What Will We Cover in this Annuity Review?

In this annuity review, we will be covering the following details regarding the American Life and Security Corporation’s MYGA Annuity:

  • Product type
  • Fees
  • Current rates
  • Realistic long term return expectations
  • How this annuity is best usedAmerican Life
  • Where this annuity may not be a good option

Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.

If you’re considering the purchase of an annuity – or you already happen to have one and you’re wondering whether or not it is the right product for you – it is important to know all of the facts about the features and benefits that are available, as well as whether or not these will work for you, given your specific financial needs.

Over the past dozen or so years, the U.S. has seen a historically low-interest rate environment – and while that may be a plus for borrowers, it is actually a detriment for those who are looking for a safe place to put their money, because the returns are minuscule at best.

On the other hand, the stock market has been extremely volatile – dropping more than 30% during the early months of 2020 when the COVID-19 pandemic was just getting underway in North America.

So, equities can cause you to lose your nest egg – in some cases, rather quickly! That is why a multi-year guarantee annuity, or MYGA, could be a good alternative for you if you not only want to both grow and protect assets, but also count on a reliable income in retirement that will last for the remainder of your lifetime – regardless of how long that may be.

The newly-released MYGA annuity from American Life and Security Corp (a subsidiary of Midwest Holding) may be a good alternative for you. These annuities offer a fixed interest rate for a certain time period – usually somewhere between three and ten years. As with other annuities, the growth that takes place is tax-deferred, so the gains are allowed to compound over time.

Fixed annuities can also provide you with a stated and guaranteed lifetime income stream, which is nice because people are living longer now, and it can be difficult – or even impossible – to make your savings stretch for a retirement that could last for twenty or more years.

As a type of fixed annuity, the multi-year guarantee annuity from American Life and Security Corp comes with some nice guarantees. However, before you make a long-term commitment to purchase this – or any other annuity, for that matter – it is recommended that you get a much more in-depth understanding of exactly how the annuity works, and how it may or may not necessarily work for you and your specific financial goals.

Because fixed (and fixed indexed) annuities have grown so much in popularity lately, there has been an increase in the number of insurance and financial advisors who are offering them. Unfortunately, though, these agents may not always be giving you the very best answers to the questions that you may have… but that you need to know in order to make a well-informed decision that could significantly impact your financial future.

In addition, given the increased desire for annuities now, the selection of annuity products has grown significantly – and many of these new hybrid annuities come with a lot of bells and whistles attached (or available through riders).

But, while this variety of options can certainly help you to “customize” the products to better fit your specific needs, it can also make annuities even more confusing than they already are, even for well-informed consumers.

That being said, there are some recommended steps that you should consider that can help you in truly understanding what it is that you might be purchasing – especially as an annuity could realistically make up a large portion of your overall retirement income down the road.

Also, since annuities can be pretty hard to get out of once you have gotten into one, it is important that you know why you are going with one annuity over another, as well as why you are even going with an annuity at all.

Annuity and Retirement Income Planning Information You Can Trust

If this is your first visit to our website, please allow us to welcome you here to AnnuityGator.com. At Annuity Gator, we are a team of experienced annuity and retirement income specialists who focus on offering highly in-depth – and unbiased – reviews on fixed, indexed, and variable annuity products.

We have been doing this for quite a few years now – far longer than our competitors have been at it – and because of the in-depth reviews that we provide, we have become a highly trusted source of annuity information on the Internet.

There are hundreds of annuities of all shapes and sizes that you can find in our comprehensive Annuity Review database, which is accessible from a tab at the top of our website.

Over the past decade or so, there have been a number of similar websites that have sprung up on the Internet. Even though some of these sites can give you information about annuities, what you are likely to find is that they are oftentimes just reiterating what our information has already shown you.

If you have researched annuities online lately, it is likely that you also have run across some highly conflicting information regarding these financial vehicles. That really is not at all surprising to us, though, as there are many annuities out there in the marketplace, and just about everyone has a differing opinion about them.

As nice as some of the annuity benefit claims might sound, though, it is really important that you verify their validity before you decide to move forward with a long-term financial commitment. Otherwise, it could end up costing you – in some cases, quite a bit.

