What We Will Cover in this Annuity Review
In this annuity review, we will be covering the following details regarding the Midland National MNL IndexBuilder 10 Fixed Index 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 currently in the process of considering an annuity, then it is important to know that these products can be a logical choice if you are seeking a lifetime income in retirement, along with other key benefits.
Before you dive headfirst into the purchase of an annuity, though, it is essential that you have a good understanding of just exactly what these products do – and don’t do – and that you also know how the type of annuity that you’re considering will work.
For instance, with the Midland National MNL IndexBuilder 10 fixed indexed annuity, you have the opportunity to earn an index-linked return, while at the same time, ensuring that your principal is safe – no matter what occurs in the stock market. As with other annuities, you can also choose from several different income options, which includes one that pays you an income stream for the remainder of your life, regardless of how long that may be.
Throughout the past decade or so, fixed indexed annuities have actually become much more popular – particularly with those who are approaching retirement. One reason for this is their “best of all worlds” offerings – such as the opportunity for growth, protection of principal, and guaranteed income down the road.
Due to this increase in demand for these products, the number of insurance and financial advisors who are offering them to their clients has grown substantially. This is not necessarily a good thing, though.
With so many new annuities coming into the marketplace – many with a long list of “amenities” – they can be quite confusing, for both consumers and financial representatives. Given that, unless the insurance or financial advisor that you work with has a focus on dealing with annuities, you really should do some additional research so that you know exactly what you might be getting into.
An annuity is considered to be a very long-term commitment. And, while their products may offer a number of enticing features, you need to make sure that these features are right for you and your specific goals.
That’s where we come in!
Annuity and Retirement Income Planning Advice You Can Trust
If you’ve never been to our website before, then please allow us to personally welcome you to AnnuityGator.com. We’re a tea, of annuity professionals who focus on offering both comprehensive and unbiased annuity reviews. We have been at this for quite some time now – far longer than our competitors have – and because of that, we have come to be known as a highly trusted source of annuity information online.
Over the past several years, though, there have been a number of “copycat” websites that have sprung up online. But, while these sites may at first seem informative, the reality is that many of them are only reiterating the details that you can find here.
If you have been seeking information on fixed indexed annuities via the Internet, then it is likely that you have run across a lot of conflicting details about these products. This is not really surprising, though, because there are many annuities available today, and just about everyone seems to have a differing opinion about them.
It is also possible that you have recently attended a seminar about annuities. There, in return for a complimentary dinner or lunch, the presenter may have gone into detail about the Midland National MNL IndexBuilder 10 fixed index annuity, or some other similar annuity.
After this seminar, you may have made an appointment to follow up with the presenter (or with another financial advisor) in order to purchase this annuity for yourself. It may even be that seminar that was the ultimate reason you’ve landed here today on our website, in search of more information.
In any case, if you are looking for more in-depth information regarding the IndexBuilder 10 annuity from Midland National, you’ve definitely landed in the right place. In fact, we dare state that right here on this website is the only place where you will find the good, the bad, and the downright ugly about this annuity – but having all of these details on hand is the only way to make a well-informed determination as to whether or not it is the best option for you.
So, if you are ready to start the review, let’s go ahead and dive in!
Midland National MNL IndexBuilder 10 Fixed Index Annuity at a Glance
|Product Name||IndexBuilder 10
|Issuer||Midland National Life Insurance Company
|Type of Product||Fixed Index Annuity
|Standard & Poor's Rating||A+ (Strong)
|Phone Number||(877) 586-0244
Opening Thoughts on the Midland National Dynamic Choice 5 Year Annuity
Midland 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.
Over the past several years, fixed index annuities have become much more sought after by consumers as a way to obtain a guaranteed income for life, as well as an opportunity to keep principal safe regardless of what the market does.
But, even though this may all sound enticing, the truth is that when something sounds too good to be true, then you probably need a bit more information in order to discover the whole story. This is particularly the case if your decision about an annuity could ultimately result in you committing a large chunk of your hard-earned retirement savings.
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 IndexBuilder 10 Annuity
Midland National describes the MNL IndexBuilder 10 as a flexible premium, fixed index annuity that offers growth potential for retirement assets, but also protection from losses due to downside market fluctuations.
This index annuity product offers both fixed and index crediting options, which can provide you with upside potential, yet also protect your principal, regardless of what happens in the stock market. There are also a number of index account options.
You could also receive a premium bonus, which may be applied to all of the premium payments that you make during the first seven contract years. The bonus can vary, based on the amount of your premium deposits. For instance, if you contribute between $10,000 and $74,999, the bonus is 5%, and if you contribute $75,000 or more, the bonus is 7%.
As with other types of annuities, your funds inside of the annuity are allowed to grow on a tax-deferred basis. So, without the need to pay tax on your gains each year, your funds can grow and compound exponentially over time. (There are, however, taxes due upon withdrawal).
This annuity has some other nice features, too, such as a death benefit. Here, if you should pass away before receiving annuity income, Midland National will pay out the accumulation value to a named beneficiary (or beneficiaries) that you choose – and the recipient(s) won’t have to go through the probate process in order to receive these funds.
