What is a multi-year guaranteed annuity?

A fixed or multi-year guaranteed annuity is an insurance contract. It is a contract between you and the insurance company that will provide a fixed rate of return for an agreed upon number of years. They generally have terms as short as 2 years and as long as 10. Generally, the fixed rates provided by these annuities are higher than fixed rates on bank CD’s.

Multi-Year Guaranteed Annuity Rates Today

these are today's current multi-year guaranteed annuity rates

Term Company Rate Rating
3 Years North American Company 4.05 A+
3 Years Oxford Life Insurance Company 4.00% A
3 Years Guaranty Income Life 3.95% B++
3 Years Athene Max Rate 3.90% A

Term Company Rate Rating
5 Years Symetra Life Insurance Company 4.40% A
5 Years American National Insurance Company 4.35% A
5 Years Athene 4.30% A
5 Years Sagicor Life Insurance Company 4.25% A

Term Company Rate Rating
7 Years North American Company 4.55% A+
7 Years Symetra Life Insurance Company 4.45% A
7 Years Athene 4.40% A
7 Years Reliance Standard 4.30% A+

Term Company Rate Rating
10 Years Oxford Life Insurance Company 4.50% A
10 Years American General Life Insurance Company 4.25% A
10 Years Reliance Standard 4.15% A+

The Benefits of A Multi-Year Guaranteed Annuity

multi-year guaranteed annuities offer a few special benefits to their owner

Fixed Growth

The primary benefit of a fixed MYG annuity is fixed growth of an asset over a set amount of time.

Tax Deferral

With a bank CD you can expect to pay taxes every year. Fixed Annuities are tax-deferred, you will not have to pay taxes until you decide to withdraw the money this means that your interest will compound on your full account value for as long as you keep the annuity in force.

Skip Probate

Fixed annuities also skip probate. If you pass away while owning an annuity your asset will go directly to your named beneficiary.

Multi-Year Guaranteed Annuities FAQ

common questions we get asked about multi-year guaranteed or fixed annuities

Your money is backed by the financial strength of the insurance carrier. It’s important to make sure you’re partnering with a strong company. Additionally there are protections from the state guaranty association.

 

I’ve heard annuities lock your money up and that you have little access. It’s true that annuities have surrender periods. A surrender period is the length of time the insurance carrier can hold your asset. But, you get to choose the length of time. Surrender periods can be as short as 2 years and as long as 10. Additionally all annuities offer annual free withdrawals of up to 10% and provisions if the owner becomes terminally ill or is confined to a nursing facility. 

 

Some annuities have fees, and some don’t. Most annuities used for simple accumulation have no fees. If you are using an annuity for lifetime income it could carry a fee. If you have an annuity that you believe has too high of a fee or too many fees feel free to contact us for a free review. 

 

If you pass away while still in an annuity contract any early surrender charges will be waived and the total account value will be sent to your designated beneficiary(s).

 

The Pros and Cons of A Multi-Year Guaranteed Annuity

we can help you determine if a multi-year guaranteed annuity is right for you

Guaranteed rate of return

Fixed growth of an asset over a set amount of time.

Tax Deferral

Fixed Annuities are tax-deferred, you will not have to pay taxes until you decide to withdraw the money this means that your interest will compound on your full account value for as long as you keep the annuity in force.

Skips Probate

If you pass away while owning an annuity your asset will go directly to your named beneficiary.

Surrender Period
Liquidity

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