What’s Covered In This Review
In today’s review, I’ll be covering the following information on the LiveWell Fixed Index Annuity from Midland National Life Insurance Company:
- 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 thinking about purchasing a financial product that can offer you protection of principal, along with the opportunity for nice returns – as well as one that can also provide you with a guaranteed lifetime stream of income in retirement – then the Midland National Life LiveWell fixed indexed annuity could be a good option for you.
But, before you head right out and plunk down a large percentage of your retirement savings into this product, it can be extremely helpful – and also quite cost effective – for you to first get a good understanding of how this annuity may or may not fit in with your overall financial plans and goals.
Throughout the past decade or so, annuities have become quite popular – primarily the fixed index version – as a way for investors to obtain guaranteed income in retirement and to obtain a higher return than those of regular fixed annuities. But as good as this may sound, these products are often times mis-sold by insurance and financial advisors.
In most cases, this is completely unintentional. But, because fixed index annuities tend to have more bells and whistles that regular fixed annuities, advisors will often highlight the key benefits, while not really going into depth about some of the potential drawbacks.
Unfortunately, because these “hybrid” annuities have so many more moving parts, they can be somewhat confusing to understand – even for well-educated consumers and financial professionals.
As a result, it is important that you know just exactly what it is that you are considering because locking yourself into one of these products – and then later trying to get out – could prove to be expensive due to surrender charges.
Annuity and Retirement Income Planning Information You Can Trust
If this is your first visit to our website, then please allow us to officially welcome you here to AnnuityGator.com. We are a team of experienced financial pros who are highly focused on offering the most comprehensive, and unbiased, reviews of annuities. We’ve been at this for many years – much longer than our competitors, and so we have become a well-known source of annuity information.
With that in mind, if you’ve been in the process of looking for more information about Midland national annuities via the Internet, then it’s a good possibility that you have noticed there’s a lot of conflicting information out there about these products. This, however, isn’t really a surprise, because there is also a great deal of confusion about how they work, and which type may be best for certain circumstances.
It’s possible that you have also attended an annuity seminar in the recent past where you were offered a free lunch or dinner, and the presenter talked about the Midland National Life LiveWell fixed indexed annuity or some other similar product. Your attendance at this seminar may even have been the catalyst that has led you here to our site in search of more information.
Yet, while there are many websites out there on the Internet that market their annuities to consumers, there are a number of such sites that make an attempt to lure visitors in by making such bold claims as the following:
- High-income payments
- Lowest annuity fees
- Guaranteed lifetime income
- 7 – 8% Rate of Return
Although these claims may be inviting, the reality is that you must first make sure that they are true. This is especially the case if you are seriously considering moving a large amount of your hard earned savings into such an annuity.
Also, if you take a close look at the information – even that on the more quality annuity marketing websites – you may start to notice that many of them as just repeating the information that you can find right here. This is known as copycatting.
Whatever the reason is that you have landed here on our site, you can rest assured that you are now in the right place if you are seeking more in-depth information on the Midland National Life LiveWell Fixed Index Annuity. This is because here at AnnuityGator.com, you can find all of the details on this annuity – which includes the positives, and the potential negatives. This is because we feel that knowing the whole picture is the only true way to know if this annuity is for you, or if there is another that may fit your scenario better.
Just to be clear here, we do want to state that we believe annuities can be a good financial option for many people…as long as the annuity that is purchased fits in well with your overall current and future plans.
This annuity review is provided here for you in order to help you ensure that you’re moving in the right direction with this (and/or other) annuity and to guide you in what to look for in terms of the pros and the cons.
So, if you are ready to get started, let’s dive in!
Midland National Life LiveWell Fixed Indexed Annuity at a Glance
|Issuer||Midland National Life Insurance Company|
|Type of Product||Fixed Index Annuity|
|S&P Rating||A+ (Strong)|
|Phone Number||(800) 923-3223|
Opening Thoughts on the Midland National LiveWell Fixed Indexed Annuity
Midland National Life Insurance Company has more than a century of experience in the insurance industry. The company was founded back in 1906, initially under the name of Dakota Mutual Life Insurance Company.
Over the years, the company has grown and expanded, through economic depressions and recessions, and even through World Wars. In 1925, the name of the company was changed to Midland National Life Insurance Company. The insurer is today a member of Sammons Financial Group.
The company consistently earns high ratings for its financial strength from the insurer rating agencies, and it has also earned many awards and accolades over time. Midland is rated as an A+ (Superior) by A.M. Best, an A+ (Strong) by S&P Global Ratings, and an A+ (Stable) by Fitch Ratings. It was also selected as one of Ward’s 2016 top 50 life and health insurance companies.
Due in large part to the ongoing ups and downs of the stock market, fixed index annuities have become much more popular over the past decade or so. One reason for this is because these types of annuities can seemingly offer a “best of all worlds” scenario, including the safety of principal, the opportunity for index-linked growth, and a guaranteed stream of income in retirement.
Yet, while this may at first glance seem like an ideal way to go with your savings, if something sounds too good to be true, it typically is! Therefore, it is essential that you review the “fine print” before you move forward with the purchase.
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. 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 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, click here to obtain our free annuity report.
