SILAC Vega Fixed Indexed Annuity In-depth Review

The Silac Vega Fixed Indexed Annuity offers the annuitant (annuity investor) an opportunity to earn a portion of market index-linked return without incurring the risk of market downside. This might be a suitable plan for people who are approaching retirement and aim to grow and protect their retirement savings. This plan is also suitable for people who are looking for guaranteed lifetime income or plan to leave a legacy for their loved ones, in addition to protecting and growing their retirement savings.

Let’s have a look at the high-level fine print of the Silac Vega Fixed Indexed Annuity, and then we will discuss each point in detail.

The Silac Vega Fixed Indexed Annuity is almost identical for all policy tenures, except for the crediting strategies and surrender charge schedule. For ease of discussion and clarity, we will refer to the Silac Vega 10 (unless otherwise mentioned) Fixed Indexed Annuity for the rest of the article.

How does the Silac Vega Fixed Indexed Annuity policy work?

An annuitant (maximum age at the time of policy issue: 85) can purchase the Silac Vega 10 fixed 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. In addition to the regular crediting period, various events may trigger earnings credit: 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 is your annuity account balance, and all your withdrawals take place from it.

At the same time, a separate bucket called “Benefit Value” is established, through which lifetime withdrawals and other benefits are determined. Your Benefit Value will grow using a given index growth rate and multiplier, which we will see in detail later in this review. The benefit value is only used to determine the lifetime withdrawal amount, and you can’t take any withdrawals from this account. We will return to this later in this review when we discuss the “riders” of this annuity.

The Silac Vega 10 Fixed Indexed Annuity offers the annuitant to choose from one or more of the six indexes (S&P 500 Index, S&P 500 Duo Swift Index, S&P 500 RavenPack Index, Barclays Atlas 5 Index, Nasdaq Gen 5 Index, Bloomberg Versa Index) to determine their earnings crediting formula. Each index has multiple strategies to choose from. The plan also offers a fixed-rate guaranteed interest strategy, bringing the total to 14. We will discuss each available index briefly:

1. S&P 500 IndexThe S&P 500 index is one of the most popular and oldest indexes in the world. It tracks 500 large-cap publicly traded stocks listed in the United States. It is a reliable index and has often succeeded in the test of time. It is very important to note that, similar to most other annuities, the Silac Vega Fixed Indexed Annuity offers the S&P 500 index with caps, participation rates, and spreads in place, meaning that your interest-earning capacity is limited. These rates change frequently; I will discuss the rates in detail shortly.2. S&P 500 Duo Swift IndexThe S&P 500 Duo Swift Index is a specialized financial index designed to measure the performance of a controlled volatility version of the S&P 500. This index incorporates a risk control mechanism that operates on S&P 500 E-mini futures and includes a 10-year U.S. Treasury Bond futures overlay. The primary objective of the index is to manage volatility and reduce path dependency, making it a dynamic tool for investors seeking stability in volatile markets. While these volatility controls may lead to less fluctuation in returns compared to indices without such mechanisms, they also lower the potential overall rate of return in comparison to those other indices.3. Barclays Atlas 5 IndexThe Barclays Atlas 5 Index is a global financial index designed to provide stable and consistent returns through a diversified portfolio of equities and bonds from around the world. The Atlas 5 Index offers investors an opportunity to participate in approximately 90% of the global economy, expanding beyond the U.S.-centric focus of indices like the S&P 500. It aims to achieve this by targeting a 5% volatility level, utilizing techniques from Modern Portfolio Theory and Momentum Investing to optimize its component allocations daily. The index's dynamic structure allows it to adjust its exposure between equities and bonds depending on market conditions, potentially being fully uninvested if the risk/reward scenario is deemed unfavorable. Similar to any volatility-controlled index, this may lead to less fluctuation in returns compared to indices without such mechanisms; they also lower the potential overall rate of return in comparison to those other indices.4. S&P 500 RavenPack AI IndexThe S&P 500 RavenPack AI Index is a financial index that leverages artificial intelligence to analyze news sentiment and apply it to a sector rotation strategy within the S&P 500. Developed by S&P Dow Jones Indices in collaboration with RavenPack, the index measures exposure to the S&P 500 RavenPack AI Sentiment Index, which identifies sectors with the highest sentiment scores based on news analytics. The index employs a multi-asset approach, combining U.S. equities and fixed income, and incorporates a daily risk control mechanism to maintain a target volatility of 5%. Similar to any volatility-controlled index, this may lead to less volatility in returns compared to indices without such mechanisms; they also lower the potential overall rate of return in comparison to those other indices.5. Nasdaq Gen 5 IndexThe Nasdaq Generations 5 Index is a multi-asset, risk-controlled index designed to provide exposure to both the Nasdaq-100 Total Return Index and the Nasdaq Next Generation 100 Total Return Index. It also includes allocations to 10-year and 2-year U.S. Treasury futures, aiming to maintain a constant 5% volatility target. This index utilizes the truVol® Risk Control Engine, developed by Salt Financial, to dynamically manage allocations between its components and cash, enhancing its responsiveness and accuracy in volatility targeting. While this volatility-controlled mechanism causes less fluctuation in returns compared to indices without such mechanisms, it also lowers the potential overall rate of return in comparison to those other indices. The index is structured as a 70/30 blend of the Nasdaq-100 and the Nasdaq Next Generation 100 Indexes, with the remainder allocated to fixed income or cash.6. Bloomberg Versa IndexThe Bloomberg Versa 10 Index is a recently launched multi-asset benchmark specifically designed to address the evolving needs of the fixed indexed annuity market. It aims for a 10% volatility target by dynamically allocating its exposure across four major asset classes: US equities, US Treasuries, gold, and the US dollar. Each of these asset classes is tracked through its own dedicated volatility-targeted sub-index, allowing the index to respond in real time to changing market conditions and to balance performance with stability.

