Introduction
Fixed Indexed 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 (such as S&P 500). Fixed Indexed 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 mis-sell 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.
In this article, we examine the F&G SecureBuilder Fixed Indexed Annuity in detail. F&G SecureBuilder is a straightforward fixed indexed annuity designed to provide tax-deferred growth and principal protection, with a primary focus on accumulation. Interest crediting is offered through simple options, including S&P 500 Index–linked strategies, Balanced Asset Index–linked strategies, and a fixed interest option, without requiring direct market participation. Based on extensive research and careful review of the product structure and disclosures, this article presents a comprehensive and unbiased analysis of the F&G SecureBuilder annuity.
The review of the F&G SecureBuilder Fixed Indexed Annuity will be broken into multiple subcategories:
Product Description
Rates and Costs Associated with the F&G SecureBuilder Fixed Indexed Annuity
Accessing your Money
Riders
What Makes This Product Stand Out?
What I Don’t Like
Company Details
Conclusion
Product Description - F&G SecureBuilder Fixed Indexed Annuity
The F&G SecureBuilder is a plain-vanilla Fixed Indexed Annuity designed primarily for accumulation. It allows annuitants to participate in a portion of market index–linked returns while protecting principal from market downturns. The product emphasizes simplicity and capital preservation, making it suitable for individuals seeking a straightforward FIA to grow retirement savings on a tax-deferred basis, without the complexity of additional paid riders such as guaranteed lifetime income features.
Let’s have a look at the high-level fine print of the F&G SecureBuilder Fixed Indexed Annuity, and then we will discuss each point in detail.
| Product Name | SecureBuilder |
|---|---|
Issuing Company | Fidelity & Guaranty Life Insurance |
AM Best Rating | A (3rd of 13 ratings) |
Withdrawal Charge Period(s) | 5 and 7 years |
Surrender Charge Schedule | Varies as per the surrender charge schedule |
Maximum Issue Age | 85 Years |
Minimum Initial Purchase Amount | $10,000 |
Crediting Period and Strategies | 1-year point-to-point with participation rate, 1-year point-to-point with cap rate, 2-year point-to-point with participation rate, 2-year point-to-point with cap rate, 1-year point-to-point performance trigger, or 1-year fixed with interest rate guaranteed |
Plan Types | IRA, Roth IRA, Nonqualified Account, SEP IRA, SIMPLE IRA, 401(a), etc. |
Indexes |
|
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 (i) Account Value or (ii) Surrender Value |
Free Benefits | Free Nursing Home, Home Health Care, and Terminal Illness Waivers |
Riders | No additional optional rider |
Surrender Value | Account Value less any withdrawal charges/ MVA |
RMD Friendly | Yes |
The F&G SecureBuilder Fixed Indexed Annuity is almost identical for both policy tenures, except for the crediting strategies and surrender charge schedule. For ease of discussion and clarity, we will focus on the F&G SecureBuilder 7 FIA (unless otherwise mentioned) for the remainder of the article.
How does the F&G SecureBuilder Fixed Indexed Annuity policy work?
An annuitant (maximum age at the time of policy issue: 85) can purchase the F&G SecureBuilder indexed annuity with a minimum initial purchase amount of $10,000, and in return, they will earn market index returns (calculated through a formula that we will discuss shortly), credited as per the chosen crediting period. Apart from the regular crediting period, various events may trigger earnings credits, including free withdrawals, long-term care events, terminal illness or injury events, or when a death benefit is payable. All these interest credits are credited to a bucket called “Account Value.” This bucket represents your annuity account balance, and all withdrawals are made from it.
The F&G SecureBuilder Fixed Indexed Annuity offers annuitants the choice to select one or more of seven index-linked crediting strategies tied to the S&P 500 Index and the Balanced Asset Index 5 to determine interest credits. In addition, the plan includes a fixed-rate guaranteed interest option, bringing the total number of available crediting strategies to eight.
S&P 500 Index: The S&P 500 Index is one of the most widely recognized and oldest indexes in the world. It tracks 500 large-cap publicly traded stocks listed in the United States. It is a reliable index that has often stood the test of time. It is very important to note that the F&G SecureBuilder annuity offers the S&P 500 index with rate-limiting mechanisms (such as participation rates and cap rates) in place, meaning that you will be credited only a portion of the S&P 500 return to your annuity. These rates tend to change frequently; I will discuss the rates in detail shortly.
