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Why Annuities

Midland National wants you to make an informed decision when you consider the purchase of an annuity. Annuities are an excellent tool to help you plan for your financial security. You can download a tip sheet to assist you in making the decision that is right for you. Annuities offer a variety of benefits including tax-deferred growth, ability to avoid probate, and lifetime income.

Tax-Deferred Growth
Tax-deferred growth allows your money to grow faster because you earn interest on dollars that would otherwise be paid as taxes. Your principal earns interest, the interest compounds within the contract, and the money you would have paid in taxes earns interest. The chart to the right shows the impact of a tax-deferred annuity.

May Avoid Probate
Annuities offer the ability to name a beneficiary, which may minimize the expense, delays, and publicity that comes with probate. Your named beneficiary may receive death proceeds as either a lump sum or monthly income.

Lifetime Income
Midland National can provide you with a guaranteed income stream with the purchase of a tax-deferred annuity. You have the ability to choose from several different income options, including life or a specific period. With non-qualified plans, a portion of each income payment represents a return of premium that is not taxable, reducing your tax liabilities.

1. Chart is a hypothetical example of tax-deferral and assumes an initial premium of $100,000 earning 4.00% compounded annual rate of return for 15 years. Not intended to predict or project performance.
*Tax-deferred value less taxes represents the increase in value, due to tax-deferral, less taxes at an assumed rate of 33% with no surrender charge or Interest Adjustment applied.