When you are ready to convert the annuity over into an income stream, Midland National’s MNL IndexBuilder 10 offers several different payout options – including one that will continue to pay out for the remainder of your lifetime.
The IndexBuilder 10 also offers a nursing home confinement waiver. With this feature, you could withdraw up to 100% of your annuity’s accumulation value, without incurring a surrender charge or a market value adjustment – provided that you meet certain criteria.
But even with financial products that appear to offer a “best of all worlds” scenario, when it comes to sounding like something is too good to be true, it probably is. And unfortunately, this could be the case with the MNL IndexBuilder 10 annuity from Midland National.
In order to view additional details, you can check out the Midland National MNL IndexBuilder 10 annuity brochure right HERE.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
Because the MNL IndexBuilder 10 is a fixed indexed annuity, it is likely that an insurance or financial advisor may “pitch” this product by keying in on the ability to get an index-linked return, while at the same time, keeping your principal safe – regardless of what happens in the market.
In addition, you can also receive lifetime income from this product – which can help to alleviate the worry about running out of money in retirement. So, what could be so bad about that? Actually, there are several things – primarily in the “tradeoffs” that you need to make in order to receive the benefits of this annuity.
So, before you get out your checkbook and dive into a commitment with the IndexBuilder 10, there are a few other details that are important for you to know. For instance, as with many other fixed indexed annuities, this one imposes a “cap” on some of its crediting methods. This means that, even if the underlying index that your plan is tracking has a stellar performance, the return that you actually receive will be “capped” at a certain percentage of that.
As an example, let’s say that you choose a crediting method with the MNL IndexBuilder 10 that has return capped at 5%. If the underlying index actually attains an 8% return for a given time period, you’re stuck with only returning 5%. So, when you really think about it, the cap that is imposed could cause you to lose out on some really good performance from your underlying index.
Also, while you could receive a premium bonus of up to 7% when you purchase the annuity, if you end up making a withdrawal before your “recapture” period has elapsed, you could lose some – or even all – of that bonus.
Premium Bonus Recapture
|Year||Premium Bonus Recapture %
What About Fees on the Midland National MNL IndexBuilder 10 Annuity?
Another item that you need to be mindful of before you buy an annuity is the fees. One of the biggest of these could be a surrender charge incurred if you withdraw more than 10% of the contract’s value over the first ten years of owning the annuity. The surrender charge starts out at 10% in Year 1, and it gradually – and slowly – grades down until it finally disappears in Year 11.
Midland National MNL IndexBuilder 10 Fixed Indexed Annuity Surrender Charge Schedule
On top of that, if you make a withdrawal before you have turned age 59 1/2, then you might also be liable for an additional 10% IRS “early withdrawal” penalty. With that in mind, be sure that you know an annuity is a long-term financial commitment, and that you do not use money that you may need for an emergency in the future.
The Annuity Gator’s End Take on the Midland National MNL IndexBuilder 10 Fixed Index Annuity
Where it works best:
This particular annuity will usually work the best for those who are looking for:
Where it works worst:
On the other hand, the Midland National MNL IndexBuilder 10 Fixed Index Annuity may not fare so well for those who:
- The opportunity to obtain a higher rate of growth than that of a regular fixed annuity
- Safety of principal
- A long-term commitment to the product
- Lifetime income
- Want to fully participate in market gains
- Want or need to access their funds penalty-free within the first ten years of purchasing the annuity
- Do not intend to use the guaranteed lifetime income feature
There are many factors that should ideally be taken into consideration if you are thinking about purchasing an annuity. These should include – but are not limited to – how the annuity can produce a return, how safe your money will be, how the income will pay out, and whether or not there are any other optional features that may be added to the annuity (as well as any added costs).
If you are in fact considering the purchase of a fixed index annuity, then you can be assured that your principal will be safe, regardless of what occurs in the stock market, or even the economy as a whole. These annuities will also provide you with an opportunity to grow your retirement funds, and to receive a guaranteed income in the future for as long as you need it.
But there can still be some questions left unanswered – and, the only way to really know if this particular annuity could be right for you is to test it with an annuity calculator. If this is something you would like to pursue, we can offer you a personalized look at how the MNL IndexBuilder 10 from Midland National might perform – based on your specific parameters. Then, once we have run these numbers, we’ll provide you with a detailed spreadsheet at no charge to you.
Do You Still Have Any Additional Questions? Did You Notice Any Mistakes in this Review?
While we realize that this annuity review was a bit on the long side, our feeling is that we would rather provide you with a lot of details than with not enough. This is really the only way to get the full picture. Therefore, if you did find that this annuity review was beneficial to you, then please feel free to forward it on and to share it with anyone else that you think may benefit from it as well.
In addition, we also know that details about annuities – and other financial products, too – can and do change somewhat quickly. With that in mind, if you happened to notice anything in this review that needs to be corrected and / or updated, please let us know that as well, and we will get on the revisions right away.
Are there any other annuities that you would like to see information about?
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