Flexible choices that fit – MNL RetireVantage 10
Most people dream of having a secure and comfortable retirement. Achieving the dream of a secure, comfortable retirement is much easier when you plan your finances. The MNL RetireVantage 10 flexible premium fixed index annuity is a 10-year retirement savings plan that provides a flexible long-term solution that offers a variety of choices and guarantees to fit your ultimate retirement planning goals.
Key benefits of MNL RetireVantage 10
- Tax deferral, income for life, and full accumulation value at death
- Choose an optional additional benefit rider (ABR) (for a cost) that provides an ABR premium bonus, enhanced penalty-free withdrawals, payout benefit (feature not available in all states), and return of premium.
- Multiple index strategies available, including enhanced crediting methods offering greater upside potential
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 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 due to negative index performance. At that point, they are included in your accumulation value, giving you the advantage of compounding interest in subsequent years.
Also, by resetting your starting index value at the same time, this feature can help minimize your risk if the index experiences a severe downturn. Without it, you’d have to wait for the index value to climb up to its original level before any interest credit could be realized.
Tax deferral improves growth potential.
Your annuity’s value grows on a tax-deferred basis, meaning more of it is working for you. Tax-deferred growth means you don’t owe taxes until you access funds, 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
Upon the death of the annuitant or owner, Midland National will pay out the accumulation value as the death benefit to your beneficiary provided no payout option has been elected. The death benefit also includes any interest credits for a partial contract year based on the date of death. Therefore, the death benefit your beneficiaries receive also reflects the interest credits for the partial year up through the date of death. The calculation will vary depending on the index account option in which the premium is allocated at the time of death.
Your beneficiary may choose to receive the payout in either a lump sum or a series of income payments. By naming a beneficiary, you may minimize the delays, expense, and publicity often associated with probate. If joint annuitants are named, the death benefit will be paid on the death of the second annuitant. If joint owners are named, the death benefit will be paid on the death of the first owner.
Midland National Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.
Lifetime income
Through your election of an annuity payout option, Midland National can provide you with a guaranteed income stream with the purchase of your tax-deferred annuity. You have the ability to choose from several different annuity payout options, including life or a specified period.
Building a foundation
Optional additional benefit rider You may elect to add an optional additional benefit rider (ABR) (for a cost) that provides more options. This rider is designed to provide flexible choices to fit your individual goals.
- ABR premium bonus: on any premiums received in the first five contract years. Products that have ABR premium bonuses may offer lower credited interest rates, lower index cap rates, lower participation rates, and/or greater index margins than products that don’t offer an ABR premium bonus. Over time and under certain scenarios, the amount of the ABR premium bonus may be offset by the lower credited interest rates, lower index cap rates, lower participation rates, and/or greater index margins.
- Additional payout benefit (feature not available in all states): Available on accumulation value at payout after the surrender charge period. If you elect an annuity payout option after the 10-year surrender charge period has elapsed, this bonus will be added to your accumulation value.
- Return of premium: At any time in the fifth contract year (fourth in CA and DE) and thereafter, you may terminate the contract and receive no less than your contract’s net premium paid. The net premium is equal to your initial and subsequent premiums (less any ABR premium bonus, strategy charges, and optional rider cost, if applicable, excluding the ABR rider cost) minus any withdrawal amounts you have received (after any surrender charges or interest adjustment).
- Enhanced penalty-free withdrawals: Beginning in the third contract year, penalty-free withdrawals can increase to 20% (maximum) in years in which no withdrawal was taken in the previous year. If any penalty-free withdrawal is taken during a contract year, the penalty-free allowance available for the following year resets to 10%.
