Independent Review of the MetLife Insurance Fixed Annuity FA 5-Year MYGA Annuity
What Will We Cover in this Annuity Review?
In this annuity review, we will be covering the following details regarding the MetLife Insurance Fixed Annuity FA 5-Year MYGA 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 have been thinking about obtaining an annuity for the purpose of increasing your retirement savings in a safe way, while also providing a guaranteed lifetime income in retirement, then the MetLife Insurance Fixed Annuity FA 5-Year MYGA (Multi-Year Guarantee) could be a viable option for you.
But, prior to charging out full steam ahead with obtaining this – or any – annuity, it can be extremely beneficial for you to first get more detailed information about how the product works, and how it may or may not work for your specific financial needs.
Over the past several years – and especially as the stock market has become more and more volatile – annuities have become more popular. That is because not only can fixed and fixed indexed annuities offer you the protection of your principal, along with a steady stream of growth, but they can also guarantee you a lifetime income that will last as long as you need it. (This alone can help to alleviate the worry about running out of retirement income – even if you live a nice long lifespan).
Because of this increased popularity of annuities, the number of financial and insurance agents who offer these financial products has also expanded a great deal. This, however, may not necessarily be considered a positive thing.
While financial professionals will typically work hard to do what’s in the best interest of their clients, they may not always be able to provide you with the more specific answers to the questions that you have about annuities – and because of that, you could be making a key decision without all of the intricate details that you should have.
In addition, due in large part to their growth in popularity, the list of annuity offerings that are now available in the marketplace has grown – with some of these alternatives being a tad bit confusing to understand. So, it is important for consumers to take the additional steps that are needed to truly understand what it is you are buying – especially because an annuity purchase could require a fairly large percentage of your overall retirement savings.
That’s where the Annuity Gator comes in.
Annuity and Retirement Income Planning Information That You Can Trust
If this is the first time you have stopped by our website, we would like to personally welcome you to AnnuityGator.com. We are a team of experienced financial professionals who are dedicated to providing you with non-biased and comprehensive annuity reviews. We’ve been offering in-depth annuity reviews for many years on our site, and because of that, we have become a trusted source.
If you have been seeking information regarding annuities online, it may be that you have run across some conflicting details about these products. This, however, is not entirely surprising, as there are a lot of details, as well as many opinions.
It could also be that you have recently attended an annuity seminar where the presenter went over the details regarding the MetLife FA 5-Year MYGA, or some other similar product. If this is the case, then you may have ultimately wound up here on our website in search of additional information.
While there are certainly a number of very good websites out there on the Internet that discusses annuities, the reality is that some of these sites may try to “lure” visitors – for the sole purpose of getting your contact information – in by making claims such as:
- Highest income payouts
- Lowest Fees
- Top-rated annuity carriers
- Guaranteed income for life
- Get your quote now!
Yet, even though these claims can sound pretty enticing before you move forward with a purchase, you should also first ensure that they are true – just like you would if you were in the process of purchasing any other high dollar item or service.
This will usually require that you delve into the annuity’s “fine print” so that you can truly know how the product works. Unfortunately, this can be time-consuming – and albeit even a tad bit frustrating.
If you truly want to find out more about the MetLife FA 5-Year MYGA annuity, then you are definitely in the right place. In fact, we dare say that our site is the only place on the Internet where you will be able to find out all of the key details – good, bad, and otherwise – which in turn, can help you with deciding whether or not this is the right annuity for you.
In many cases, insurance and financial professionals who offer fixed annuities will paint a nice, rosy picture of how their products provide safety – but will often leave out the details on the potential drawbacks that products have. So, before you move a chunk of your hard earned savings into one of these annuities, it is essential that you know the whole story.
In order to be clear, here, we do want to state that fixed annuities have many advantages – and, provided that they fit in with what it is that you are looking for in a financial product – they can also be beneficial for you. Given that, it is essential that you know exactly what it is that you are purchasing, as well as why you may be choosing one specific annuity over a list of other potential annuity alternatives.
