Rates as of 1/13/2026

Let's start with a product built on simplicity and safety: the Multi-Year Guaranteed Annuity, or MYGA. Think of a MYGA as an insurance company's version of a bank CD, but with a crucial advantage: tax deferral. Your interest grows without being taxed annually, allowing your money to compound faster.

And the rates right now? They are incredibly competitive. You can find top MYGA rates that rival or even beat many other secure investments, including Fixed Indexed Annuities.

These rates are locked in for the entire term, offering predictability and peace of mind. You know exactly what your account value will be at the end of the term, guaranteed by the issuing insurance company.

Predictable credited interest rates are a hallmark of these options. The rates on fixed annuities, including MYGAs, are derived from the insurer’s general account, which typically comprises high-quality bonds and other conservative holdings. 

Guaranteed minimum rates are also a feature to consider. Once the initial guarantee period in the contract expires, the insurer can adjust the rate based on a stated formula or on the yield it is earning on its general account. As a measure of protection against declining interest rates, fixed annuity contracts, including those providing Guaranteed Income for Life, typically include a minimum rate guarantee.

Potential for growth without the fear of market loss is offered by Fixed Indexed Annuities, or FIAs. An FIA differs from a Multi-Year Guaranteed Annuity (MYGA) in that your potential interest is linked to the performance of an external market index, such as the S&P 500, while not being directly invested in the market. The key benefit? When the market rises, your account can earn interest, subject to limits like caps or participation rates. Conversely, when the market declines, your principal and previously credited interest are safeguarded—you receive a zero return for that period, but you won’t lose any money.

What about real performance? Historical data illustrates a balance of protection and growth. For example, an indexed annuity employing a monthly averaging strategy linked to the S&P 500 during significant market downturns (such as 2000-2002 or 2007-2009) fully protected the principal, while direct market investments would have incurred substantial losses.

Over extended periods, the average return of an indexed annuity with an 11% cap rate on the S&P 500 has been historically observed at around 6.64% annually. This offers consistent, protected growth potential that traditional, fully market-exposed investments cannot match.

Full protection of principal is a hallmark of FIAs. These products are shielded from market volatility—your money is never invested in the stock market. While your credit strategy tracks the stock market, you do not own assets that are subject to losing value. Moreover, FIAs can potentially provide better rates than CDs. From 1999 to 2020, many Fixed Indexed Annuities outperformed the indexes they were correlated with. However, it’s important to note that while this can happen, these annuities are not specifically designed to outperform the stock market.

Finally, Fixed Indexed Annuities offer an efficient way to plan for future income needs. Once you choose to annuitize with a Guaranteed Income for Life option or activate the income rider payouts, you ensure that you cannot outlive that income stream.

Now for the main event: ensuring you can't outlive your money. Many deferred annuities, including Fixed Indexed Annuities (FIAs) and Multi-Year Guaranteed Annuities (MYGAs), offer an optional feature called a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider. 

This is a game-changer for retirement security, providing Guaranteed Income for Life. With some annuities, this rider is included, while for others, it may come at an extra charge. The GLWB rider guarantees a steady stream of income for the rest of your life, and if you choose, your spouse's life too, even if your account value drops to zero. 

How it works: The rider establishes a separate 'benefit base,' which is used solely to calculate your lifetime income payments. This base often grows at a guaranteed roll-up rate (e.g., 5% compounded annually) until you start taking income. When you're ready to retire, the insurance company pays a set percentage of that base (typically 4% to 10%, depending on your age) every year for life. 

It acts as your personal pension plan, providing the kind of reliable income stream that Social Security offers.