Death Benefit Quality Score (2026): Ranking Annuities by Legacy Value

We already have a Goldstein Complexity Index. It tells you how easy a product is to understand. It does not tell you whether the product is the right tool for your job. A buyer shopping for death benefit (money to heirs, hybrid LTC pool, protected legacy) needs a different lens. That lens is the Death Benefit Quality Score. We invented it because nothing else captures it.

Why we needed a new scoring axis

The Complexity Index measures transparency. It penalizes products for stacked riders, separate benefit bases, MVA, and bonus recapture. It rewards products you can explain to your spouse in five minutes.

Transparency is necessary, but it is not the same as job-fit. A simple, transparent product can be the wrong tool. A complex, opaque product can occasionally be the right one. Look at how the two scores diverge across three real products:

These are independent dimensions. You need both scores to pick the right product for the death-benefit job. The Complexity Index protects you from getting confused. The DBQS protects you from buying a transparent product that simply does not do what you wanted it to do.

The 7 criteria that go into DBQS

DBQS is calculated as a weighted sum of seven criteria, each scored 1 to 10. The product score is then expressed on a 1 to 100 scale. Weights below are deliberate: enhanced death benefit riders move the score the most because they are the single largest determinant of what heirs actually receive.

A 100/100 product would have an embedded high-water-mark GMDB, waive MVA at death, allow smooth spousal continuation, permit a stretch payout, avoid probate, deliver step-up basis, and pass the income rollup base. No annuity hits that bar. The closest is hybrid life + LTC (which is technically not an annuity).

Where each annuity TYPE scores on DBQS (averages)

Type-level averages are useful for orientation. Within each type, specific products score 10 to 20 points above or below the average depending on rider construction and MVA handling. Use this as a starting point, not a verdict.

SPWL is included for context because it sits on the same shelf when buyers shop for legacy. It is not an annuity. It scores 100 because it is a pure death benefit instrument with no living component to dilute the legacy.

Top 10 highest-DBQS products on our shelf (2026)

Products are ranked by DBQS, then by net cost of producing the death benefit. We include hybrid life + LTC products because they are part of the legacy-shopping decision set even though they are not annuities. We list the specific rider configuration that produces the score. Without the right rider, the same product can score 20+ points lower.

1. OneAmerica Asset Care: 95/100. Joint-life death benefit with lifetime LTC acceleration. The only product on the market that pays unlimited LTC for two lives. Best DBQS for couples.
2. Lincoln MoneyGuard III: 92/100. Guaranteed death benefit, 0-day LTC elimination period, ~70% return-of-premium option. Best DBQS for single buyers age 55 to 70 in good health.
3. Nationwide CareMatters II: 90/100. Cash indemnity LTC (no receipts required), guaranteed death benefit. Stronger LTC mechanics than MoneyGuard; slightly lower DB.
4. Securian SecureCare III: 88/100. Budget-friendly hybrid with solid DB and LTC pool. Lower premium thresholds make it accessible at the $50 to 100K entry point.
5. Brighthouse Shield Annuity with GMDB: 85/100. Variable annuity with high-water-mark GMDB. Best traditional VA death benefit on the shelf.
6. Allianz 222 FIA with Income Bonus PIV: 80/100. The Protected Income Value can pass to heirs as a death benefit when annuitized. It is one of the few FIA riders where the rollup base survives the owner.
7. Athene Ascent Pro Bonus with Enhanced DB: 78/100. Annual step-up GMDB at additional cost. Locks in highest contract anniversary value each year.
8. Nationwide Peak 10 with Bonus Income+: 75/100. DB rider with rollup pass-through; heirs receive the higher of account value or rollup base.
9. Athene SPIA with Cash Refund: 70/100. Guaranteed return of premium minus payments received. Eliminates the "die early and lose principal" risk of life-only.
10. SILAC Teton 14 with ROP: 70/100. The return-of-premium feature is the only redeeming feature for a legacy buyer; otherwise this is a long-surrender accumulation product.

Worst-DBQS products (avoid if death benefit matters)

The point of this section is not to disparage these products. They have legitimate uses, just not the legacy use case. If a producer is recommending one of these to a buyer who said "I want to leave something to my kids," the product mismatch should be questioned.

• Life-only SPIAs from any carrier: DBQS 5/100. Income stops at death. Zero to heirs. The "life-only" payout factor is 8 to 12% higher than period-certain or cash-refund. That is the trade-off, and the buyer should know it.
• MYGAs that APPLY MVA at death. Most carriers default to applying MVA on death. In rising-rate environments this reduces the death benefit by 5 to 15%. Carriers known to waive MVA at death (good for legacy): Aspida WealthLock, Athene MaxRate, F&G Guarantee Platinum. Most others apply it, so always check the contract.
• FIAs without an enhanced DB rider. The default death benefit on most FIAs is "account value." This is fine in flat or rising-account environments. In a year where the account had no credit, heirs get only the principal paid in (minus withdrawals), not the rolling income benefit base the agent talked about in the sales meeting.
• Long-surrender accumulation FIAs sold as "legacy products" when the only legacy feature is "the kids get account value." That is not a legacy feature. It is the default for any annuity. Without a GMDB rider, the legacy framing is misleading.

