Independent Review of the Midland LiveWell Guarantee 3-Year Annuity
What’s Covered In This Review
In this review, we’ll cover the following information on the Midland National MNL Guarantee Ultimate 5-Year 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 considering a financial vehicle that can offer you security, along with a stable stream of income in the future, the Midland LiveWell Guarantee 3 Year Annuity may be a viable option for you – starting with the fact that it offers protection of principal, along with other guarantees that are built directly into the annuity contract.
However, before you move forward with the purchase of this – or any other annuity – it can be beneficial to have a more in-depth understanding of how these products work, and how it may or may not fit into your specific financial situation.
During the past several years, annuities have become much more popular as a way to offer a guaranteed stream of income in retirement. And because of that, the number of financial advisors who are offering these vehicles has expanded exponentially.
But, this isn’t necessarily a good thing. This is because, while most financial advisors vie to do the right thing for their clients, they may not always be providing you with the answers to the questions that should ideally be answered about purchasing a fixed annuity.
In addition, due in large part to their growing popularity, the array of annuity products that are now available has grown – and some of these annuity offerings can be confusing to understand, even for well-educated individuals (as well as some insurance and financial advisors).
With that in mind, additional steps should be taken in order to really understand what it is you are buying – especially as this could comprise a substantial percentage of your overall retirement income in the future. This is particularly the case as annuities are considered long-term endeavors, and once you get in, there can be penalties and fees involved if you want to get back out.
Annuity and Retirement Income Planning Information That You Can Trust
If this is your first visit to our website, then please allow us to personally like to 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 in the process of seeking any information about annuities online, it is likely that you may have come across some conflicting details regarding these products. This isn’t surprising, as there are many details out there. You may also have attended an annuity seminar recently – which might even have led you here in order to obtain more in-depth details on an annuity that you’re considering.
While there are a number of very good websites that are devoted to marketing their annuities online, some of these tend to lure visitors in by offering claims such as the following:
- Highest annuity payouts
- Low Fees
- Guaranteed income for life
- Top-Rated Annuity Companies
- Get an Annuity Quote Now!
Even though these claims may sound very enticing, just like when you purchase any other product or service, you need to determine whether or not they are really true. Sometimes, this can entail delving into a vast array of “small print” that in some cases, can make it even more confusing.
If you really want to learn more about the Midland LiveWell Guarantee 3 Year Annuity, then you are definitely in the right place. In fact, dare we say that this site is the only place where you can actually find out all of the details – including the advantages and the drawbacks – that can help you in determining whether or not this particular annuity is right for you.
In many cases, insurance agents who are offering fixed annuities will provide a nice 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 perfectly clear, here, we want to state that we feel fixed annuities can be extremely advantageous – if they fit into your overall financial picture. With that in mind, it is key that you know just exactly what it is that you are getting, as well as why you are choosing it over a myriad of other financial options.
This Midland LiveWell Guarantee 3 Year annuity review is here to help you in better understanding the product so that you can more easily determine whether or not it is the right annuity for you.
So, if you are ready to proceed, let’s dive in!
Midland LiveWell Guarantee 3 Year Annuity at a Glance
|Product Name||LiveWell Guarantee 3 Year Annuity|
|Issuer||Midland National Life Insurance Company|
|Type of Product||MYGA (Multi-Year Guarantee) / Fixed Annuity|
|Standard & Poor's Rating||A+ (Strong)|
|Phone Number||(877) 586-0244|
Opening Thoughts on the Midland LiveWell Guarantee 3 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.
Due in large part to market volatility over the past decade or two, the demand for fixed annuities has grown substantially as a way for retirees and/or those who are preparing for retirement to keep principal safe.
However, because of the historically low-interest rate environment of late, the return that has been offered by fixed annuities has been quite low. In fact, oftentimes, fixed annuity returns are not even enough to outpace the rate of inflation – and because of that, it could affect purchasing power in the future. This is especially the case if you plan to use this vehicle for a bulk of your future retirement income stream.
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 Describes the LiveWell Guarantee 3 Year Annuity
Midland National Life Insurance Company describes the LiveWell Guarantee Annuity as a product that provides a guaranteed, predictable return, as well as competitive interest rates.
There are several different guarantee periods available, so for the 3 Year option, your guaranteed interest rate would last for three full years after your initial purchase. At the end of the initial guarantee period, you have a choice of what to do next – you can either elect a lump-sum payment or choose to begin receiving regular periodic payments from the annuity (either on a monthly, quarterly, or annual basis). Alternatively, you could renew the annuity for another available guarantee period. (If you don’t make a selection, the insurance company will automatically renew your annuity for a certain period of time that is outlined in the contract).
