Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
User avatar
HueyLD
Posts: 8330
Joined: Mon Jan 14, 2008 10:30 am

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by HueyLD »

You are right as the death benefits as stated are pretty standard.

Maybe you want to contact blueprintincome.com to share your insightful knowledge?

Thank you very much.
User avatar
Topic Author
Stinky
Posts: 7825
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

Sagicor has what appears to be a "limited time" special rate on its 3-year and 5-year MYGAs. The 3-year is paying 2.30% and the 5-year is paying 3.00%.

That 3.00% rate on the 5-year product is the highest rate available for a duration of less than 10 years for a company rated A- or higher by AM Best.

Based on communications I've received, it appears that this "special" rate expires on 6/30/21. And I've heard from a couple of annuity agents that those Sagicor products are "hot sellers" right now.

I know from personal experience that a "hot" product in a market like MYGAs can draw a significant amount of sales in a short period of time. I wouldn't be surprised if Sagicor filled up its quota of sales and reduced rates before 6/30/21 (of course, that's pure speculation on my part).
Last edited by Stinky on Sat Jun 05, 2021 10:44 am, edited 1 time in total.
It's a GREAT day to be alive! - Travis Tritt
User avatar
HueyLD
Posts: 8330
Joined: Mon Jan 14, 2008 10:30 am

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by HueyLD »

Stinky wrote: Sat Jun 05, 2021 10:21 am I know from personal experience that a "hot" product in a market like MYGAs can draw a significant amount of sales in a short period of time. I wouldn't be surprised if Sagicor filled up its quota of sales and reduced rates before 6/30/21 (of course, that's pure speculation on my part).
I think your assessment is right on the money. Thank you for the “alert.”
User avatar
Topic Author
Stinky
Posts: 7825
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

Clammypollack wrote: Thu Jun 03, 2021 9:15 pm
Stinky wrote: Thu Jun 03, 2021 4:11 pm
Clammypollack wrote: Thu Jun 03, 2021 2:34 pm
The last four pages were very informative and educational regarding MYGA’s. I am grateful to those who shared this info. Has it occurred to you that there’s a big difference between reading a significant amount of information on a subject and asking what specific questions a veteran in this area would suggest that a novice ask a seller of the product?
Let me suggest some questions for you.

1. Are you confident that you will be able to leave the funds deposited for the entire term of the MYGA? If you make withdrawals from the contract in excess of those permitted (if any), you will be subject to punishing surrender charges.

2. Do you understand guaranty funds, and know what the guaranty fund limits are for your state? You can go to https://www.nolhga.com/ for general guaranty fund info, and then click through on your state website. Make sure you read the FAQs for your state.

3. Do you understand the withdrawal provisions and death benefit provisions of the products that you're looking at? Some contracts allow a 10% annual withdrawal without surrender charges, and pay out the full account value at death while the contract is in force. Others do not allow any withdrawals until the contract is over without surrender charge, and pay out only the surrender value at death.

4. If you're buying in a taxable account, do you plan to make no withdrawals prior to age 59.5? If you do withdraw prior to that age, you'll be assessed a 10% tax penalty on the interest withdrawn, plus incurring regular taxable income.

5. Have you looked at the rating of the insurance company you're considering? In general, higher-rated companies pay a lower rate of interest than those with lower ratings.

Others can chime in with their questions.
Thank you! This is much appreciated.
Please post back as additional questions come into your mind.
It's a GREAT day to be alive! - Travis Tritt
PFM
Posts: 7
Joined: Wed Aug 15, 2018 3:23 pm

Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by PFM »

Stinky wrote: Thu Dec 31, 2020 11:11 am I plan to leave the interest to accumulate within the MYGA. I’ll make sure that the MYGA principal plus accrued interest with any single company doesn’t exceed state guaranty fund limits.
Hi Stinky,

Thanks for all the info you have provided to help me learn about MYGA's.

Regarding State Guaranty Fund Limits, am I understanding correctly that these limits are relative to each individual company that you have contracts with? Meaning effectively that there is no guaranty limit, so long as your total exposure to any one company remains under your applicable limit amount of $250,000 or $300,000 or whatever the case may be?

