MYGAs in Durham: compare guaranteed rates, liquidity, and contract terms
A Multi-Year Guaranteed Annuity (MYGA) is a fixed annuity insurance contract that generally credits a stated rate for a stated period. It is not a bank CD, is not FDIC-insured, and its guarantees depend on the issuing insurer's claims-paying ability and written contract.
Match the guarantee period to the money's time horizon
Ask how long the stated rate is guaranteed, what may happen at the end of that period, and whether the money may be needed sooner. Review renewal terms and the choices available at the end of the guarantee period.
Compare liquidity and surrender charges
For each contract, ask for the surrender-charge schedule, penalty-free withdrawal allowance, timing rules, market value adjustment where applicable, and effects of withdrawals. Early withdrawals can result in charges and tax consequences.
Review the actual insurer contract
Identify the issuing insurer and exact contract. Request the buyer's guide, disclosure documents, and contract illustration. Ask which rate and terms are guaranteed, which can change, and how the agency is compensated.
Durham MYGA questions and answers
Frequently Asked Questions
Is the highest MYGA rate always the best choice?
No. A rate should be considered with the guarantee period, surrender charges, liquidity, renewal terms, insurer, and the role the money plays in the overall plan.
Can I take money from a MYGA during the guarantee period?
Contract rules vary. Some permit limited penalty-free withdrawals, while withdrawals beyond an allowance can trigger surrender charges or other consequences. Read the specific contract.
Is a MYGA the same as a CD?
No. A MYGA is an annuity insurance contract. Its guarantees are backed by the issuing insurer, not FDIC insurance.
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