Maryland Annuity Resource offers Multi Year Guaranteed Annuities or MYGA’s for all residents living in Maryland. Maryland MYGA Annuities are an important aspect to any investment portfolio and where else can you achieve guaranteed returns. For most, MYGA’s are the first choice for steady, predictable, guaranteed returns. We service the whole State of Maryland and can either come to your location or web conference over the phone.
Multi Year Guaranteed Annuities in Maryland
A multi year guaranteed annuity is a contract between you and an insurance company. It is useful for individuals who want guaranteed interest rates and a stream of income they can’t outlive. Here are some of the ways a multi year guaranteed annuity can ultimately help you eliminate unwanted financial surprises:
- Principal and interest guarantees – Principal and interest rates are guaranteed. If you withdraw your assets, your principal may be reduced by fees known as contingent surrender charges and state premium taxes in some cases.
- Tax advantages – Fixed annuities can offer 100% tax deferral, so all your earnings can grow tax deferred. This provides increased earnings potential due to compounding interest.
- Minimal risk exposure Fixed annuities can help you accumulate funds for retirement without exposing your hard-earned money to the ups and downs of the economy or markets.
- Income protection In retirement, you can receive income through flexible payout options, including an option to receive income for life. If you withdraw money before contract maturity, surrender charges may apply. Non-qualified plans would be subject to tax on earnings and qualified may incur an IRS penalty if you take a withdrawal before age 591/2, and any withdrawal may be subject to ordinary income tax.
- • Beneficiary protection Fixed annuities are designed to help protect your beneficiaries. Upon your death, the assets will be paid directly to your named beneficiary without going through the probate process and income streams could continue to your spouse.
Payout Options for MYGA Annuities in Maryland
Beneficiaries have several payout options to choose from, including:
- Straight life. Set dollar amounts – based on actuarial tables – that pay out over the rest of your life, even if the total payments exceed the amount of original contributions plus growth. The downside of this payment option is that the payments will stop at death, even if the total payout is less than the value of your original investment. We do not suggest this option but it is there if you want it.
- Joint life. An option for you and a co-beneficiary, in which you’ll be paid as long as one of the two of you is still living.
- Life with Period Certain. A payout plan that continues for as long as you live or over a set amount of time preventing the insurance company from keeping the balance if you die before receiving the entire contract value.
- Joint Life with Period Certain. A similar plan that applies the same protection of paying as long as you or your beneficiary are living, or over a set time period.
- Systematic Withdrawal. A set dollar amount or set percentage of the contract value paid out each year.
- Lump Sum. A single payment that liquidates the contribution, letting you either take all of the money in cash or roll it over into another annuity contract.
How safe are MYGA Annuities in Maryland
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.