With that in mind, if you are looking for more in-depth information about the MYGA annuity from American Life Insurance Corp, you are definitely in the right place. In fact, dare we say that the AnnuityGator.com website is the only place online where you can get all of the key details about this annuity (and many others) so that you can make a well-informed buying (or non-buying) decision about it.

It is important to note here that in addition to providing you with all of the nice keen benefits of this product, we are also going to lay out the product’s drawbacks. This is so that you will be in a better position to make a truly well-informed decision as to whether or not this is really the annuity for you.

We truly believe that annuities can add a beneficial element and they can be a great addition to a portfolio for some people – but this is true only as long as the annuity fits in with your overall financial objectives. This American Life MYGA annuity review is here to provide you with what you need to know.

So, with that being said, let’s go ahead and get started!

The American Life Insurance Corp’s MYGA Annuity at a Glance

For single tax filersPhase-out starts at $129,000

Ineligible at $144,000

For married couples filing jointly and for qualifying widow(er)sPhase-out starts at $204,000

Ineligible at $208,000

Opening Thoughts on the American Life Corp’s Multi-Year Guarantee MYGA Annuity

American Life & Security Corp (ALSC) is a subsidiary of Midwest Holding Inc, a technology-enable, services-oriented life and annuity platform. The Nebraska-based American Life was initially founded back in 1960 and it was “reimagined” in 2018.

Recently, the company has released its first multi-year guarantee (MYGA) annuity product for the registered investment advisor (RIA) market, due in large part to the growing demand for such products tailored to RIAs and their clients.

The company uses advanced technology and a unique business model and is able to quickly respond to the changing markets, as well as to its customers’ needs. The fee-based multi-year guarantee annuity is available for both qualified and non-qualified plan types, and it includes the option of a three- or five-year guarantee, with the rate guaranteed for the entire time period.

Financial and insurance companies recognize that many of the important events in peoples’ lives involve money and asset protection. This certainly goes for retirement – which is perhaps the biggest when it comes to your finances. The main reason for this is because the decisions you make today about the allocation of your funds will likely affect tomorrow’s financial security.

The demand for annuities, which allow growth in the account to take place on a tax-deferred basis and are backed by the financial strength and stability of the insurance carriers that offer them, has been increasing as more and more Baby Boomers reach retirement age (at the rate of roughly 10,000 people turning age 65 each and every day in the United States).

This need for financial security and protection is especially true as most companies have done away with the traditional pension plan, and an annuity allows you to turn your money into an income stream.

Yet, while the demand for annuities has definitely picked up as of late, it is also important to keep in mind that some types of annuities can present market-related risks to their owners, so these products need to be reviewed very carefully before purchasing them.

Before we get into the gritty details, there are some required legal disclosures here…

This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. American Life & Security Corp. has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.

For additional information on how to compare annuities so that you can decide which may be the best one for you, in order to obtain our free annuity report.

How American Life & Security Describes Its MYGA Annuity

According to American Life & Security Corp and other sources, the new MYGA annuity will offer either a three or a five-year interest rate guarantee. Once that term has elapsed, the rate may be adjusted up or down, depending on the market and economic factors.

As a fixed annuity, both the principal and the growth are protected from stock market ups and downs. So, even in the worst of market-related conditions, funds will remain safe in this annuity.

The growth that takes place inside of this annuity is tax-deferred. And, if the annuity is converted into an income stream (i.e., annuitized), there are several payout options available – including a lifetime income payment that will continue for the remainder of your lifetime.

With its reduced internal annuity contract expenses for this MYGA annuity – which can provide a higher, more competitive interest crediting rate for registered investment advisors (RIAs) – this new multi-year guarantee annuity could be used as an alternative to bonds and/or CDs.

As of mid-November 2021, this annuity is available in 21 states, with further expansion planned. For additional information about this and other annuities that are offered through American Life and Security Corp, you can visit the company’s website here.

How an Insurance or Financial Advisor Might Present this Annuity

If you’ve been presented with the American Security Life Corp’s MYGA annuity by an insurance or financial advisor, it is likely that they keyed in on a couple of areas. As an example, if you are like most people, you like to know that you have a guarantee – especially when it comes to your money.