Balanced Asset 5 Index: The Balanced Asset 5 Index employs a classic approach to portfolio construction, featuring a 60/40 allocation using a selection of BlackRock ETFs. Combined with rebalancing and volatility control features, the index seeks to provide excess returns across market conditions through a tactical combination of equity and fixed-income ETFs. The CIBC Balanced Asset 5 Index was introduced in June 2020 and aims for a 5% annualized realized volatility. While these volatility controls may result in less fluctuation in rates of return compared to indexes that don’t use them, they may also reduce the overall rate of return compared to those other indexes.
Note: In addition to allocating funds in the following indexes, the annuitant also has the option to allocate funds at a fixed interest rate. Like the index rates, these fixed rates are also subject to change over time. The fixed rate at the time of writing this article was 4.00%.
The earnings crediting formula
The earnings crediting formula is one of the most important parts of this annuity discussion. It is essential to note that we don’t simply receive the index return credited to our annuity. The company has several rate-limiting mechanisms (such as cap rate, participation rate, and performance triggers) in place that impact our earnings. These rates are subject to change over time. You can verify the updated rates with the assistance of your advisor or on the company’s website.
Let’s have a look at the F&G SecureBuilder rate sheet (as of January 2026) to understand how the earnings are determined.
From the above rate chart, you will notice that there are five interest crediting options (one fixed and seven indexed). Let’s have a look at different terms that are used by the company in the F&G SecureBuilder Fixed Indexed Annuity rate chart:
Cap Rates: This refers to the rate at which your interest-earning capacity is capped. For example, if an index returns 12% but the contract’s cap rate is 5%, the annuitant will be eligible for an interest credit of 5% only. It doesn’t matter how much the index goes above the cap rate; the maximum interest that can be earned is the cap rate.
Participation Rate (PR): The participation rate describes the annuitant’s participation percentage in the return of an index. For example, suppose the participation rate is 40%, and the index returned 10% over the agreed time. In that case, the annuitant will be eligible only for 40% of the return, i.e., 4%.
Performance-Triggered Option with Declared Rate: A flat or positive index return triggers the declared interest rate to be credited to the contract value. If the index return is negative, no interest is credited; however, there will be no loss, and the contract value will remain unchanged. The declared interest rate is set at the time of contract issue. In this case, the performance-triggered rate for the S&P 500 Index is 5.75%. 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 to the annuity will be 5.75% irrespective of the S&P 500's actual return.
Fixed Rate: If you opt for a fixed account rate, you simply earn the fixed rate 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 4.00%.
When allocating premiums in a fixed-indexed annuity, individuals can distribute their money across these different indexing strategies. This means you can decide how much of your premium to allocate to each strategy, allowing for a tailored approach to potential growth and risk based on your financial goals and comfort level.
The F&G SecureBuilder offers good rates for accumulation. The cap rates that the annuity provides, even on indexes like the S&P 500, are relatively better compared to other similar annuities. If I were to choose the indexing strategies, I would have opted for one or many of the following strategies:
S&P 500 1-year point-to-point with Cap rate
S&P 500 2-year point-to-point with Cap rate
S&P 500 1-year performance trigger rate
Balanced Asset Index 2-year point-to-point with participation rate
Accessing your Money
Each year, you are entitled to a 10% free withdrawal of your contract value without incurring any 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 F&G SecureBuilder FIA:
| Completed Contract Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+ |
|---|---|---|---|---|---|---|---|---|
8-year Surrender Charge % | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 0% |
5-year Surrender Charge % | 9% | 8% | 7% | 6% | 5% | 0% |
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 charge of F&G SecureBuilder Fixed Indexed Annuity is in line with all the other annuity issuers.
Once the surrender charge period ends, you can typically access your full contract value without fees. However, any withdrawal reduces both your contract value and, if applicable, the income base tied to optional riders, which may impact future guaranteed income.
An annuitant can also convert the contract into a stream of guaranteed income, known as annuitization. They can choose from various payout options designed to meet different needs.
Life Only – Provides income for as long as you live.
Joint and Survivor Life – Continues payments over two lifetimes, often used by couples.
Life with Period Certain (up to 30 years) – Pays income for life, but guarantees payments for a minimum period even if death occurs earlier.
Period Certain (up to 30 years) – Provides guaranteed payments for a set number of years, regardless of lifespan.
Single Life or Joint Life with Cash Refund – Ensures that if the annuitant(s) pass away before receiving payments equal to the original premium, the difference is refunded to beneficiaries.
