What We Will Cover in this Annuity Review
In this annuity review, we will be covering the following details regarding the Midland National Dynamic Choice 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 are thinking about buying an annuity that can provide you with income security in retirement, along with tax-deferred – and guaranteed – growth during your accumulation years, then the Midland National Dynamic Choice 5 Year Annuity could be a good fit.
Yet, before you dive in head first and commit to this product, it can be extremely helpful for you to know all of the pertinent information – and in particular, the details on how the return is determined, and how (as well as how long) the income from the product will pay out. This, in turn, can help you in deciding whether or not the annuity will really be right for you.
Over the past decade or so, annuities have become much more popular. One reason for this is due to the guaranteed stream of lifetime income they can provide. And, because of the appeal of annuities, there are many more financial advisors who are offering these vehicles to their clients.
But even though it might look like it, this is not necessarily a good thing. For example, while most insurance and financial professionals will work hard to do what is right for their clients, they might not always be giving you the “whole story” when it comes to insurance products like annuities.
One reason for this is because annuities can be somewhat confusing. Plus, throughout the years, numerous additional annuity products have been added by insurance carriers – literally flooding the marketplace with options. With so many to choose from now, consumers – as well as their advisors – can have a hard time determining how they all work, and which (if any) will be right for the client.
Because of this, it is highly recommended that you truly understand what it is that you are buying. This is particularly the case, as an annuity may comprise a substantial portion of your overall retirement savings. In addition, once you have made the commitment to purchase an annuity, it can be extremely difficult – and costly – if you want to get out.
That’s where the Annuity Gator comes in!
Annuity and Retirement Information That You Can Trust
If you’ve never visited our website before, please allow us to officially welcome you to Annuity Gator. We are a team of experienced annuity and financial pros who are focused on providing in-depth and unbiased annuity reviews.
We have been at this for quite some time now – far longer than our competitors have – and because of that, we have come to be known as a highly trusted source of annuity information online.
If you have been on a quest to find more information on annuities on the Internet, then it may be that you have come across a wide range of details about these products – some of which can be pretty conflicting.
This really isn’t all that surprising, though, because there are many annuities available, and a wide array of different options to choose from. This is where you need to be careful, though, as these products come with a whole lot of “small print,” too – which quite frankly, is important to read, but can be about as exciting as getting a root canal.
There are also many websites online that discuss annuity products. But, rather than making things easier for you, many of these sites are really only vying to get your contact information so that they can bombard you with emails. In doing so, they will try to “lure” you in by making some fairly bold claims about the annuities that they offer, such as:
- Highest Returns
- Lowest Fees
- Top-Rated Companies
- Fast Annuity Quotes
Does this look at all familiar?
If you are really hoping to learn more about the Midland National Dynamic Choice 5 Year Annuity, though, then you are definitely in the right place now. In fact, we dare say that this is the only place where you will truly be able to get all of the key details you need to make a decision about this annuity.
This doesn’t only include the nice, rosy positive details about this annuity, though. Rather, we also throw in the information that could be considered as drawbacks. Why? Because knowing the whole story – rather than just merely part of it – is really the only way for you to make a well-informed decision as to whether or not this is the right annuity for you.
Just to be perfectly clear here, we do want to say for the record that we believe annuities can be beneficial for many people – provided that the annuity fits in with the individual’s overall financial goals and needs.
So, if you’re ready to dive into the review, let’s move forward!
Midland National Dynamic Choice 5-Year Annuity
|Product Name||Dynamic Choice 5-Year Annuity|
|Issuer||Midland National Life Insurance Company|
|Type of Product||Fixed / MYGA (Multi-Year Guarantee)|
|Standard & Poor's Rating||A+ (Strong)|
|Phone Number||(877) 586-0244|
Opening Thoughts on the Midland National Dynamic Choice 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.
If you’ve been diligently setting money aside over the years “for the future,” then the last thing you want to contend with as you approach retirement is a potential loss of savings due to a market correction. In fact, during this time in your life, you want to make sure that your money is kept safe from loss, while at the same time growing.
An annuity could provide you with what you’re looking for. However, not all annuities are exactly the same. In fact, far from it! So, by reading over this review, you will be in a much better position to decide whether or not the Dynamic Choice 5 Year Annuity from Midland National is right for you.
