Advantage 5SM Advisory offers a guaranteed interest rate for 5 years, helping advisors provide predictable, tax-deferred growth and principal protection.
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 safety from market volatility with greater returns than CDs.
Why DPL Likes Advantage 5SM
Advantage 5 offers a competitive 5-year guaranteed 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. Two rate levels are available based on premium amounts (<$250 / $250K+).
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
Product information sourced directly from https://www.gaconnect.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.
Product issued by Great American Life Insurance Company® (Cincinnati, Ohio), a wholly owned subsidiary of MassMutual, under contract form ICC21-P1151621NW, rider forms ICC20-R6032320NW and ICC20-R6032420NW (not available in Massachusetts). Form numbers, features and availability may vary by state.