What Will Be Covered in this Review?
In this review, we will be discussing the following information regarding the MetLife Fixed Annuity FA Fixed Deferred Annuity:
- Product type
- Fees
- Current rates
- Realistic long-term return expectations
- How it is used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you’ve been considering the purchase of an annuity because you want to ensure that you won’t run out of income in the future – especially if you live a nice, long life – then purchasing the MetLife Fixed Annuity FA Fixed Deferred Annuity could be a great way to accomplish that.
One reason for that is because this annuity allows you the opportunity to avoid the constant ups and downs of the market. It also offers a fixed interest rate for a set period of time – in this case for up to ten years if you opt for that time period. In addition, when it comes time for you to convert the annuity over into an income stream, that income can last throughout the remainder of your lifetime, regardless of how long that may be.
However, before you go out an purchase the MetLife Fixed Annuity FA, or for that matter any annuity, it is really important that you first have a thorough understanding of the benefits that it may provide, as well as any possible drawbacks, as annuities can be very difficult to get out of once you get in.
Over the past decade or so, fixed annuities have become much more popular with people who are retired, as well as those who are approaching that time in their lives, as they can help to alleviate the concern about running out of money in retirement.
However, due in large part to this increased demand, many insurance carriers have been introducing new products – and unfortunately, this can make a product that is already somewhat confusing even more so. This can be the case for well-informed consumers, as well as many insurance and financial advisors!
With that thought in mind, unless the insurance or financial advisor whom you work with has a primary focus on selling annuity products, you really should do some additional research on these products, as they will oftentimes require that you deposit a large chunk of your savings into them.
That’s where the Annuity Gator can come in!
Annuity and Retirement Income Planning Information You Can Trust
If this is the very first time you have visited our AnnuityGator.com website, then please allow us to personally welcome you here. We are a team of highly knowledgeable financial pros who are focused specifically on offering very in-depth and unbiased annuity reviews. We have been at this for quite a number of years now – much longer than our competitors – and because of that, we’ve become a go-to source for annuity information.
If you have been in the process of compiling more information on an annuity that you’re considering purchasing, then you have more than likely come across a lot of conflicting information about these products online. This really is not surprising, though, as there is a myriad of details available about these products. There is also a wide range of opinions about them, too.
While you’ve been online searching for additional annuity details, you may also have noticed that, while there are plenty of very good annuity-related websites out there, some of them will make some pretty bold claims with the goal of “luring” you in. These may include some or all of the following:
- Highest Annuity Payouts
- Lowest Fees
- Guaranteed Income For Life
- Top-Rated Annuity Companies
- Get an Annuity Quote Now!
Look familiar?
But, even though these claims may initially sound enticing, it is critical that you verify their validity before you move forward with buying any annuity. In doing so, you may have to read through a plethora of annuity fine print – or you could just read on right now.
If you are interested in knowing more about the Met Life Fixed Annuity FA Fixed Deferred Annuity product, though, you are definitely in the right place. In fact, we dare say that our website is the only place online where you will be able to get all of the key details on this annuity – both the good and the bad. This, in turn, can assist you with making a much more well-informed decision about whether or not this annuity fits in with your overall financial goals.
Often, financial and insurance advisors who offer annuities will paint a nice, rosy picture for you regarding the opportunity to earn a high return, while also keeping your principal safe in case of a market downturn. But unfortunately, these same advisors may also be conveniently leaving out some of the details that could be considered as drawbacks – which is information that any potential buyer needs to know!
One reason for this knowledge is so that you can anticipate how the annuity may (or may not) perform in certain situations. Another is that, once you have committed to an annuity, it can be extremely difficult – and expensive – to get out of it if you change your mind.
Just to be clear here, we do want to state that we believe annuities can be a very good financial vehicle to have in your portfolio – but only provided that it fits in well with your other financial needs and goals.
With that being said, this annuity review is here to assist you with getting a better understanding of all of the small print so that you are more knowledgeable about the MetLife Fixed Annuity FA Fixed Deferred Annuity, and why it may – or may not – work for you.