The MVA-at-death trap

Market Value Adjustment (MVA) is a contract provision that adjusts the surrender value of a fixed annuity up or down based on the change in interest rates since the contract was issued. If rates have risen since you bought, MVA reduces your surrender value (the carrier would lose money if you cashed out and reinvested at the higher rate, so the contract makes you absorb that loss). If rates have fallen, MVA increases your surrender value. MVA is symmetric in theory; in a rising-rate decade, it is asymmetric in practice because most surrenders happen when rates rise.

MVA normally applies on early surrender. That is its purpose. The question for legacy buyers is: does the carrier also apply MVA at death?

The honest answer is: it depends on the carrier and the specific product. Some carriers waive MVA at death as a beneficiary protection. Others apply it. The provision is in the contract; it is not always in the brochure.

Carriers that WAIVE MVA at death (legacy-friendly)

• Aspida: WealthLock MYGA series waives MVA at death of owner.
• Athene: MaxRate and AccumMax MYGAs waive MVA at death.
• F&G: Guarantee Platinum series waives MVA at death.
• Mass Mutual Ascend (formerly Great American): many products waive.
• American Equity: many MYGA/FIA products waive at death.

Carriers that may APPLY MVA at death (check the contract)

• SILAC: most products apply MVA at death.
• EquiTrust: varies by product; many apply.
• Sentinel Security Life: most products apply.
• Oceanview: applies on some MYGA series.

This list is not exhaustive and reflects 2026 contract language. Carriers can and do change provisions on new product versions. The only authoritative source is the actual contract issued to the owner.

Worked example: the $53K difference

A 68-year-old buys a 5-year MYGA for $250,000 at a 5.50% credited rate. Rates rise 200 basis points over the next three years. The owner dies in year 3 with an account value of $263,000 (premium plus credited interest, minus nothing because no withdrawals were taken).

With MVA waived at death: beneficiary receives $263,000 (full account value).
With MVA applied at death: the rising-rate MVA reduces the death benefit by roughly 20% of the remaining-term interest differential. Beneficiary receives approximately $210,000.

The difference is $53,000 on the same $250,000 premium, purely a function of which carrier the owner picked and which version of the contract was issued.

How to check your contract: open the PDF and look for the section titled "Death Benefit Provisions" or "Payment Upon Death of Owner." It will explicitly state whether MVA applies at death. If the contract is silent or ambiguous, call the carrier and request the answer in writing. Do not accept an agent's verbal assurance. The contract controls.

Spousal continuation explained (IRC §72(s))

For non-qualified annuities (purchased outside an IRA or 401(k)), IRC §72(s)(7) requires the carrier to offer a surviving spouse the option to continue the contract as the new owner. This is called spousal continuation and it is one of the most underappreciated planning features in the annuity world.

When spousal continuation is elected:

• The spouse becomes the new owner and annuitant. The contract continues with the same contract number and provisions.
• Tax basis transfers. The spouse inherits the original owner's basis. No deemed distribution. No 1099-R.
• No surrender charge. Continuation is not a surrender.
• No MVA. The contract is not being cashed out.
• The surrender schedule continues from where it was. It does not reset to year 1. If the original owner died in year 6 of a 10-year surrender period, the spouse picks up at year 6.
• The death benefit clock resets. If the contract has a GMDB rider, the spouse becomes the new measuring life for future death benefits.

For qualified annuities (inside an IRA or 401(k) rollover), the parallel mechanism is the spousal rollover under IRC §408(d)(3), which allows the surviving spouse to roll the IRA into their own IRA. The economic effect is similar but the tax mechanics are different.

Carriers with clean spousal continuation

Mass Mutual, NY Life, Pacific Life, Penn Mutual: paperwork is light, processing is fast, no friction.

Carriers with friction

Aspida, EquiTrust, some smaller MYGA carriers: surviving spouse must call, request paperwork, complete a new application package. Continuation is honored but the process takes 30 to 60 days and can feel like buying a new contract. This matters when the spouse is grieving.

If spousal continuation is a planning priority, ask the carrier (in writing) before purchase: "What is the spousal continuation process and what forms are required?" A one-page answer means clean. A five-page answer means friction.

What about qualified vs non-qualified at death?

The tax treatment of an inherited annuity depends on whether it is qualified (inside an IRA/401(k)/403(b)) or non-qualified (purchased with after-tax dollars).

Qualified annuities at the owner's death are subject to the SECURE Act 2019 / SECURE 2.0 (2022) rules: non-spouse Designated Beneficiaries generally must empty the account within 10 years. Eligible Designated Beneficiaries (spouse, minor child, disabled, chronically ill, or person not more than 10 years younger than the decedent) can still use a life-expectancy stretch under IRC §401(a)(9). Distributions are ordinary income to the beneficiary.

