Independent Review of the Midland LiveWell Guarantee 5-Year Annuity
What We Will Cover in this Annuity Review
In this annuity review, we will be covering the following details regarding the Midland LiveWell Guarantee 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’ve been in the process of looking for a financial vehicle that can provide you with the security of principal, as well as an ongoing stream of income in retirement, then the Midland LiveWell Guarantee 5 Year annuity may be a viable option for you. This fixed MYGA (Multi-Year Guarantee) annuity offers safety from market ups and downs, as well as other guarantees that have been built directly into the contract.
However, before you move ahead with the purchase of this or any other annuity, it can be extremely advantageous to have a deeper understanding of how fixed annuities work, and how they may – or may not – work well with your particular financial objectives, both now and in the future.
Throughout the past decade or so, annuities have risen substantially in popularity. One reason for this is because they can offer a guaranteed income stream during retirement – and because of this and other benefits that they provide, the number of financial advisors who offer annuities has also risen a great deal.
Unfortunately, though, some of the advisors who offer annuities may not always be presenting them in the proper manner. Not that they are trying to do their clients wrong, but more so because annuities can be somewhat confusing.
In turn, without the proper training and experience, some advisors may not be presenting annuities the way that they should be presented. They may also not be able to answer all of the more in-depth questions that you may have – but that is necessary in order to make a well-informed annuity purchase decision.
Even for very well-educated consumers, there are many annuities out there in the market – and particularly those that provide more “bells and whistles” – that are difficult to comprehend. Yet, when you are considering the purchase of any annuity, steps should be taken to ensure that you have a firm grasp on what it is that you are buying – particularly because you could be plunking down a substantial amount of your overall retirement savings. Also, annuities are always considered to be a long-term financial vehicle. Once you have purchased one, it can be difficult – and quite costly – to get out if you happen to change your mind.
That’s where the Annuity Gator comes in!
Annuity and Retirement Income Planning Information that Can Be Trusted
If you have not been to our site before, we would like to personally welcome you here to AnnuityGator.com. We are a team of experienced financial professionals who have dedicated ourselves to offering in-depth and unbiased annuity reviews.
We have been doing this for many years on our website, and because of that, we have not only built up a substantial amount of knowledge about annuities, but we have also become a highly trusted source of annuity information online (unlike those other “copycat” sites that you have likely come across).
If you have been seeking any information about annuities on the Internet, then it is probable that you may have run into some details that are conflicting about these complex products. This is not uncommon, as there can be many differing details out there.
It’s also possible that you recently attended an annuity seminar, where the presenter there offered you a free lunch or dinner while he or she went over the in-depth details about the Midland LiveWell Guarantee 5 year annuity, or some other similar product.
Your attendance at that event may even be the catalyst that has ultimately led you here to our site. Now, even though there are some very good websites online that are devoted to marketing their annuities, some of these sources will often attract visitors by touting claims about their products such as:
- Highest annuity payouts
- Low Fees
- Guaranteed income for life
- Top-Rated Annuity Companies
- Get an Annuity Quote Now!
Yet, as great as these claims may sound, it is important to obtain more proof – just like you would if you were buying any other high-ticket item. In doing so, it may require you to delve into a myriad of small print about the annuity – which can, in turn, confuse the issue even further.
If you are here seeking more information about the Midland LiveWell Guarantee 5 annuity, you are definitely in the right spot. In fact, we dare say that our website is really the only place where you will be able to find all of the details – including the good, the bad, and the ugly. Knowing the whole story, however, will allow you to better determine whether or not this annuity is the right one for you.
Oftentimes, insurance agents who are in the business of offering fixed annuities will project a nice, rosy picture of how their products provide safety of principal and a set return. Yet, they can also oftentimes leave out details regarding any of the drawbacks that these vehicles may have. With that in mind, prior to diving in head first and moving a sizeable chunk of your retirement funds into such an annuity, it is best that you know the whole story first.
In order to be perfectly clear here, we do want to state our belief that annuities can – and often are – very good products to add to one’s overall portfolio. This, however, is only the case if the annuity fits in with your other financial-related needs and goals.
This annuity review is here to assist you with better understanding all of the annuity fine print so that you have a deeper understanding of whether or not the Midland LiveWell Guarantee 5 Year Annuity is right for you.
So, if you are ready to begin, let’s get started!
Midland LiveWell Guarantee 5 Year Annuity at a Glance
|Product Name||LiveWell Guarantee 5 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 5 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.
The demand for fixed annuities has picked up steam over the past several years, due in large part to many retirees and investors alike seeking refuge from market volatility. But, because of the low-interest rate environment over the past decade or so, the returns that are garnered from fixed annuities will oftentimes not be enough to keep pace with inflation.