Note: In addition to allocating funds to the following indexes, the annuitant also has the option to allocate funds at a fixed interest rate. The Fixed Value Rate for the 10-year withdrawal charge period at the time of writing this article was 2.25%. These Fixed Rates change from time to time. You can contact your trusted financial advisor to know the latest rates.

At the time of this review (Sep 2024), this was the published figure. For current rates, see Current Rates ↓.

As mentioned earlier, all earnings, whether in the form of index credits or fixed-rate credits, are credited to the "Account Value" bucket. However, it’s important to note that we do not receive the full index return in our account. This section explains how these index returns are calculated and added to our account value.

The earnings crediting formula

The earnings crediting formula is a crucial aspect of this annuity discussion. It’s essential to understand that the index return is not directly credited to our annuity. Instead, factors such as participation rates, cap rates, and spreads set by the company influence our earnings. These rates can change over time, so it’s advisable to consult with your trusted financial advisor for the latest rates.

Let’s have a look at the Silac Vega Fixed Index Annuity rate sheet (as of March 2026) to understand how the earnings are determined.

From the above rate chart, you will notice that there are 15 interest crediting options (1 fixed and 13 indexed). Let’s have a look at different terms that are used by the company in the Vega Fixed Indexed Annuity chart rate:

1. Point-to-point with 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 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%.
2. Point-to-point with 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 6%, the annuitant will be eligible for an interest credit of 6% 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.
3. One-Year Monthly Index Average with Participation Rate: This strategy begins by recording the initial value of a selected index at the onset of the contract term. Subsequently, the index's value is captured monthly. After a one-year duration, these monthly index values are aggregated and then averaged by dividing the total by 12. This average, multiplied by the participation rate, helps decide the interest added to the annuity.
4. Point-to-point with Spread: The amount of interest that the Company will credit is based on a declared spread on the selected index on an annual point-to-point basis. Once the index gain is determined (if any), the spread amount is subtracted. The remaining amount is what is credited to the contract for that term.
5. Point-to-point with Boost: The amount of interest that the Company will credit is based on a declared boost on the selected index on an annual point-to-point basis. Once the index gain is determined (if any), the boost amount is added. The remaining amount is what is credited to the contract for that term.
6. Fixed Account 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 2.25%.

At the time of this review (Sep 2024), this was the published figure. For current rates, see Current Rates ↓.

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 goes into each strategy, allowing for a tailored approach to potential growth and risk based on your financial goals and comfort level.

This annuity is not ideal for growth (as evidenced by the low participation and cap rates). However, if I had to choose among these indices, I would prefer the strategies with a monthly point-to-point cap on the S&P 500 Index, the S&P 500 RavenPack Index with a participation rate, and the Barclays Atlas point-to-point with a boost.

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.

SILAC Insurance Company

SILAC Insurance Company, originally founded as Equitable Life & Casualty Insurance Company in 1935, is Utah's oldest active life insurance company. The company, headquartered in Salt Lake City, Utah, has a rich history of providing life and health insurance, particularly focusing on the needs of seniors. In 2018, SILAC entered the annuity market, expanding its offerings to include a variety of innovative annuity products, such as Fixed Index Annuities and Multi-Year Guaranteed Annuities. SILAC is licensed to operate in 48 states and the District of Columbia, making it a significant player in the national insurance market.

It is rated as follows by the rating agencies:

SILAC's credit ratings reflect a moderate level of financial stability and suggest adequate creditworthiness. While SILAC is financially sound, it's important to consider its overall financial strength compared to higher-rated insurers. As of September 2025, some of the financial highlights for SILAC Insurance Company include its:

• $4.3 billion in total cash and invested assets
• $719 million of total adjusted capital and surplus
• $15.4 billion in-force account value
• 123,000 plus policyholders

With advancements in healthcare and technology, the average American today lives longer than ever. Consequently, it's crucial to have a source of income that grows safely and steadily, and can provide a guaranteed income during retirement years. This strategy not only mitigates the risk of outliving your income but also ensures a decent standard of living in retirement.

The Vega Fixed Indexed Annuity offers a well-rounded package of features designed to provide flexibility, security, and financial support throughout retirement. With its variety of free enhanced withdrawal options, including benefits for terminal illness, nursing home care, and home health care, this product ensures that annuitants have access to their funds when they need them most. The Optional Enhanced Death Benefit and Wellness Withdrawals further enhance its appeal, making it a strong choice for those who want to maximize both their lifetime income and the legacy they leave behind.

However, potential buyers should weigh these benefits against certain drawbacks, such as the complexity of the product and the lower free withdrawal limit during the withdrawal-charge period. Additionally, while SILAC's credit ratings indicate adequate financial stability, prospective annuitants should consider the company's ratings in comparison to other insurers. Importantly, this annuity may not be the best suited for those primarily focused on accumulation and growth, as its structure is more geared towards providing steady income and enhanced benefits rather than maximizing investment returns. As with any financial product, it’s advisable to thoroughly review the details and consult with a financial advisor to ensure that it aligns with your specific retirement goals and needs.