What Will We Cover in this Annuity Review?
In this annuity review, we will be covering the following details regarding the MetLife Insurance Fixed Annuity FA 10-Year MYGA Annuity:
- Product type
- Fees
- Current rates
- Realistic long-term return expectations
- How this annuity is best 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 have been thinking about purchasing an annuity – or you already have one (or more) of these financial vehicles already and you are wondering whether it is still the right product for you – then it is important for you to get all of the facts about it, given your current and your future financial needs.
Over the past several years, fixed and fixed indexed annuities have become much more popular with those who are already retired, as well as those who are planning for this time of their lives. One of the key reasons for this is that these types of annuities can provide you with principal protection, along with a guaranteed amount of growth. They can also provide you with a guaranteed stream of lifetime income that will last for as long as you need it – regardless of how long that may be.
Given the increased popularity of annuities, the number of financial and insurance agents who offer these financial products has also expanded a great deal. This, however, may not necessarily be considered a positive thing.
Even though insurance and financial professionals will typically work hard to do what’s in the best interest of their clients, they may not always be able to provide you with the more specific answers to the questions that you have about annuities – and because of that, you could be making a key decision without all of the intricate details that you should have.
In addition to that, due mainly to the heightened popularity of annuities today, there are much more products to choose from, as insurance carriers that offer them continue adding to their product lines. But many of these products can be confusing – even for a well-informed consumer. Therefore, it is even more essential that you take the added steps that may be required to really understand what it is you are buying – especially because an annuity purchase could require a fairly large percentage of your overall retirement savings.
This is where we come in.
Annuity and Retirement Income Planning Information That You Can Trust
If you’ve never visited our website before now, we would like to officially welcome you here. We are a team of financial professionals who are dedicated to providing you with non-biased and highly comprehensive
annuity reviews. We’ve been offering in-depth annuity reviews for many years on our site – far longer than our competitors have, and because of that, we have become a trusted source of annuity information online.
While been researching annuities via the Internet, you may have noticed that there are other “copycat” sites that try to provide you with annuity reviews, but in reality, many of these are actually just trying to lure you in and give them your contact information.
In order to get you to do so, some of these websites will make some fairly bold claims about the annuities they offer, such as the following:
- Highest income payouts
- Lowest Fees
- Top-rated annuity carriers
- Guaranteed income for life
- Get your quote now!
Sound familiar?
While these bold claims can sound pretty darn enticing, though, prior to moving forward, prior to moving forward with the purchase of any of these products, you should make sure that these claims are actually true. Otherwise, it could be extremely costly for you to get out of an annuity once you’ve gotten in and determined that it isn’t the best option for you.
If you are really looking for all of the in’s and outs of the MetLife FA 10-Year MYGA annuity, though, you are now in the right place. In fact, we dare say that this website is the only place where you will be able to find out all of the important details. This includes the good, the bad, and even the just plain ugly. This, however, is really the only way that you can truly decide whether or not this annuity is right for you.
More often than not, insurance and financial professionals who offer fixed annuities will paint a nice, rosy picture of how their products provide safety – but will often leave out the details on the potential drawbacks that products have. With that in mind, before you move a chunk of your hard earned savings into one of these annuities, it is essential that you know the whole story.
In order to be perfectly clear, here, we just want to state for the record that we believe annuities can be good products for many people, as long as those annuities fit in with your overall financial needs and goals.
This annuity review is here to help you with better understanding all of the “fine print” so that you have a much more clear knowledge of whether or not the FA 10-Year MYGA annuity from MetLife may work well for your ultimate short- and long-term financial goals.
So, if you’re ready to begin, then let’s dive in!
MetLife FA 10-Year MYGA Annuity at a Glance
| Product Name | Dynamic Choice 5-Year Annuity |
|---|---|
| Issuer | Midland National Life Insurance Company |
| Type of Product | Fixed / MYGA (Multi-Year Guarantee) |
| Standard & Poor's Rating | A+ (Strong) |
| Phone Number | (877) 586-0244 |
| Website | www.midlandnational.com |
Opening Thoughts on the MetLife FA 10-Year MYGA 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.
Recently, MetLife made some changes to the way the company does business – one of which was separating a portion of its individual life insurance and annuity business to a newly-established company called Brighthouse Financial, Inc. Although MetLife no longer sells individual annuities, the company is still committed to providing current customers with world-class service and support.
If you have an annuity contract that was issued by one of the following companies, your annuity has been transitioned to Brighthouse Financial:
- First MetLife Investors Company (now named Brighthouse Life Insurance Company of NY)
- MetLife Insurance Company USA (now named Brighthouse Life Insurance Company)
- New England Life Insurance Company
If you have an annuity contract that was issued by one of the companies listed below, your annuity will remain with MetLife:
- General American Life Insurance Company
- Metropolitan Life Insurance Company
- Metropolitan Tower Life Insurance Company
If you currently own a MetLife annuity, and you have any additional questions regarding how it will be serviced, you want to make changes, and/or any other concern, you can go HERE.
An MYGA annuity – known as a Multi-Year Guarantee Annuity – is an annuity that is issued with a guaranteed interest rate period. This time frame is also the same amount of time that the surrender period on the annuity will last. So, in the case of the MetLife Insurance FA 10-Year MYGA, both the rate guarantee and the surrender period, will last for ten years.
Due to the constant ups and downs of the stock market – particularly over the past ten years or so – the demand for fixed annuities has grown substantially, as retirees and those who are saving for retirement vie to keep their money safe.
