What will we be going over in this annuity review?In this review of the Western United Life Discovery MYGA annuity, we will be discussing the following details:
- Annuity type
- How the annuity works
- Pros and cons
- Charges and fees to look out for
- Who may be a good fit for this annuity
- Who might not want to buy this annuity
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.
The purchase of an annuity can be a big decision. After all, these financial vehicles – if they are purchased properly – can help to ensure that you will have an income for the rest of your life, no matter how long you need it. Today, many people are living much longer than in the past, so knowing that you have ongoing income can be a big relief. But even though annuities can offer a long list of benefits, there can also be some pitfalls in the products themselves, as well as the way they are sold. Annuities are confusing products, so unless you really read the “fine print,” an annuity may not perform the way that you expected it to. On top of that, these products can also sometimes be mis-sold by insurance and financial advisors. This doesn’t necessarily happen on purpose, but because advisors who don’t have a focus on annuities may not fully understand them either. This is where Annuity Gator comes in.
Annuity and Retirement Income Planning Information You Can TrustIf this is the first time you have been to our website, we would like to welcome you here to Annuity Gator. We are a team of annuity and retirement income specialists who focus on offering comprehensive – yet non-biased – annuity reviews online. You can check these out in our Annuity Review Database on our website. We have been educating both consumers and financial professionals about annuities for quite some time now – far longer than our competitors have – even though many of them would like to have you think otherwise. Due to our wide range of experience and longevity in this arena, we have become very good at what we do, and we’ve actually come to be known as a highly trusted source of annuity information online. If you have been reviewing annuities on the Internet, it’s possible that you have come across some conflicting information about these financial products. This, however, isn’t really all that surprising to us because there are many different types of annuities, and there are many different thoughts about them. Likewise, even though a particular annuity might be the right solution for someone else, it doesn’t mean that it’s the right solution for you and your specific objectives. This, in turn, is why it is so important to discuss your situation, your goals, and your options with an annuity specialist. In any case, if you’ve been seeking more information about the Discovery annuity from Western United Life, then you are in the right place. In fact, dare we say that our website is the only place online where you can obtain all of the information that you require for making a well-informed purchasing decision about this annuity. Before we get too far into this review, though, we do want to be perfectly clear in stating that we believe that annuities can be a very viable financial option for some people – provided that they fit in with your other short and long-term financial goals. So, if you’re ready to begin this Western United Life Discovery annuity review, let’s go ahead and dive in!
The Western United Life Discovery Annuity at a Glance
|Issuer||Western United Life Insurance (Manhattan Life)|
|Type of Product||Multi-Year Guarantee Annuity (MYGA)|
|A.M. Best Rating||B+ (Good)|
|Phone Number||(800) 247-2045|
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. Manhattan 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. Before purchasing any type of insurance and/or investment 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 situation. All of the names, marks, and materials that were used for this annuity review are the property of their respective owners. For more information on how to compare annuities in order to determine which one may be the best for you and your financial circumstances, click here to obtain our free annuity report.
How Manhattan Life Describes the Discovery MYGA AnnuityManhattan Life describes the Discovery MYGA annuity as an individual, deferred, single premium, multi-year guarantee annuity (MYGA) that offers you a choice of interest rate guarantee periods that range from three to seven years. This annuity is offered exclusively by Western United Life Assurance Company. This annuity requires a certain minimum contribution that is based on the guarantee period that you select. For instance, there is a minimum single premium of:
- $10,000 for 3, 5, and 7-year plans.
- $25,000 for the 6-year plan.
How an Insurance or Financial Advisor Might “Pitch” this Annuity to a ClientIf you are approaching retirement, you may be torn between going with financial vehicles that have more risk in order to increase your opportunity for growth, or instead going with something “safe” so that you don’t lose any of your hard-earned retirement funds. Because many pre-retirees today are concerned about not losing what they’ve already saved, having certain guarantees can be comforting – so if you have been presented the Discovery Multi-Year Guarantee Annuity by an insurance or financial advisor, it is likely that they keyed in on the safety features of this product, along with the ability to earn a higher return if or when rates rise in the near future. So, in many ways, this annuity can allow you to potentially increase the returns on your “safe money”. But there are some tradeoffs that you need to be mindful of. For example, even though you can earn more than the guaranteed rate on this annuity, the reality is that you still may not be able to beat, or even meet, the rate of inflation. In the case of the Discovery MYGA annuity, you could be essentially locked into certain rate guarantee periods. These periods can last for between three and seven full years (during which you may have to pass up other, higher interest-earning financial opportunities). So, on the one hand, while it might be nice knowing how much you’re going to earn in the next few years, what happens if interest rates go up? In this case, you’d be left behind, earning a lower rate for the remainder of the guarantee period!