I live in Kansas and so far have been unable to see the answer to this question clearly stated, at least to suit me.

Thanks again!

Mark
User avatar
HueyLD
Posts: 8330
Joined: Mon Jan 14, 2008 10:30 am

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by HueyLD »

PFM,

“ Annuities
$250,000 in withdrawal and cash values

The maximum amount of protection for each individual, regardless of the number of policies or contracts,
is $300,000.”

https://www.kslifega.org/FAQ
User avatar
Topic Author
Stinky
Posts: 7825
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

PFM wrote: Mon Jun 07, 2021 8:14 am Hi Stinky,

Thanks for all the info you have provided to help me learn about MYGA's.

Regarding State Guaranty Fund Limits, am I understanding correctly that these limits are relative to each individual company that you have contracts with? Meaning effectively that there is no guaranty limit, so long as your total exposure to any one company remains under your applicable limit amount of $250,000 or $300,000 or whatever the case may be?

I live in Kansas and so far have been unable to see the answer to this question clearly stated, at least to suit me.

Thanks again!

Mark
HueyLD wrote: Mon Jun 07, 2021 8:30 am PFM,

“ Annuities
$250,000 in withdrawal and cash values

The maximum amount of protection for each individual, regardless of the number of policies or contracts,
is $300,000.”

https://www.kslifega.org/FAQ
State guaranty fund laws vary. My state doesn’t have a “per-person” limitation. From HueyLDs comment above, it appears that Kansas does.

You could make double-sure by getting in touch with the Kansas guaranty fund.
It's a GREAT day to be alive! - Travis Tritt
PFM
Posts: 7
Joined: Wed Aug 15, 2018 3:23 pm

Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by PFM »

Stinky wrote: Mon Jun 07, 2021 8:41 am
PFM wrote: Mon Jun 07, 2021 8:14 am Hi Stinky,

Thanks for all the info you have provided to help me learn about MYGA's.

Regarding State Guaranty Fund Limits, am I understanding correctly that these limits are relative to each individual company that you have contracts with? Meaning effectively that there is no guaranty limit, so long as your total exposure to any one company remains under your applicable limit amount of $250,000 or $300,000 or whatever the case may be?

I live in Kansas and so far have been unable to see the answer to this question clearly stated, at least to suit me.

Thanks again!

Mark
HueyLD wrote: Mon Jun 07, 2021 8:30 am PFM,

“ Annuities
$250,000 in withdrawal and cash values

The maximum amount of protection for each individual, regardless of the number of policies or contracts,
is $300,000.”

https://www.kslifega.org/FAQ
State guaranty fund laws vary. My state doesn’t have a “per-person” limitation. From HueyLDs comment above, it appears that Kansas does.

You could make double-sure by getting in touch with the Kansas guaranty fund.
Stinky,

Thanks for your prompt reply.

Your suggestion to call and ask was good advice, as I did and found that in Kansas, as is the case in your State, there is no per-person limit, only a per-company limit of $250,000. Certainly good news, as I plan to purchase several. I had already read what HueyLD quoted from kslifega and found it to be ambiguous, because there was no mention of company.

Thanks again.
User avatar
Topic Author
Stinky
Posts: 7825
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

PFM wrote: Mon Jun 07, 2021 9:12 am Stinky,

Thanks for your prompt reply.

Your suggestion to call and ask was good advice, as I did and found that in Kansas, as is the case in your State, there is no per-person limit, only a per-company limit of $250,000. Certainly good news, as I plan to purchase several. I had already read what HueyLD quoted from kslifega and found it to be ambiguous, because there was no mention of company.

Thanks again.
Excellent! I agree that the website information is ambiguous. And I’m glad that you were able to get through to the guaranty fund quickly.

