When considering a Gainbridge annuity, consumers commonly want to understand the company behind the product, the regulatory framework that applies to life insurers, and the features and limitations of a fixed annuity contract. This article describes those items.
What Is Gainbridge?
Gainbridge is a digital-first annuity marketing platform that lets customers purchase annuity contracts issued by Gainbridge Life Insurance Company directly online, without paying a third-party agent commission. Annuity contracts include internal costs, which may include surrender charges, market value adjustments, and product spreads, whether or not an external agent commission is paid. Gainbridge is part of Group 1001, a U.S. financial services company with multiple insurance and investment subsidiaries.
Gainbridge offers Gainbridge Flex℠, a flexible premium deferred annuity available as two account types: the Gainbridge Flex Account℠ for non-retirement money and the Gainbridge Retirement Flex Account℠ for retirement savings. Each account combines a Cash Wallet, which earns a variable rate, with Target Date Pools, which earn a guaranteed rate for a term you choose.
The company's mission is to make annuities transparent, low-cost, and accessible without sales commissions or middlemen.
How Gainbridge and its issuing insurer are regulated
Gainbridge is a state-regulated insurance marketing platform, not a bank or an investment fund. The annuity products offered through Gainbridge are issued by Gainbridge Life Insurance Company. Annuities are insurance contracts, not bank deposits and not securities in the case of fixed and MYGA products. Group 1001 and its subsidiaries, including Gainbridge, must comply with the insurance laws and regulations of each state in which they are licensed, as administered by state insurance departments and consistent with model laws and standards promulgated by the National Association of Insurance Commissioners (NAIC). The NAIC is a standard-setting organization; it is not a regulator itself.
Life insurance companies are subject to state solvency requirements, including risk-based capital rules, statutory reserving requirements, and periodic financial examinations. These requirements are designed to help ensure insurers can meet their contractual obligations, but they do not eliminate insurer credit risk. An annuity's contractual guarantees are supported by the general account of the issuing insurance company and are subject to the insurer's claims-paying ability. Insurers can and have failed; consumers considering an annuity should review the issuer's financial-strength ratings from independent agencies and consult a qualified financial professional.
Financial strength of the issuing insurer
Gainbridge annuities are issued by Gainbridge Life Insurance Company. A.M. Best Company, a nationally recognized statistical rating organization that evaluates the financial strength of insurance carriers, has assigned Gainbridge Life Insurance Company a Financial Strength Rating of A- (Excellent) as of [rating date]. A.M. Best's Financial Strength Rating scale ranges from A++ (Superior) at the highest to D (Poor) at the lowest, with additional categories for insurers under regulatory supervision or in liquidation. Financial-strength ratings speak only to an insurer's ability to meet its ongoing insurance obligations; they are not a warranty of an insurer's future financial performance and are subject to change or withdrawal at any time. For the current rating, visit ambest.com.
According to A.M. Best, an A- (Excellent) rating indicates the rating agency's opinion that the insurer has an excellent ability to meet its ongoing insurance obligations. It is not a guarantee of future payment and does not eliminate insurer credit risk.
Unlike traditional investments that rely on market performance, the guarantees under a fixed annuity contract are contractual obligations of the issuing life insurance company, supported by the insurer's general account and subject to the insurer's claims-paying ability. In Gainbridge Flex℠, money in a Target Date Pool earns a guaranteed rate for the term you choose, and money in the Cash Wallet earns a variable rate; neither is directly reduced by fluctuations in the stock or bond markets. However, principal is not FDIC-insured, and withdrawals from a Target Date Pool above the free withdrawal amount may be subject to a withdrawal charge and a market value adjustment, which can reduce the amount received to less than the amount originally deposited.
This is different from variable annuities, where returns fluctuate with the market and the principal isn't guaranteed. Gainbridge focuses on fixed annuities, which do not directly participate in stock or bond market returns. Predictable growth is among the features of fixed annuities; consumers should also understand the trade-offs, including withdrawal charges, the MVA, insurer credit risk, and tax treatment, which differs between the Gainbridge Flex Account℠ and the Gainbridge Retirement Flex Account℠.
Gainbridge reviews and financial ratings
Independent reviews and objective third-party financial ratings are among the factors consumers may consider when evaluating annuity products.
Customer reviews highlight Gainbridge's interest rates and the simple online application process. Customers can complete actions like adding a trust as a beneficiary without talking to an agent. Reputable outlets such as Business Insider, MoneyRates, and Bankrate have published reviews of the Gainbridge platform about its user friendly platform and transparent pricing.
