The BenefitPay annuity by Midland National Life is an innovative single premium fixed index annuity created with you, the consumer, in mind. Designed as an annuity contract and benefit rider combination, this unique retirement product offers a central benefit base to ensure you receive benefits for life.
MNL BenefitPay 10 and 14 can help to offer you financial security and confidence by generating benefits you can count on during retirement:
- Lifetime payments
- Enhanced payments for qualified nursing home care
- Death benefit
An annual rider cost is calculated by multiplying a charge percentage by the benefit base on the contract anniversary.
The rider cost is 1.20% of the benefit base, deducted from your accumulation value on each contract anniversary until either your contract or benefits rider terminates.
This rider may be terminated any time after the surrender charge period.
Although fixed index annuities guarantee no loss of premium due to market downturns, deductions from your accumulation value for benefits rider costs could under certain scenarios exceed interest credited to your accumulation value, which would result in loss of premium.
The benefits rider costs will continue under the spousal continuance feature.
If you terminate the benefits rider, you will not be reimbursed for the costs previously incurred.
For purposes of the built-in rider, the owner and the annuitant must be the same.
If there are joint owners, they must also be joint annuitants. Joint annuitants must be spouses.
If the owner is not a natural person, the annuitant(s) are considered a covered person(s) under the built-in rider.
Change of ownership is only allowed when changing from a non-natural owner to the annuitant(s).
Features and Benefits
Lifetime Payments
With a major concern of retirees today being that of outliving their savings, the MNL BenefitPay 10 and 14 annuities can provide the ability to receive an ongoing stream of retirement income for life – regardless of how long that may be.
Although defined benefit pension plans may be disappearing, the guaranteed benefit statement that you receive with an MNL BenefitPay 10 and 14 annuities gives you the clarity you need, showing your long-term income guarantee, and providing you and/or your spouse with the surety of a retirement paycheck for both the short- and long-term horizon.
MNL BenefitPay 10 and 14 provide lifetime payments that can help assure a retirement where you have:
- Guaranteed lifetime payment amounts, with growth potential
- Guarantees and surety that your lifetime payments will last throughout retirement
Nursing Home Multiplier
(nursing home multiplier is not available in California or Illinois)
As Americans’ life expectancy continues to increase, the need for nursing home care also tends to rise – and the cost of this care has gone up at an unprecedented rate.
Your MNL BenefitPay 10 and 14 annuities can help with these expenses through the nursing home multiplier (referred to as the LPA multiplier in your benefits rider), which doubles your lifetime payment amount for up to five years.
While nobody likes to think about it, the potential cost of nursing home care can take a substantial bite out of retirement savings.
This, in turn, can have a negative effect on ongoing retirement income – especially in the case of married couples or partners.
Many people believe that government programs like Medicare will pay for most or all of their long-term care expenses.
However, this may not be the case. Another potential payment option is stand-alone long-term care insurance, although these policies can be expensive.
By having the nursing home multiplier (referred to in the benefits rider as the LPA multiplier) on your MNL BenefitPay 10 and 14 annuity, you have the option to receive an increased lifetime payment, if needed, to help with any unexpected expenses.
With the nursing home multiplier feature, the lifetime payment amount on your MNL BenefitPay 10 and 14 annuities can be doubled if you become confined to a qualified nursing care center for a period of more than 90 consecutive days, and you remain confined to that nursing home in future contract years.
This benefit is available as early as age 50, and it can be accessed for up to five annual payments.
This benefit does not have to be utilized for a consecutive five year period.
Here’s how the multiplier works
- You must wait at least two years after your MNL BenefitPay 10 and 14 annuity issue date before requesting the Nursing Home multiplier benefit, and you cannot be confined on the issue date.
- Provided that you have been confined to a qualified nursing home facility for at least 90 consecutive days – and that you remain confined throughout the payout period – the income can continue to be paid out for a maximum of five annual payments. This feature is no longer available when the accumulation value reaches zero.
- There is a proportional adjustment to the benefit base and benefit base floor each time a withdrawal is taken, including lifetime payment withdrawals and increased lifetime payment withdrawals available through the nursing home multiplier benefit.
However, provided that no withdrawals in excess of the available lifetime payment are taken, the lifetime payment available in future years will not decrease.
Check out a Long Term Care Annuity to supplement your long term care insurance needs.
Death Benefit
Should the unexpected occur, the value of your MNL BenefitPay 10 and 14 annuities will not be lost.
In this case, a named beneficiary would receive the accumulation value as a lump sum, or they could choose the rider death benefit and receive the benefit base paid in five annual payments if death occurs after the first contract year.
If you have taken no withdrawals (other than rider charges), your beneficiaries are guaranteed the option to take a lump-sum death benefit that is no less than your premium.
Your MNL BenefitPay 10 and 14 annuity can allow you to leave a legacy to those you love in the manner that best fits their specific financial needs.
If your beneficiaries want a lump sum after the first contract year, they can take the annuity’s remaining accumulation value.
Or your loved ones can opt to receive the remaining amount of your benefit base in five equal annual installments.
If you have taken no withdrawals (other than rider charges), your beneficiaries are guaranteed the option to take a lump-sum death benefit that is no less than your premium.
Midland National Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.
