MNL IndexBuilderSM 10 and 14 by Midland National

MNL IndexBuilderSM is a relatively new product released in the end of 2015, it offers large variety of index options(such as S&P 500®, DIJA®, NASDAQ-100®) and a fixed rate option. Contract minimum is $20,000 for qualified and non-qualified funds, surrender periods are 10 and 14 years. There is a premium bonus of 5%-10% depending on the contract amount and period, the premium bonus is applied to all payments received during the first 7 contract years. There is a Waiver of Surrender Charges and Market Value Adjustment if you are confined to a qualified care facility for at least 90 consecutive days after the first contract year. There is a Lifetime Income option which guarantees income stream for life or a specified period.

  • Pros:
  • Upfront premium bonus offered, which also applies to additional premium payments during the first 7 years
  • Variety of index strategies with total of 11 crediting strategies
  • Funds can be transferred between allocated index accounts and crediting method options annually
  • Fixed rate option with a minimum rate guarantee, interest is credited daily
  • Lifetime Income with several annuity payout options is offered
  • MVA is not in effect after the end of surrender period if you choose a Life Income Option
  • No premium bonus recapture will occur on any penalty-free withdrawal, under the Nursing Home Confinement Waiver or in the event of death
  • Cons:
  • Products with premium bonuses may offer lower credited interest rates, Index Cap Rates and Participation Rates
  • Currently offered fixed rates are 1.60% for 10 year and 1.85% for 14 year contracts. Current rates are effective 2-14-17 and are subject to change.
  • Market Value Adjustment (MVA) may decrease or increase Surrender Value
  • Withdrawals taken prior to age 59½ may be subject to IRS penalties
  • Once a payout option is elected and Lifetime Income payments begin, it cannot be changed and all other rights and benefits under the annuity end

Disclosures: Products issued by Midland National® Life Insurance Company, West Des Moines, Iowa. Product features, riders and index options may not be available in all states or appropriate for all clients. See product brochures and disclosures for further details, limitations and information on appropriate state variations.

The MNL IndexBuilderSM is issued on form AC/AS145A (certificate/contract). , AR306A, AR307A, AR308A, AR310A.PB, AR310B.PB, AR311A, AR312A, AR313A, AR314A, AR315A, AR316A, AR317A (AR151A04 in CA) and (AR341A04.PB in CA).

Fixed Index Annuities are not a direct investment in the stock market. They are long term insurance products with guarantees backed by the issuing company. They provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or fluctuation. Although Fixed Index Annuities guarantee no loss of premium due to market downturns, deductions from your Accumulation Value for additional optional benefit riders could under certain scenarios exceed interest credited to the Accumulation Value, which would result in loss of premium. They may not be appropriate for all clients

A surrender during the surrender charge period could result in a loss of premium. Surrender charge structure may vary by state.

Under current law, annuities grow tax deferred. An annuity is not required for tax deferral in qualified plans. Annuities may be subject to taxation during the income or withdrawal phase. Please note that neither Midland National, nor any agents acting on its behalf, should be viewed as providing legal, tax or investment advice. Your client should be advised to rely on their own qualified adviser.

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