What is Covered in this Midland National Life MNL Endeavor 8 Fixed Indexed Annuity Review?In this review, we will be discussing the following details on the Midland National Life MNL Endeavor 8 Fixed Indexed 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 are in the midst of considering the purchase of an annuity so that you can obtain tax-deferred growth along with a lifetime income in retirement, then the Midland National MNL Endeavor 8 fixed Indexed annuity with the Income Focus rider could be a viable option for you. That is because this annuity allows you the ability to earn a higher return than that of a regular fixed annuity. But if the market heads south, your hard-earned principal will still be safe. Plus, when the time comes to convert the annuity over into an income stream, choosing the lifetime income option will give you an ongoing, lifetime income – regardless of how long you live. But, while this may sound very appealing, don’t run to the nearest financial or insurance advisor quite yet and sign on the dotted line to purchase this annuity – at least not until you have a full understanding of how the product works, and how it may or may not work for you. Throughout the past decade or so, fixed indexed annuities have become particularly popular with investors, as these financial vehicles offer a way to get ongoing income in retirement, yet without the need to worry about unreliable stock market performance. This new-found popularity may not necessarily be a good thing, though. For instance, because these particular annuities tend to have more bells and whistles on them, even some of the most well-informed financial and insurance advisors are not entirely sure how they work. In addition, because annuities have risen so much in popularity, many insurance carriers have expanded their product lines with annuities that include lost of “moving parts.” However, even though these annuities can help you to better “customize” your plan, they can also be extremely confusing. You also need to be careful of some added charges and fees that can really add up, and impact your overall return. With that in mind, it is recommended that you know just exactly what it is that you are getting into, as locking yourself into one of these products and then trying to get out at a later time could cost you in “surrender” penalties. This is where we come in. Annuity and Retirement Income Planning Information that You Can Trust If this is your first time visiting our website, allow us to officially welcome you to AnnuityGator.com. Here, we comprise a team of annuity professionals who are focused on providing unbiased and comprehensive annuity product reviews. We have been doing this for quite some time now – far longer than our competitors have. So, because of that, we have come to be known as a highly trusted source of annuity information. If you have been reviewing information about annuities on the Internet, then it is likely that you have noticed there is a lot of conflicting information out there about these products. This, however, isn’t really all that surprising, because there are many different opinions about annuities, both from insurance pros and consumers alike. It is possible that you may also have recently attended a seminar about annuities where the presenter offered you a free lunch or dinner and then discussed the details about the Midland National Life MNL Endeavor 8 fixed indexed annuity or some other similar annuity. Your attendance at that seminar might even the reason you have ultimately landed here on our website in search of additional details. Yet, while there are many websites online that market their annuities to consumers, quite a few of these are really just trying to “lure” people in so that they can get a hold of their contact information. They will often do this by making some pretty bold claims about annuities, like:
- High-income payments
- Lowest annuity fees
- Guaranteed lifetime income
- 7 – 8% Rate of Return
Midland National Life MNL Endeavor 8 Fixed Indexed Annuity at a Glance
|Product Name||MNL Endeavor 8|
|Issuer||Midland National Life|
|Type of Product||Fixed Indexed Annuity|
|S&P Rating||A+ (Strong)|
|Phone Number||(877) 586-0240|
