The American Life Fee-Based MYGA offers 3 and 5 year durations, helping advisors provide principal protection and tax-deferred growth at a competitive guaranteed rate.
The Market
Since their introduction in the Commission-Free space, MYGAs (multi-year guaranteed annuities) have become one of the most popular DPL Member solutions for improving fixed income allocations. Generating reliable returns above today’s yields1 for a lesser duration, these simplified products can help advisors gather assets that would otherwise be held in cash or CDs, protect principal from market volatility, and ultimately improve portfolio performance.
Why DPL Likes the Fee-Based MYGA
The Fee-Based MYGA offers competitive 3- and 5-year guaranteed interest rates. Premium is protected from market downturns and accumulates tax-deferred, allowing for greater growth potential when compared to traditional fixed income instruments like bonds. The minimum premium required is $10,000, making it more accessible to investors.
How to Think About Commission-Free MYGAs
When your client needs:
PRINCIPAL PROTECTION: MYGAs 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: MYGAs provide a consistent stream of income for clients that are looking to de-risk their portfolios from equities.
CASH REPLACEMENT: MYGAs 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 provided by American Life & Security Corp.
1MYGA rates available through DPL compared to US Treasury Yield Curve, and comparable CDs via BankRate.com.
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.
Fixed annuities are long-term contracts designed for retirement. Not guaranteed by any bank or credit union. May lose value. Not a deposit. Not insured by any federal government agency.