What’s Covered In This Review
In this annuity review, we will discuss the National Integrity Life New Momentum 1 Year fixed 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 have been considering moving forward with the purchase of annuity because you want to assure yourself of an income stream in retirement, while at the same time still keeping a large percentage of your retirement nest egg safe, then the National Integrity Life New Momentum 1 Year fixed annuity could be right for you. This is because this annuity can help to keep a portion of your nest egg safe, and it can provide for you a guaranteed lifetime income in retirement.
However, before you move full steam ahead with purchasing this particular annuity, it is a good idea that you first get additional details on how the product works, and how it may – or may not – be in line with your financial goals. Then, once you have a more thorough understanding of the New Momentum annuity, you can make a well-informed decision as to going ahead with a purchase, or pass and move on to something else that may be better.
Over the past decade or so, fixed annuities have become very popular – primarily as a way of obtaining guaranteed income in retirement. As the lifetime income option on a fixed annuity is able to ensure that you’ll have income – regardless of how long you live – it can be helpful in terms of eliminating the fear that you may run out of money down the road.
But, while it can be reassuring to have various types of financial guarantees, especially as they pertain to your financial planning, an annuity must always be considered a long term financial commitment, so be sure that you know both the advantages and the possible drawbacks before you move forward with one.
In doing so, it can be a tad bit challenging to find out what the possible negatives are. This is because annuities often times come with several pages of “small print” that can be very confusing – even for well-educated consumers! Adding, even more, confusion is the way in which many insurance and financial advisors present these products. This is where we can help you.
Annuity and Retirement Income Planning Information that Can Be Trusted
If you have never been to our AnnuityGator.com website before, we would like to thank you for stopping by and visiting. We are a team of experienced financial professionals who are focused on offering the most comprehensive and unbiased annuity reviews that can be found here on the Internet. We’ve been doing this for quite some time now – far longer than our competitors – and because of that, we are considered a highly trusted source of annuity information online.
We’ve also seen – particularly over the past few years – numerous “copycat” websites appearing online. In doing some research of our own, we’ve found that most of these sites just simply repeat very basic information that you’ve likely already heard.
There could be a myriad of reasons why you are seeking more information about annuities. For instance, you may be nearing retirement, and therefore are looking for a safe place to put your money. Or, you could be looking for a way to stretch out your retirement income so that it lasts for the remainder of your life (as well as possibly your spouse’s life, too).
In looking for this information, you may also have recently gone to an annuity seminar or workshop where, in return for a free lunch or dinner, you listened to the presenter discuss these products and all of the benefits they offer. That seminar may even have been the catalyst that has ultimately led you here to our website.
In any case, if you have been researching annuities via the Internet, then it is highly likely that you’ve come across some conflicting details about these products. This isn’t surprising though because even though there are many reputable annuity marketing websites out there, there are some that will attempt to lure you in by making some pretty darn bold claims, such as:
- Highest income payouts
- Lowest fees
- Top-rated annuity carriers
- Guaranteed income for life
- Get your quote now!
Even though these claims may sound very enticing, it is essential that you find out if they are really true. This is because once you are locked into an annuity if you later find that it really isn’t all that it was cracked up to be, it can be costly for you to get out of it.
The good news is that if you’re looking for the inside scoop on the New Momentum 1 Year fixed annuity from National Integrity Life, you are definitely in the right spot. That is because here on our website, we’ll provide you with the benefits, as well as the potential drawbacks – because we truly believe that seeing the whole picture is the only way to make a good, solid decision regarding whether or not this annuity is right for you.
At this point, you may have already discovered that insurance and financial sales reps who offer fixed annuities will often do their very best to paint you a very rosy picture of just how safe these products can be. However, what they may conveniently neglect to tell you is that there can also be some drawbacks to them, too. This means that you may need to do a bit of homework before you move forward with an annuity purchase.
Not to be misunderstood – most of the insurance and financial advisors in the industry today will typically work hard to do what is best for their clients. So, the products that they are offering aren’t necessarily bad. However, you still want to know both the benefits and the downfalls so that you can make the most well-informed decision possible.
This annuity review has been placed here so that you can take a deeper dive into the “inner workings” of the New Momentum fixed annuity and uncover some of the details that are oftentimes overlooked by financial advisors.
Prior to moving forward, we do want to be clear in that we believe that annuities can be very good financial options – but only if they are in line with your specific long- and short-term financial needs.
So, if you are ready to move forward, let’s get started!
National Integrity Life New Momentum 1 Year Fixed Annuity at a Glance
|Product Name||New Momentum 1 Year|
|Issuer||National Integrity Life|
|Type of Product||Fixed Annuity|
|S&P Rating||AA (Very Strong)|
|Phone Number||(800) 433-5770|
Opening Thoughts on the National Integrity Life New Momentum 1 Year Fixed Annuity
Originally founded in 1888 as the Western and Southern Life Insurance Company, Western and Southern Financial Group – the parent company of National Integrity Life – is a Fortune 500 company that has assets owned in excess of $45 billion, and more than $22 billion in assets under management.
With several types of life insurance and annuities in its product arsenal, it has built up a solid customer base, as well as a conservative and strong financial foundation. The company has earned very high ratings from all of the major insurer rating agencies, including:
- A+ (Superior) from A.M. Best
- AA (Very Strong) from Standard & Poor’s
- AA (Very Strong) from Fitch
- AA3 (Excellent) from Moody’s
It has also been provided with a Comdex Ranking of 96 out of 100. This rating is a composite of all the ratings a company has received from the major rating agencies. It ranks insurance carriers on a scale of 1 to 100, where 1 is the lowest and 100 is the highest.
