Independent Review of the Western Southern Life MultiRate 1-year Fixed Annuity
What’s Covered In This Review
In this review, we’ll cover the following information on the Western Southern Life MultiRate 1-year Fixed Annuity:
- Product type
- Current rates
- Realistic long-term investment expectations
- How it is 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 considering an annuity because you are seeking guaranteed lifetime income in retirement, along with the safety of principal, then the Western Southern Life MultiRate 1-year Fixed Annuity may be a good option for you. This is because the MultiRate annuity offers the ability for steady growth – and protection of principal – as well as an ongoing income stream in the future.
But, prior to running out and plunking down a large chunk of your retirement savings into this (or any) financial vehicle, you should first have a more in-depth understanding of how the product works – and how it may or may not ultimately work for you.
Throughout the past decade or so, annuities have become a much more popular option for those who are planning their retirement. One of the key reasons for this is the fact that annuities can offer you a lifetime income, regardless of how long you may need it. So, they can ultimately alleviate the worry about running out of income in the future.
Due to this increased demand for annuities, there are many more insurance agents and financial professionals who are offering these products. This, however, is not necessarily a positive thing.
Although most financial and insurance professionals work hard to do the right thing for their clients, they may not always be able to offer you all of the key details about annuities that you need in order to make a well-informed purchasing decision.
But, having a good grasp on both the good and the bad aspects of annuities is necessary for determining whether or not an annuity is really right for you – and if so, which type of annuity may serve you best.
Annuity and Retirement Income Planning Information You Can Trust
If this is the first time you have visited our AnnuityGator.com website, then we would like to welcome you here to our site. We make up a team of knowledgeable annuity pros who are focused on providing our visitors thorough – yet non-biased – annuity reviews. We have been at this for a number of years now, far longer than our competitors. So, we have become a highly trusted source of annuity information.
If you have spent any amount of time researching annuity information online, then you may have come across some very conflicting information about them. This isn’t entirely surprising, though, because there are many annuities available today in the market, and there is a wide range of different opinions about them.
There are also a fair number of “copycat” websites out there on the Internet today that is really only repeating the information that you can find here first.
You also may have recently attended a seminar about annuities, where the presenter – in return for a free dinner or lunch – went into detail about the Western Southern Life MultiRate 1 Year Fixed annuity or some other similar annuity product. Going to that seminar may even be what has ultimately led you here to our website in search of additional information.
But, even though there are some very good sources of information online about annuities, the reality is that some of these websites have a way of “luring” in visitors in order to gain access to their contact information. Some of these sites may promise some or all of the following claims:
- Low Fees
- High-income payouts
- Best annuity companies
- Guaranteed income for life
While these claims may at first sound ideal, prior to moving forward and buying an annuity, it is essential that you first determine whether or not these claims are all true. When in the process of finding this information out, you could find yourself amidst a pool of annuity “small print,” which in turn could make getting the details you need much more difficult.
If you really want to learn all there is to know about the Western Southern Life MultiRate 1-Year fixed annuity, then you are definitely in the right place. In fact, we dare say that our website is the only place online where you can find all of the pertinent details that you need about this annuity in order to determine whether or not it is the right annuity for you.
This includes the good, the bad, and yes, even the ugly. This is because we firmly believe that you need to know the whole story in order to make the very best decision. Oftentimes, when an insurance or financial rep is presenting annuities to their clients, they tend to highlight the good and positive features, while glossing over the potential drawbacks. But here at Annuity Gator, we want to make sure you know all of the intricate details.
Just to be perfectly clear, we feel that there are numerous benefits that can be gained from annuities. But this is really only the case if the annuity you purchase is in line with your ultimate financial goals – both short and long-term.
So, if you’re ready to proceed, let’s dive in!
Western Southern Life MultiRate 1-Year Fixed Annuity at a Glance
|Product Name||MultiRate 1-Year|
|Issuer||Western & Southern Life|
|Type of Product||Single Premium Deferred Fixed Annuity|
|S&P Rating||AA (Very Strong)|
|Phone Number||(866) 832-7719|
Opening Thoughts on the Western & Southern Life MultiRate 1-Year Fixed Annuity
Western & Southern Life Insurance Company (also simply referred to as Western & Southern Life), has more than 125 years of experience in the insurance and financial industry. The company offers a long list of high-quality products that can help clients with growing and protecting wealth, including life insurance and annuities. For example, the Select Guarantee Single Premium Deferred Annuity allows you to lock in a guaranteed interest rate for a period of one, two, three, four, five, or seven years.
This insurer has earned numerous awards and accolades over the years, including:
- 2017 Military Friendly Employer and Military Friendly Spouse Employer Designations
- Veteran Friendly Employer
- DALBAR’s 2014 Financial Services Communications Seal
The company is considered to be strong financially, and due in part to that, it has received high ratings from the insurer rating agencies. These include the following:
- Standard & Poor’s – AA (Very Strong)
- A.M. Best Company – A+ (Superior)
- Fitch Ratings – AA (Very Strong)
Given the amount of volatility in the stock market of late, fixed annuities have become very popular, particularly with those who are inching closer to retirement and want to keep principal safe. So, if you have hard-earned savings that you don’t want to disappear into thin air in a market correction, then a fixed annuity could be an appealing option for you.
