What is an Escalating Rate Fixed Annuity? | It's a type of MYGA from a Top Rated Insurance Company

What is an Escalating Rate Fixed Annuity? | It's a type of MYGA!Show more

Rates effective 07/11/2023 and are subject to change after.

Year 1 = 5.05% (4.80% + 0.25% enhancement)
Year 2 = 4.90%
Year 3 = 5.00%
Year 4 = 5.10%
Year 5 = 5.20%
Yield to term = 5.05% (27.93% Gain after 5 years)

An escalating rate Multi-Year Guaranteed Annuity (MYGA) is a type of annuity contract that provides a fixed interest rate for a specified period, typically ranging from three to ten years. However, unlike a traditional fixed-rate MYGA, an escalating rate MYGA offers a gradually increasing interest rate over the contract's term.

With an escalating rate MYGA, the interest rate on the annuity increases by a predetermined percentage each year or at specific intervals.

However, it's important to note that the initial interest rate of an escalating rate MYGA may be lower compared to a traditional fixed-rate MYGA.

Like other annuities, escalating rate MYGAs offer tax-deferred growth, meaning the earnings on the annuity are not taxed until they are withdrawn.

It's essential to thoroughly review the terms and conditions of an escalating rate MYGA before purchasing one, as the specific details can vary among insurance companies and annuity contracts. It's recommended to consult with a financial advisor who can assess your individual circumstances and provide personalized guidance regarding annuities and other retirement planning options.

IMPORTANT INFORMATION

This material is for informational, educational & entertainment purposes. It is not a recommendation to buy, sell, hold or rollover any asset.

It does not take into account the specific financial situation, investment objectives, or need of an individual person.

Withdrawals may be subject to ordinary income taxes and, if made prior to age 59½, may be subject to a 10% IRS penalty.

Surrender charges may also apply for early or excess withdrawals.

All guarantees are backed by the claims-paying ability of the issuer.

Products are available only in all states where approved.

Rates are subject to change.

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