What We Will Cover in this Annuity ReviewIn this review, we’ll cover the following information on the Midland National MNL Guarantee Ultimate ll 5-Year Annuity:
- Product type
- 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 are thinking about the purchase of an annuity that can offer you income security in retirement, and tax-deferred – and guaranteed – growth during your accumulation years, then the Midland National MNL Guarantee Ultimate ll 5 Year MYGA could be a good fit. However, before you dive in head first and commit to this product, it can be extremely advantageous for you to know all of the pertinent information – and in particular, the details on how the return is determined, and how (as well as how long) the income will pay out. This can help you in deciding whether or not the annuity will really be right for you. Over the past decade or so, annuities have become much more popular. One reason for this is due to the guaranteed stream of lifetime income they can provide. And, because of the appeal of annuities, there are many more financial advisors who are offering these vehicles to their clients. Yet, this is not necessarily a good thing. While insurance and financial advisors will typically try to do what is best for their clients, they may not always be providing you with the entire story when it comes to annuities. One reason for this is because annuity can be pretty confusing. And, over time, with products being added regularly in the marketplace, even well-educated consumers and financial advisors can have a difficult time deciphering how they operate. Given that, it is recommended that you truly understand what it is that you are buying. This is particularly the case, as an annuity may comprise a substantial portion of your overall retirement savings. In addition, once you have made the commitment to purchase an annuity, it can be extremely difficult – and costly – if you want to get out. That’s where the Annuity Gator comes in!
Annuity and Retirement Income Planning Information You Can TrustIf this is the first time you have visited our website, then we would like to personally welcome you here to AnnuityGator.com. We make up a team of experienced financial professionals, and we are highly dedicated to offering you in-depth, and unbiased, annuity reviews. We have been providing these annuity reviews for a number of years, and because of that, we have actually become a well-known and trusted source of all types of annuity information. If you’ve been in search of more details about annuities, and you have been looking for this information on the Internet, it is likely that you have run across a wide range of details about these products – some of which can be quite conflicting. This really isn’t all that surprising, because there are many annuities available, and a wide array of different options to choose from. This is where you need to be careful, though, as these products come with a whole lot of “small print,” too – which quite frankly, is important to read, but can be about as exciting as getting a root canal. There is also a long list of websites on the Internet that tout annuities. Unfortunately, even though these sites work hard at making bold claims like “low fees,” “highest rates,” and “high-income payouts,” many of these sites are really only after collecting your contact information, as versus actually teaching you how annuities work. But if you are hoping to learn more about the Midland National MNL Guarantee Ultimate ll 5-Year annuity, then you are in the right place. In fact, we are prone to telling people that the website that you are on right now is the only place where you can truly get all of the essential details online. This includes the good, the bad, and even the ugly – because that’s the only way to learn the whole story. This knowledge, in turn, can assist you with making a determination as to whether or not the product is right for you. In order to be perfectly clear here before we get started, we want to state that we feel annuities can certainly be beneficial for some people – as long as the annuity fits in well with the individual’s short- and long-term investment goals. With that being said, let’s go ahead and dive in!
Midland National MNL Guarantee Ultimate ll 5-Year Annuity
|Product Name||Guarantee Ultimate ll 5-Year|
|Issuer||Midland National Life Insurance Company|
|Type of Product||Single Premium Deferred Annuity / MYGA|
|Standard & Poor's Rating||A+ (Strong)|
|Phone Number||(877) 586-0244|
Opening Thoughts on the Midland National MNL Guarantee Ultimate ll 5 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. After building up a lifetime of savings, no one wants to be subject to the continuous ups and downs of the stock market – yet, even after retiring, it is essential that your savings grow in order to help stretch out retirement income that is received, and to keep pace with the rising cost of goods and services that you need.
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 National Life Insurance Describes the MNL Guarantee Ultimate ll 5 Year AnnuityAs we discussed in the Annuity Gator review of the Midland National MNL Guarantee Ultimate ll 5-Year MYGA (Multi-Year Guarantee Annuity), this product offers a five-year guaranteed rate period, and five years of withdrawal/surrender charges. The MNL Guarantee Ultimate ll also offers multiple guaranteed interest rates – in this case, a 5-year option, as well as competitive and level interest rate option for all years. At the end of each selected guarantee period, you may choose to renew the annuity for another guaranteed period of time. And, depending on your specific circumstances and financial goals, you will have a 30-day window in which to do the following:
- Select a guarantee period
- Elect a payout option, or
- Withdraw the annuity’s accumulation value
How an Insurance or Financial Advisor Might “Pitch” this AnnuityWhen it comes to financial products, you are oftentimes hard pressed to find one with a solid guarantee. That’s not the case with the Midland National MNL Guarantee Ultimate ll 5-year annuity. Given that, it is likely that an insurance or financial advisor will key in on the interest rate guarantee during the annuity’s “accumulation” period, as well as the fact that you can count on a guaranteed income down the road. In addition, this annuity offers the ability to access penalty-free withdrawals. In this case, the current year’s interest withdrawals are available each year and may begin as early as 30 days after the annuity is issued – provided that the annuity owner is on the systematic withdrawal system. With the additional nursing home confinement rider – which is available to issue ages of 75 and under – the annuity holder can access additional funds, penalty-free, from the annuity in order to help with paying the cost of a nursing home. However, just as with the MNL Guarantee Ultimate annuity, while you are able to get a set rate of interest for five years here, the truth is that this – as well as the other features like lifetime income – can also be found on any number of other annuity options. And, if you are able to find these features – along with some added benefits – it may just be worth your while to take a closer look at the other alternative(s) before you make a commitment to the Midland National product. There are also some other items to be mindful of with this particular annuity. For example, even though this product provides you with a 5-year rate guarantee, after that initial guarantee period has gone by, you will either need to withdraw your funds, or seek another guarantee period – and, if rates are still as painfully low as they are right now, you could have a very difficult time with meeting, much less beating, inflation. So, while you could focus on all of the guarantees that this annuity offers, the reality is that you could end up guaranteeing that your purchasing power will steadily be going down. With that in mind, if you are still not 100% certain that this annuity is the one for you, and you would like to have it tested based on your specific financial situation, contact us and we will be happy to provide that for you.
Fees Associated with the Midland National MLN Guarantee Ultimate ll 5-Year AnnuityIn addition to knowing how your annuity may perform, it is also important that you know about any of the charges or fees that you may be hit with as a result of owning this product. In the case of the Guarantee Ultimate ll 5-Year annuity product, there are several areas where fees can come in. Such fees and charges can reduce the value of your annuity. Typically, they will help to cover the insurance company’s expenses of selling and/or managing the annuity, as well as paying out its benefits. The insurer may subtract these costs directly from your annuity’s value. Should you want to withdraw some or all of your money during the first five years that you own this annuity, you will incur a surrender charge of 5.70% for six years before these charges disappear. A surrender charge is assessed on any amount that is withdrawn, whether as a partial or full surrender, that exceeds the penalty-free amount. Therefore, it is essential to keep in mind that this is a long-term financial commitment. On top of that, if you make such withdrawals from the annuity before you have turned age 59 1/2, then you could also be hit with an additional 10% “early withdrawal” penalty from the IRS.
The Annuity Gator’s End Take on the Midland National MNL Guarantee Ultimate ll 5 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, five 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