Category: Annuity News

3 Year MYGA with 15% Day 1 Liquidity – 2.05% at $100,000 and up – A+ Rated

Client Needs Short Term Alternative with Additional Liquidity? Principal Financial Group has raised their MYGA rates for December and their 3 year offering looks solid. For clients with $100,000 or more of premium, the carrier is paying a base rate of 1.75% along with a first year interest bonus of 0.90%. If held to maturity, the effective annual yield is 2.05%. Principal contracts tend to be among the most friendly to clients in terms of liquidity. 15% penalty free withdrawals are allowed from the day the contract is issued, waivers for terminal illness/disability/medical care confinement are built in and a return of premium (ROP) option can be chosen. The ROP yield is reduced to 1.80% but allows the client to recoup all premium without surrender penalties. In what appears to be a gradually rising rate environment with an ever upward moving equity market, we are hearing more feedback from agents that clients are looking for shorter term and flexible options. Principal seems to be a logical fit, and we want you to know we have it available for your clients. Sincerely, David W. Smith Vice President of Annuities The ASA Group (501) 224-7739 annuities@theasagroup.com...

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