SILAC Annuity Products — Independent Review Hub
Written & reviewed by Hans Goldstein, Independent Licensed Insurance Producer · NPN 20602398Independently reviewed & last updated 2026-06-08
Last updated: June 8, 2026
Independent review hub for all SILAC Insurance Company annuity products. SILAC is the #1 carrier for raw cap rates in the FIA market — typically 10%+ caps on annual point-to-point S&P 500 strategies. The carrier tradeoff: B AM Best rating + currently under review with developing implications (pending acquisition by Hildene Capital Management).
Critical: SILAC products are appropriate ONLY for purchases under your state guaranty fund limit (typically $250-300K). Above that limit, the credit risk concentration is meaningful.
All SILAC products — at a glance
| Product | Type | Cap rate (2026) | Goldstein verdict |
|---|---|---|---|
| SILAC Denali 14 MVA | FIA accumulation, 14-yr surrender | 10.25% | A− Top market cap, no bonus |
| SILAC Evolve 14 MVA | FIA accumulation + 5% premium bonus | 9.75% + 5% bonus | A− Top market cap with bonus |
| SILAC Teton 14 MVA | FIA accumulation, mid-cap variant | 8.25% | B+ Lower-cap SILAC variant |
SILAC FIA variant comparison — pros and cons of each product
| Product | Cap | Bonus | Pros | Cons |
|---|---|---|---|---|
| SILAC Denali 14 MVA | 10.25% | None | #1 cap in the entire FIA market; pure accumulation; cleanest SILAC structure | 14-year surrender + Tier C renewal risk + B carrier (under guaranty only) |
| SILAC Evolve 14 MVA | 9.75% | 5% premium bonus | High cap + bonus; useful as §1035 rescue product | Bonus recapture schedule; longer lock-in math; complexity higher than Denali |
| SILAC Teton 14 MVA | 8.25% | None | Different crediting strategy (some volatility-controlled options) | Lower cap than Denali (loses SILAC's main edge); 14-year lock anyway |
Which SILAC product when?
- Max cap, no bonus needed: Denali 14 (the most "honest" SILAC structure)
- Max cap + 5% bonus + 14-yr commitment: Evolve 14 (read recapture schedule)
- Specific volatility-controlled crediting need: Teton 14 (rarely the right choice)
For ALL SILAC products: stay under state guaranty fund limit ($250-300K typical). Above that, carrier credit risk + M&A uncertainty (Hildene acquisition pending) become meaningful.
Which SILAC product is best for YOU?
🎯 You want maximum cap (no bonus)
→ SILAC Denali 14 MVA — 10.25% cap is the highest in the market
🎯 You want maximum cap + a premium bonus
→ SILAC Evolve 14 MVA — 9.75% cap + 5% bonus (read the bonus recapture schedule carefully)
🎯 You want SILAC + mid-cap variant
→ SILAC Teton 14 MVA — different crediting strategy
SILAC's strengths
- #1 cap rates in the FIA market — typically 2-4 percentage points higher than A+ carriers
- State guaranty fund coverage protects retail buyers under ~$250-300K limit
- Multiple product variants (Denali, Teton, Evolve) with different bonus + cap combinations
SILAC's weaknesses + critical caveats
- B AM Best rating — lowest in our reviewed FIA universe
- AM Best under review with developing implications — pending acquisition by Hildene Capital Management
- KBRA rating withdrawn following pending acquisition
- Weiss C rating (consumer-focused scale)
- 14-year surrender — longest surrender period in the FIA market
- Customer service Poor — small carrier + M&A flux degrading service responsiveness
- Tier C renewal integrity — renewal-rate risk elevated; verify in-force history before purchase
- NOT appropriate above state guaranty fund limit ($250-300K typical)
The SILAC trade-off (the decision framework)
SILAC's value proposition: 2-4 percentage points more cap rate per year for 14 years = potentially $30-60K more credited interest on a $250K purchase vs. A+ Athene PEC.
The risk: lower carrier rating + M&A uncertainty + Tier C renewal track record.
For under-guaranty-fund purchases, the state guaranty fund backstop makes the credit risk practically immaterial — making SILAC's higher cap the meaningful difference.
For above-guaranty-fund purchases, the math flips — credit risk concentration becomes real, and stepping up to A+ Athene PEC 15 Plus (7% cap but Tier S renewal + A+ carrier) is the smarter choice.