Just as with other annuities, your earnings within the account will grow tax-deferred, meaning that there is no tax due on the gain until the time of withdrawal. There is also a death benefit included whereby if the annuitant dies, a beneficiary will receive the remainder of the contract value without any surrender fees applied.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
If you have been approached by an insurance or financial professional who is offering you this annuity, then they may have keyed in on certain features that it offers, such as a guaranteed rate, as well as an ongoing stream of income in the future that can last throughout your entire lifetime – regardless of how long that may be.
However, as an educated consumer, it is likely that you have probably also noticed that insurance and financial companies do a great job of making sure that their products sound enticing. For example, if you read over the points above regarding a guaranteed interest rate period, and income for life, then you may have surmised that the Midland LiveWell Guarantee 3 Year Annuity was an ideal option for you.
But it is important to note here that, if you are being offered this or any annuity – by a commissioned advisor, then they are probably going to explain it to you highlighting all of its positive features.
For example, when taking a closer look at the above-referenced points, even though they may initially sound really great, once you have gotten a bit deeper into the annuity’s fine print, you could realize that the picture isn’t as bright as it seemed at first.
First, the interest rate offered on this annuity is painfully low – in line with a CD or bond, perhaps – and unfortunately, what you give up in return for the guarantees and safety, you essentially pay for in lost purchasing power in the future.
On top of that, the interest rate that you receive is actually dependent on the single premium payment that you place into the annuity. Here, the premiums are “banded” where:
- Band 1 is a deposit of $25,000 to $99,999.99
- Band 2 is a deposit of $100,000 to $249,999.99
- Band 3 is a deposit of $250,000 or more
So, if you “only” deposit up to $100,000, you can expect to have a rate that will not likely meet – much less beat – inflation.
In addition, whereas many annuities will allow you to withdraw up to 10% of the contract value throughout the surrender period, the Midland LiveWell Guarantee 3 Year annuity only allows you to withdraw 5%. So, any withdrawal amount that is in excess of that during the surrender period will be hit with a surrender penalty.
What About the Fees on the LiveWell 3 Year Annuity from Midland National?
When it comes to MYGA annuities, the duration of the surrender period is typically lined up with the guarantee period you have with your interest rate. Therefore, in the case of this annuity, you will have to pay a surrender charge if you withdraw more than 5% of the contract’s value during the first three years. These charge amounts are as follows:
If you do make any such withdrawals, and you are also younger than age 59 1/2, then you will also incur an additional 10% early withdrawal penalty from the IRS. This could make the amount of money that you actually net from the withdrawal quite low.
You need to watch out with MYGA (Multi-Year Guarantee) annuities, too, in that you aren’t just subject to surrender charges during the initial guarantee period, but rather each time you renew the annuity, a new surrender charge period will also begin.
The Annuity Gator’s End Take on the Midland LiveWell Guarantee 3 Year Annuity
Where it works best:
This particular annuity will typically work the best for those who are looking for the following benefits:
- A short-term interest rate guarantee – in this case, three years
- Safety of principal
- Guaranteed lifetime income
Where it works worst:
The Midland LiveWell Guarantee 3 Year annuity may not work well if you:
- Want access to most or all of your funds during the surrender period
- Do not intend to use the lifetime income feature
In order to really know how to best compare the annuity options that could be right for you, Just Click Here so that you are able to download our free annuity report.
There are many important criteria that should be considered when determining which annuity may be right for you – or even if an annuity is the best option for your money. In any case, annuities are always considered to be long-term financial endeavors. Because of that, it is essential that you feel comfortable in knowing how an annuity may get you closer to your ultimate retirement goals.
If you are still leaning towards the purchase of a fixed / MYGA annuity, then you can be assured that you’ll have principal protection, as well as a guaranteed, ongoing income throughout your retirement – no matter how long you need that incoming cash flow. This can provide you with the security of knowing that you won’t run out of income down the road.
In the case of the Midland National LiveWell Guarantee 3 Year Annuity, there are definitely some good features about it. However, it may also still fall a bit short, and quite frankly, there could be some better options that are available to you – particularly if you are seeking lifetime income, along with the opportunity for growth.
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? Want to See Other Annuities Reviewed?
We understand that this annuity review went a bit lengthy – but we would much rather provide a bit “too much” information as versus not enough. So, if you found this review to be beneficial, then please feel free to share it with others.
In addition, 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 see additional information about?
No problem! Our team of annuity experts will get on it and provide more in-depth details on it, too. Just Click Here in order to provide us with the annuity (or annuities) that you would like to know more about, and we will do our best to get the details online as quickly as possible.
The Annuity Gator