Due in large part to the constant ups and downs of the stock market over the past several years, the demand for fixed annuities has grown substantially – primarily as a way for retirees, and those who are approaching retirement, to keep their principal safe.
On the other hand, because of the historically low interest rate environment that we’ve (unfortunately) grown accustomed to lately, the price of this safety of principal is that your overall return can be very low – so low, in fact, that it may not even meet or beat short- or long-term inflation. This, in turn, can have a major effect on the amount of income you’ll receive in retirement.
Before we get into the in-depth details, we have some legal disclosures to present…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. National Integrity Life 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 more details on how to compare fixed 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 National Integrity Life Describes the New Momentum 1 Year Fixed Annuity
The New Momentum is a “flexible premium deferred annuity, or FPDA, that combines the power of tax deferral with a choice of guaranteed rate options (GROs), as well as a quarterly interest option (QIO) providing rising rate opportunity for those who are unsure of where rates may go.”
With this annuity, the premium may be allocated to one or more of the multiple GROs, all with an initial first-year rate enhancement, or to the QIO until moved. At the end of the guarantee period, the annuity holder may transfer to existing GROs or remain in the QIO at the then-current interest rate. And, at the end of a GRO period, the annuity holder may transfer to a guaranteed rate option without a withdrawal charge or transfer fee.
As with other annuities, the funds that are inside of the annuity’s account are allowed to grow on a tax-deferred basis, meaning that no tax is due until the time of withdrawal. There is also a death benefit option on the New Momentum annuity. With this, a named beneficiary can receive the annuity’s account value on the day that the annuitant’s death claim is processed.
How a Financial or Insurance Advisor Might “Pitch” This Annuity
There are definitely some nice features that come along with the New Momentum fixed annuity from National Integrity Life. For example, with this product, there is no worry about the stock market going down (and in turn, taking your savings along with it).
In addition, once it’s time to turn the annuity into a retirement income stream, you will be able to count on a set amount of money coming in regularly for a set period of time – including for the rest of your life, should you decide to go with the lifetime income option.
It’s important to keep in mind here, though, that if you have been presented this annuity by a commissioned sales representative, it is likely that they will key in much more on the positives, while just simply glossing over the drawbacks.
But if you take a closer look at the “fine print”, after the first year, the initial interest rate, less 0.75%, is guaranteed only for the remaining GRO period. And, the GROs could change.
Plus, because of the low-interest rates that investors have been getting lately on most financial products that are considered to be “safe,” the tradeoff comes with the unlikelihood of even meeting – much less beating – future inflation. This means that it could be quite difficult to keep up your purchasing power in the future for the goods and services that you’ll need.
What About Any Fees on the New Momentum Annuity From National Integrity Life?
Wherever you go, you would be hard pressed to find any financial product that doesn’t charge at least some type of fee. The New Momentum fixed annuity is no different. With this product, you will find that, while there is no up-front sales charge, if you make a withdrawal in the early years, a withdrawal charge and market value adjustment (for GROs) could apply.
For example, if you take out more than 10 percent of the annuity’s value in the first full seven years, the withdrawal charge would be as follows:
|Withdrawal Charge %||7||6||5||4||3||2||1||0|
The Annuity Gator’s End Take on the National Integrity Life New Momentum 1 Year Fixed Annuity
Where it works best:
This particular annuity will usually work the best for those who are looking for:
- Safety of principal
- Guaranteed lifetime income in retirement
- Guaranteed rate protection – at least for a short time after purchasing the annuity
Where it works the worst:
The National Integrity Life New Momentum fixed annuity may not be an ideal fit if you:
- Want access to most or all of your funds within the first several years (due to the withdrawal penalty)
- Are seeking a high rate of return on your money
- Do not intend to use the lifetime income feature
In order to truly know how to compare the best annuity options for you, click here so that you can download our free annuity report.
If you have been thinking about the purchase of an annuity, it is always important to consider both the pros and possible drawbacks prior to moving forward. This is especially the case if there are several years of withdrawal charges that could make getting out of the product difficult and expensive.
If you are still leaning towards a fixed annuity, however, you can typically be assured that it can provide you with principal protection, as well as a guaranteed and ongoing income in the future. This could even be the case regardless of how long you live.
When specifically considering the National Integrity Life New Momentum 1 Year Fixed Annuity, there can certainly be some nice benefits. But, the reality is that this annuity could also fall somewhat short – and quite frankly, there might just be a better alternative out there for you – particularly if you are seeking the opportunity to get a higher rate of return.
So, if you are still going back and forth about whether or not the New Momentum annuity is the one for you – or even if you’d like to obtain more in-depth information regarding annuities overall – then please feel free to reach out to us directly via our secure contact form here.
Do You Have Any More Questions? Did You Notice Any Mistakes?
We realize that this annuity review was a bit on the long side. Therefore, we would like to thank you for sticking with us thus far. In offering our reviews of annuities, though, we would much rather provide “too much” detail, rather than not enough. So, if you felt that this annuity review was helpful, then please feel free to forward it and share it with others who you think may also find it beneficial.
We also realize that the available information about annuity products can change over time. With that in mind, if you happened to run across any details in this annuity review that needs to be corrected or updated, please let us know and we will be happy to get them corrected immediately.
In addition, if this annuity review has caused you to be more confused about the National Integrity Life New Momentum annuity and/or if reading this review has prompted any more questions about it, then please let us know that, too.
Are there any other annuities that you would like to see reviewed on our website?
If so, then we will get to it. We are always looking for suggestions on fixed, fixed index, and variable annuity products to highlight on our site. So, just drop us a line and our team of annuity pros will start working on it.
The Annuity Gator