MYGA customers know what their account value will be (not including the MVA) at any point in time.
This is because the FIA typically has some relatively low minimum guaranteed ending value, plus the potential of excess interest related to an index that may or may not be comparable to the known ending value associated with the typical guaranteed credited rate MYGA.
Now, MVAs in that state, as elsewhere, were first associated with multi-year guarantee annuities (MYGAs).
However, companies selling FIAs rarely offer clear incentives for the customer to accept the MVA, comparable to those found in MYGAs.
Delaware Life recently introduced Pinnacle MYGA, a multiyear guaranteed fixed annuity.
Pinnacle MYGA will be distributed by a select group of independent financial marketing organizations in 47 states, according to a company statement.
Because this strategy has proven historically sound, many investment advisors urge clients to avoid investment products such as Certificates of Deposit (CDs) and multi-year guarantee annuities (MYGA).
The Bankers Life Interest Plus MYGA product preserves the advantages of the traditional annuity, namely low investment minimums, guaranteed rates, and deferred taxation.
* Highest guaranteed rate as compared to other equivalent number of years MYGA
Conversely, continuing to cling to the belief that all MYGAs are created equal, and to the antiquated adage that these investment vehicles are a poor choice in a low rate environment, amounts to a disservice to clients.
Oxford Life Insurance Company, Phoenix, Ariz., introduced the Oxford Life Income Protector that combines the guaranteed interest of a multi-year guarantee annuity (MYGA) with the guaranteed lifetime payout of a guaranteed lifetime withdrawal benefit rider (GLWB), which is included at no additional charge.
The MYGA interest rate is guaranteed for five years and varies based on the deposit amount.