Guaranty Rate Lock™ MYGA offers guaranteed interest rates for 3–10 years, providing advisors and clients flexibility in duration selection.
The Market1
In 2020, fixed-rate deferred annuity sales, including MYGAs, totaled $51.7B, a 9% increase from 2019, and the highest fixed-rate deferred annuity sales since the Great Recession. Sustained market uncertainty in 2020 made MYGAs appealing to investors seeking saftey from market volatility with greater returns than CDs.
Why DPL Likes Guaranty Rate LockTM
Guaranty Rate Lock offers the most durations of any MYGA on DPL's platform, each with its own interest rate. Premium is protected from market downturns and accumulates tax-deferred, allowing for greater growth potential when compared to traditional fixed income instruments like bonds.
With 3 rate bands based on premium per duration, Guaranty Rate Lock allows advisors and clients to select the solution that's right for the portfolio. Additionally, the multiple durations can provide advisors with the opportunity to use multiple Guaranty Rate Lock MYGAs in a laddered approach.
How to Think About Commission-Free MYGAs
When your client needs:
PRINCIPAL PROTECTION: Fixed annuities are typically used for clients nearing or in retirement, as they protect principal from market downturns, yet provide a minimum guaranteed rate of return.
FIXED INCOME: Fixed annuities provide a consistent stream of income for clients that are looking to de-risk their portfolios from equities.
CASH REPLACEMENT: Fixed annuities can be used instead of cash investments, such as CDs or money market funds, to help generate better returns subject to the terms of the contract.2
FOR FINANCIAL PROFESSIONAL USE ONLY.
Product information sourced directly from GILICO.com
1LIMRA. "Secure Retirement Institute: Fourth Quarter Registered Index-Linked Annuities Propel Overall VA Sales to Pre-pandemic Levels.". January 2021.
2Surrender charges, market value adjustments and other contract charges may apply that can reduce the premium. A surrender during the surrender charge period could result in a loss of premium. The surrender charge and market value adjustment may reset with renewal. Surrender charge structures and guarantee periods may vary by state.
All guarantees are based on the continued claims paying ability of the issuing company.
Premium taxes: the accumulation may be reduced for premium taxes if required by the state of residence.
There are risks, fees and charges associated with fixed annuities.
The purchase of an annuity within a retirement plan that already provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefits. An annuity should be used to fund a qualified plan based upon the annuity’s features other than tax deferral. All annuity features, risks, limitations, and costs should be considered prior to recommending the purchase of an annuity within a tax-qualified retirement plan. In addition to surrender charges, withdrawals are subject to income tax.
Withdrawals prior to age 59 1/2 may also be subject to a 10% federal tax penalty.