What is the guaranteed term?
Use this as a checkpoint before comparing carriers or signing an application.
Insurance terms
Multi-year guaranteed annuity
A fixed annuity with a stated rate period.
Definition
Multi-year guaranteed annuity
A multi-year guaranteed annuity, often called a MYGA, is a fixed annuity that states a guaranteed rate for a set number of years, subject to the contract terms.
- Why it mattersThe rate is only one part of the decision. The surrender schedule, renewal process, tax treatment, withdrawal access, and carrier claims-paying ability should be reviewed before funds move.
- What it is notThis is not a quote, approval, recommendation, or policy promise. The exact meaning depends on the contract and carrier.
- Where to confirm itAsk to see the policy language, rider language, illustration, or contract page that controls this term.
Questions to ask.
A good broker conversation should turn a definition into a practical policy decision.
What are the surrender charges?
Use this as a checkpoint before comparing carriers or signing an application.
How much can be withdrawn each year?
Use this as a checkpoint before comparing carriers or signing an application.
What happens at renewal?
Use this as a checkpoint before comparing carriers or signing an application.
Related reading.
Keep the explanation connected to the product you are comparing.