Please post back if you have questions as you go through the purchase process.
It's a GREAT day to be alive! - Travis Tritt
fatcoffeedrinker
Posts: 320
Joined: Mon Mar 23, 2020 2:03 pm

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by fatcoffeedrinker »

Stinky wrote: Sat Jun 05, 2021 10:21 am Sagicor has what appears to be a "limited time" special rate on its 3-year and 5-year MYGAs. The 3-year is paying 2.30% and the 5-year is paying 3.00%.

That 3.00% rate on the 5-year product is the highest rate available for a duration of less than 10 years for a company rated A- or higher by AM Best.

Based on communications I've received, it appears that this "special" rate expires on 6/30/21. And I've heard from a couple of annuity agents that those Sagicor products are "hot sellers" right now.

I know from personal experience that a "hot" product in a market like MYGAs can draw a significant amount of sales in a short period of time. I wouldn't be surprised if Sagicor filled up its quota of sales and reduced rates before 6/30/21 (of course, that's pure speculation on my part).
Stinky, thanks. I had planned on buying the 3-year in July (rate is actually 2.25% in CA), but have now put my application in early based on your info. Rate is 30 bps better than next closest at 1.95%. Much appreciated.
User avatar
Topic Author
Stinky
Posts: 7825
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

fatcoffeedrinker wrote: Mon Jun 07, 2021 10:05 am Stinky, thanks. I had planned on buying the 3-year in July (rate is actually 2.25% in CA), but have now put my application in early based on your info. Rate is 30 bps better than next closest at 1.95%. Much appreciated.
I’m happy that you got your application in. Mine went in last week too, for the five year product.

I’ll continue to keep watching for “rate specials” and post about them when they occur. It’s kind of odd when a company increases its rate by 0.35% on only certain durations for a short period of time, but that’s what Sagicor appears to have done.
It's a GREAT day to be alive! - Travis Tritt
Toadvine
Posts: 51
Joined: Thu Aug 28, 2014 12:43 am

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Toadvine »

Do you have any qualms about locking in a rate for 3 or 5 years given the concerns with inflation picking up?

I have nearly all my retirement in low risk fixed return investments (TIAA, CDs, MYGAs and treasuries). I would love to put more in MYGAs and less in treasuries, but I worry about sudden unexpected inflation.

Anyone else have similar concerns? If not, why not?
User avatar
Topic Author
Stinky
Posts: 7825
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

Toadvine wrote: Tue Jun 08, 2021 2:25 am Do you have any qualms about locking in a rate for 3 or 5 years given the concerns with inflation picking up?

I have nearly all my retirement in low risk fixed return investments (TIAA, CDs, MYGAs and treasuries). I would love to put more in MYGAs and less in treasuries, but I worry about sudden unexpected inflation.

Anyone else have similar concerns? If not, why not?
This is a great question. Let me tell you the way that I think about the risk of rising interest rates as it relates to MYGAs.

Let's look at two investments that have the same duration - a five year MYGA and a five year Treasury note. As of 6/7/21, the five year Treasury has a yield of 0.79%, and will mature for par in five years. So, to the extent that a five year MYGA pays more than 0.79% (which almost all do), the MYGA will pay more interest over five years. Both instruments will pay me back, including interest, in five years.

Next, let's shift to a Treasury fund with the same duration (about 4.9) as a five year Treasury note or MYGA. Let's assume that the Treasury fund with the same duration as a five-year Treasury note also has the same yield of 0.79%. Per Blueprint Income, the best current rate for a five year MYGA from an A-rated company is 2.50%. Let's compare the results of the 0.79% Treasury fund to the 2.50% MYGA:

--- If market interest rates remain unchanged over the five year period, the MYGA will pay more interest - 2.50% vs. 0.79%.

--- If market interest rates rise over the five year period, the "interest earned" gap will narrow, and the Treasury fund will earn more interest while the MYGA earns its fixed 2.50%. But this increase in "interest earned" is offset by the decline in the value of the Treasury fund, since the price of a bond fund goes down as interest rates go up.