This annuity review is here to help you with better understanding all of the “fine print” so that you have a much more clear knowledge of whether or not the FA 5-Year MYGA annuity from MetLife is going to work well for your ultimate short- and long-term financial goals.
So, if you’re ready to begin, then let’s dive in!
MetLife FA 5-Year MYGA Annuity at a Glance
|Product Name||FA 5-Year MYGA Annuity|
|Type of Product||MYGA (Multi-Year Guarantee)/Fixed Annuity|
|Phone Number||(800) METLIFE|
Opening Thoughts on the MetLife FA 5-Year MYGA Annuity
Having more than 145 years of experience in the insurance and financial services arena, MetLife possesses a strong and stable presence in terms of financial stability and reputation for serving its clients. The company is a leading innovator and a recognized leader in protection planning, as well as retirement and savings solutions around the globe.
Today, MetLife has a strong presence in nearly 50 countries – and the company continues to grow via expansion of its product lines, as well as through mergers and acquisitions. MetLife currently serves approximately 100 million customers worldwide, and its products are trusted by more than 90 of the top 100 Fortune 500 companies in the United States.
Recently, MetLife made some changes to the way the company does business – one of which was separating a portion of its individual life insurance and annuity business to a newly-established company called Brighthouse Financial, Inc. Although MetLife no longer sells individual annuities, the company is still committed to providing current customers with world-class service and support.
If you have an annuity contract that was issued by one of the following companies, your annuity has been transitioned to Brighthouse Financial:
- First MetLife Investors Company (now named Brighthouse Life Insurance Company of NY)
- MetLife Insurance Company USA (now named Brighthouse Life Insurance Company)
- New England Life Insurance Company
If you have an annuity contract that was issued by one of the companies listed below, your annuity will remain with MetLife:
- General American Life Insurance Company
- Metropolitan Life Insurance Company
- Metropolitan Tower Life Insurance Company
If you currently own a MetLife annuity, and you have any additional questions regarding how it will be serviced, you want to make changes, and/or any other concern, you can go HERE.
An MYGA annuity – known as a Multi-Year Guarantee Annuity – is an annuity that is issued with a guaranteed interest rate period. This time frame is also the same amount of time that the surrender period on the annuity will last. So, in the case of the MetLife Insurance FA 5-Year MYGA, both the rate guarantee and the surrender period, will last for five years.
Due to the vast amount of volatility that has taken place in the market over the past decade or so, the demand for fixed annuities have grown significantly – primarily as a method for retirees, and those who are saving for retirement, to keep their money safe.
But, because of the historically low-interest rate environment that we have been living in for nearly the past decade, unfortunately, the “price” of keeping your principal safe has come in the form of very low returns – returns that usually can’t even keep pace with the rate of inflation. This, then, could have an impact on your future purchasing power and, in turn, your overall retirement lifestyle.
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. Neither MetLife nor Brighthouse Financial has 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 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 MetLife Described the FA 5-Year MYGA Annuity
Fixed annuities can help with addressing some of the worries about market volatility, as your savings are not exposed to the fluctuations that can occur. These types of annuities also protect your principal, while at the same time earning a guaranteed rate of growth each year. In the case of the FA 5-Year MYGA, the initial rate was set for five years. Once that period ends, the funds in the annuity will earn a 1-year rate of return, which can fluctuate each year on the annuity contract’s anniversary.
As with other types of annuities, the growth that takes place inside of the contract is allowed to compound on a tax-deferred basis. This means that there is no tax due on the gain until the time of withdrawal. While MetLife no longer offers annuities, there is additional information regarding fixed annuities in general that are offered by Brighthouse that can be referenced HERE.
How an Insurance or Financial Advisor Might Have “Pitched” this Annuity
If you purchased the MetLife FA 5-Year MYGA annuity – or you are currently considering another similar product – then if you’ve discussed this option with an insurance or financial advisor, it is likely that they keyed in on a couple of areas.
