Our Modern Woodmen Multi-Year Guaranteed Annuity Review (Overall)
Modern Woodmen’s Multi-Year Guaranteed Annuity is a fixed annuity that locks in an interest rate for three, five, or seven years. You put in one premium, know the rate for the term, and avoid stock market losses in the annuity. When the guarantee ends, you can take the money without a withdrawal charge or leave it in an annual-rate account with charge-free access.
We like the renewal flexibility. We do not like that many buyers may assume this fraternal insurer’s annuity has the same state guaranty-association protection as a traditional insurer’s contract. That distinction deserves attention before you commit retirement savings, even when the interest rate looks attractive.
- Issuer: Modern Woodmen of America, a fraternal benefit society
- Product type: Multi-year guaranteed annuity (MYGA)
- Guaranteed-rate periods: Three, five, or seven years
- Premium: One initial contribution of $10,000 to $1 million
- Liquidity: Withdrawals during the guarantee period are subject to withdrawal charges; exceptions may apply
- At the end of the term: Withdraw, elect an available new multi-year guarantee, or remain in a one-year guarantee with access free of withdrawal charges
- Availability: Not available in New York; other state variations may apply
Modern Woodmen Multi-Year Guaranteed Annuity Alternatives
The rate is only one piece of the decision. Compare Modern Woodmen’s offer with other fixed annuities, their withdrawal rules, and the insurer behind each guarantee. Fill out the form below or call us at (770) 755-1565 for help comparing your options.
Our Professional Opinion on the Modern Woodmen Multi-Year Guaranteed Annuity
The best feature of this MYGA is what happens when the initial term ends. You do not have to jump into another multi-year commitment just because you did not make an election. Your money can remain in the contract at a one-year rate, with access free of withdrawal charges. We like that. It gives you time to decide what to do next without automatically locking yourself up again.
But we would not buy it without shopping around. Modern Woodmen has an A (Excellent) financial strength rating from AM Best, which is above our usual minimum. That is a good rating, but a good rating does not automatically make the annuity the best deal.
Modern Woodmen is a fraternal benefit society. Fraternal insurers generally are not members of state life and health insurance guaranty associations, so do not assume this certificate has the same potential protection as an annuity issued by an association member. Rules vary by state. If comparable guarantees and rates are available from a financially strong insurer whose contracts may be covered, we would take that difference seriously.
Our take: the renewal feature is attractive, but a competitive rate, the terms of access, and your comfort with the insurer and its fraternal status all need to stack up. If they do not, we would move on.
What We Like
- Known interest for the selected term: The initial interest rate is guaranteed for three, five, or seven years, so you do not have to guess how a market index will perform.
- Charge-free access after the initial guarantee: You can withdraw the money at the end of the term without a withdrawal charge.
- No automatic new multi-year surrender period: Do nothing and the contract moves to a one-year rate with access free of withdrawal charges.
- Choice at renewal: You can take the funds, leave them in the one-year option, or choose a new multi-year period when available.
What We Don’t Like
- Fraternal insurer: Do not assume state guaranty-association protection applies. That is a real difference when comparing otherwise similar contracts.
- Early access can cost you: Withdrawals during the guaranteed period are subject to withdrawal charges unless an exception applies. This is a lousy place for money you might need unexpectedly.
- A new multi-year term restarts withdrawal charges: A renewal rate is not worth another lockup if you expect to need the money.
- No guaranteed lifetime paycheck from interest withdrawals: Taking interest is not the same as a guaranteed lifetime withdrawal benefit.
- Rate changes after the first term: The one-year renewal rate can be lower than the original rate.
How the Guaranteed Interest Rate Works
You choose a three-, five-, or seven-year initial guarantee when you buy the annuity. The rate in your certificate applies for that chosen period. With no withdrawals, that makes it possible to calculate the future account value without guessing what stocks or an index might do.
Do not assume the longest term is automatically the smartest. A higher rate may not make up for tying up money you need sooner, and a shorter term gives you an earlier opportunity to reassess. Compare the actual guarantees and your spending timeline before deciding.
Use our fixed annuity rate comparison to see what other insurers offer for the same guarantee period. Compare the withdrawal terms and insurer strength too; an extra fraction of a percent is not the whole story.