How your annuity can grow
MNL RetireVantage 10 has a strategy and index account option to suit your style:
- Whether you like to take charge of your financial choices or prefer to set it and forget
- Whether you’re interested in a fixed return, hoping for more growth potential, or a combination
Set your strategy
You have total control over how your initial premium is allocated between our fixed account or index accounts. Choose from several crediting methods (more details on the following pages):
- Daily Average with Index Margin
- Monthly Point-to-Point with Index Cap Rate
- Annual Inverse Performance Trigger
- Annual Point-to-Point with Index Cap Rate
- Annual Point-to-Point with Index Margin
- Annual Point-to-Point with Participation Rate
- Annual Point-to-Point with Enhanced Participation Rate (includes charge)
- Two-year Point-to-Point with Index Margin
- Two-year Point-to-Point with Participation Rate
- Two-year Point-to-Point with Enhanced Participation Rate (includes charge)
- Fixed Account
Each crediting method and the index account options on scenarios. Refer to the “How it works-crediting methods and index options” brochure for more information on the differences
Unlock greater upside potential with enhanced crediting methods
In exchange for a charge, you’ll unlock additional opportunities. The charge is deducted from your accumulation value at the end of each term and is guaranteed to stay the same for the life of the contract. Strategy charges are considered a partial surrender, and for purposes of the return of premium, the feature will reduce the net premium accordingly. The charge will be deducted at the time of full surrender and at the time of a partial withdrawal that exceeds the penalty-free withdrawal amount.
Experience protection with accumulation value (“AV”) true-up
If interest credited over your contract term is less than the total strategy charges, there could be a loss of premium. To help protect your premium, your MNL RetireVantage 10 fixed index annuity includes AV true-up, which provides a one-time refund of the difference at the end of the surrender charge period. AV true-up is not available if you take excess penalty-free withdrawals.
Pick from a wide variety of index options.
S&P 500 Index (SPX)
The S&P 500 Index is widely regarded as the best single gauge of the large-cap U.S. equities market since the index was first published in 1957. The price-return index includes 500 leading companies in leading industries of the U.S. economy and does not include dividends in the index valuation.
S&P Multi-Asset Risk Control 5% Excess Return Index (SPMARC5P) S&P MARC 5% ER
The S&P MARC 5% ER Index is a multi-asset excess return index that strives to create more stable index performance through diversification, an excess return methodology, and volatility management (i.e., risk control). The index applies rules to adjust allocations among multiple asset classes creating a diversified basket of these assets. The index then adds an element of risk control by applying rules to allocate between this basket and cash. The index is managed to a 5% volatility level.
Fidelity Multifactor Yield Index 5% ERSM Index (FIDMFYDN)
The Fidelity Multifactor Yield Index 5% ER (the “Index”) is a multi-asset, rules-based index that blends multifactor equity starting universe with U.S. Treasuries and uses a dynamic allocation approach that seeks to reduce volatility and deliver a more consistent investment experience over time. The starting portfolio is a combination of 6 factors with pre-determined weights and a tilt towards high dividend-yielding companies. A fixed income overlay is applied, and the volatility levels of the combined portfolio are analyzed daily, and components are adjusted to meet a 5% volatility target.
Nasdaq-100 Index (NDX)
The Nasdaq-100 index includes 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. The index reflects companies across major industry groups, including computer hardware and software, telecommunications, retail/wholesale trade, and biotechnology.
S&P 500 Low Volatility Daily Risk Control 5% Index (SPLV5UT)
The S&P 500 Low Volatility Daily Risk Control 5% Index strives to create stable index performance through managing volatility (i.e., risk control) on the S&P 500 Low Volatility Index. The S&P 500 Low Volatility Index measures performance of the 100 least volatile stocks in the S&P 500. The index adds an element of risk control by applying rules to allocate between stocks, as represented by the S&P 500 Low Volatility Index, and cash. The index is managed to a 5% volatility level.
S&P 500 Low Volatility Daily Risk Control 8% Index (SPLV8UT)
The S&P 500 Low Volatility Daily Risk Control 8% Index strives to create stable performance through managing volatility (i.e., risk control) on the S&P 500 Low Volatility Index. The S&P 500 Low Volatility Index measures performance of the 100 least volatile stocks in the S&P 500. The index adds an element of risk control by applying rules to allocate between stocks, as represented by the S&P 500 Low Volatility Index, and cash. The index is managed to an 8% volatility level.