So, if you are ready to begin the review, let’s go ahead and jump in!
The MetLife Fixed Annuity FA Fixed Deferred Annuity at a Glance
| Product Name | RetireEase Choice |
|---|---|
| Issuer | Mass Mutual |
| Type of Product | Qualified Longevity Annuity Contract (QLAC) |
| S&P Rating | AA+ (Very Strong) |
| Phone Number | (800) 272-2216 |
| Website | www.massmutual.com |
Opening Thoughts on the MetLife Fixed Annuity FA Fixed Deferred Annuity
With more than 145 years of experience in the insurance and financial services arena, MetLife possesses a strong and stable presence in terms of financial stability and reputation for serving its clients. The company is a leading innovator and a recognized leader in protection planning, as well as retirement and savings solutions around the globe.
Today, MetLife has a strong presence in nearly 50 countries – and the company continues to grow via expansion of its product lines, as well as through mergers and acquisitions. MetLife currently serves approximately 100 million customers worldwide, and its products are trusted by more than 90 of the top 100 Fortune 500 companies in the United States.
MetLife is a leading provider of institutional income annuities, and it was the first company to introduce longevity insurance into the marketplace back in 2004. This helps MetLife to be uniquely positioned to offer a wide range of benefits to plan sponsors and participants, such as:
- Consistent Income – This allows individuals to create a guaranteed income stream that is payable later in life, when other retirement income sources may run out.
- Flexibility – This provides individuals with an opportunity to use qualified plan money to buy a QLAC with an income payment start date that works best for them
- Protection – This helps individuals to navigate longevity risk by providing income that lasts a lifetime.
- Security – Security allows individuals to better manage their retirement portfolios and future – knowing how much income they will receive at their selected income payment start date.
If you own a fixed deferred annuity, then the volatility of the stock market isn’t going to affect the amount of future income that you’ll receive from that product. So, for those who are seeking both safety and guarantees, this could very well be a good option. On the other side of the coin, it’s important that you not make a quick decision, only to find out later on that there are features about this annuity that make it a bad fit for your overall financial plan.
Before we get into the gritty details, here are some legal disclosures…
This is an independent product review, not a recommendation to buy or sell an annuity. MetLife has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance product, it is important that you do your own due diligence and that you consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.
For more information on how to compare annuities in order to determine which one may be right for you, to obtain our free annuity report.
How MetLife Describes the Fixed Annuity FA
MetLife describes the Fixed Annuity FA Fixed Deferred Annuity as a single premium deferred fixed annuity with a limited market value adjustment (MVA) that offers a choice of a guaranteed rate of interest for an initial guarantee period. This annuity is designed for long-term retirement savings, and it provides the opportunity to obtain a stream of payments for life.
With the FA Annuity, you can lock in an initial guaranteed interest rate for one year, three years, five years, seven years, or even for ten full years. Then, when the initial guarantee period ends, you can renew your contract for an available guarantee period of your choice (although the interest rate could be higher or lower than your initial rate).
If you contribute a single premium and/or a renewal amount of $25,000 or more, your interest rate will be 0.25% higher than the rate on a similar contract with all other factors being equal, other than the amount of deposit.
This annuity has some other features, such as a death benefit, whereby upon the death of the owner, the full account value will be payable to the beneficiary (and this is not subject to a surrender/withdrawal charge or a market value adjustment).
There are also several situations that could come up that could allow you to receive money from the annuity without incurring a surrender charge if you qualify for the nursing home waiver and/or the terminal illness waiver.
For more in-depth details about the MetLife Fixed Annuity FA Fixed Deferred Annuity, you can take a look at the annuity’s product sheet HERE.
How an Insurance or Financial Advisor Might “Pitch” the FA Fixed Deferred Annuity from MetLife
Given that life is filled with so many uncertainties, when you have the opportunity to receive a guarantee, it can be a nice benefit – particularly when it has to do with your financial options. With that in mind, when it comes to the MetLife Fixed Annuity FA Fixed Deferred Annuity, it is likely that an insurance or financial advisor that you’re working with would focus on the fact that you can get a guaranteed rate of interest for a set period of time (with this annuity, up to ten full years), and that you can also count on a set amount of income for the remainder of your life.