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 National Life Insurance Describes the Dynamic Choice 5 Year Annuity
The Midland National Dynamic Choice 5 Year Annuity is an MYGA (Multi-Year Guaranteed) annuity that offers a 5 year fixed rate, as well as a 5-year surrender period. This means that the initial rate on the annuity will be locked in for the first five years of contract ownership – regardless of what happens in the market, or with interest rates during that time period.
There are some other “bells and whistles” that can come with this annuity, including a death benefit whereby a named beneficiary will receive the remainder of the funds that are in the contract should the annuitant die.
Just like with other annuities, the funds that are on the contract are allowed to grow on a tax-deferred basis. This means that there are no taxes due on the gain until the time of withdrawal. This can allow the funds to compound exponentially over time.
How a Financial Advisor Might Pitch this Annuity
Given the guarantees that are features of the Midland National Dynamic Choice 5 year annuity, it is likely that a financial or insurance advisor might “pitch” this annuity by focusing on the safety of principal that it can provide, as well as the guaranteed interest rate that you can receive for five full years, even if rates in the overall marketplace go down.
Yet, even with the long list of assurances that come with this annuity, you need to consider the whole picture. One key parameter, for instance, is the fact that your interest rate is locked in – even if rates go UP in the marketplace, too, which can leave you with a lost opportunity to earn a better rate of return on your money.
Along these same lines, because we have been stuck in a historically low-interest rate period for some time now, the likelihood of your guaranteed rate being able to meet – much less beat – inflation is pretty slim. This means that you could have some trouble maintaining your purchasing power in the future – and in turn, could have to cut back on buying the items and services that you need in retirement.
Is that really the way you want to spend your time down the road?
Fees Related to the Midland National Dynamic Choice Five Year Annuity
On top of the painfully low-interest rate that you’re likely to lock in, you also need to be mindful of the fees when you purchase an annuity. In the case of an MYGA (Multi-Year Guarantee) product, there will be surrender charges if you opt to withdraw most or all of your money within the first few years.
Typically, the length of this surrender period will line up with the number of years in the annuity’s interest rate guarantee time frame. So, in the case of this annuity, both would last for five years.
In addition, if you do opt to withdraw a significant amount of money from this annuity (that being more than 10% of the contract’s value) before you have turned age 59 1/2, you will be hit with an additional fee from the IRS. This “early withdrawal” fee is 10%.
The Annuity Gator’s End Take on the Midland National Dynamic Choice 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 years
- Safety of principal
- Guaranteed lifetime income in the future
Where it works worst:
The Midland National Dynamic Choice 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 truly 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 a myriad of factors that you should consider when you’re determining whether or not you should purchase an annuity. These can include (but not limited to) how the annuity will credit your return, how long the surrender charge period is, how safe your money will be inside the annuity, and how – and how long – the income stream from the annuity will pay out.
When leaning towards the purchase of the Midland National Dynamic Choice 5 Year annuity, there can be some very nice features. But the reality is that, even so, this annuity could also fall somewhat short – and because of that, there may be a better alternative out there for you.
The only way to really know how this annuity could perform, based on your specific financial factors, is to have it tested. We can perform this testing for you, using our annuity calculator. So, if this is something that you are interested in, then please let us know by contacting us through our secure online contact form here.
Have More Questions About the Dynamic Choice 5 Year Annuity? Did You See Any Mistakes?
While we realize that this annuity review went a bit long, we thank you for staying with us thus far. In creating our annuity reviews, though, we feel that providing you with “too much” information is always better than not providing enough.
So, if you found that this annuity review was helpful for you, then please feel free to pass it on and share it with anyone else who you think might also benefit from it. Alternatively, if this review has led you to have even more questions, please let us know that, as well.
As with many other products and services that are available in the marketplace, we also understand just how quickly things can change in the financial world with regard to information about annuities. With that in mind, if you happened to notice anything that was missing or needs revision, please let us know and we will be happy to make the necessary updates.
Would you like to see any other annuities reviewed?
There are many, many annuities available today, from a plethora of offering insurance companies. So, if there are any other annuities that you would like to have us review for you, please provide us with the name(s) of those annuities so that our team of annuity “geeks” can get on the case. And then be sure to check back often for the updated information.
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