Withdrawals and Surrender Charges
Money withdrawn during the initial guaranteed period is subject to withdrawal charges, although exceptions may apply. Ask for the specific schedule, any available exceptions, and the amount you could actually receive before you buy. Do not assume this MYGA offers the same penalty-free percentage or first-year access as a competing contract.
This matters because a guarantee on the interest rate does not mean you can cash out at any time without a cost. If an emergency or a planned expense could require the money early, keep that cash somewhere more accessible. Learn how annuity surrender charges affect a withdrawal before making a commitment.
Taking Interest? Compare These Alternatives First
- If you need income for life: Compare the actual guaranteed payout from a guaranteed lifetime withdrawal benefit (GLWB). Taking this MYGA’s interest may preserve principal initially, but the interest rate can change after the term and those withdrawals do not guarantee income for life.
- If you want withdrawals but do not need lifetime income: Compare an annuity that credits a real upfront bonus to the account value. More money may be working from the start, so it could produce a better result even with a lower crediting rate. That is not automatic: compare actual projected values, withdrawals, fees, and bonus vesting.
- If you are in poor health or expect a shorter retirement: Compare an annuity whose bonus becomes payable or fully vests at a qualifying death. Your beneficiaries could receive more, but only if the contract’s actual death-benefit and vesting rules support it. Compare bonus annuity options carefully.
What Happens When the Guarantee Ends?
At the end of the initial guarantee, you can take some or all of your money without a withdrawal charge. You can also choose an available new three-, five-, or seven-year guarantee at the rate then offered. You may add money at that point. If you select a new multi-year term, withdrawal charges reset, so treat that decision like a new commitment.
If you do nothing, the money stays in the contract and earns a new one-year guaranteed rate. You can access the funds free of withdrawal charges, including a full withdrawal. We like this feature because it gives you breathing room. We do not like leaving money there indefinitely without checking the new rate against other offers.
Beneficiaries and Death Benefits
Naming a beneficiary is important, but do not assume every annuity calculates a death benefit or handles a spouse’s options the same way. Ask Modern Woodmen what the beneficiary receives under your certificate, whether any adjustments apply, and what happens if you die during the guaranteed period.
If your spouse is the beneficiary, ask whether spousal continuation is available and how the rate and withdrawal provisions would work. Your beneficiary designation and the certificate terms determine the available choices.
How It Compares With Other Annuities
- Other MYGAs: Compare the same term, rate, early-access rules, renewal, insurer rating, and guaranty-association status. Modern Woodmen’s annual option is a plus; it does not excuse a weak rate or poor access during the initial term.
- Fixed indexed annuities: A fixed indexed annuity may credit interest linked to an index, subject to its crediting rules. This MYGA provides a known rate for the initial term. Compare the actual trade-offs before giving up a guaranteed rate for an uncertain result.
- RILAs: A registered index-linked annuity can expose you to investment losses beyond its stated protection. We would not take that risk for a product that also limits upside without a compelling reason.
- Variable annuities: Investment options can lose value and carry investment-related expenses. If your priority is a known fixed return without market exposure, this MYGA is the more straightforward choice; if growth is the goal, compare the costs and risks of all investment alternatives.
Who Should Consider It?
Consider it if you want a fixed rate for a defined period, can leave the money in place, and value the option to keep the contract at an annual rate without another withdrawal-charge period. The quoted rate and withdrawal terms still need to hold up against competing offers, and you should be comfortable with the fraternal-insurer distinction.
Who Should Look Elsewhere?
Look elsewhere if you need unrestricted access during the first term, want a guaranteed paycheck for life, or prefer a contract from an insurer whose annuities may qualify for state guaranty-association protection. Also shop alternatives if Modern Woodmen’s quoted rate is not competitive for the same term. There is no prize for accepting a lower return just because the renewal feature is convenient.
Our Final Verdict
Modern Woodmen’s MYGA gets points for its no-lockup annual option after the initial guarantee. That is a feature we genuinely like. But the rate and access rules must be competitive, and its fraternal status is too important to gloss over. Compare the full offer before committing your retirement savings.
Contact The Annuity Expert for a free comparison and quote. We can help you weigh Modern Woodmen against other fixed annuities, income options, and bonus annuities. Call (770) 755-1565 or fill out the form below.
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