Let's take a reasonable worst case - the day after you purchase a 2.50% MYGA, Treasury rates rise from 0.79% to 2.50%. In that case, you will earn the same interest on the Treasury fund and the MYGA over the five year period. But, with the rise in interest rates, the Treasury fund decreased in value by roughly the change in interest rates multiplied by the duration; that is (2.50% - 0.79%) = 1.46% X 4.9 = 7.15%. Therefore, you'll suffer a principal loss with the bond fund that you won't suffer with a MYGA. In this case, the principal loss on the bond fund almost exactly offsets the increased interest on the bond fund.

If interest rates go up more slowly during the 5 year term, the advantage for MYGAs grows. For example, if the Treasury bond fund rate grew slowly to reach 2.50% at the end of five years, the cumulative interest earned on the bond fund won’t equal the cumulative interest on the MYGA. But the 7.15% principal loss on the bond fund at the end of the term will be unchanged.

MYGAs both "lock in" the interest rate credited, and guarantee the full repayment of principal at the end of the term. That guarantee of full principal repayment gives them an advantage over bond funds if you expect interest rates to increase.

I can't say that MYGAs will have such an advantage over bond funds forever. But all that I can do now is invest for the market conditions that exist now. And, with Treasury and other bond fund rates so low, MYGAs have an advantage because of both their higher credited rates and their principal guarantee.

Does this help you?
It's a GREAT day to be alive! - Travis Tritt
User avatar
HueyLD
Posts: 8330
Joined: Mon Jan 14, 2008 10:30 am

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by HueyLD »

Alternatively, if you think you may want to early withdraw some money from MYGAs, you can purchase MYGAs from companies that allow reasonable annual fee-free withdrawals and low surrender charges.
Toadvine
Posts: 51
Joined: Thu Aug 28, 2014 12:43 am

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Toadvine »

Thank you for the detailed answer Stinky.

I thinking more about staying liquid in the event that inflation rises quickly. So rather than 5 year treasuries as an alternative to MYGAs I have short term treasuries and treasury backed MM funds. Which pay nothing right now. But if there were a large increase in rates i would be poised to jump in.
User avatar
Topic Author
Stinky
Posts: 7825
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

Toadvine wrote: Tue Jun 08, 2021 10:48 am Thank you for the detailed answer Stinky.

I thinking more about staying liquid in the event that inflation rises quickly. So rather than 5 year treasuries as an alternative to MYGAs I have short term treasuries and treasury backed MM funds. Which pay nothing right now. But if there were a large increase in rates i would be poised to jump in.
Staying “short” with a portion of your fixed income portfolio is an entirely rational choice.

Best to you.
It's a GREAT day to be alive! - Travis Tritt
PFM
Posts: 7
Joined: Wed Aug 15, 2018 3:23 pm

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by PFM »

Stinky wrote: Sat Jun 05, 2021 10:21 am Sagicor has what appears to be a "limited time" special rate on its 3-year and 5-year MYGAs. The 3-year is paying 2.30% and the 5-year is paying 3.00%.

That 3.00% rate on the 5-year product is the highest rate available for a duration of less than 10 years for a company rated A- or higher by AM Best.

Based on communications I've received, it appears that this "special" rate expires on 6/30/21. And I've heard from a couple of annuity agents that those Sagicor products are "hot sellers" right now.

I know from personal experience that a "hot" product in a market like MYGAs can draw a significant amount of sales in a short period of time. I wouldn't be surprised if Sagicor filled up its quota of sales and reduced rates before 6/30/21 (of course, that's pure speculation on my part).
I have submitted an application for the Sagicor 5-year product in the amount of 200k for myself, and am considering another for my wife in the same amount, as I see nothing else available that is comparable at this time. This would of course keep us well below our State's Guaranty Fund limit.

I'm looking for advice from the more experienced investors here, and also from those more adept at evaluating the health of Insurance companies. Does anyone have any knowledge of Sagicor Life, good or bad?

Also interested in opinions on the movement of interest rates during the next five years.

Any help will be appreciated.

Thank you,

Mark
PFM
Posts: 7
Joined: Wed Aug 15, 2018 3:23 pm

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by PFM »

PFM wrote: Wed Jun 09, 2021 9:10 am
Stinky wrote: Sat Jun 05, 2021 10:21 am Sagicor has what appears to be a "limited time" special rate on its 3-year and 5-year MYGAs. The 3-year is paying 2.30% and the 5-year is paying 3.00%.