However, while you can make sure that your money is safe in a fixed annuity, as well as that you can count on a lifetime income stream, prior to moving forward with purchasing a product like the Western & Southern Life MultiRate 1 Year Fixed Annuity, there is some information that you need to know – especially because once you get into an annuity, it can be difficult and expensive to get out of it.
Before getting into the nitty-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. Western Southern 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.
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 Western & Southern Life Describes the MultiRate 1-Year Fixed Annuity
Western & Southern Life describes the MultiRate annuity as a product that offers the ability to spread your premium among interest rate guarantee periods. In addition, as with other annuities, this product also offers benefits such as tax-deferred growth and the opportunity to receive a stream of income for as long as you live (or for your life and that of another person).
This annuity offers a number of key features, including:
- Attractive interest rate guarantees for up to seven years
- Freedom to divide your premium payment among all guarantee periods
- First-year interest rate enhancement
- Safety of principal
- Guaranteed minimum interest rate
- Flexible income payment options
The product has some other bells and whistles, such as a death benefit, which can allow your beneficiaries to bypass the probate process. In this case, no surrender charges will apply either.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
As with any other product or service that you’d consider, it’s always nice to hear the word “guarantee.” This is especially true when it comes to your money. With that in mind, it is likely that an insurance or financial advisor would key in on the guarantees that this annuity can provide.
For example, the money you place in the MultiRate annuity from Western & Southern Life is 100% guaranteed by the insurance company. In addition, Western & Southern Life guarantees a minimum interest rate of 1.0% for the life of this annuity contract.
There is also the guaranteed lifetime income factor. Here, the annuity can provide you (and another person such as a spouse or partner, if applicable) a lifetime income that is guaranteed to last for as long as you need it.
But, even though this sounds all well and good, whenever there is a guarantee involved, there is also likely to be some tradeoffs you’ll have to make. In this case, because the MultiRate is a fixed annuity, the return here will most likely be quite low. So, when you consider that you will need your money to grow over time in order to keep pace with inflation, this product won’t do the trick – and in fact, it can actually put your funds behind in terms of being able to pay for the things you need down the road.
What About the Fees on the Western & Southern MultiRate 1-Year Fixed Annuity?
There are also fees to consider with this annuity. Here, even though you are allowed to withdraw either 10% of the contract value or interest earnings without a surrender charge, if you take out more than that amount, you will incur a penalty.
With the MultiRate annuity from Western & Southern, there are actually seven full years of surrender charges. These start with a fee of 7% in years 1 through 3, 6% in year 4, 5% in year 6 and 7, and finally 0% thereafter. So, this should definitely be considered a long-term contract.
In addition, if you are under the age of 59 1/2 when you take withdrawals from the annuity, you could also be hit with an additional 10% “early withdrawal penalty” from the IRS.
Knowing everything that you need to know about the MultiRate 1-year fixed annuity from Western & Southern – or any other annuity, for that matter – could end up saving you a great deal of money and frustration, as being in tune with more of the details can help you to avoid products that do not truly fit your needs. Otherwise, getting into the wrong annuity could cost a great deal in surrender charges if you change your mind soon after purchasing one and want to get out of it.
The Annuity Gator’s End Take on the Western & Southern Life MultiRate 1 Year Fixed Annuity
Where it works best:
- Principal protection
- Guaranteed lifetime income stream
- Guaranteed interest rate protection (for a set period of time)
Where it works worst:
- For those seeking a high rate of return
- For those seeking a long-term interest rate guarantee
- For those who do not intend to use the guaranteed lifetime income feature
If you truly want to get a more in-depth idea of the best annuity options in the market, then please feel free to download our free report on annuities here.
If you’ve been thinking seriously about purchasing a fixed annuity, but you’ve been a bit leery about moving forward, then you may need to get a more in-depth understanding of how these products work, how they can work for you, and why they may or may not actually be the ideal financial option for you.
In any case, though, you should always consider an annuity to be a long-term financial endeavor – especially because these products will typically have multiple years of surrender charges if you want to take out more than just 10% of your contract value.
The good news is that, if you are considering going with a fixed annuity, you can be assured that you will have principal protection and safety, as well as a set, ongoing income stream for life that you can count on.
Given all of that, when it comes to the Western & Southern MultiRate 1-Year Fixed Annuity, there are certainly some nice features included. However, this annuity could also fall short – especially if you are seeking a higher return.
In reality, the only true way to know whether or not this particular annuity may be right for you is to have it tested. We can do that for you and can provide you with the result. If you are interested in determining whether the MultiRate annuity – or any other annuity – may be right for you, just contact us here via our secure online form.
Do You Need Any Additional Information? Did You Happen to Notice Any Mistakes in this Review?
While we realize that this review of the Western & Southern Life MultiRate 1-Year fixed annuity was a bit on the lengthy side, our feeling is that we would rather give you too much information about annuity options as versus not enough. So, if you do feel that you gained some good insight about this product here, then please feel free to forward this review to anyone else who you think may benefit from it.
Also, we know that because information about annuities can, and often does, change, that there may be some details here that require updating. With that in mind, if you did happen to notice anything at all in this review that needs revision, please let us know here via our secure online contact form.
Likewise, if you would like to see any other annuities reviewed, please let us know that, too as we are always looking for suggestions on products to review.
In addition, if you are interested in seeing personalized figures plugged into the MultiRate annuity from Western & Southern, we would be happy to run a spreadsheet and share the information with you, at no charge.
We look forward to helping you with any questions that you may have.
The Annuity Gator