What’s Covered In This ReviewIn this review, we’ll cover the following information on the Midland National MNL Guarantee Ultimate 5-Year Annuity:
- Product type
- 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 considering a financial vehicle that can offer you security, along with a stable stream of income in the future, the Midland LiveWell Guarantee 3 Year Annuity may be a viable option for you – starting with the fact that it offers protection of principal, along with other guarantees that are built directly into the annuity contract. However, before you move forward with the purchase of this – or any other annuity – it can be beneficial to have a more in-depth understanding of how these products work, and how it may or may not fit into your specific financial situation. During the past several years, annuities have become much more popular as a way to offer a guaranteed stream of income in retirement. And because of that, the number of financial advisors who are offering these vehicles has expanded exponentially. But, this isn’t necessarily a good thing. This is because, while most financial advisors vie to do the right thing for their clients, they may not always be providing you with the answers to the questions that should ideally be answered about purchasing a fixed annuity. In addition, due in large part to their growing popularity, the array of annuity products that are now available has grown – and some of these annuity offerings can be confusing to understand, even for well-educated individuals (as well as some insurance and financial advisors). With that in mind, additional steps should be taken in order to really understand what it is you are buying – especially as this could comprise a substantial percentage of your overall retirement income in the future. This is particularly the case as annuities are considered long-term endeavors, and once you get in, there can be penalties and fees involved if you want to get back out.
Annuity and Retirement Income Planning Information That You Can TrustIf this is your first visit to our website, then please allow us to personally like to welcome you to AnnuityGator.com. We are a team of experienced financial professionals who are dedicated to providing you with non-biased and comprehensive annuity reviews. We’ve been offering in-depth annuity reviews for many years on our site, and because of that, we have become a trusted source. If you have been in the process of seeking any information about annuities online, it is likely that you may have come across some conflicting details regarding these products. This isn’t surprising, as there are many details out there. You may also have attended an annuity seminar recently – which might even have led you here in order to obtain more in-depth details on an annuity that you’re considering. While there are a number of very good websites that are devoted to marketing their annuities online, some of these tend to lure visitors in by offering claims such as the following:
- Highest annuity payouts
- Low Fees
- Guaranteed income for life
- Top-Rated Annuity Companies
- Get an Annuity Quote Now!
Midland LiveWell Guarantee 3 Year Annuity at a Glance
|Product Name||LiveWell Guarantee 3 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|
Opening Thoughts on the Midland LiveWell Guarantee 3 Year AnnuityMidland National Life Insurance Company has been in the business of providing wealth accumulation and protection products for more than 110 years. Initially founded in 1906 as Dakota Mutual Life Insurance Company, this insurer thrived – even through the Great Depression, World War l, and World War ll. Today, the company is a subsidiary of the Sammons Financial Group. As a private insurer, Midland National is not subject to the short-term earning pressures that publicly held insurance companies can often face. This insurer holds more than 1 million life insurance and annuity policies and has assets of more than $44 billion. Midland National Life Insurance Company has consistently received strong ratings from third-party rating companies, which include an A+ (Superior) from A.M. Best and an A+ (Strong) from Standard & Poor’s. Due in large part to market volatility over the past decade or two, the demand for fixed annuities has grown substantially as a way for retirees and/or those who are preparing for retirement to keep principal safe. However, because of the historically low-interest rate environment of late, the return that has been offered by fixed annuities has been quite low. In fact, oftentimes, fixed annuity returns are not even enough to outpace the rate of inflation – and because of that, it could affect purchasing power in the future. This is especially the case if you plan to use this vehicle for a bulk of your future retirement income stream.
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. Midland National Life Insurance Company 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, click here in order to obtain our free annuity report.
How Midland Describes the LiveWell Guarantee 3 Year AnnuityMidland National Life Insurance Company describes the LiveWell Guarantee Annuity as a product that provides a guaranteed, predictable return, as well as competitive interest rates. There are several different guarantee periods available, so for the 3 Year option, your guaranteed interest rate would last for three full years after your initial purchase. At the end of the initial guarantee period, you have a choice of what to do next – you can either elect a lump-sum payment or choose to begin receiving regular periodic payments from the annuity (either on a monthly, quarterly, or annual basis). Alternatively, you could renew the annuity for another available guarantee period. (If you don’t make a selection, the insurance company will automatically renew your annuity for a certain period of time that is outlined in the contract). Just as with other annuities, your earnings within the account will grow tax-deferred, meaning that there is no tax due on the gain until the time of withdrawal. There is also a death benefit included whereby if the annuitant dies, a beneficiary will receive the remainder of the contract value without any surrender fees applied.
How an Insurance or Financial Advisor Might “Pitch” this AnnuityIf you have been approached by an insurance or financial professional who is offering you this annuity, then they may have keyed in on certain features that it offers, such as a guaranteed rate, as well as an ongoing stream of income in the future that can last throughout your entire lifetime – regardless of how long that may be. However, as an educated consumer, it is likely that you have probably also noticed that insurance and financial companies do a great job of making sure that their products sound enticing. For example, if you read over the points above regarding a guaranteed interest rate period, and income for life, then you may have surmised that the Midland LiveWell Guarantee 3 Year Annuity was an ideal option for you. But it is important to note here that, if you are being offered this or any annuity – by a commissioned advisor, then they are probably going to explain it to you highlighting all of its positive features. For example, when taking a closer look at the above-referenced points, even though they may initially sound really great, once you have gotten a bit deeper into the annuity’s fine print, you could realize that the picture isn’t as bright as it seemed at first. First, the interest rate offered on this annuity is painfully low – in line with a CD or bond, perhaps – and unfortunately, what you give up in return for the guarantees and safety, you essentially pay for in lost purchasing power in the future. On top of that, the interest rate that you receive is actually dependent on the single premium payment that you place into the annuity. Here, the premiums are “banded” where:
- Band 1 is a deposit of $25,000 to $99,999.99
- Band 2 is a deposit of $100,000 to $249,999.99
- Band 3 is a deposit of $250,000 or more
What About the Fees on the LiveWell 3 Year Annuity from Midland National?When it comes to MYGA annuities, the duration of the surrender period is typically lined up with the guarantee period you have with your interest rate. Therefore, in the case of this annuity, you will have to pay a surrender charge if you withdraw more than 5% of the contract’s value during the first three years. These charge amounts are as follows:
The Annuity Gator’s End Take on the Midland LiveWell Guarantee 3 Year AnnuityWhere it works best: This particular annuity will typically work the best for those who are looking for the following benefits:
- A short-term interest rate guarantee – in this case, three years
- Safety of principal
- Guaranteed lifetime income
- Want access to most or all of your funds during the surrender period
- Do not intend to use the lifetime income feature