Presenter : All Things Annuity
Category : General Annuity Info
Topic : Guide To Multi-Year Guaranteed Annuities
Length : 4 Mins
Article : Multi-Year Guaranteed Annuities
Tags : Annuities, MYGA, fixed rate
This video explains the basic of Multi-Year Guaranteed Annuities, which are a popular form of fixed annuities.
The key distinction between a MYGA and other fixed annuities is the terms of the guaranteed rate. A MYGA annuity's rate is guaranteed for the full contract term. Deferred Fixed annuities offer a similar (often slightly higher) guaranteed rate, however that rate could change, up or down, sometime after the first year.
The MYGA annuity offers many of the same features as a typical CD. Difference number one is that CDs are issued by banks/brokers while MYGA annuities are issued by insurance companies. This means that CDs are insured by the FDIC up to $100,000 for non-retirement accounts. Annuities are not FDIC insured, but are safeguarded by individual state reserves. Annuity coverage varies state-to-state, ranging from $100,000 to $300,000.