Opening Thoughts on the Midland National Life MNL Endeavor 8 Fixed Indexed AnnuityMidland National Life was founded in 1906, so the company has well over 110 years of experience in helping clients to grow and protect their wealth. The company offers a long line of insurance and annuity products, and it is considered to be a leading provider of such products. Midland National also prides itself on its top-notch customer service. Today, the company is a member of Sammons Financial Group, Inc, the parent of a group of member companies under the insurance Holding Company Act made up of several successful financial services companies. Because Midland is privately held, it can maintain a long-term strategic view of its operations, and keep its focus on its customers, as versus stockholders’ wants and short-term earnings. Midland National maintains high ratings from the insurer rating agencies, including an A+ (Superior) from A.M. Best Company, an A+ (Strong) from S&P, and an A+ (Stable) from Fitch Ratings. The company was also recently selected as one of Ward’s 2017 top 50 life and health insurance companies. Due in large part to the constant volatility of the market, fixed indexed 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 go to 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 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 Describes the Endeavor 8 Fixed Indexed AnnuityMidland National Life describes the Endeavor 8 annuity as a fixed indexed product that allows a multitude of payout and interest crediting options, and that can even begin a penalty-free payout from the annuity’s accumulation value after the first contract year. As with other annuities, this one allows funds to grow tax-deferred, and because it is a deferred annuity, it offers a flexible premium over time. The Endeavor 8 tracks the S&P 500 and/or the Nasdaq 100, DJIA, EURO STOXX 50, S&P MidCap 400, Russell 2000, Nasdaq 100, Hang Seng indexes, depending on the option(s) that you choose. The product offers a number of crediting methods, including:
- Monthly Point-to-Point with Cap
- Annual Point-to-Point with Cap
- Annual Point-to-Point with Margin
- Annual Point-to-Point Threshold Participation Strategy
How an Insurance or Financial Advisor Might Pitch this AnnuityBeing that the Endeavor 8 is a fixed indexed annuity, it is likely that an insurance or financial advisor would focus in on the fact that you have the opportunity to increase your return based on a market index (or indexed), yet you don’t have to endure any sleepless nights due to the potential for loss. That’s because, even if the underlying index or indexes perform negatively during a given year, the annuity’s account will simply be credited with a 0% – aka no loss – for that time period. Certainly, the ability to attain lifetime income is also present with this product, and financial and insurance advisors will likely key in on that, too – especially because guaranteed income is a big reason why many people look to annuities. Yet, even with these nice benefits, it is important that you are aware of the various “tradeoffs” you might need to make in order to obtain them. For instance, if you choose an interest crediting strategy that involves a cap, your returns can be essentially “held back” if the underlying index has a stellar upward performance in a given year. For example, if the return is capped at 3%, but the index returns 5 or 6%, your annuity will only return 3% as it is “capped” at that amount. Also, in taking a close look at the fine print, you’ll find that the fixed account is really only guaranteed for the first contract year, and then the rate will renew annually thereafter. So, if you plan to keep a portion of your funds in this account, you may find that returns can be painfully low – particularly if we remain in the historically low-interest rate period we’ve been in for the past ten years or so. If you’ve opted for the nursing home confinement rider, you will be required to meet some criteria – other than just simply being in a nursing home facility – in order for the additional penalty-free withdrawals to kick in. Here, you would need to be confined in a facility for at least 90 consecutive days. Plus, if there is a joint annuitant on this policy with you, such as a spouse, then this waiver only applies to the first annuitant who qualifies for the benefit.
Fees with the Endeavor 8 Fixed Indexed Annuity from Midland NationalYou’ll also find, as with most other annuities, that there are some added charges and fees on the Endeavor 8 annuity from Midland National. For instance, adding the Income Focus rider will cost you an additional amount of premium each year. There are also eight full years of surrender charges on this annuity – which start at 10% for the first four of those years. The amount gradually grades down, then, until year 9 when they finally disappear.
Surrender Charge Schedule – Midland National Life MNL Endeavor 8 Annuity
The Annuity Gator’s End Take on the Midland National Life MNL Endeavor Fixed Indexed AnnuityWhere it works the best: The Midland National Life MNL Endeavor 8 fixed indexed annuity may be a viable financial option for you if you are looking for the following features:
- Protection of your principal
- Potential for higher growth
- A lifetime stream of guaranteed income
- Want access to more than just a minimum amount of your contract value within the first eight full years (or any of your contract value within the first year)
- Do not plan to use the guaranteed lifetime income feature