Are there Fees on the Discovery MYGA Annuity?Although any up-front agent commission is built into the annuity product, that doesn’t mean that you won’t have any charges or fees to contend with if you purchase the Discovery MYGA annuity from Manhattan Life – this is particularly the case if you take more than a certain amount of money out during the annuity’s surrender charge period. Just like most other Multi-Year Guarantee Annuities, the surrender charge period on the Discovery annuity will correspond with the rate guarantee period you have chosen.
Manhattan Life Discovery MYGA Annuity Surrender Charge Schedule
|Plan||Percent in Calendar Year of Surrender|
|3 Year||6, 5, 4, 0%|
|5 Year||8, 7, 6, 5, 4, 0%|
|6 Year||8, 7, 6, 5, 4, 3, 0%|
|7 Year||8, 7, 6, 5, 4, 3, 2, 0%|
The Annuity Gator’s End Take on the Manhattan Life Discovery Multi-Year Guarantee AnnuityWhere this annuity works best: Just like all product or service offerings, there will usually be some pros and some cons with annuities, meaning that the item or service may work well for some, and not-so-well for others. So, if you are still considering the purchase of the Manhattan Life Discovery MYGA annuity, then it could work well for you if you are seeking the following benefits:
- Guaranteed growth (for a variety of different rate periods).
- Protection of principal – no matter what occurs in the stock market.
- Lifetime income in retirement.
- You want the opportunity to earn an even higher rate of return in order to keep a better pace with future inflation.
- You want to access more than just a small percentage of the contract’s value during the surrender period.
- You do not plan to use the guaranteed lifetime income feature.
In SummaryWhen you’re thinking about how to best position your savings for the future, there are a number of different criteria that you should ideally take into account. For instance, with annuities, you will definitely need to make sure that the product allows you the opportunity to earn a nice return (at least enough to meet or beat inflation,) while also keeping your money safe in any type of market environment. In addition to that, if you’re seeking a future income stream – including one that you cannot outlive, regardless of how long that may be – then you also need to know how the annuity will pay out when you need to convert the funds into ongoing income. So, if you are still leaning towards the Discovery Multi-Year Guarantee Annuity (MYGA) from Manhattan Life, then you can be assured that your money will be safe, no matter what goes on with the stock market. You can also count on an ongoing income stream down the road, alleviating the worry about running out of money before “running out of time”. However, while this annuity can certainly provide you with some nice benefits, the reality is that it could still fall somewhat short – and quite honestly, there may very well be a better alternative out there for you. This is even more true if you are looking for a way to keep your money safe, while still having the opportunity to earn a higher rate of return. The only way to truly get an idea of how this annuity may perform – based on your specific situation – is to have it tested. We can do this for you by running the numbers through our annuity calculator, and we can then provide you with a spreadsheet of the results. In order to receive this information, just simply contact us through our secure online form here and let us know.
Have Any Additional Questions About the Manhattan Life Discovery MYGA Annuity? Are There Any Other Annuities You’d Like to Have Reviewed?While we know that this annuity review was a bit on the long side, we feel that providing “too much” information is better than not enough. That being said, we appreciate you sticking with us here to the end. We also realize that, because everyone’s situation is different, there may have been some questions that went unanswered in this review. If this is the case and you still have any additional questions or concerns, please feel free to reach out to us here. In addition, if you found this annuity review to be helpful, then please forward it on to anyone else that you think may benefit from it, as there is a lot of misconception out there about annuities and how they work. Is there any other annuity you would like to see reviewed? If so, we will get right on it! There is a myriad of annuities available in the marketplace today. So, if you don’t currently see an annuity in our online database in AnnuityGator.com that you are considering, then just let us know the name of that annuity (or the names, if there is more than just one,) and our team of annuity pros will get to work on it ASAP. Best, The Annuity Gator P.S. If you would like to read more of our Manhattan Life annuity reviews, here are some links to check out:
- Independent Review of the Manhattan Life Future Select MYGA Annuity
- Independent Review of the Manhattan Life Discovery MYGA Annuity
- Independent Review of the Manhattan Life Premium Preferred Annuity
- Independent Review of the Manhattan Life Preferred Choice Annuity
- Independent Review of the Western United Life Discovery Plus Annuity
- Independent Review of the Western United Life Navigator Elite MVA Annuity