Carrier ratings summary
| Agency | Rating |
|---|---|
| AM Best | B (under review) |
| S&P | — |
| Moody's | — |
| Fitch | BBB− |
| Weiss | C |
| KBRA | Withdrawn |
| COMDEX | 38/100 |
| Renewal Rate Integrity | Tier C (elevated risk) |
| Customer Service | Poor |
Important rating note (carrier-specific)
AM Best placed SILAC's rating under review with developing implications pending the announced acquisition by Hildene Capital Management. Until the acquisition closes and a fresh rating is issued, buyers should:
- Verify the current rating status before purchase
- Confirm the in-force renewal-rate history for the specific product
- Stay under state guaranty fund limit
- Get the closing-side regulatory approval status
Featured SILAC product deep-dives
- SILAC Denali 14 MVA Review — top cap
- SILAC Evolve 14 MVA Review — top cap + bonus
- SILAC Teton 14 MVA Review — mid-cap variant
Related comparisons
- Best FIA Cap Rates 2026 — SILAC vs A-rated alternatives
- Best Annuity Renewal Rate Integrity — why SILAC is Tier C
- Annuity Premium Bonus — Good or Bad? — re Evolve's bonus
- Best Annuity Companies 2026
⏳ Renewal rate risk — why FIA caps work like HYSA rates (NOT mortgage rates)
This is the #1 thing buyers misunderstand about fixed indexed annuities, and the single biggest source of "I didn't know it worked that way" regret after year 3.
The mortgage-rate mental model is wrong
When you take out a 30-year fixed mortgage at 6.5%, that rate is locked for the entire term. The bank can't raise it. That's how most buyers assume an FIA cap rate works.
It's not. FIA cap rates work like high-yield savings account rates.
When Marcus or Ally raises their HYSA rate from 4.0% to 4.5%, that's their choice — and they can drop it back to 4.0% the next month. The rate you saw when you opened the account is NOT the rate you keep forever. The bank can change it at any time.
FIA cap rates work the same way:
- The cap you see at purchase applies to the first crediting period only (typically year 1).
- At each anniversary, the carrier can reset the cap within the contractual minimum.
- If interest rates fall or the carrier's option budget tightens, your cap can drop dramatically — sometimes from 9% down to 3-4% over a few years.
Why caps change: the option-budget mechanics
Carriers don't print money to pay your index-linked credit. They take your premium, invest most of it in bonds at prevailing interest rates, and use the bond yield to buy S&P 500 call options that generate the index credit.
- Rates UP → bond yields rise → more option budget → higher caps possible
- Rates DOWN → bond yields fall → less option budget → caps get cut
The 2010-2021 low-rate environment crushed FIA caps across the entire industry. The 2022-2025 rate cycle restored them. Whatever cap you see today is a function of TODAY's interest rate environment — and that environment will change.
The minimum cap floor (the only real guarantee)
Every FIA contract has a minimum guaranteed cap stated in the contract. This is the LOWEST the cap can ever go. Common minimum caps:
- Some contracts: 1% minimum cap (essentially nothing)
- Better contracts: 2-3% minimum cap
- Top-tier products: 4%+ minimum cap
Read the minimum cap before signing. If it's 1%, your worst-case scenario is essentially 0% real returns for 10+ years.
How to evaluate a carrier's renewal practices BEFORE buying
The single best protection: ask the agent for the carrier's in-force renewal-rate history for the product you're being quoted. A carrier that's maintained competitive caps on existing contracts over 5+ years is much more trustworthy than one with no history (or worse, a history of cap cuts).
Carriers with the most consistent in-force renewal track records (industry consensus as of 2026): Athene, Allianz, Sammons (North American/Midland), American Equity, and Nationwide. These carriers have published renewal-rate histories that survive scrutiny.
Carriers without published renewal-rate histories OR with a history of cutting caps post-sale should be evaluated carefully — especially if the cap they're showing you today is near the top of the market.
The single most important questions to ask
- "What's the minimum guaranteed cap in this contract?"
- "Can you show me this product's in-force renewal-rate history for the last 5 years?"
- "What's the current cap on in-force contracts purchased in 2020, 2018, and 2015?"
- "If the cap drops to the minimum, what's my realistic annual credited return?"
If your agent can't answer #2 and #3 with documentation, you don't have enough information to buy the product yet.