Yet, even so, because of the painfully low-interest rate environment that we have been stuck in during this same time period, the “price” of keeping your money safe has come in the form of extremely low return. And these returns are hard pressed to meet, much less beat, the rate of inflation. This could then have a negative impact on your ability to continue buying the items and the services that you need in retirement.
Before we get into the gritty details, here are some necessary legal disclosures…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Neither MetLife nor Brighthouse Financial has 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 fixed annuities so that you can decide which may be the best one for you, in order to obtain our free annuity report.
How MetLife Described the FA 10-Year MYGA Annuity
Having a fixed annuity included in your overall portfolio can be beneficial for you in terms of addressing some of the worries about market volatility, as your savings are not exposed to the fluctuations that can occur. These types of annuities also protect your principal, while at the same time earning a guaranteed rate of growth each year.
When it comes to the FA 10-Year MYGA from MetLife, the initial interest rate was set for ten full years. Then, once that time period is over, the funds in the annuity contract will go on to earn a 1-year rate of return – which can fluctuate from one year to the next – or alternatively, you can renew the contract for an available guarantee period of your chose.
Similar to with other annuities, the growth that takes place inside of the contract is allowed to compound on a tax-deferred basis. This means that there is no tax due on the gain until the time of withdrawal.
While MetLife no longer offers annuities, there is additional information regarding fixed annuities in general that are offered by Brighthouse that can be referenced HERE.
How an Insurance or Financial Advisor Might Have “Pitched” this Annuity
If you currently own the MetLife FA 10-Year MYGA annuity – or you are currently considering another similar product – then if you’ve discussed this option with an insurance or financial advisor, it is likely that they keyed in on a couple of areas.
For instance, if you’re like most people, you like to know that you have a guarantee – especially when it comes to your money. So, given that the FA 10-Year MYGA offers ten full years of interest rate guarantee, many people consider this to be a benefit.
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.
Plus, because you also can choose an income stream that will last for the remainder of your lifetime (as well as someone else’s), you won’t need to worry about running out of retirement income down the road.
However, just as with most anything else in life, there are always tradeoffs to be considered – especially in the case of guarantees. Therefore, you need to also be mindful of what you may be giving up in order to get these benefits.
In the case of this particular annuity, it could be challenging for you to meet or beat the rate of inflation in the future – in turn, resulting in a lower amount of purchasing power each and every year.
Do you really want to deal with that during your retirement years?
Are There Fees on the MetLife FA 10-Year MYGA Annuity?
In addition to a low rate of return, there are also fees that you may need to contend with on this annuity – which can make your small return even smaller. One of these is the many years of surrender charges, meaning that if you are still within the surrender period, and you want to take out more than 10% of your annuity’s contract value, you’ll be penalized.
10-Year MYGA Surrender Charge Schedule
| Product Name | LiveWell Guarantee 5 Year Annuity |
|---|---|
| Issuer | Midland National Life Insurance Company |
| Type of Product | MYGA (Multi-Year Guarantee) / Fixed Annuity |
| Standard & Poor's Rating | A+ (Strong) |
| Phone Number | (877) 586-0244 |
| Website | www.midlandnational.com |
There is also a withdrawal charge during the renewal period(s). On this annuity, the charges are as follows:
Withdrawal Charge During Renewal Period(s)
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6+ |
|---|---|---|---|---|---|---|
| Charge % | 9 | 8 | 7 | 6 | 5 | 0 |
On top of that, if you make such withdrawals before you turn age 59 1/2, you will also incur an additional 10% “early withdrawal” penalty from the IRS.
The Annuity Gator’s End Take on the Met Life FA 10-Year MYGA Annuity
If you own the MetLife FA 10-Year MYGA annuity and you are wondering if this particular product is still right for you, here’s our end take on it.
Where this annuity works best:
- If you are seeking protection of principal
- If you want a set rate of growth, without the worry of losses in a volatile market
- If you want the security of knowing you’ll have a guaranteed income in retirement
Where this annuity works worst:
- If you want the opportunity for a higher return
- If you do not plan to use the lifetime income feature
In Summary
There are many annuity products out there in the market to choose from. And, as these financial vehicles can, and often do, come with a lot of different features and benefits, it is 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 MetLife FA 10-Year MYGA annuity, you can be assured that it can offer you principal protection, 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 features.
But, depending on just exactly what it is you’re looking for in an annuity, it could also fall a tad bit short – and quite honestly, there may very well be a better alternative out there for you. This is especially true if you are seeking the opportunity for additional growth potential.
Given all of that, if you still have any additional questions and/or concerns regarding whether or not the MetLife FA 10-Year MYGA annuity is the right one for you, then please feel free to reach out to us directly through our secure contact form here.
Have Any Additional Questions or Concerns About the MetLife FA 10-Year MYGA Annuity? Did You Notice Any Mistakes in this Annuity Review?
We know that this annuity review was a bit lengthy, so we truly thank you for hanging with us through to the end here. In offering this annuity review, though, our thought is that it is much better to “err” on the side of giving too much detail than not giving you enough.
Therefore, if you feel that this annuity review was, in fact, helpful, please feel free to forward it and share it with anyone else who you think may benefit from it – especially if they own the FA 10-Year MYGA annuity from MetLife and are now having second thoughts about it.
In addition, we also know just how quickly information about annuities and other financial products can change. So, if you noticed any information in this review that may need to be corrected or updated, then please let us know that, too so that we can go in and make the necessary revisions.
Any other annuities you would like to see reviewed?
No problem!
Just let us know the name (or the names, if there’s more than one) of the annuity that you would like to see reviewed, and our team of annuity “geeks” will get right on the case. With that in mind, be sure to check back soon – and often!
Best,
The Annuity Gator