How Midland National Life / Sammons Financial Group Describes the LiveWell Fixed Indexed Annuity
The LiveWell Fixed Index Annuity is described as a good option for those who are seeking an additional source of income in retirement. That is because, in exchange for a premium payment, you will receive a set amount of money each month, quarter, or year – depending on the income schedule that suits your needs the best.
Along with a guaranteed amount of retirement income, the LiveWell fixed index annuity can provide you with the following benefits:
- Tax-deferred growth during the accumulation period
- No loss of premium due to market volatility or downturns
- Long term growth potential
- Optional guaranteed minimum death benefit, which can provide the option for legacy protection
- Optional guaranteed lifetime withdrawal benefit that provides guaranteed income for life, and that allows you to retain control of your money
There are three accounts available with the LiveWell Fixed Index Annuity from Midland National. These include a fixed account, an S&P 500 Index Account, and an S&P Low Volatility Daily Risk Control 5% Index.
The LiveWell Fixed Index Annuity also has some additional features, such as a nursing home confinement waiver and a death benefit, as well as optional riders like a Guaranteed Lifetime Withdrawal Benefit (GLWB) and a Guaranteed Minimum Death Benefit (GMDB).
How a Financial Advisor Might Pitch This Annuity
Today, fixed index annuities have become highly sought after, as they can allow you to earn a nice return on your premium – especially as compared to a regular fixed annuity – as well as keeping your principal safe, even in the event of a market downturn. This “best of both worlds” scenario is what financial advisors will often times highlight when presenting the product to their clients. The guaranteed lifetime income feature can then be like the icing on the cake.
But, even though this can sound like it meets all of your retirement planning needs, you first need to take a closer look at the fine print. This is because insurance and financial agents will typically paint a nice rosy picture of the annuity they are presenting you with. This is especially true if he or she will be getting a commission for selling you the annuity.
In the case of the Midland National Life Insurance Company’s LiveWell Fixed Indexed Annuity, the positive return that you receive can be “capped.” This means that the amount of upward movement that your annuity can take part in may or may not fully experience all of the underlying index’s gains. As an example, if your annuity’s return is capped at 4%, but the underlying index that it is tracking goes up 10%, you would only be credited with the 4%. This is something that financial advisors will typically not discuss in great detail when showing this annuity to clients.
Many advisors may also not go into deep detail about the additional cost that you may be charged for the annuity’s riders. For example, with the LiveWell Fixed Index Annuity, the optional LiveWell Income for Life Rider Guaranteed Lifetime Withdrawal Benefit costs an additional 0.85% each year. Likewise, the LiveWell Legacy Protector Guaranteed Minimum Death Benefit will set you back an additional cost of 0.35% of the GMDB amount.
What About the Fees on this Annuity?
In addition to the additional premium amount that is charged for the annuity’s optional riders, you will also find that the Midland National LiveWell Fixed Index Annuity will hit you with a surrender charge if you want or need to withdraw more than 10% of the contract’s value during the first nine years that you own the product.
Midland National Life LiveWell Fixed Indexed Annuity Surrender Charge Schedule
|Surrender Charge %||8||8||8||7||6||5||4||3||0|
In addition, you may owe taxes on some or all of your withdrawals. And, if you are under age 59 ½ if you make such a withdrawal, you may also incur an additional “early withdrawal”penalty of 10% from the IRS.
The Annuity Gator’s End Take on the Midland National Life LiveWell Fixed Index Annuity
Where it works the best:
This annuity could be a good option for you if you are:
- Looking for a set amount of guaranteed income in retirement
- Seeking protection of premium against losses due to market downturns and fluctuations
- Wanting to ensure the financial legacy you leave to loved ones
Where it works the worst:
- If you access to most or all of your money within the first several years
- If you are not planning to use the guaranteed lifetime income feature
In order to really see how this – or any other Midland National annuity – may or may not work for you and your particular needs, feel free to check out our free annuity report here.
There can be a long list of factors that should ideally be considered when you are thinking about purchasing an annuity. In any case, though, these financial vehicles should be approached as a long-term commitment, as they can be quite expensive to get out of.
With fixed index annuities like the Midland National Life Insurance Company’s LiveWell Fixed Indexed Annuity, you can be assured that your funds are safe from market volatility and that you have the ability to receive an ongoing income in retirement – no matter how long you live.
But, even with the great features that are offered via the LiveWell Fixed Indexed Annuity product, this annuity could quite frankly still fall somewhat short – and there could still be a better alternative out there for you.
In order to know for sure, please feel free to contact us and we will run a free, no obligation annuity calculator using the figures and time frame that fits your individual situation the best.
Do You Still Have Any Questions? Notice Any Mistakes in this Annuity Review?
We realize that this review was a tad bit on the long side. But we would much rather provide too much detail than not enough. That way, you can better compare the pros and the cons of an annuity that you may be considering purchasing.
If, however, you do still have any questions about this (or any other) annuity, please feel free to reach out to one of our experts here at AnnuityGator.com through our secure contact form right here.
In addition, if there are any other annuities that you would like more information, just let us know that too and our annuity geeks will get on the case and post more reviews.
The Annuity Gator