⏳ Renewal rate risk — why FIA caps work like HYSA rates (NOT mortgage rates)
This is the #1 thing buyers misunderstand about fixed indexed annuities, and the single biggest source of "I didn't know it worked that way" regret after year 3.
The mortgage-rate mental model is wrong
When you take out a 30-year fixed mortgage at 6.5%, that rate is locked for the entire term. The bank can't raise it. That's how most buyers assume an FIA cap rate works.
It's not. FIA cap rates work like high-yield savings account rates.
When Marcus or Ally raises their HYSA rate from 4.0% to 4.5%, that's their choice — and they can drop it back to 4.0% the next month. The rate you saw when you opened the account is NOT the rate you keep forever. The bank can change it at any time.
FIA cap rates work the same way:
- The cap you see at purchase applies to the first crediting period only (typically year 1).
- At each anniversary, the carrier can reset the cap within the contractual minimum.
- If interest rates fall or the carrier's option budget tightens, your cap can drop dramatically — sometimes from 9% down to 3-4% over a few years.
Why caps change: the option-budget mechanics
Carriers don't print money to pay your index-linked credit. They take your premium, invest most of it in bonds at prevailing interest rates, and use the bond yield to buy S&P 500 call options that generate the index credit.
- Rates UP → bond yields rise → more option budget → higher caps possible
- Rates DOWN → bond yields fall → less option budget → caps get cut
The 2010-2021 low-rate environment crushed FIA caps across the entire industry. The 2022-2025 rate cycle restored them. Whatever cap you see today is a function of TODAY's interest rate environment — and that environment will change.
The minimum cap floor (the only real guarantee)
Every FIA contract has a minimum guaranteed cap stated in the contract. This is the LOWEST the cap can ever go. Common minimum caps:
- Some contracts: 1% minimum cap (essentially nothing)
- Better contracts: 2-3% minimum cap
- Top-tier products: 4%+ minimum cap
Read the minimum cap before signing. If it's 1%, your worst-case scenario is essentially 0% real returns for 10+ years.
How to evaluate a carrier's renewal practices BEFORE buying
The single best protection: ask the agent for the carrier's in-force renewal-rate history for the product you're being quoted. A carrier that's maintained competitive caps on existing contracts over 5+ years is much more trustworthy than one with no history (or worse, a history of cap cuts).
Carriers with the most consistent in-force renewal track records (industry consensus as of 2026): Athene, Allianz, Sammons (North American/Midland), American Equity, and Nationwide. These carriers have published renewal-rate histories that survive scrutiny.
Carriers without published renewal-rate histories OR with a history of cutting caps post-sale should be evaluated carefully — especially if the cap they're showing you today is near the top of the market.
The single most important questions to ask
- "What's the minimum guaranteed cap in this contract?"
- "Can you show me this product's in-force renewal-rate history for the last 5 years?"
- "What's the current cap on in-force contracts purchased in 2020, 2018, and 2015?"
- "If the cap drops to the minimum, what's my realistic annual credited return?"
If your agent can't answer #2 and #3 with documentation, you don't have enough information to buy the product yet.
Explain it like I'm 12 — how an FIA actually works
A Fixed Indexed Annuity (FIA) is a contract where the carrier credits you interest based on stock market index performance — but caps your upside AND protects your downside. You can never lose money from market drops; you also won't get the full upside in big bull years.
The math:
- Put $100,000 in an FIA with a 7% annual point-to-point cap on the S&P 500
- S&P returns 12% over the year: you get capped at 7% = $7,000 credited
- S&P returns 4% over the year: you get the full 4% = $4,000 credited
- S&P returns -20% over the year: you get 0% (principal protected)
The "fees" are hidden in the structure:
- No explicit fee on accumulation-only FIA (no income rider)
- The carrier funds your principal protection by capping your upside
- Surrender charges 7-15 years if you withdraw early
- 10% free withdrawal per year typically
Quick FIA FAQ
Q: Will the cap rate change after I buy?
A: Yes. Cap rates RENEW annually within contract minimums. The 7% cap you see at purchase can drop to 4% over time. Read the minimum guaranteed cap in your contract.
Q: Why is my cap lower than my friend's FIA?
A: Carriers trade cap rate for other features — premium bonus, longer surrender, income rider, brand prestige. Two FIAs with similar "headlines" can have very different actual structures.
Q: What is the "minimum guaranteed cap"?
A: The lowest the carrier can set the cap on your contract. Common minimums: 1-4%. If the minimum is 1%, your worst-case credited return is essentially 0% real after inflation.
