Senior Market Sales (SMS) prides itself on being a one-stop-shop so that agents can offer suitable solutions to clients and satisfy a variety of needs. In addition, we’ve built a reputation as a leader in identifying industry trends at the right time, so that our agents can seize more opportunities. For this reason, SMS is building a strong presence in the multi-year guaranteed annuity (MYGA) space.

What Is a MYGA?

MYGAs are fixed-rate annuities which offer a guaranteed rate of return for a specified number of years. Because of this guaranteed rate, clients know exactly how much growth to expect in their account over time. Generally, these types of annuities have a specific surrender charge schedule, and most offer free withdrawal provisions that the client can utilize while in the surrender charge period. Also, many MYGA products have additional available benefits such as nursing home and terminal illness surrender charge waivers.

MYGA White Paper

Who’s the Ideal MYGA Client?

Conservative clients who worry about fluctuations in their accounts due to market performance are a good potential prospect for a MYGA. MYGAs eliminate that concern by offering a guaranteed rate of return regardless of how markets perform.

Older clients who may be beyond the maximum issue ages for other annuity products could still be eligible for MYGAs. MYGAs, because of their conservative nature, generally have higher maximum issue ages. SMS’s current MYGA lineup includes products that go all the way up to issue age 100.

Certificate of deposit (CD) clients are potentially good prospects for MYGAs. Like CDs, MYGAs offer a guaranteed rate of return over a certain period of time. MYGAs however offer additional potential benefits such as tax deferral and generally higher guaranteed rates of interest.

Clients who want shorter surrender periods would potentially be good candidates for MYGAs. As compared to variable and indexed annuities, MYGAs offer shorter surrender options. In fact, SMS has a MYGA product available with a surrender schedule of only one year.

In Summary

Using MYGA products as a part of a client’s overall wealth accumulation strategy, is a viable option for the suitable client. In addition, these products represent a great opportunity to build solid client relationships that last. Do call 1.877.645.4939 to learn more about the MYGA products offered through SMS and how they can be used to benefit your clients and your business.

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