MYGA

[Allen Trent]

Anyone aware of any MYGA carriers that guarantee 100% of principal? IE: surrender charges don't eat into principal.

I don't believe there are, but consumer being told they get back no less than the deposited if they surrender while the surrender charge is still higher than cumulative interest. I am guessing they are confusing no loss of principal from negative returns

 

[Tahoe Ray]

Anyone aware of any MYGA carriers that guarantee 100% of principal? IE: surrender charges don't eat into principal.

I don't believe there are, but consumer being told they get back no less than the deposited if they surrender while the surrender charge is still higher than cumulative interest. I am guessing they are confusing no loss of principal from negative returns

There are. They're normally added as riders and they have lower rates.

It's typically called ROP (return of premium). Symetra, Nationwide, and SBLI have the option off the top of my head but there are others.

 

[Allen Trent]

There are. They're normally added as riders and they have lower rates.

It's typically called ROP (return of premium). Symetra, Nationwide, and SBLI have the option off the top of my head but there are others.

Thanks, this was no a rider, was saying it was contractual in base contract. Will dig a little more on the topic.

thanks

 

[Tahoe Ray]

Thanks, this was no a rider, was saying it was contractual in base contract. Will dig a little more on the topic.

thanks

It may be base too.

 

[scagnt83]

New York Life does. No Rider. At least it used to be that way with them.

Mutual of Omaha does, but its a Rider.

 

[scagnt83]

ARW also shows AIG, Standard, Nationwide, & Clearspring Life as having ROP.

ClearSpring is the only one that does not charge for it from what ARW shows.

NYL did not charge for it either, it was standard. But that was 15 years ago...

 

[DaKine]

Anyone aware of any MYGA carriers that guarantee 100% of principal? IE: surrender charges don't eat into principal.

I don't believe there are, but consumer being told they get back no less than the deposited if they surrender while the surrender charge is still higher than cumulative interest. I am guessing they are confusing no loss of principal from negative returns

There is always a cost. Your client should be old enough to know that there is always a tradeoff.