Midland National Annuity Review

The MNL IncomeVantage® Pro fixed indexed annuity from Midland National requires a $20,000 initial investment with a maximum issue age of 79 years old. As a fixed indexed contract, you are free to allocate as much of your assets as you want to either a selection of index-following strategies or a fixed interest account.

This product comes with a lifetime payment amount (LPA) feature that includes a guaranteed roll-up credit that increases by 1.5% of your total benefit base, as well as 150% of your contract's percentage change to its accumulation value. You can even choose increasing or level versions of this feature, and it still applies during year where you've taken a withdrawal.

Fees

There are no annual fees associated with the IncomeVantage Pro annuity from Midland. In fact, the only charges you’ll need to keep an eye out for are withdrawal fees. These only apply to accounts that surpass the allotted annual withdrawal limit of 5% of its accumulation value, beginning during the second year of ownership. Just remember that the IRS may charge you a 10% income tax surcharge if you begin payments from your annuity before you're 59.5 years old.

Realistic Return Expectations

When it comes to fixed rates, Midland does not release what it's currently offering for this annuity. As far as index-based returns go, these are largely unpredictable, as they rely on market performance.

You’ll need to have at least $20,000 ready to invest in the MNL RetireVantage® annuity. This annuity comes in two variations: a 10-year withdrawal fee schedule and a 14-year withdrawal fee schedule. For the former, the maximum issue age is 79, while the latter's maximum issue age is 75.

There are 10 index-based allocations you can pick from with this contract, giving you a surprising amount of choice for a fixed indexed annuity. You can also allocate money to a separate account that grows based on a fixed interest rate.

For an extra charge, you can get four other benefit riders on your contract. The first will give you a five-year window to earn premium bonuses of either 5% on the 10-year contract or 8% on the 14-year contract. In addition, if you select a payout option after your contract ends, you'll receive a 4% payout bonus. After your third year, you’ll also gain access to 20% fee-free withdrawals compared to the standard 10%. Lastly, your contract will have a return of premium feature to help you protect your money for the long term.

Fees

While Midland does not charge an annual fee for this annuity, you will need to pay a 0.90% annual rate if you choose to add the optional benefits rider onto your contract. Outside of this, there are withdrawal charges for anyone who exceeds the 10% withdrawal limit in year two or later. These rates generally shrink by at least 1% each year, culminating in a 0% fee at the end of the initial period.

If you decide to take out money from your account before you reach age 59.5, the IRS will levy a 10% income surtax on you. This is in addition to the standard income tax rate.

Realistic Return Expectations

Again, Midland does not release what kind of rates it pays for the RetireVantage annuity, but it is dependent on how much you invest and when you open it. The company also provides a sizable bonus on your premium total for your first five years, should you subscribe to the benefit rider.

Midland National’s Guarantee Ultimate® annuity is a multi-year guarantee contract that’s funded by a single premium of at least $10,000 for nonqualified accounts or $2,000 for qualified accounts. The maximum issue age for this contract is 90 years old.

This annuity comes in 3-, 5-, 7- and 10-year variations, with these time frames representing how long your initial guaranteed interest rate period will last. The rate you’ll receive is dependent upon a number of factors, including how long your rate period is and how much you’re investing.

If you are in a nursing home after your first contract anniversary, you'll receive increased free withdrawal amounts. These will raise another 10% each year you remain in a nursing home.

Fees

You will not be required to pay an annual fee to keep the Guarantee Ultimate annuity.

For penalty-free withdrawals, Midland will allow you to take out anything up to your total interest earned for the current contract year, beginning in your second year. If you go over this amount, you may need to pay withdrawal charges.

Beware that if you withdraw from your account before you turn 59.5, the IRS will charge you a 10% income tax surcharge, as well as the standard income tax rate.

Realistic Return Expectations

When you sign up for a Guarantee Ultimate annuity, Midland National will assign you a preset interest rate. This rate will apply throughout the entirety of your guaranteed interest rate period. What percentage you receive will be dependent on a number of factors, like the size of your premium, the state of the market and more.

Midland National’s single-premium immediate annuity (SPIA), the Direct Income® annuity, has a $25,000 minimum initial premium and a variable maximum issue age. The latter is dependent on which of the company’s several payout methods you select, with life options and period-certain options adhering to 85- and 93-year-old maximum ages, respectively.

When you open your account, Midland lets you pick between monthly, quarterly, semi-annual or annual payments. The death benefit associated with this contract is equal to either your remaining annuity payments or a lump sum payment as specified by the annuity payout option you selected at contract issue.

Your payout options for this contract include period certain only, single life only, single life and period certain, single life with installment refund, single life with cash refund, joint life with survivorship and joint life with survivorship and period certain.

Fees

There are no annual fees or withdrawal charges associated with the Direct Income immediate annuity.

One thing to be mindful of is that if you start taking withdrawals from your account prior to reaching age 59.5, the IRS will levy a 10% income surtax. You’ll also need to pay the standard income tax on top of this.

Realistic Return Expectations

The returns of an immediate annuity are tough to gauge, as they are heavily reliant on the size of your premium, the payout option you select and the frequency of your payments. As far as how you receive your payments, Midland offers seven different methods that you can choose from, allowing you to pick the best for your personal financial situation.