Single Life or Joint Life with Installment Refund – Similar to the cash refund, but any remaining balance is paid out over time in installments.
Note that annuitization is different from the lifetime income rider offered by many annuities. For a detailed explanation of the differences between annuitization and a lifetime income rider, please refer to my post on annuitization.
Death Benefit
Upon the annuitant’s death, the beneficiary will get the greater of (i) the Account Value or (ii) the Surrender Value
Riders
The F&G SecureBuilder is a plain-vanilla annuity that does not offer any optional paid riders. In my opinion, this actually appeals to many people who don’t understand or don't want to delve deeply into the complex methodologies that riders often come up with. However, as with most annuities, the SecureBuilder has free in-built home health care, 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 60 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.
Home Health Care Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is unable to perform at least 2 of 6 activities of daily living (for at least 60 days and is expected to continue for at least 90 days after requesting withdrawal. 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. While many annuities offer Nursing Home and Terminal Illness Waivers, the Home Health Care waiver is not typically an option that many annuities provide.
Contract/Administrative Charge
The F&G SecureBuilder fixed indexed annuity levies no annual contract or administrative fees.
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.
Fidelity National Financial
F&G is a subsidiary of Fidelity National Financial. Fidelity National Financial is one of the oldest title insurance companies and has been in the business for over 18 decades. It is a Fortune 500 company ranking #313.
It is rated as follows by the rating agencies:
| AM Best | A (3rd of 13 ratings) |
|---|---|
Moody’s | A3 (7th of 21 ratings) |
S&P | A- (7th of 21 ratings) |
Fitch | A- (7th of 21 ratings) |
Fidelity has consistently maintained strong ratings for many years. Fidelity is considered to be financially strong and stable. As of year-end 2024, some of the other financial highlights for Fidelity include its:
$15.3 billion in total sales / direct written premium
$50 billion of a total investment portfolio
$51.6 billion Assets Under Management (AUM)
$85 billion in total assets
$622 million in net income
Thus, by examining the operating history and financial numbers, we can confidently conclude that you can trust your savings with F&G.
What Makes this Product Stand Out?
The F&G SecureBuilder Fixed Indexed Annuity offers a few features that make a favorable case for this annuity. The ones that I like the most are:
Plain-Vanilla, Accumulation-Focused Design: SecureBuilder is built with a clear emphasis on accumulation rather than income, making it easy to understand and well aligned with investors who want growth without embedded complexity.
Simple Crediting Strategy Lineup: With a limited and familiar set of index-linked strategies tied to the S&P 500 Index and the Balanced Asset Index 5, the product avoids overly engineered or opaque index structures.
No annual contract, mortality & expense, or administrative fees
Free Confinement and Terminal Illness Waiver Benefit
Multiple Payout Options: Lump sum or Annuitization option with Life Only, Life with Period Certain, Joint and Survivor Life, etc.
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:
Limited Upside Potential: Like most fixed indexed annuities, growth is constrained by caps, participation rates, or triggers, which can limit returns during strong equity market rallies.
No Income-Oriented Features: The lack of optional lifetime income riders means the product does not naturally transition into an income solution for retirement, potentially requiring a separate income strategy later.
Surrender Charges and Liquidity Constraints: The product requires a long-term commitment, and early withdrawals beyond free limits can trigger surrender charges and market value adjustments.
Rate Reset Risk: Caps, participation rates, and fixed rates are subject to change at renewal, introducing uncertainty around future crediting potential.
Conclusion
With the advancement in healthcare and technology, the average American today is living longer than ever. Therefore, it’s crucial to have a steady stream of income that can grow safely and consistently. This not only helps you mitigate the risk of outliving your savings but also ensures that you continue to live a decent life even in your retirement.
The F&G SecureBuilder Fixed Indexed Annuity is best suited for investors seeking a simple, accumulation-focused annuity rather than a complex income-driven product. Its plain-vanilla structure, principal protection, and tax-deferred growth make it a practical option for those who want measured exposure to market-linked returns without assuming market downside risk. While it does not offer enhanced income riders or aggressive growth features, this simplicity can be a strength for individuals who value transparency and capital preservation as they build retirement savings. For annuitants seeking to steadily accumulate a corpus within a fixed indexed annuity framework, the F&G SecureBuilder can serve as a reliable and straightforward choice.
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. Dive deeper into our extensive reviews here.