For instance, everyone likes a guarantee – especially when it comes to their money. So, given that the FA 5-Year MYGA offers five full years of interest rate guarantee, many people consider this to be a plus. It is also beneficial that, regardless of what happens in the stock market during that time – as well as throughout the remainder of the annuity’s life – your principal will be safe. So, you don’t have to endure sleepless nights worrying about the loss of your hard-earned savings.
In addition, the fact that you can get a guaranteed income stream for life (provided that you choose the lifetime income option) is definitely another key point. And, you may also choose to add a second income recipient, such as a spouse or partner, who can receive income for the rest of his or her lifetime, too.
But, just like most anything else in life, there is no such thing as a “free lunch.” So, in getting all of these guarantees, you also need to be mindful of just exactly what it is that you’re giving up. In this case, fixed annuities are known for offering painfully low rates of interest – and because of that, owning this annuity could make it difficult for you to meet, much less beat inflation. In turn, this could result in a dwindling purchasing power over time that could cause you to have to cut back on buying the items and services that you need in the future.
Do you really want to worry about that during retirement?
Fees Associated with the MetLife FA 5-Year MYGA
On top of a low return, there are also fees that you may need to contend with on this annuity – which can make your small return even smaller. One of these is the 5 years of surrender charges, meaning that if you are still within the surrender period, and you want to take out more than 10% of your annuity’s contract value, you’ll be penalized.
5-Year MYGA Surrender Charge Schedule
The first five years isn’t the only time that you need to worry about withdrawal charges, though. Yet – these charges also are in place for each renewal period. On this annuity the withdrawal charge during the renewal period(s) are as follows:
Withdrawal Charge During Renewal Period(s)
Plus, if you make such withdrawals before you turn age 59 1/2, you will also incur an additional 10% “early withdrawal” penalty from the IRS.
The Annuity Gator’s End Take on the Met Life FA 5-Year MYGA Annuity
If you own the MetLife FA 5-Year MYGA annuity and you are wondering if this particular product is still right for you, here’s our end take on it.
Where this annuity works best:
- If you are seeking protection of principal
- If you want a set rate of growth (at least for the first 5 years)
- If you want the security of knowing you’ll have a guaranteed income in retirement
Where this annuity works worst:
- If you want the opportunity for a higher return
- If you do not plan to use the lifetime income feature
There are a lot of annuities out there in the marketplace – and because these products can come with various features, as well as additional bells and whistles, it is essential that you know exactly what it is that you’re getting before you commit.
With the MetLife FA 5-Year MYGA annuity, you can be assured that it can offer principal protection, along with an ongoing and guaranteed income in retirement. This is the case, regardless of how long you may live. So, it does offer some nice benefits.
That being said, though, depending on what it is that you’re looking for in an annuity, it could also fall a bit short – and quite frankly, there could be a better alternative out there for you. This is especially true if you are seeking the opportunity for additional growth potential.
So, if you still have any additional questions regarding whether this particular annuity is the right one for you, or even if you just simply need some additional assistance in guiding you in the right direction, please feel free to reach out to us directly through our secure contact form here.
Have Any Additional Questions or Concerns? Did You See Any Mistakes in this Review?
We know that this annuity review may have gone a tad bit long. So, we thank you for sticking with us through to the end here. In offering this annuity review, we would much rather “err” on the side of providing “too much” information, rather than not enough.
Therefore, if you felt that this review was helpful, please feel free to forward it and share it with anyone else who you think may benefit from it – especially if they own the FA 5-Year MYGA annuity from MetLife and are now having second thoughts about it.
We also realize that annuity information can change on a regular basis. So, if you happened to see any information in this review that may need to be revised or updated, please let us know and we will be happy to make any of the necessary corrections.
Are there any other annuities that you would like to have us review?
If so, just let us know and our team of annuity “geeks” will get to it. That being the case, be sure to check back soon, and often, in order to see annuity product updates and new reviews.
The Annuity Gator