CHICAGO, IL--(Marketwired - January 10, 2017) - The brand new MNL FoundationCore℠ annuity from Midland National® Life Insurance Company has a three-year initial interest rate guarantee with annual rate declarations thereafter. The MNL FoundationCore℠ Plus annuity features an annual fixed interest rate declaration and offers two Guaranteed Lifetime Withdrawal Benefit options.
These are the highlights of what's being called the Foundation Series, the new series of traditional fixed annuities from Midland National.
"The Foundation Series will be attractive to people close to, or in, retirement. It could appeal to consumers who are somewhat risk-averse and who are looking for safety and predictability from an annuity product," said Rob TeKolste, president of Sammons Annuity Group. "And the increasing lifetime income feature is an attractive element than can help address rising costs when it comes to their retirement."
Fixed annuities are a popular retirement saving option, offering a guaranteed minimum interest rate while also providing tax-deferred growth. While the new Foundation Series includes some unique benefits, it still offers the traditional fixed annuity benefits of safety, stability and tax deferral.
"Outliving your savings is one of the biggest retirement risks," TeKolste said. "That makes the Foundation Series a viable choice if you want a stable source of lifetime income that can last throughout retirement but would like to keep some flexibility to withdraw from the contract without penalties."
ABOUT MIDLAND NATIONAL
Founded as Dakota Mutual Life Insurance Company in 1906, Midland National® Life Insurance Company has protected families and preserved legacies for generations. Midland National is one of the leading insurance companies in America. Midland National is a member of Sammons® Financial Group, Inc. With its Annuity Division located in West Des Moines, Iowa and its Life Operations location in Sioux Falls, South Dakota, Midland National operates in 49 states and the District of Columbia through its 12,000 licensed sales professionals. For more information, please visit www.midlandnational.com.
Products issued by Midland National® Life Insurance Company, West Des Moines, Iowa. Product features, riders and index options may not be available in all states or appropriate for all clients. See brochures, product disclosures and state availability chart for further details, limitations and information on appropriate state variations.
The MNL FoundationCore℠ Plus is issued on forms AS148A/ICC16-AS148A.MVA (contract), ICC15-AR309B/AR309B, ICC15-AR307A/AR307A, ICC16-AR332A.OPT/AR332A.OPT, ICC16-AR333A/AR333A and ICC15-AR317A/AR317A (riders/endorsements).
The MNL FoundationCore℠ is issued on forms AS148A/ICC16-AS148A.MVA (contract), ICC15-AR309B/AR309B, ICC15-AR307A/AR307A, and ICC15-AR317A/AR317A (riders/endorsements).
"Income" or "lifetime income" refers to guaranteed payment of Lifetime Payment Amounts ("LPAs") through the Guaranteed Lifetime Withdrawal Benefit (GLWB) rider. It does not refer to interest credited to the contract. Clients should consult with their own tax advisor regarding tax treatment of LPAs, which will vary according to individual circumstances.
Under current law, annuities grow tax deferred. An annuity is not required for tax deferral in qualified plans. Annuities may be subject to taxation during the income or withdrawal phase. Please note that neither Midland National, nor any agents acting on its behalf, should be viewed as providing legal, tax or investment advice. Your client should be advised to rely on their own qualified adviser.