However, whenever any type of guarantee is presented to you – particularly when it involves your money – when you look a little more closely, you may find that there are certain “tradeoffs” that you need to accept in order to attain those benefits. This can be the case with the MetLife Fixed Annuity FA.
For example here, the longer your interest rate guarantee period, the longer you will also be subject to surrender charges on the annuity. So, for instance, a five-year rate guarantee will also have five years of surrender charges. Likewise, ten years of interest rate guarantee will equate to ten years of surrender charges if you should take more than 10% of your contract value out of the annuity.
That’s a long time to have your money held captive by surrender charges. Plus, if you make withdrawals before you turn age 59 1/2, you could also incur an additional 10% “early withdrawal” penalty from the IRS.
Also, when it comes to the nursing home and terminal illness waiver benefit(s), there are some guidelines that you must first meet in order to qualify for the surrender charge-free withdrawals.
What Fees Are Associated with this Annuity?
You may also need to be aware of various fees that are associated with this annuity. And, while there is no initial sales charge, don’t let that fool you into thinking that you still won’t be charged for anything having to do with this product.
For instance, as mentioned above, the surrender charge periods correlate with the initial interest rate guarantee period – AND, if you opt to renew with another rate guarantee once the initial period is up, guess what happens. That’s right, another surrender charge period starts all over again!
| Product Name | Secure Term Choice Fixed Annuity ll |
|---|---|
| Issuer | New York Life Insurance Company |
| Type of Product | Fixed Deferred Annuity |
| S&P Rating | AA+ (Very Strong) |
| Phone Number | (800) CALLNYL |
| Website | www.newyorklife.com |
The Annuity Gator’s End Take on the MetLife Fixed Annuity FA Fixed Deferred Annuity
Where it works best:
The MetLife Fixed Annuity FA Fixed Deferred Annuity may not be right for everyone. However, it could be a viable option if you are seeking the following benefits:
- A guaranteed rate of interest for a set period of time
- Safety of principal, regardless of what happens in the market
- A lifetime income that you can count on
Where it works the worst:
On the other hand, this annuity might not be a viable option if you:
- Want the potential for higher growth
- Need to access your money during the annuity’s surrender period
- Do not plan to use the lifetime income feature
In Summary
There are many different factors that you should ideally consider when you are thinking about the purchase of an annuity. That’s because these products are a long-term commitment. Therefore, you should know how the annuity will produce a return, as well as how safe your money is inside the contract, and how (and when) the income from the annuity will pay out.
If you have been considering the purchase of a fixed deferred annuity such as the MetLife Fixed Annuity FA, then you can be assured that your money will be safe, and that you will also be able to count on a steady stream of income for the rest of your life – regardless of how long that may be.
However, there may also be some additional items that you have not considered – and the only way to really know if a particular annuity is going to be right for you is to have it tested. We can provide this testing for you and can offer you a free, no obligation, a spreadsheet with the results. So, if this is something that is of interest to you, then all you need to do is simply reach out to us here via our secure online contact form.
Still Have Questions? Notice Any Mistakes in this Annuity Review?
We realize that this annuity review was a bit on the long side, so for that, we truly appreciate you sticking with us here to the end. However, we feel that providing our readers a tad “too much” information is always better than not providing them with enough.
Therefore, if you found that this review was beneficial for you, please feel free to share it and to forward it on to anybody else that you think may also benefit from it. Also, we know that the details about annuities – and other financial products, too – can and do change somewhat quickly. With that in mind, if you happened to notice anything in this review that needs to be corrected and/or updated, please let us know that as well and we will get on the revisions right away.
Are there any other annuities that you would like to see information about?
No problem!
If you would like to see reviews on any other annuity (or annuities), our team of annuity “geeks” will get on the ball and get them on our website. Just simply click here to let us know which product (or products) you are interested in seeing. And, be sure to check back soon.
Best,
The Annuity Gator
