Gainbridge is an online annuity and life insurance agency that sells a deferred annuity and an immediate annuity. The company was founded in 2019. Gainbridge’s products are currently available in every state, Washington, D.C. and Puerto Rico, with the exception of New York. Gainbridge annuities are exclusively sold online.
Want some help figuring out what kind of annuity is best for you? A financial advisor can help you understand how annuities can play a role in your retirement income plan. SmartAsset’s advisor matching tool can pair you with up to three financial advisors who serve your area.
|Annuity||Fees||Annuity Type||Minimum Initial Premium||More Information|
|Gainbridge Multi-Year Guaranteed Annuity Find an Advisor|| ||Single-premium deferred annuity||$1,000|| |
Annuity TypeSingle-premium deferred annuity
Minimum Initial Premium$1,000
|Gainbridge Single Premium Immediate Annuity Find an Advisor|| ||Single-premium immediate annuity||$10,000|| |
Annuity TypeSingle-premium immediate annuity
Minimum Initial Premium$10,000
Gainbridge is part of a larger group of insurance companies that are owned by insurance holding company Group1001. Group1001 has $58 billion in client assets under management (AUM). The annuities Gainbridge offers are issued by Guggenheim Life and Annuity Company, which is based in Indianapolis, Indiana.
Guggenheim Life and Annuity Company's financial strength is rated at a "A-" (Excellent) by A.M. Best, a premier financial ratings entity. A.M. Best also gave Guggenheim Life and Annuity a stable financial outlook.
Gainbridge Multi-Year Guaranteed Annuity
The Gainbridge Multi-Year Guaranteed Annuity (MYGA) earns tax-deferred interest for a predetermined period of time. Gainbridge refers to this as the “guaranteed interest rate period,” and you can choose the term length, so long as it’s within a 3- to 10-year time frame. Throughout your ownership of this annuity, your principal investment will also be guaranteed.
Once this period ends, account holders can choose from one of four next steps:
- Start a new guaranteed interest rate period with an up-to-date rate
- Make a full, lump sum withdrawal from the account
- Annuitize the account’s balance by agreeing to receive monthly payments for anywhere from 5 to 10 years
- Do nothing, leaving your contract to automatically renew at “competitive, current interest rates,” according to the company's website
The Gainbridge MYGA automatically comes with a death benefit. In the event of the account holder’s death, Gainbridge will disburse the annuity’s balance to the designated beneficiaries. This can be done either as a single payment or as guaranteed annuity payments for the remainder of the current guaranteed interest rate period. However, if the sole primary beneficiary is the account holder’s surviving spouse, they may elect by written request to take over as the contract’s new owner.
Gainbridge will allow you to cancel your contract within 30 days of opening it for free. Once you surpass this policy, taking money out could mean you’ll have to pay withdrawal charges. But beginning during your second year as an account holder, you may make fee-free annual withdrawals of at least $100 and up to 10% of the account’s value.
Should you withdraw beyond the allotted 10% during a guaranteed interest rate period, you’ll incur extra charges. These withdrawal fees can range anywhere from 1% to 3% of your account’s value, in addition to market value adjustments (MVAs). Rates vary depending on your term length and how long you’ve owned the account. Here’s a breakdown:
|Withdrawal Fee Schedule|
|Your Term Length||Year 1||Year 2||Year 3||Year 4||Year 5||Year 6||Year 7||Year 8||Year 9||Year 10|
Annuitants younger than 59.5 years old that choose to take withdrawals may find themselves paying an additional 10% income surtax, in addition to standard income taxes. Consult with a financial advisor if you have questions.
Realistic Return Expectations
Annuities rely on a number of different considerations when determining their returns. This could include the annuitant’s age, state of residence, investment amount and chosen investment period. For example, according to Gainbridge’s annuity calculator, a five-year, $25,000 investment that belongs to a Massachusetts resident would evolve into $30,416.32 based on the 4% guaranteed interest rate that Gainbridge is offering (as of August 2022) on the 5-year term.
Gainbridge Single Premium Immediate Annuity
The Gainbridge Single Premium Immediate Annuity (SPIA) lets you turn an initial investment into fixed monthly payments that last anywhere from 3 to 10 years. This duration of time is known as the “guaranteed period.” The minimum initial investment for this annuity is $10,000. If you’re so inclined, you can invest as much as $1 million in the Gainbridge SPIA.
Similar to the Gainbridge MYGA, SPIA annuitants will receive an automatic death benefit if the contract is still active when the annuitant dies. The designated beneficiaries will get to choose between either a single, lump sum payment or guaranteed monthly payments for the remainder of the contract’s life. The former will include a 4% commutation fee, though.
If the surviving spouse of the annuitant is the sole primary beneficiary, they’ll receive special treatment. In this case, the spouse can either request in writing to become the contract’s owner or take a death benefit without the 4% commutation fee.
If you decide to withdraw all the money from your Gainbridge SPIA before the end of your guaranteed period, you’ll be charged 4% of your balance as a commutation fee. Gainbridge does allow customers to cancel their contract for free within 30 days of its issuance, though.
This annuity is funded with after-tax dollars. That means that you won’t pay taxes on the receipt of your principal. However, any money that you earn via interest will be taxed.
Realistic Return Expectations
The potential returns you could receive from the Gainbridge SPIA are dependent on factors like your age, sex, state of residence, payout option, initial investment and tax status. Gainbridge’s annuity calculator shows that a 68-year-old, qualified status Texas resident who invests $25,000 for five years can expect to receive $438.73 a month. That works out to a total projected payout of $26,323.80.