance and annuities.
As a specialist in these areas, Brighthouse Financial offers a range of products designed to help clients achieve financial security, including various types of annuities and life insurance policies. The company serves customers across the United States through multiple distribution channels.
The financial robustness of Brighthouse Financial is highlighted by its ratings from major credit rating agencies:
| AM Best | A |
|---|---|
Fitch | A |
Moody | A3 |
S and P | A |
Brighthouse’s financial strength is reflected in the following figures as of FY2024:
Total Assets: $203.02 billion
Investment Portfolio: $122.43 billion
Annuity Sales: $10 billion
Stockholders’ Equity: $3.3 billion
Employees: 1400+
Going by the operating history, financial numbers, and ratings, we can safely gauge that you can trust your savings with the Brighthouse Life Insurance Company.
Conclusion
With the advancement in healthcare and technology, the average person today is living longer than ever. So, it’s very important to have a stream of income that can grow safely and steadily and have the ability to provide a guaranteed income during the retirement years. This not only helps you mitigate the risk of outliving your income but also ensures that you continue to live a decent life even in your retirement.
Brighthouse SecureKey Fixed Indexed Annuity combines meaningful downside protection with an attractive menu of index crediting strategies and an optional ReadyPay GLWB rider that can compound the future income base at a seven percent roll‑up rate for up to ten years.
Investors who value principal protection but still want equity‑linked growth opportunities may find SecureKey a competitive fit, particularly if lifetime income is a priority and the GLWB rider’s fee is acceptable relative to the additional guarantees. As with any indexed annuity, growth potential is ultimately capped by crediting limits, and early non‑income withdrawals can erode the income base. Prospective buyers should weigh these trade‑offs carefully against their time horizon, liquidity needs, and broader retirement income strategy. When used in the right context, SecureKey can serve as a stable core holding that complements market‑based assets while providing a clear path to guaranteed lifetime income.
We understand that choosing the right annuity can be a complex decision, influenced by a myriad of factors such as market conditions, individual financial goals, and evolving life circumstances. To better serve you in this critical decision-making process, we regularly conduct in-depth reviews of various annuity products, examining features, costs, and potential benefits. To delve deeper into our extensive reviews, click here.