What will we be covering in this review of the Future Select Annuity from Western United Life?
In this review of the Future Select annuity, we will be going over the following important details:
- Type of annuity
- Realistic performance expectations
- Where the annuity is best used
- How the annuity 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.
Committing to any financial product can be a big decision – particularly if it will impact your future retirement income, and ultimately, your life. As an example, an annuity can provide you with a nice, steady stream of guaranteed income that you can count on for a set period of time – or even for the remainder of your lifetime, no matter how long that may be.
On the other hand, though, if you end up choosing an annuity – or for that matter, any financial related product – that really doesn’t fit your particular needs, then it could have a negative impact.
In the case of an annuity, you may need to contribute a fairly large chunk of your savings in order to generate a viable income stream. But because most annuities have surrender penalties for withdrawing your funds – some for more than ten years – it can cost you dearly if you purchase an annuity and then soon afterward determine that a different product would be better.
Annuities can be somewhat confusing to understand – even for well-educated consumers (as well as for some financial and insurance advisors). As “new and improved” annuities hit the marketplace, there can be a plethora of “small print” that comes along with these vehicles, sort of like an owner’s manual.
But have you (or anyone you know, for that matter) ever really sat down and read an owner’s manual word for word?
The answer is likely no.
The “small print” that is associated with almost any product or service can oftentimes seem a bit daunting. Therefore, most people will simply move forward with their purchase and hope that everything turns out ok.
When it comes to your future income, though, hope is definitely not the best strategy. That’s where Annuity Gator can help.
Annuity and Retirement Income Planning Information That You Can Actually Trust
If this is the first time you have visited our website, then please allow us to welcome you to Annuity Gator. We make up a team of annuity and retirement income specialists who focus on educating people on how annuities work, as well as whether or not a particular annuity is right for you and your specific needs.
We’ve been doing this for quite some time now – far longer than our competitors. Because of this, we have come to be known as a highly trusted source of annuity information. Over the past several years or so, though, many “copycat” websites have started to spring up, mimicking what we do. While that can be somewhat confusing for consumers, we take it as “imitation being the highest form of flattery.”
If you have spent any amount of time on the world wide web looking for information about annuities – including the Western United Life Future Select MYGA (multi-year guarantee) annuity – you may have run across some highly conflicting information regarding these financial vehicles.
This isn’t too surprising, though, because there are many “flavors” of annuities out there today in the marketplace – and just about everyone has some sort of opinion about them. Some people love them, some people hate them. And some just don’t really care.
But the reality is there are situations where annuities work, and situations where annuities don’t work. That’s the premise of our annuity reviews – to make sure that you have enough information to make a well-informed annuity purchasing decision.
With that in mind, if you are looking for all of the in-depth details about the Future Select annuity from Western United Life Insurance Company, then you are definitely in the right place. That’s because we don’t hold back any of the information about how this annuity works, and what you can expect if you make a purchase.
So, if you’re ready to begin, let’s go ahead and dive in!
The Western United Life Future Select Annuity at a Glance
|Product Name||Future Select MYGA|
|Issuer||Western United Life (Manhattan Life)|
|Type of Product||Multi-Year Guarantee Annuity (MYGA)|
|A.M. Best Rating||B+ (Good)|
|Phone Number||(800) 247-2045|
Opening Thoughts on the Future Select Annuity from Western United Life
Western United Life is a subsidiary of Manhattan Life Insurance Company. Originally founded in 1850, Manhattan Life is one of the oldest continuously operating companies in the world. Today, Manhattan Life consists of a group of four operating life and health insurance companies, including:
- Manhattan Assurance
- Family Life
- Western United Life
- Manhattan Life
The Manhattan Life subsidiary offers Medicare Supplement insurance, life & supplemental health insurance, and fixed rate annuities in the United States and Puerto Rico. Western United Life has been marketing and distributing a competitive line of short to mid-term fixed rate and immediate annuity products, as well as Medicare Supplement coverage.
Today, with so many companies doing away with employer-sponsored pension plans, retirees – as well as those who are approaching retirement – need to find alternate ways of securing a long-term income stream. One solution is to purchase an annuity.
But just like any other financial product, not all annuities are the same. So, it is highly recommended that you take a good, close look at this – or any other annuity that you are considering – before you commit to it.
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. Neither Manhattan Life nor Western United 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.
Want to know more about how annuities really work? Click here to receive our updated annuity report.
How Western United Life Describes the Future Select Annuity
Western United Life describes the company’s multi-year guaranteed (MYGA) annuities as offering the growth and liquidity to meet your retirement savings needs.
The Future Select annuity is issued through Western United Life, whereas the Premium Preferred MYGA annuity (an identical product) is underwritten and issued by its subsidiary, Manhattan Life.
With the Future Select annuity, you can choose between either a 5 or a 7-year interest rate guarantee period. The interest rate is guaranteed throughout the period you select – and, as with other annuities, the funds that are in the account grow tax-deferred and the gains are only taxed upon withdrawal.
If the annuitant (i.e., the income recipient) dies, a death benefit is paid out to a named beneficiary in the amount of the remaining contract value, after any withdrawals have been taken. (Unlike a life insurance policy death benefit, though, the death benefit from an annuity can be taxable to the recipient). These death benefit funds will avoid the costly and time-consuming process of probate.
To view information about the Future Select MYGA annuity from Western United Life, you can visit the company’s website here.
How an Insurance or Financial Advisor Might “Pitch” the Future Select Annuity
If 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.
For instance, rather than trying to turn $1 million into $2 million, your focus may instead be on keeping $1 million from becoming $500,000. That is exactly what a multi-year guarantee fixed annuity can do for you.
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 Future Select 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 Western United Life Future Select MYGA annuity, you could be essentially locked into a certain rate guarantee period – in this instance for 5 or 7 full years – during which time you may have to pass up other, higher interest-earning financial opportunities.
So, on the one hand, even though it might be nice to know 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!
Do You Have to Pay Fees on the Future Select Annuity from Western United Life?
In the early years of owning the Future Select annuity, you can access up to 15% of the contract’s value penalty-free. Otherwise, if you cancel the contract, or take out more than 15% of the value during the surrender charge period, you will incur a withdrawal penalty.
The length of the surrender period corresponds with the interest rate guarantee period. So, in the case of the Future Select annuity, a contract with a 5-year interest rate guarantee period would have a 5-year surrender period. The same is true for the contract with the 7-year rate guarantee – a corresponding 7-year surrender period.
In addition to a possible surrender fee – and taxes on the gain in the account – you could also incur an additional 10% “early withdrawal” penalty from the IRS if you make a withdrawal prior to turning age 59 ½. So, it is really important to consider this a long-term financial commitment.
The Annuity Gator’s End Take on the Future Select Multi-Year Guarantee Annuity
Where 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 Future Select MYGA annuity from Western United Life, then it could work well for you if you are seeking the following benefits:
- Guaranteed growth (for a period of 5 or 7 years)
- Protection of principal – no matter what occurs in the stock market
- Lifetime income in retirement
Where it works the worst:
On the other hand, this particular annuity may not be the right one for you if:
- You want the opportunity to earn a higher rate of return in order to keep 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 don’t want to lock up your money for a long period of time
- You do not plan to use the guaranteed lifetime income feature
When you’re thinking about how to best position your savings for the future, there are a number of different criteria that you should ideally consider. 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 Western United Life Future Select Multi-Year Guarantee Annuity (MYGA), 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 Western United Life Future Select 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 far better than not enough. That being said, we appreciate you sticking with us here to the end of this annuity review for the Future Select annuity.
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 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 literally 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.
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