So, given that this MYGA annuity from American Security Life Corp offers more than one interest rate guarantee period option, many people consider this to be a plus – particularly because the annuity can be “fitted” to match short- or long-term financial objectives.

It is also beneficial that, regardless of what happens in the stock market during that time – as well as throughout the remainder of the annuity’s life – your principal will be safe. So, you don’t have to endure sleepless nights worrying about the loss of your hard-earned savings.

On top of that, the fact that you can get a guaranteed income stream for life (provided that you choose the lifetime income option) is definitely another key point. And, you may also choose to add a second income recipient, such as a spouse or partner, who can receive income for the rest of his or her lifetime, too.

But, just like most anything else in life, there is no such thing as a “free lunch.” So, in getting all of these guarantees, you definitely need to be mindful of just exactly what it is that you’re giving up.

In this case, fixed annuities are known for offering painfully low rates of interest – and because of that, owning this annuity could make it difficult for you to meet, much less beat, inflation. In turn, this could result in a dwindling purchasing power over time that could cause you to have to cut back on buying the items and services that you need in the future.

Fees Associated with the American Life and Security MYGA Annuity

For many years, annuities have been associated with charging high fees. Although this is typically the case with variable annuities, though, the reality is that fixed annuities – including multi-year guarantee products – don’t usually charge that much… that is, unless you completely cancel the annuity, or you withdraw more than a maximum annual amount from the contract.

If this is the case, then you are likely to be hit with a surrender charge in the early years. This is in addition to any taxes that you may incur on the gains. Plus, if you make such withdrawals before you have reached the age of 59 ½, then you could also be charged with yet another fee – this time, a 10% “early withdrawal” penalty from the IRS.

The Annuity Gator’s End Take on the American Life and Security Corp MYGA Annuity

Where this annuity works best:

  •  If you are seeking protection of principal
  •  If you want a set rate of growth (at least for the first three or five years)
  •  If you want the security of knowing that you will have a guaranteed income in retirement

Where this annuity works worst:

  •  If you want the opportunity for a higher (market-linked) return
  •  If you need your money for other purposes within the next several years of purchasing the annuity
  •  If you do not plan to use the lifetime income feature

In Summary

The number of available annuities out there in the marketplace is long – and it is getting ever-longer each and every day. Because these financial vehicles can, and often do, come with a lot of different features and benefits, though, it is really important for you to know just exactly what it is that you are getting into. And, if you already own an annuity, you should also frequently review it to ensure that it’s performing the way you anticipated it to.

With the MYGA annuity from American Life and Security Corp., you can be assured that this annuity will offer you principal protection (and protection of previous gains), along with an ongoing and guaranteed income in retirement. This is the case, regardless of how long you may live. So, it does offer some nice benefits.

That being said, however, depending on what exactly it is that you are looking for in an annuity, this product could also fall a bit short – and quite frankly, there could very well be a better alternative out there for you. This is especially so if you are seeking the opportunity for additional growth potential on your money.

With that in mind, if you have any additional questions regarding whether this particular annuity is the right one for you, or even if you just simply need some assistance with guiding you in the right direction, please feel free to reach out to us directly through our secure contact form here and talk with an annuity specialist.

Any Additional Questions About this Annuity? Did You Notice Any Mistakes in this Annuity Review?

We realize that this MYGA annuity review of the American Life and Security Corp’s multi-year guaranteed annuity product went a bit on the long side, so for that, we truly appreciate you sticking with us this far. In providing this annuity review, though, we would much rather give “too much” information, as versus not enough.

So, if you felt that this review was helpful, please feel free to forward and share it with anyone else who you think may benefit from it, too. We also realize that annuity information can change on a regular basis. Therefore, if you happened to see any information in this review that may need to be revised or updated, please let us know and we will be happy to make any of the necessary corrections.

Are there any other annuities that you would like to have us review?

If so, just let us know and our team of annuity “geeks” will get to it. That being the case, be sure to check back soon, and often, in order to see annuity product updates and new reviews.


The Annuity Gator

P.S. If you would like to read more of our American Life annuity reviews here are some links to check out.

Independent and Objective Review of the American Life and Security Corp MYGA Annuity