Integrity Life MultiVantage® is a MYGA with a 1% first-year-only interest rate enhancement in addition to the guaranteed rate.
The Market1
In Q2 2022, total fixed-rate deferred annuity sales (including MYGAs) were $28.2 billion, a 76% YOY increase and the best sales quarter for fixed-rate deferred annuities ever recorded. In the first half of 2022, fixed-rate deferred annuities totaled $44.1 billion, a 44% increase compared with the same period last year. Significant interest rate increases coupled with investors' desire for principal protection with growth potential have helped make these products more attractive.
Why DPL Likes MultiVantage®
Providing initial guaranteed rate option (GRO) periods of four, five, seven and 10 years, clients can select what works best to achieve their financial goals. During the first year of the term, clients will receive a 1% interest rate enhancement above the guaranteed rate, enabling greater growth potential. Once the initial rate guarantee period has ended, clients can choose to renew for a new guaranteed period, or remain at their current interest rate for an additional year with the following:
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The option to move to a longer-term rate and guarantee period
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No market value adjustment or withdrawal charge
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Partial annuitization
How to Think About Commission-Free Fixed Annuities
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 reliable returns without market risk.
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
Product information sourced directly from: https://westernsouthern.com
1LIMRA: Second Quarter Annuity Sales Shatter Record Set During the Great Recession. July 2022.
2Surrender charges, market value adjustments and other contract charges may apply that can reduce the principal.
Guarantees are backed by the financial strength and claims paying ability of the issuing insurance company.
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.