MYGA Annuities Multi Year Guaranteed Annuities
Guaranteed Rates Annuities or MYGA Annuities are Multi Year Guaranteed Insurance contracts between you and an Insurance company.
Multi Year Guaranteed Annuities or CD Type annuities are the oldest type of annuity contracts that governments have offered to the general public. Caesar of Rome sold annuities, requiring a lump sum payment and promising yearly returns for its legions of citizens. European governments funded most of the wars of the 17th and 18th centuries with annuity contributions. Also in the United States, fixed annuities appeared in the 18th century as a way to support up and coming church’s and church pastors. Then a Pennsylvania life insurance company got the commercial ball rolling close to 1912, the contracts quickly became popular, and now they’re used by millions of conservative investors all over the world. But we can help you if your in Maryland, D.C. or Virginia.
How safe are MYGA Annuities
The principal and interest in a fixed contract is backed by the financial strength of the life insurance carrier offering the product. Insurance companies are rated according to their financial strength and given a grade, such as AAA or AA. Most carriers have several ratings provided by each of the major rating agencies, such as Moody’s, Fitch, and Standard and Poor’s. Stable carriers obviously receive higher ratings, while smaller, less established companies are assigned lower grades. We do have restrictions on the annuities we offer, we will not offer and annuity from a company that is rated BBB or lower.
But state laws require that all fixed annuity carriers maintain a cash reserve that is at least equivalent to the total value of all outstanding fixed annuity contracts, regardless of what they are rated. This provides a safety net for all fixed annuity holders that can be counted on in times of financial turmoil similar to 2008. Reinsurance companies usually step in and cover customer losses whenever an annuity carrier becomes insolvent. Although fixed annuities are not FDIC Insured your chances of losing the money in one of these contracts are so low that this possibility can be ignored for all practical investment purposes.