MNL Endeavor 12 is a deferred, flexible premium, fixed index annuity.
From there, the value will grow at a rate based on the fixed or index account (or index accounts) you choose.
Index accounts are tied to market performance, but they are not an actual investment in the stock market.
We’ll go more in-depth in the “how your value can grow” section.
In other words, you’ll get credit for some of the market’s growth in up times.
In downtimes, when the market sees zero gains or actually loses value, your premium will never be at risk of decreasing due to those losses.
Tax deferral improves growth potential.
Your money grows on a tax-deferred basis, meaning more of it is working for you.
Growing your money tax-deferred means you don’t owe taxes until you access your money, allowing more time for growth potential.
Work with your tax advisor to find out how this might work for you.
Under current law, annuities grow tax-deferred.
An annuity is not required for tax deferral in qualified plans.
Annuities may be subject to taxation during the income or withdrawal phase.
Provide a lasting legacy
Your beneficiaries will get the remaining accumulation value of your annuity as a death benefit – either in an immediate lump sum or in installments.
And, because annuities may avoid the costs and delays of probate, they may not have to wait.
Midland National Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.
Take advantage of flexible payout options.
Whether you need to start drawing income soon after purchasing your annuity or you’d prefer to wait and build your lifetime income potential, there’s an option for you.
Options for accessing your money
What if you need your money sooner than you planned?
Like most annuities, you’ll be limited in when and how much you can withdraw from your annuity penalty-free.
However, MNL Endeavor 12 does allow you access to a portion of your money each year.
Taking out more money than what’s available penalty-free will incur a surrender charge.
A market value adjustment may also apply.
Withdrawals may be treated by the government as ordinary income.
If taken before age 59 1/2, a withdrawal could also be subject to a 10% IRS penalty.
Withdrawals will reduce your accumulation value accordingly.
How and when you can take penalty-free withdrawals
After the first contract anniversary, you may choose to take a penalty-free withdrawal (also known as a penalty-free partial surrender) of up to 10% of the accumulation value each year.
If you withdraw more than that, a surrender charge and market value adjustment may apply.
After the surrender charge period, surrender charges and a market value adjustment will no longer apply.
The IRS requires everyone with savings in certain tax-deferred retirement accounts to begin drawing down their savings the year they turn 70 1/2 years old.
These are called required minimum distributions (RMDs).
By current company practice*, we’ll waive surrender charges and market value adjustments on any portion of an IRS-required minimum distribution that goes beyond what’s available to you penalty-free.
Nursing home confinement waiver adds flexibility (not available in all states)
For those 75 years old and under when your annuity is issued, you’ll automatically get a benefit at no additional cost that helps you out if you ever need the services of a qualified nursing home facility.
After your first contract anniversary, a qualifying stay of at least 90 consecutive days will grant you a 10% increase in the penalty-free amount you can withdraw each year you remain in the nursing home.
You can spend this money on whatever you would like.