Non-qualified annuities are governed by IRC §72(s), which predates SECURE and was not changed by it. Non-spouse beneficiaries have several payout options: (1) lump sum, (2) the "5-year rule" (empty within 5 years), or (3) annuitization over the beneficiary's life expectancy (the original §72(s) "stretch"). The gain portion of each distribution is ordinary income. This is Income in Respect of Decedent (IRD) under IRC §691.

The key tax point for both: annuities do NOT receive a step-up in basis at death. Unlike a brokerage account, where heirs inherit the security at the date-of-death value and avoid tax on the lifetime gain, an annuity beneficiary owes ordinary income tax on the entire deferred gain. This is the single biggest reason annuities are sometimes a poor legacy vehicle compared to alternatives, and the reason hybrid life + LTC scores so much higher on DBQS (life insurance death benefits are received income-tax-free under IRC §101(a)).

DBQS in the Big Kahuna Finder

The Big Kahuna Finder is our product-fit tool. Question 3 asks about the buyer's primary goal: income, growth, safety, or legacy. When the buyer selects "Legacy / Death Benefit / LTC" as the primary goal, the recommendation engine reweights the shortlist by DBQS instead of Complexity Index.

What this means in practice:

• A buyer who picks "legacy first" will see hybrid life + LTC products surfaced ahead of MYGAs and FIAs, even if the buyer also indicated they want some accumulation.
• SPIA recommendations are filtered to cash-refund and period-certain variants only. Life-only is suppressed unless the buyer explicitly chose "max income, no legacy."
• FIAs with embedded GMDB or rider options rank above identical FIAs without them.
• MYGAs are filtered to MVA-waived-at-death carriers when the legacy weight is high.

The Complexity Index still appears on the product card, but it is no longer the dominant sort key. DBQS takes that seat when the job is legacy.

Frequently Asked Questions

Related reading

• Why MYGA is the best fit for most retirees (and when it isn't)
• Renewal Rate Integrity: Grading carriers on the bait-and-switch
• 1-Year MYGA vs CD: 1035 exchange flexibility
• OneAmerica Asset Care review
• Lincoln MoneyGuard III review
• Allianz 222 FIA review
• Athene Ascent Pro Bonus FIA review
• 5-year rule on inherited annuities
• Non-qualified annuity tax explained
• Stretch IRA vs SECURE Act 10-year rule

Sources & citations

• IRC §72(s): Required distributions where holder dies before entire interest is distributed (non-qualified annuities, spousal continuation).
• IRC §72(s)(7): Special rule for surviving spouse election to continue contract.
• IRC §101(a): Life insurance death benefits received income-tax-free.
• IRC §401(a)(9): Required minimum distribution rules for qualified plans (as amended by SECURE).
• IRC §408(d)(3): Spousal IRA rollover at death.
• IRC §691: Income in Respect of Decedent (IRD).
• SECURE Act of 2019 (Pub. L. 116-94): 10-year rule for most non-spouse beneficiaries of qualified accounts.
• SECURE 2.0 Act of 2022 (Pub. L. 117-328): Additional amendments to RMD and beneficiary rules.
• Carrier contract language is sourced from issued 2026 product disclosure documents and Statements of Variability for the carriers named.

Get the DBQS for YOUR product

Drop the name of the annuity you own (or were quoted). You'll get the DBQS score, the Complexity Index score, and the specific contract language on MVA-at-death and spousal continuation, in writing, within one business day.

This is the second-opinion most agents will not give you, because the answer often is: "This product is not the right tool for your legacy goal." We tell you anyway.

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Hans Goldstein, EA
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers

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Disclosure

The Death Benefit Quality Score (DBQS) is a proprietary scoring framework developed by Hans Goldstein. It is not an industry-standard rating and is not endorsed by, affiliated with, or reviewed by any carrier, insurance department, or rating agency. Scores are based on publicly available product materials, contract language, and rider configurations as of the date stated above. Annuity contract provisions, rider availability, MVA mechanics, spousal continuation processes, and death benefit structures change frequently, typically with each new product version. Always confirm specific provisions against the most recent carrier disclosure document and the actual contract before purchasing. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers across the annuity and long-term care insurance market; the producer's specific appointment status with any carrier named in this article may vary, and this article is not an endorsement or representation of carrier appointment. No compensation has been received from any carrier in connection with the publication of this article. Always read the actual contract and consult a licensed advisor before purchasing any annuity or hybrid life+LTC product. Tax discussion of IRC §72(s), §101(a), §401(a)(9), §408(d)(3), §691, the SECURE Act of 2019, and SECURE 2.0 reflects federal law as of 2026 and is subject to change. State law and state guaranty fund coverage may modify outcomes.