This low rate could, in turn, negatively impact your annuity’s overall growth, as well as the amount of income that is needed to keep up with inflation and the rising cost of goods and services that you’ll need in retirement.
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 Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. The review is solely meant to be an independent evaluation – per the request of our readers – so that they can see our perspective when going more in-depth regarding the positives and the negatives of this specific annuity product. Before you commit to buying any type of investment or insurance product, it is essential that you conduct your own due diligence, and that you also speak with a properly licensed professional in order to ask any additional questions that relate to your situation. This is particularly important, as annuities do not offer a one-size-fits-all solution. In addition, all of the names, materials, and marks that were used in creating this review are the property of their respective owners.
For more details on how you can compare fixed annuities so that you have all of the key details that you need for making an informed buying decision, click here so that you can obtain a free copy of our annuity report.
How Midland National Describes the LiveWell Guarantee 5 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 5 Year option, your guaranteed interest rate would last for five full years after your initial purchase. At the end of the initial guarantee period, you will then 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 Advisory May Pitch the LiveWell Guarantee 5 Year Annuity
If you have been discussing the Midland LiveWell Guarantee 5 Year Annuity with an insurance or financial advisor, then it may be that they focused on various features that it provides, including the guaranteed rate, and the lifetime income.
Because insurance and financial companies usually do a fantastic job of making sure that their products sound enticing, you may have even been leaning towards purchasing this annuity based on the factors above. And, while these features can provide you with some nice benefits, it is also very important that you know “both sides of the story.”
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 5 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 5 Year Annuity from Midland National?
As with most MYGA annuities, the duration of the surrender period is usually in line with the length of the guarantee period for your initial interest rate. So, in the case of the Midland LiveWell Guarantee 5 Year annuity, you will incur a surrender charge during the first five years of contract ownership if you withdraw more than 5% of your overall contract value. These surrender charge percentages are as follows:
Plus, if you are under the age of 59 1/2 when you make any such withdrawals, the IRS will also charge you an additional 10% “early withdrawal” penalty.
When it comes to Multi-Year Guarantee (MYGA) annuities, you also need to be mindful of the fact that you may need to start a new surrender charge period each time you renew the annuity. This is the case with the Midland LiveWell Guarantee 5 year product. So, be sure to consider that this is a long-term financial endeavor (as is really the case with any and all annuities).
The Annuity Gator’s End Take on the Midland LiveWell Guarantee 5 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, five full years
- Safety of principal
- Guaranteed lifetime income
Where it works worst:
The Midland LiveWell Guarantee 5 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 is a long list of factors that should ideally be considered when you are determining whether or not an annuity is right for you, and if so, which annuity may be the very best fit. When you are going through the annuity’s features, it is always important to keep in mind that any annuity should be considered as a long-term financial endeavor.
Therefore, you should feel comfortable with the decision that you ultimately make – particularly if the annuity can help you to reach your retirement and/or other financial goals. Given that, keep your goals in mind when deciding on the right annuity – and/or when determining if an annuity is even the right product for you at all.
If you are considering the purchase of a fixed annuity, then know that this option can offer you a guaranteed lifetime income in the future, along with the safety of your principal throughout the life of the product.
When taking a closer look at the Midland National LiveWell Guarantee 5 Year Annuity, there are some nice features to take note of. However, even so, it may still fall a bit short – and quite frankly, there may be some better alternatives that are available to you. This is especially true if your goal is to obtain ongoing lifetime income in retirement, along with the opportunity for growth while you wait.
If you still have any questions about this annuity – or you’d like to have it tested, based on your specific financial figures, in order to determine how it could perform for you – then contact us via our secure online contact form here.
Still Have Any Questions or Concerns About the Midland LiveWell Guarantee 5 Annuity?
We understand that this annuity review was a tad bit longer. However, in our minds, we would much prefer to offer our readers a little “too much” detail, as versus not giving you enough. This can allow you to have a better understanding of the whole story, and not just a few chapters. So, if you did find that this review was helpful to you, please feel free to pass it on and share it with others.
We also know that the information regarding annuities can – and often does – change on a regular basis. Therefore, if you did happen to notice any details that may need to be updated or revised, then please let us know and we will make the necessary edits.
Are there any other annuities that you’d like to see reviewed?
If so, we’ll get right on it! There are many annuities out there in the marketplace, so knowing where you can go to find the answers that you need can be comforting. Just let us know the name(s) of the annuity(ies) that you are interested in via our Contact Form, and our team of annuity experts will get on it as quickly as we can.
The Annuity Gator