That 3.00% rate on the 5-year product is the highest rate available for a duration of less than 10 years for a company rated A- or higher by AM Best.

Based on communications I've received, it appears that this "special" rate expires on 6/30/21. And I've heard from a couple of annuity agents that those Sagicor products are "hot sellers" right now.

I know from personal experience that a "hot" product in a market like MYGAs can draw a significant amount of sales in a short period of time. I wouldn't be surprised if Sagicor filled up its quota of sales and reduced rates before 6/30/21 (of course, that's pure speculation on my part).
I have submitted an application for the Sagicor 5-year product in the amount of 200k for myself, and am considering another for my wife in the same amount, as I see nothing else available that is comparable at this time. This would of course keep us well below our State's Guaranty Fund limit.

I'm looking for advice from the more experienced investors here, and also from those more adept at evaluating the health of Insurance companies. Does anyone have any knowledge of Sagicor Life, good or bad?

Also interested in opinions on the movement of interest rates during the next five years.

Any help will be appreciated.

Thank you,

Mark
I might also add, since it was the intended purpose of Stinky's great thread, that my experience with Blueprint has thus far been a positive one. I find their website to be informative and easy to use. I spoke with Chet on the phone a couple of times and he was helpful in answering my questions. Of course at this point I don't have anything to compare it with, as I went straight to Blueprint as a result of reading the comments in this thread.
User avatar
Topic Author
Stinky
Posts: 7825
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

PFM wrote: Wed Jun 09, 2021 9:10 am
I have submitted an application for the Sagicor 5-year product in the amount of 200k for myself, and am considering another for my wife in the same amount, as I see nothing else available that is comparable at this time. This would of course keep us well below our State's Guaranty Fund limit.

I'm looking for advice from the more experienced investors here, and also from those more adept at evaluating the health of Insurance companies. Does anyone have any knowledge of Sagicor Life, good or bad?

Also interested in opinions on the movement of interest rates during the next five years.
I’ve grabbed the Sagicor 5 year product also. Interestingly, this is the fastest issue process that I’ve had on a MYGA within an IRA. It only took five calendar days from the initial application through Blueprint online, through the application verification process, until Vanguard told me that they were sending money out. No company has been as fast.

I’m relying a good bit on the AM Best assessment process. I’m familiar with how AM Best works, since I worked with them and other rating agencies during my career working for a life insurance company. Best takes their job seriously, assessing financial strength, operational performance, and enterprise risk management, among other items. Best tries to take a long view, making projections of earnings and capital several years into the future.

Here's an extract from the AM Best press release with the most recent affirmation of its rating of Sagicor, dated 9/20/2020. (Rating agencies are continuously monitoring companies, and formally review and issue press releases about every twelve months or so.) AM Best is rating the entire Sagicor group, which includes Sagicor Life Insurance Company as a key subsidiary:

"The ratings of Sagicor Life Inc. reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM). The ratings of Sagicor Life Insurance Company reflect its balance sheet strength, which AM Best categorizes as adequate, as well as its marginal operating performance, neutral business profile and appropriate ERM. The ratings of Sagicor Life Jamaica Limited reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate ERM.

"While AM Best has concerns with regard to global economic headwinds impact to operating performance metrics for companies operating in the Caribbean, Sagicor’s corporate structure with more of an international footprint, along with the recent capital raise during the past year mitigates AM Best’s short-term outlook concerns for the Sagicor group of companies. AM Best will continue to track the economic conditions across the Caribbean and take any appropriate rating actions as developments change."


Here's a link to the full press release: http://news.ambest.com/presscontent.asp ... 1600182128

I personally view a company with an A- rating as being overwhelmingly likely to fully perform on a five year contract such as a MYGA. I feel comfortable in buying a 5-year MYGA from Sagicor.

