Look to the Midland National Income Planning Annuity as your preferred fixed index annuity for guaranteed lifetime income in retirement.
What sets MNL Income Planning Annuity apart?
Quite simply, it’s guaranteed lifetime income that makes the MNL Income Planning Annuity so meaningful for your retirement plan. Our simple, single premium fixed index annuity makes it easy to determine guaranteed income available to you for the rest of your life while still capturing growth potential from index options linked to the stock market.
Know the lingo
Key terms to help you understand how your annuity works
An annuity represents a simple promise.
It’s an insurance contract.
For your money and the time you leave it with us, we promise to offer both growth potential and downside protection from market drops.
In explaining the fine details, though, you might see some terms that are new to you. Look for boxes like this if you run into a word you’d like to better understand.
The amount paid to the insurance company to fund an annuity.
The accumulation value is equal to 100% of premium plus any fixed and index account interest you are credited, less withdrawals, and applicable rider charges.
The accumulation value is used to determine your surrender value, death benefit, any nursing home confinement waiver benefit, and withdrawals.
Guaranteed lifetime withdrawal benefit (GLWB)
This benefit creates an income stream you can’t outlive.
When you start income, the embedded GLWB sets a payment that you may withdraw every year – even if those payments add up to be more than the accumulation value.
The Guaranteed Lifetime Withdrawal Benefit has an annual cost.
Guaranteed income for life
How we calculate your lifetime payments
The MNL Income Planning Annuity is designed to provide guaranteed lifetime income through the embedded GLWB.
This feature ultimately guarantees that a specified amount – the lifetime payment amount (LPA) – can be withdrawn each contract year for your life, even if the accumulation value is reduced to zero (provided no withdrawals in excess of the penalty-free amount are taken).
Lifetime payment amounts
Your lifetime payment amount is determined by three factors:
- Your net premium amount
- Your age at contract issue
- When you start income (called your lifetime payment election date)
The MNL Income Planning Annuity gives you the option to start income immediately.
However, the longer you wait to start income, the higher your LPA will be.
Upon electing income, you can choose monthly, quarterly, semi-annual, or annual payments.
Payments can be started and stopped at any time.
Any non-LPA withdrawals that you may choose to take from your annuity’s accumulation value will reduce your future lifetime payments by the same percentage that they reduced your accumulation value.
What if the unexpected happens?
With the MNL Income Planning Annuity, you can rest confidently knowing what your guaranteed payout will be.
While life doesn’t always offer the same kind of guarantees, the GLWB helps protect you from some of the unpredictable “what ifs” in life.
If an unpredictable event leaves you unable to perform at least two of the six “Activities of Daily Living” (ADLs) as defined in your contract, your lifetime payment amount can double for up to five years of payments, as long as you continue to meet the requirements on each annual payment date.
Activities of daily living (ADLs)
To qualify for the LPA multiplier benefit, you must have been able to perform all six activities of daily living when the contract became effective. The six ADLs include:
- Bathing – Washing yourself by sponge bath in a tub or shower, including getting in or out.
- Continence – Bowel and bladder control or, when unable to maintain control, the ability to perform associated personal hygiene.
- Dressing – Includes putting on and taking off clothing and any necessary braces, fasteners, or artificial limbs.
- Eating – Being able to feed yourself or manage a feeding tube or intravenous feeding.
- Toileting – Getting to and from the toilet, getting on and off it, and performing associated personal hygiene.
- Transferring – Moving into or out of a bed, chair, or wheelchair.
To take advantage of the benefit, additional conditions have to be met:
- The waiting period of two years must expire.
- You must notify us of your election to take the LPA multiplier benefit.
- The accumulation value must be greater than zero.
- We will need to receive written proof, acceptable to us, from a physician who has determined that you are unable to meet two of six ADLs with an expectation the condition(s) are permanent.
Check out a Long Term Care Annuity to supplement your long term care insurance needs.
How your annuity can grow
MNL Income Planning Annuity can never lose value due to market downturns and has the potential to grow based upon market upside.
Plus, with a variety of ways to access your money – lifetime income and penalty-free withdrawals – you can be ready for what life may bring.
With multiple index options available, you’ll also have the flexibility to choose a strategy that matches your preferred style.
Lock-in interest credits each contract anniversary.
One advantage of fixed index annuities is a reset feature, which applies to this annuity no matter which crediting method you choose.
With the annual reset, any interest credits are added, or credited, to your accumulation value on each contract anniversary.
For the Two-year Point-to-Point option, this reset happens at the end of each two-year term, instead of annually.
Once credits are added, they’re locked in.
That means they can’t be taken away if there is a market downturn in the future.
If the index experiences a severe downturn, this feature can provide more opportunities for future growth.
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.
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, the MNL Income Planning Annuity does allow you access to a portion of your money each year.
Starting within the first contract year, a penalty-free withdrawal (also known as a penalty-free partial surrender) of up to 5% of the initial premium may be taken once each contract year.
It is important to discuss potential withdrawals with your financial professional so that you understand the impact of any withdrawals on your contract.
The portion of any withdrawal that exceeds the penalty-free amount will be assessed as a surrender charge and possibly a market value adjustment.
Withdrawals may be treated by the government as ordinary income.
If taken prior to age 59 1/2, a withdrawal could also be subject to a 10% IRS penalty.
Withdrawals will reduce your accumulation value accordingly.
Required minimum distributions
Surrender charges and market value adjustments on any portion of an IRS required minimum distribution exceeding the available penalty-free withdrawal amount will be waived by current company practice.
A feature offered “by current company practice” is not a contractual guarantee of this annuity contract and can be removed or changed at any time.
How withdrawals impact how your annuity grows
If you take withdrawals other than your LPAs, you won’t experience the full benefits of this annuity.
Your accumulation value will be reduced for any withdrawals taken either before or after lifetime payments begin.
Excess withdrawals may be subject to surrender charges and market value adjustments (if applicable) and will ultimately impact your future lifetime payments.
Nursing home confinement waiver adds flexibility.
After your first contract year, if you become confined to a qualified nursing care facility for 90 consecutive days, you can withdraw 100% of your accumulation value without a surrender charge and without application of an MVA.
You cannot be confined at the time your contract is issued.
This rider is automatically included with your annuity at no additional charge.
If joint annuitants are named on the annuity, a waiver will apply to the first annuitant who qualifies for the benefit, but not both.
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.