Q: How are FIA gains taxed?
A: Tax-deferred during accumulation. At withdrawal: gains taxable as ordinary income. 10% IRS penalty on gain portion if withdrawn before 59½.
Q: Can I lose money?
A: Not from market drops (principal-protected). You CAN lose money from early surrender (penalty) or MVA adjustments. Stay to surrender period end = no loss possible.
Q: How long is the surrender period?
A: Varies — 7 years (Athene PEC 7 Plus), 10 years (most), 14-15 years (bonus products). Longer surrender typically buys you better caps or higher bonus.
Q: What's the difference between cap, participation rate, and spread?
A: Cap = maximum credited. Participation rate = % of index move credited. Spread = % subtracted from index move. Some products combine multiple. See How Annuity Crediting Actually Works.
Q: Should I add an income rider?
A: Only if you'll activate it for guaranteed lifetime income. Rider fee (0.85-1.50%/year) charged annually whether you use it or not. Many buyers pay rider fees for years and never activate.
Explain it like I'm 12 — how an FIA actually works
A Fixed Indexed Annuity (FIA) is a contract where the carrier credits you interest based on stock market index performance — but caps your upside AND protects your downside. You can never lose money from market drops; you also won't get the full upside in big bull years.
The math:
- Put $100,000 in an FIA with a 7% annual point-to-point cap on the S&P 500
- S&P returns 12% over the year: you get capped at 7% = $7,000 credited
- S&P returns 4% over the year: you get the full 4% = $4,000 credited
- S&P returns -20% over the year: you get 0% (principal protected)
The "fees" are hidden in the structure:
- No explicit fee on accumulation-only FIA (no income rider)
- The carrier funds your principal protection by capping your upside
- Surrender charges 7-15 years if you withdraw early
- 10% free withdrawal per year typically
Quick FIA FAQ
Q: Will the cap rate change after I buy?
A: Yes. Cap rates RENEW annually within contract minimums. The 7% cap you see at purchase can drop to 4% over time. Read the minimum guaranteed cap in your contract.
Q: Why is my cap lower than my friend's FIA?
A: Carriers trade cap rate for other features — premium bonus, longer surrender, income rider, brand prestige. Two FIAs with similar "headlines" can have very different actual structures.
Q: What is the "minimum guaranteed cap"?
A: The lowest the carrier can set the cap on your contract. Common minimums: 1-4%. If the minimum is 1%, your worst-case credited return is essentially 0% real after inflation.
Q: How are FIA gains taxed?
A: Tax-deferred during accumulation. At withdrawal: gains taxable as ordinary income. 10% IRS penalty on gain portion if withdrawn before 59½.
Q: Can I lose money?
A: Not from market drops (principal-protected). You CAN lose money from early surrender (penalty) or MVA adjustments. Stay to surrender period end = no loss possible.
Q: How long is the surrender period?
A: Varies — 7 years (Athene PEC 7 Plus), 10 years (most), 14-15 years (bonus products). Longer surrender typically buys you better caps or higher bonus.
Q: What's the difference between cap, participation rate, and spread?
A: Cap = maximum credited. Participation rate = % of index move credited. Spread = % subtracted from index move. Some products combine multiple. See How Annuity Crediting Actually Works.
Q: Should I add an income rider?
A: Only if you'll activate it for guaranteed lifetime income. Rider fee (0.85-1.50%/year) charged annually whether you use it or not. Many buyers pay rider fees for years and never activate.
Sources
- AM Best SILAC Insurance Company rating report (note: under review with developing implications)
- Hildene Capital Management SILAC acquisition disclosure
- ARW FIA cap rate data, June 2026
📩 Get a second opinion before you sign — this is a big decision
Talk to a licensed independent expert. Hans.
Fixed indexed annuities are committed for 7-15 years. Cap rates renew annually and can drop. Income riders have separate benefit bases that aren't cash. Get an independent review before you commit your retirement savings to a multi-year contract.
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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
This review reflects publicly available product materials and approximate rates as of the date stated above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change frequently — typically monthly. Always confirm current values against the most recent carrier disclosure document and the actual contract before purchasing. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific 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 the carrier discussed in this review may vary, and this review is not an endorsement or representation of carrier appointment. No compensation has been received from any carrier in connection with the publication of this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.