Options for accessing funds
How withdrawals impact how your annuity grows
Having access to funds is always an important factor. If you choose to withdraw money from your contract, there are several factors to consider. For additional withdrawals outside of the penalty-free allowance, taken before the end of the surrender charge period, surrender charges and interest adjustment may apply. Also, if you take out withdrawals in excess of your penalty-free allowance, a portion of the ABR premium bonus may be forfeited due to the ABR premium bonus recapture. Let’s take a look at these factors, including penalty-free withdrawals, interest adjustments, ABR premium bonus recapture, and surrender charges.
Penalty-free withdrawals
Like most annuities, you’ll be limited in when and how much you can withdraw from your annuity penalty-free. After the first contract anniversary, a penalty-free withdrawal (also known as a penalty-free partial surrender) of up to 10% of the accumulation value may be taken each year. After the surrender charge period, surrender charges, ABR premium bonus recapture, and an interest adjustment no longer apply to any withdrawals. Withdrawals may be treated by the government as ordinary income. If taken before age 59 1/2, you may also have to pay a 10% IRS penalty. Withdrawals will reduce your accumulation value accordingly. By current company practice, we’ll waive surrender charges, ABR premium bonus recapture, and interest adjustments on any portion of an IRS-required minimum distribution that goes beyond what’s available to you penalty-free.
Interest adjustment
(In Virginia, interest adjustment is not available.)
Your contract also includes an interest adjustment (also known as market value adjustment) feature—which may decrease or increase your surrender value depending on the change in interest rates since your annuity purchase. Lower interest rates at the time of issue may result in less opportunity for a positive interest adjustment in future contract years. In certain rate scenarios at the time of the issue, it may not be possible to experience a positive interest adjustment. Due to the mechanics of an interest adjustment, the surrender values generally decrease as interest rates rise or remain constant. Likewise, when interest rates decrease enough over a period of time, the surrender value generally increases. However, the interest adjustment is limited to the interest credited to the accumulation value in all states except California. In California, the interest adjustment is limited to the surrender charge or 0.50% of the accumulation value at the time of surrender.
This adjustment is applied only during the surrender charge period to surrenders exceeding the applicable penalty-free allowance.
Your annuitization payout options
Upon annuitization, MNL RetireVantage 10 offers a variety of income options to suit the needs of annuitants, from just a certain number of years to a lifetime income option. Annuity payout options are a benefit of deferred annuities but are not a requirement. On non-qualified plans, a portion of each income payment represents a return of premium that is not taxable, thus reducing your tax liabilities.
In all states except Florida, by current company practice, you may receive an income from the accumulation value after the first contract year (without surrender charges or interest adjustment) if you choose a life income option. You can also receive an income based on the accumulation value if your annuity has been in force for at least five years, and you elect to receive payments over at least a five-year period. Once a payout option is elected, it cannot be changed, and all other rights and benefits under the annuity end.
Nursing home confinement waiver
(not available in all states)
After the first contract anniversary, should the annuitant become confined to a qualified nursing home facility for at least 90 consecutive days, we will increase the penalty-free withdrawal by 10% of the accumulation value each year while the annuitant is confined. This waiver is only available for issue ages 75 and younger and is automatically included with your annuity at no additional charge. If joint annuitants are named on the annuity, the waiver will apply to the first annuitant who qualifies for the benefit.
Surrender charges
Surrender charges allow the company to invest the funds on a long-term basis and generally credit higher yields than possible with a similar annuity of the shorter term. During the surrender charge period, a surrender charge is assessed on any amount withdrawn, whether as a partial or full surrender, that exceeds the penalty-free allowance applicable and may result in a loss of premium. Additional premiums deposited into existing contracts will maintain the surrender charge schedule set forth at the contract issue date. Certain payout options may incur a surrender charge and ABR premium bonus recapture. Interest adjustments apply during the surrender charge period.
Additional benefit rider premium bonus recapture provision
An ABR premium bonus will be credited on the premium received during the first five contract years. During the surrender charge period, withdrawals in excess of the penalty-free allowance or a full surrender will incur an ABR premium bonus recapture. This is in addition to any applicable surrender charges and/or interest adjustments. This recapture schedule applies to the ABR premium bonus credits.