On Trustpilot, Gainbridge has a Trustpilot rating of 4.5 out of 5 as of [date], based on [number] reviews. Trustpilot ratings reflect the opinions of individual reviewers, are unverified customer testimonials, may not be representative of all customers' experience, and may change over time. Individual customer experiences with Gainbridge products or services are not guaranteed and may differ from those described in reviews.
Consumers considering an annuity should evaluate multiple factors, including the issuer's financial-strength ratings, the specific contract terms (withdrawal charge schedule, MVA, and how you can access your money), and their own timeline, age, tax situation, and liquidity needs.
Learn more about Gainbridge annuities
When you're evaluating the safety of an annuity company, the fundamentals matter. Gainbridge checks all the boxes — financial strength, strong customer reviews, and a business model built on transparency. Consumers evaluating an annuity issuer may consider financial-strength ratings, customer reviews, and the transparency of product disclosures, alongside other factors.
As a digital-first annuity provider affiliated with Group 1001, Gainbridge offers online access to annuity products issued by Gainbridge Life Insurance Company, which is regulated by state insurance departments.
With Gainbridge, you'll get a user-friendly platform and access to insurance-licensed representatives who can answer questions about product features.
Gainbridge Flex℠ lets you open an account online with $100, keep money accessible in a Cash Wallet, and set aside other money at a guaranteed rate for a term you choose in a Target Date Pool. Gainbridge offers online product information and interactive calculators. Before purchasing an annuity, consumers should evaluate whether the product is appropriate for their timeline, age, tax situation, liquidity needs, and other financial goals, and should consider consulting a qualified financial or tax professional.
Explore Gainbridge Flex℠ to see how a guaranteed rate for a term you choose could fit your savings goals.
FAQ
Is Gainbridge protected by the FDIC?
No. FDIC insurance only applies to bank products such as checking accounts, savings accounts, and CDs.
Gainbridge Flex℠ is an insurance contract issued by a life insurance company. Annuity contract obligations are supported by the general account and the claims-paying ability of the issuing insurance company. Annuities are not backed by any federal government agency.
How does Gainbridge protect consumer accounts?
You can have confidence in Gainbridge for several reasons:
• Gainbridge Flex℠ is supported by the claims-paying ability of Gainbridge Life Insurance Company, which holds an A- (Excellent) rating by AM Best as of [rating date]. Ratings are subject to change; see ambest.com for the current rating.
• It is subject to state solvency, reserving, and consumer-protection laws administered by state insurance departments, consistent with model laws and standards promulgated by the NAIC.
• Gainbridge Flex℠ credits a guaranteed rate to money in a Target Date Pool for the term you choose and a variable rate to money in the Cash Wallet, subject to the claims-paying ability of the issuing insurance company. In a fixed annuity, the account value is not directly reduced by stock or bond market fluctuations.
Can I withdraw money from Gainbridge Flex℠ before the end of a term?
Yes. Money in the Cash Wallet can be withdrawn without withdrawal charges or a market value adjustment. Money in a Target Date Pool can be withdrawn before its Target Date up to the free withdrawal amount; withdrawals above that amount may be subject to a withdrawal charge and a market value adjustment. At the Target Date, you can withdraw within a 30-day window without charges or an MVA.
Important tax consideration: the free withdrawal amount refers to the withdrawal charge only. In a Gainbridge Flex Account℠, interest is taxed annually as ordinary income. In a Gainbridge Retirement Flex Account℠, earnings are taxed as ordinary income when withdrawn, and the separate 10% federal tax penalty under IRC §72(t) may apply to earnings withdrawn before age 59½. Consult a qualified tax professional regarding your specific situation.
This article is intended for informational purposes only. It is not intended to provide, and should not be interpreted as, individualized investment, legal, or tax advice. The Gainbridge® digital platform provides informational and educational resources intended only for self-directed purposes.
Gainbridge Save℠ annuity products are issued by Gainbridge Life Insurance Company, an affiliate of Group 1001. Annuities are long-term insurance products, not bank deposits. They are not insured by the FDIC or any federal government agency, are not guaranteed by, and are not obligations of, any bank or bank affiliate, and are not a condition of any banking service. All guarantees, including any reference to principal protection or guaranteed interest, are subject to the financial strength and claims-paying ability of the issuing insurance company.
Withdrawals from a Target Date Pool above the free withdrawal amount may be subject to a withdrawal charge and a market value adjustment. Taxable amounts are subject to ordinary income tax and, if taken before age 59½ from a tax-deferred annuity such as the Gainbridge Retirement Flex Account℠, may be subject to a 10% federal tax penalty.
A.M. Best financial-strength ratings are opinions regarding the ability of an insurance company to meet its ongoing insurance obligations. They are not a warranty of an insurer's future financial performance and are subject to change or withdrawal. See ambest.com for the current rating and rating scale.
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