Annuity companies are counting on you to forget about your MYGA so they can quietly roll it into a low-paying renewal. In this episode, Stan The Annuity Man breaks down how the auto-renewal game really works—and exactly what you should do instead to lock in the highest contractual guarantees.
In this episode, The Annuity Man discussed:
What a MYGA is and how it functions like a CD
How auto-renewal works with MYGAs
Why renewal rates are often uncompetitive by design
Using an agent of record to avoid bad auto-renewals
Shopping for the highest-paying MYGA or SPIA at maturity
Key Takeaways:
Multi-year guarantee annuities operate much like CDs, but with the advantage of tax-deferred compounding when using non-qualified money.
Auto-renewal rates on MYGAs are historically poor and are rarely competitive with rates available in the broader marketplace at maturity.
Annuity companies benefit when contracts quietly roll over at low rates, especially when original agents leave the business and no one is actively servicing the account.
Proactively working with a dedicated team to track maturity dates helps ensure policies are shopped at renewal and transferred to better-paying MYGAs or SPIAs without triggering taxes.
Treat annuities strictly as contractual tools—focus on the highest guaranteed terms available rather than vague possibilities or marketing promises.
"Historically, the auto renewal rates are horrible." — Stan The Annuity Man
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