| Video Library |
| All About Annuities |
Multi Year Guarantee Annuities (MYGA) or CD Type Annuity
A MYGA is an annuity issued with a guaranteed interest rate period which is equal to the length of time that surrender charges last.
| 5 Year MYGA |
| Year | 1 | 2 | 3 | 4 | 5 | 6 |
| Interest Rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |
| Surrender Charges | 5.00% | 4.00% | 3.00% | 2.00% | 1.00% | None |
A MYGA as show above has an Interest Rate Guarantee Period of 5 Years, the guaranteed
interest rate for each year is 5.00%, and is guaranteed not to change for the length of the contract.
Withdrawal Provision is a feature of almost all MYGA's. This provision allows you to withdraw a percentage of your account value or your initial premium each policy year. For example if this MYGA had a 10% Free Withdrawal Provision at the end of each year you could withdraw up to 10% of your account value. For example: any money withdrawn in the third year over the 10% Free Withdrawal Provision would be subject to a 3.00% penalty.
Withdrawal of any funds prior to age of 59 1/2 are subject to an IRS Penalty of 10% of the funds withdrawn. This is in addition to any penalties incurred as part of the annuity contract.
List of MYGA Products that We Track
Don't see a product you'd like us to track? Let us know, we'll add it!