As to future interest rates - who knows? I believe that I'm making a prudent investment in a five year MYGA at 3%, especially compared to a bond fund of similar duration.
--- If interest rates remain stable for the next few years, I win, because my MYGA has earned a spread over the bond fund.
--- If interest rates rise over the next five years, my MYGA will have a narrower spread over the bond fund, but I'll avoid the decline in principal that a bond fund will face when interest rates go up. I regard that as a "win" also.
It's a GREAT day to be alive! - Travis Tritt
gips
Posts: 860
Joined: Mon May 13, 2013 5:42 pm

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by gips »

i was interested in the sagicor myga but after poking around, learned they are not licensed in ny:

https://www.sagicor.com/-/media/USA-Ass ... 9987347405

We currently are licensed and actively doing business in 45 states, plus the District of Columbia. The only states that we are not fully licensed in are New York, Connecticut, Alaska, Maine, and Vermont, but we do have third-party administration authority in Alaska, Connecticut, and Maine. Our two primary operations are in Scottsdale, Arizona and Tampa, Florida.
User avatar
Topic Author
Stinky
Posts: 7825
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

gips wrote: Thu Jun 10, 2021 2:31 am i was interested in the sagicor myga but after poking around, learned they are not licensed in ny:

https://www.sagicor.com/-/media/USA-Ass ... 9987347405

We currently are licensed and actively doing business in 45 states, plus the District of Columbia. The only states that we are not fully licensed in are New York, Connecticut, Alaska, Maine, and Vermont, but we do have third-party administration authority in Alaska, Connecticut, and Maine. Our two primary operations are in Scottsdale, Arizona and Tampa, Florida.
That's unfortunate for you.

Insurance is primarily regulated at the state level. Life insurers who want to sell in state "X" need to be "licensed" to sell in that state, and generally need to comply with state "X's" regulations for business sold in that state.

Regulations are generally similar from state to state, but there are important variations. One of the states that historically has had the most restrictive regulations is New York. For a variety of reasons including regulations, many companies choose not to either not write business, or otherwise restrict their business, in New York. This has led to consumers in New York often having less choice in insurance products, and paying higher prices or yielding lower returns than in other states.

If I look at the Blueprint site for a $100,000 MYGA, I see that residents of Texas have 155 product choices available to them. Other large states have a good range of choices, including Florida at 132 and California at 94. However, residents of New York have only 22 choices available to them, and the most attractive rate is 2.05% on a 7-year MYGA from a company with a rating of B+. The best interest rate in New York from a company in the "A" range is 1.80%.

MYGAs are clearly less attractive to New York residents than to those in all other states.
It's a GREAT day to be alive! - Travis Tritt
User avatar
HueyLD
Posts: 8330
Joined: Mon Jan 14, 2008 10:30 am

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by HueyLD »

Stinky said: “ If I look at the Blueprint site for a $100,000 MYGA, I see that residents of Texas have 155 product choices available to them. Other large states have a good range of choices, including Florida at 132 and California at 94. However, residents of New York have only 22 choices available to them, and the most attractive rate is 2.05% on a 7-year MYGA from a company with a rating of B+. The best interest rate in New York from a company in the "A" range is 1.80%.”

Very interesting indeed.

The irony is that NY Life is probably among the most famous life insurers in this country. Here is a serious question:

Is NY Life licensed to do business in New York State? :oops:
User avatar
Topic Author
Stinky
Posts: 7825
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

HueyLD wrote: Thu Jun 10, 2021 5:33 am The irony is that NY Life is probably among the most famous life insurers in this country. Here is a serious question:

Is NY Life licensed to do business in New York State? :oops:
Yes, New York Life Insurance Company is domiciled (that is, incorporated) in New York State, so it writes business there. There are several other historic life insurance companies, including Metropolitan, Equitable, and MONY, that are domiciled in New York State.

Interestingly, even New York Life has chosen to form subsidiary life insurance companies that are not domiciled in New York State, including New York Life and Annuity (domiciled in Delaware). I expect that the NYL group finds it useful to have some companies that are not directly subject to NY State regulation.
It's a GREAT day to be alive! - Travis Tritt
Post Reply