🧮 Goldstein Complexity Index
A core part of every Goldstein review. The more complex an annuity, the worse the rating in this dimension — because complexity is where buyers get burned (confusing riders, fee structures hidden in plain sight, surrender penalties that surprise people, separate "benefit bases" they thought were cash). Simple products (SPIAs, MYGAs) score low; products with stacked bonuses + income riders + MVA + multiple crediting strategies score high.
This product's score: 40/100 — Grade A (Mostly clear)
One or two complications (a rider, a crediting choice). With a 30-min agent walkthrough, most buyers understand it.
Score breakdown
| Dimension | Score (1–10) | What this measures |
|---|---|---|
| Riders | 5/10 | Number of optional/required riders (income, death benefit, LTC, etc.). More riders = more fees + more confusion. |
| Crediting strategies | 5/10 | Number of index-linked strategies (cap, spread, participation rate, step rate, volatility-controlled indices). More options = harder to understand. |
| Surrender complexity | 7/10 | Length of surrender period + MVA + bonus recapture interaction. Longer + MVA + recapture = more confusion. |
| Benefit-base separation | 3/10 | If the product has a separate "PIV" or income-base that is NOT cash but feels like cash. This is the single biggest source of buyer confusion in the industry. |
| Bonus structure | 3/10 | Premium bonus with recapture schedule. The bonus is real, but the recapture is complex. |
How to read this
- A+/A (0–40): You can understand what you bought. Pure accumulation FIA, MYGA, or SPIA. Low risk of mis-selling.
- B (41–60): You need to read the contract carefully and have a second-opinion review before signing. Income riders add the most confusion.
- C (61–80): Many buyers don't fully understand what they own. Common mis-selling: "bonus" sold as cash, "benefit base" sold as account value, surrender charges undisclosed.
- D (81–100): Demands an independent producer second opinion before signing. The product may still be right for you — but the chance you'll later say "I didn't know it worked that way" is very high.
Why complexity matters more than people think: Carriers don't get sued for complexity. Agents don't get sued for it either (in most states). But buyers regret it constantly. The annuity that wins your money in year one and confuses you for the next 14 is worse than a simpler product that you understood perfectly. Simple ≠ inferior. Simple = audit-able.
🧮 Goldstein Complexity Index
A core part of every Goldstein review. The more complex an annuity, the worse the rating in this dimension — because complexity is where buyers get burned (confusing riders, fee structures hidden in plain sight, surrender penalties that surprise people, separate "benefit bases" they thought were cash). Simple products (SPIAs, MYGAs) score low; products with stacked bonuses + income riders + MVA + multiple crediting strategies score high.
This product's score: 40/100 — Grade A (Mostly clear)
One or two complications (a rider, a crediting choice). With a 30-min agent walkthrough, most buyers understand it.
Score breakdown
| Dimension | Score (1–10) | What this measures |
|---|---|---|
| Riders | 5/10 | Number of optional/required riders (income, death benefit, LTC, etc.). More riders = more fees + more confusion. |
| Crediting strategies | 5/10 | Number of index-linked strategies (cap, spread, participation rate, step rate, volatility-controlled indices). More options = harder to understand. |
| Surrender complexity | 7/10 | Length of surrender period + MVA + bonus recapture interaction. Longer + MVA + recapture = more confusion. |
| Benefit-base separation | 3/10 | If the product has a separate "PIV" or income-base that is NOT cash but feels like cash. This is the single biggest source of buyer confusion in the industry. |
| Bonus structure | 3/10 | Premium bonus with recapture schedule. The bonus is real, but the recapture is complex. |
How to read this
- A+/A (0–40): You can understand what you bought. Pure accumulation FIA, MYGA, or SPIA. Low risk of mis-selling.
- B (41–60): You need to read the contract carefully and have a second-opinion review before signing. Income riders add the most confusion.
- C (61–80): Many buyers don't fully understand what they own. Common mis-selling: "bonus" sold as cash, "benefit base" sold as account value, surrender charges undisclosed.
- D (81–100): Demands an independent producer second opinion before signing. The product may still be right for you — but the chance you'll later say "I didn't know it worked that way" is very high.
Why complexity matters more than people think: Carriers don't get sued for complexity. Agents don't get sued for it either (in most states). But buyers regret it constantly. The annuity that wins your money in year one and confuses you for the next 14 is worse than a simpler product that you understood perfectly. Simple ≠ inferior. Simple = audit-able.